"Who won … Grandma or me?" the agent asked on the audiotape. "Grandma … because she had the lower income," the worker said, laughing. Other abuses included admitting a family who lived outside the Head Start service area, ignoring proof of employment, and admitting extraordinarily high numbers of "homeless" children. Under new rules, homeless children are automatically eligible for Head Start. The audio clips are available at the GAO web site, www.gao.gov, listed under "reports and testimonies" for May 18. The GAO also found two Head Start families who reported incomes "in excess of $110,000," and that 63 children were...