Fresno Head Start program raised ‘red flag’ months before executive’s firing, budget crisis
Months before a Fresno poverty-fighting organization parted ways with its CEO amid a budget shortfall, the director of the agency’s largest program was fired for speaking out about financial irregularities, according to her lawyer.
As of Oct. 1, Rosa Pineda, Director of Head Start, was no longer employed with Fresno Economic Opportunities Commission, an agency spokesperson confirmed.
Pineda’s departure happened about two months before the nonprofit also parted ways with its former CEO, Emilia Reyes. Reyes was placed on leave in mid-November.
Fresno EOC has not publicly commented on the reasons for Pineda’s and Reyes’ departures, though they came amid a $3.4 million budget deficit and inquiries from regulators over potential financial mismanagement.
Fresno EOC spokesperson Karina Perez said the commission could not comment on Pineda’s departure “for privacy and legal reasons.” Fresno EOC also declined The Bee’s request for an interview.
When reached for comment, Pineda directed questions to her lawyer, Kevin Little. In a phone interview with The Bee this week, Little said Pineda was fired for alleged retaliation and planned to file a lawsuit in the coming months.
Little said Pineda raised concerns about public funding earmarked for the Head Start program being used for other purposes.
“It seems pretty evident to me that she was the subject of retaliation,” Little said. He said the organization tried to get Pineda to resign, but she refused.
Pineda had been employed with Fresno EOC since 1996, when she started as an early childhood education specialist, according to her LinkedIn page. “She was universally considered a high performer, (a) long time employee,” Little said.
In December, Assemblymember Joaquin Arambula, D-Fresno, a member of the Fresno EOC’s Board of Commissioners, called for a forensic financial audit to better understand the agency’s budget. The forensic audit, which is yet to be completed, is expected to include an analysis of the Head Start program.
Head Start is a federally funded program that provides eligible pregnant women and children ages birth to five with child development and family support services. Fresno EOC has administered the program since 1965.
Head Start is also Fresno EOC’s largest program. Fresno EOC is expected to receive $183.4 million in the 2025 fiscal year for its Head Start and Early Head Start programs, according to an analysis of federal grants. (The organization’s total annual operating budget is $134 million.)
But the program has been under scrutiny in recent months due to financial management and declining enrollment.
A financial audit of the Head Start program completed earlier this month raised a “red flag” for both the CEO and board members alike.
In 2023, the program caught the attention of the federal Office of Head Start due to months of late financial reporting due to subpar internal controls.
In 2021, Fresno EOC risked losing a $42 million grant award to run the Head Start program after it had to re-compete for the program funding due to the Office of Head Start rules and regulations. At the time, then-CEO Reyes said about 100 jobs were on the line if the organization would have lost the funding. As of 2021, the Head Start program employed an estimated 600 people, or about half of the Fresno EOC’s total staff.
The agency’s Board of Commissioners voted Monday to reduce the Head Start program size as months of underenrollment jeopardized millions of dollars in federal program funding.
One staff member who asked to remain anonymous because they were not authorized to speak publicly said: “If Head Start doesn’t exist, neither does EOC.”
Another former staff member, Stacy Williams, has also filed a lawsuit against Fresno EOC alleging retaliation for speaking out about unlawful actions by agency officials.
Audit of Head Start raises ‘red flag’
According to an audit committee meeting on Thursday, Fresno EOC hired an external auditor after the federal Office of Head Start contacted the organization in October about a whistleblower complaint. The complaint was related to late and unpaid invoices – including health and pension contributions.
During the meeting, committee members and agency staff reviewed the results of an audit of the Head Start program completed Feb. 11.
The audit found 34 out of 120, or 28%, of the Head Start’s invoices were being paid later than 30 days, or had not yet been paid.
Arambula called the late bills a “red flag” — and he’s not the only one.
“It is a red flag,” said interim CEO Brian Angus, who succeeded Reyes in January. “It’s part of what I’m here for.”
While he didn’t name Pineda directly, Angus indicated the former Head Start director wasn’t paying invoices.
“The issue that somehow the Head Start director was able to hold a ton of invoices — new processes (have been) put in place so that doesn’t happen,” he said.
Arambula said during the audit meeting that his “major focus” is around the month of October, when the organization had about 400 unpaid invoices.
The audit also found two improper staff cost allocations to the Head Start program — one undercharging and another overcharging the program. A few program staff were also found to be out of compliance with required training requirements.
This story was originally published February 28, 2025 at 11:11 AM.
