I 

110TH CONGRESS 

1ST SESSION H. R. 1630 

To amend the Head Start Act to provide greater accountability for Head 

Start agencies. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 21, 2007 

Mr. PUTNAM introduced the following bill; which was referred to the 

Committee on Education and Labor 

A BILL 

To amend the Head Start Act to provide greater 

accountability for Head Start agencies. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Head Start Account5 ability Act of 2007’’. 

6 SEC. 2. FINANCIAL ASSISTANCE FOR HEAD START PRO7 GRAMS. 

8 Section 638 of the Head Start Act (42 U.S.C. 9833) 

9 is amended by inserting ‘‘for a period of 5 years’’ after 

10 ‘‘provide financial assistance to such agency’’. 

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1 SEC. 3. DESIGNATION OF HEAD START AGENCIES. 

2 Subsections (a), (b), and (c) of section 641 of the 

3 Head Start Act (42 U.S.C. 9836) are amended to read 

4 as follows: 

5 ‘‘(a) DESIGNATION.— 

6 ‘‘(1) IN GENERAL.—The Secretary is authorized 

7 to designate as a Head Start agency any local public 

8 or private nonprofit or for-profit agency, within a 

9 community, including a community-based organiza10 tion, that— 

11 ‘‘(A) has power and authority to carry out 

12 the purpose of this subchapter and perform the 

13 functions set forth in section 642 within such 

14 community; and 

15 ‘‘(B) is determined by the Secretary (in 

16 consultation with the chief executive officer of 

17 the State involved, if the State expends non18 Federal funds to carry out Head Start pro19 grams) to be capable of planning, conducting, 

20 administering, and evaluating, either directly or 

21 by other arrangements, a Head Start program. 

22 ‘‘(2) REQUIRED GOALS FOR DESIGNATION.—In 

23 order to be eligible for designation as a Head Start 

24 agency, an entity described in paragraph (1) shall 

25 establish program goals for continuous improvement 

26 in all areas of program operations (including early 

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1 childhood development and health services), program 

2 design and management, and family and community 

3 partnerships. 

4 ‘‘(3) ELIGIBILITY FOR SUBSEQUENT DESIGNA5 TION.—In order to be eligible for designation as a 

6 Head Start agency subsequent to the initial designa7 tion made by the Secretary after the effective date 

8 of the Head Start Accountability Act of 2007, a 

9 Head Start agency shall demonstrate that such 

10 agency has met or is making progress toward meet11 ing such goals. 

12 ‘‘(4) LOCAL OVERSIGHT BOARD.—In order to 

13 be eligible for designation as a Head Start agency, 

14 an entity described in paragraph (1) shall establish 

15 a local oversight board that— 

16 ‘‘(A) is composed of volunteer individuals 

17 who include (but are not limited to) a Head 

18 Start parent, a representative of a school board, 

19 a child development expert, a member of the 

20 business community, and other volunteer indi21 viduals who are residents of the community, in22 cluding individuals who have an understanding 

23 of the general principles of accounting, law, 

24 business administration, and management; 

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1 ‘‘(B) operates as a unit independent of 

2 staff employed by such agency; 

3 ‘‘(C) actively participates in the develop4 ment, strategic planning, implementation, and 

5 evaluation of the Head Start program for which 

6 it is established; 

7 ‘‘(D) provides oversight of such program to 

8 ensure that such Head Start agency is deliv9 ering high quality services to children and fami10 lies in compliance with all applicable standards 

11 in effect under this subchapter and with the ap12 plicable performance measures established by 

13 the Secretary under section 644; 

14 ‘‘(E) takes no action that may provide 

15 (and takes appropriate action to prevent pro16 viding) any direct or indirect financial benefit 

17 to any member of such board or to any member 

18 of the staff of such agency; 

19 ‘‘(F) reviews and approves annually the 

20 operating budget of such program; 

21 ‘‘(G) reviews and approves the bylaws ap22 plicable to such program; 

23 ‘‘(H) reviews annually the human re24 sources (including administrative and manage25 ment staff) available to carry out such program 

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1 and makes recommendations regarding such re2 sources to ensure the effective operation of such 

3 program; and 

4 ‘‘(I) monitors staff implementation of any 

5 corrective action necessary to comply with ap6 plicable laws (including regulations) governing 

7 financial statements and with all requirements 

8 applicable under this subchapter. 

