Washington ( CNN ) -- Staff members at eight Head Start centers manipulated income information given to them by undercover applicants so that the applicants would get benefits they were not qualified for , according to a Government Accountability Office report being released Tuesday . In response to the report , Health and Human Services Director Kathleen Sebelius has notified the more than 1,600 operators of Head Start facilities nationwide of new steps being taken to crack down on fraud . The GAO report says undercover applicants made 15 visits to 13 centers in six states and the District of Columbia to register their fictitious children . At eight of those centers , Head Start employees disregarded `` part of the families ' income to register over-income children into under-income slots '' or `` lied about applicants ' employment status or misrepresented their earnings , '' the report says . The Head Start program provides child development services to around 1 million children of low-income families . Because of its popularity , many Head Start centers have waiting lists for spots for children . The GAO report raises concerns that many Head Start slots are taken up by children of families that are not low income , thereby leaving the targeted low income children on the waiting lists . At a Wisconsin center , the report says , a Head Start associate knowingly included the income from only one of the child 's guardians so that the family would qualify for the Head Start program . And in Pennsylvania , a Head Start associate disregarded $ 23,000 in income for a family of three so that they would qualify . Then , when told that the mother also received some additional cash income from a part time job , the associate replied , `` That 's your business , '' the report says . The GAO undercover operation also looked at centers in California , Maryland , New Jersey , Texas and the District of Columbia . In her letter , sent Monday , Sebelius said that the department 's inspector general 's office is following up on the incidents reported by the GAO , and that those incidents and any other allegations of fraud could result in criminal prosecutions . Among other steps the Health and Human Services Department will take , she said , are increasing the number of unannounced visits to monitor centers , requiring operators to improve any inadequate controls to prevent errors and other lapses , and developing `` new regulations that promote program integrity . '' `` Allowing ineligible children to enroll in the program is a blatant violation of head Start 's rules and it steals opportunity from children who need it most , '' Sebelius wrote .
Watchdog agency says workers rigged information to allow undercover applicants to qualify . The investigation is being conducted by the U.S. Department of Labor and involves more than 100 people who worked at a company called American Dream Job Search. Health and Human Services to impose new steps to curb fraud at Head Start 's 1,600 centers . The program provides educational , nutritional aid to 1 million low-income children .