9 ‘‘(b) COMMUNITIES.—For purposes of this sub10 chapter, a community may be a city, county, or multicity 

11 or multicounty unit within a State, an Indian reservation 

12 (including Indians in any off-reservation area designated 

13 by an appropriate tribal government in consultation with 

14 the Secretary), or a neighborhood or other area (irrespec15 tive of boundaries or political subdivisions) that provides 

16 a suitable organizational base and that possesses the com17 monality of interest needed to operate a Head Start pro18 gram. 

19 ‘‘(c) PRIORITY IN DESIGNATION.—In administering 

20 the provisions of this section, the Secretary shall, in con21 sultation with the chief executive officer of the State in22 volved, give priority in the designation (including a subse23 quent designation) of Head Start agencies to any high24 performing Head Start agency or delegate agency that— 

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1 ‘‘(1) is receiving assistance under this sub2 chapter; 

3 ‘‘(2) meets or exceeds program and financial 

4 management requirements, standards described in 

5 section 641A(a)(1), and other requirements estab6 lished by the Secretary; 

7 ‘‘(3) has no unresolved programmatic defi8 ciencies or areas of noncompliance, and has not had 

9 findings of deficiencies during the then most recent 

10 triennial review conducted under section 641A(c); 

11 and 

12 ‘‘(4) has taken the actions required by the Sec13 retary under section 647(c) to correct deficiencies.’’. 

14 SEC. 4. QUALITY STANDARDS; MONITORING OF HEAD 

15 START AGENCIES AND PROGRAMS. 

16 (a) QUALITY STANDARDS.—Section 641A(a) of the 

17 Head Start Act (42 U.S.C. 9836a(a)) is amended— 

18 (1) in paragraph (1) by amending subpara19 graph (C) to read as follows: 

20 ‘‘(C) administrative and financial manage21 ment standards, including internal controls nec22 essary to safeguard Federal funds;’’, and 

23 (2) by adding at the end the following: 

24 ‘‘(4) EVALUATIONS AND CORRECTIVE ACTIONS

25 FOR DELEGATE AGENCIES.— 

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1 ‘‘(A) PROCEDURES.—Each Head Start 

2 agency shall establish procedures relating to its 

3 delegate agencies, including— 

4 ‘‘(i) procedures for evaluating delegate 

5 agencies; 

6 ‘‘(ii) procedures for terminating finan7 cial assistance otherwise provided to dele8 gate agencies; and 

9 ‘‘(iii) procedures for appealing a fi10 nancial assistance termination decision re11 lating to a delegate agency. 

12 ‘‘(B) EVALUATIONS.—Each Head Start 

13 agency— 

14 ‘‘(i) shall evaluate its delegate agen15 cies using the procedures established pur16 suant to this section; and 

17 ‘‘(ii) shall inform such delegate agen18 cies of the deficiencies identified through 

19 the evaluation that are required to be cor20 rected. 

21 ‘‘(C) REMEDIES TO ENSURE CORRECTIVE

22 ACTIONS.—If a Head Start agency identifies a 

23 deficiency for a delegate agency through the 

24 evaluation, such Head Start agency may— 

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1 ‘‘(i) initiate procedures to terminate 

2 the designation of such delegate agency 

3 unless such delegate agency corrects the 

4 deficiency; 

5 ‘‘(ii) conduct monitoring visits, as 

6 needed and without notice, to such dele7 gate agency until either such deficiency is 

8 corrected or such Head Start agency ter9 minates the financial assistance otherwise 

10 provided to such delegate agency; and 

11 ‘‘(iii) release funds to such delegate 

12 agency only as reimbursements until either 

13 such deficiency is corrected by such dele14 gate agency or such Head Start agency 

15 terminates financial assistance otherwise 

16 provided such delegate agency. 

17 ‘‘(D) RULE OF CONSTRUCTION.—Nothing 

18 in this paragraph shall be construed to modify 

19 or supersede the responsibilities of the Sec20 retary with respect to Head Start agencies or 

21 delegate agencies that receive financial assist22 ance under this subchapter.’’. 

23 (b) CORRECTIVE ACTION; TERMINATION.—Section 

24 641A(d) of the Head Start Act (42 U.S.C. 9836a(d)) is 

25 amended— 

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1 (1) in paragraph (1)(B)(ii)— 

2 (A) by striking ‘‘90’’ and inserting ‘‘60’’, 

3 and 

4 (B) by striking ‘‘90-day’’ and inserting 

5 ‘‘60-day’’, and 

6 (2) in paragraph (2)— 

7 (A) in subparagraph (A) by striking ‘‘90- 

8 day’’ and inserting ‘‘60-day’’, and 

9 (B) by amending subparagraph (B) to read 

10 as follows: 

11 ‘‘(B) SECRETARIAL RESPONSIBILITY.—The 

12 Secretary shall— 

13 ‘‘(i) not later than 30 days after re14 ceiving from a Head Start agency a pro15 posed quality improvement plan for correc16 tive action pursuant to subparagraph (A), 

17 either approve such plan or specify the rea18 sons why such plan cannot be approved; 

19 and 

20 ‘‘(ii) not later than 60 days after ap21 proving a quality improvement plan under 

22 this subparagraph, conduct an on-site re23 view to certify that all deficiencies of such 

24 Head Start agency, and of all Head Start 

25 programs operated by such Head Start 

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1 agency, have been corrected in accordance 

2 with the standards established under this 

3 subchapter and with the results-based per4 formance measures developed by the Sec5 retary under subsection (b).’’. 

6 SEC. 5. APPEALS, NOTICE, AND HEARING. 

7 (a) PROCEDURES.—Paragraphs (2) and (3) of sec8 tion 646(a) of the Head Start Act (42 U.S.C. 9841(a)) 

9 are amended to read as follows: 

10 ‘‘(2) except in emergency situations, a recipient of fi11 nancial assistance under this subchapter shall receive writ12 ten notice not less than 30 days before such assistance 

13 is suspended, terminated, or reduced; 

14 ‘‘(3) such recipient shall be provided an opportunity 

15 for full and fair hearing, including an opportunity to show 

16 cause why the action described in such notice should not 

17 be taken; and’’. 

18 (b) LIMITATION ON USE OF FUNDS.—Section 646 of 

19 the Head Start Act (42 U.S.C. 9841) is amended by add20 ing at the end the following: 

21 ‘‘(f) A recipient of financial assistance under this sub22 chapter may not use such assistance for the purpose of 

23 appealing any decision made by the Secretary under this 

24 subchapter.’’. 

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1 SEC. 6. AUDITS. 

2 Section 647 of the Head Start Act (42 U.S.C. 9842) 

3 is amended by adding at the end the following: 

4 ‘‘(c)(1) Not later that 60 days after the end of each 

5 fiscal year, each Head Start agency shall submit to the 

6 Secretary an independent financial audit of the Head 

7 Start program carried out with financial assistance pro8 vided under this subchapter. Such audit shall be carried 

9 out by a certified public accountant selected through a 

10 competitive process from among qualified certified ac11 countants by the local oversight board established in ac12 cordance with section 641(a) by such agency, except that 

13 no accountant may perform audits of such program for 

14 a period exceeding 2 consecutive fiscal years. 

15 ‘‘(2) Not later than 60 days after receiving such 

16 audit, the Secretary shall provide to such agency, and to 

17 the chief executive officer of the State in which such pro18 gram is operated, a notice identifying the actions such 

19 agency is required to take to correct all deficiencies identi20 fied in such audit. 

21 ‘‘(d) Each recipient of financial assistance under this 

22 subchapter shall— 

23 ‘‘(1) maintain, and annually submit to the Sec24 retary, a complete accounting of its administrative 

25 expenses (including a detailed statement identifying 

26 the amount of financial assistance provided under 

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1 this subchapter used to pay expenses for salaries 

2 and compensation and the amount (if any) of other 

3 funds used to pay such expenses); and 

4 ‘‘(2) provide such additional documentation as 

5 the Secretary may require.’’. 

6 SEC. 7. EFFECTIVE DATE. 

7 This Act and the amendments made by this Act shall 

8 take effect on the 1st day of the 1st fiscal year beginning 

9 after the date of the enactment of this Act. 

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