‘‘(D) be valid and reliable (in English, 
Spanish, and any other language, as appro-
priate); 
‘‘(E) be administered by staff with appro-
priate training for such administration; 
‘‘(F) provide appropriate accommodations 
for children with disabilities and children who 
are limited English proficient; and 
‘‘(G) be high-quality research-based meas-
ures that have been demonstrated to assist with 
the purposes for which they were devised. 
‘‘(3) USE OF MEASURES; LIMITATIONS ON USE.— 
‘‘(A) Measures shall be designed for the pur-
pose of— 
‘‘(i) promoting the skills, knowledge, 
and competencies of children participating 
in Head Start programs specified in sub-
section (a)(1)(B)(ii), with an emphasis on 
measuring skills that scientifically-based re-
search has demonstrated are related to chil-
dren’s school readiness and later success in 
school; 
‘‘(ii) improving classroom practices, 
including reviewing children’s strengths and 
weaknesses; 
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‘‘(iii) identifying special needs; and 
‘‘(iv) improving overall program per-
formance in order to help programs identify 
problem areas that may require additional 
training and technical assistance resources. 
‘‘(B) Such measures shall not be used to ex-
clude children from Head Start programs. 
‘‘(4) SUSPENDED IMPLEMENTATION OF NATIONAL 
REPORTING SYSTEM.—The Secretary shall— 
‘‘(A) suspend implementation and termi-
nate further development and use of the National 
Reporting System; and 
‘‘(B) incorporate, as appropriate, rec-
ommendations from the study on Developmental 
Outcomes and Assessments for Young Children 
by the National Academy of Sciences into any 
assessment used in the Head Start programs, in 
accordance with paragraphs (2) and (3). 
‘‘(5) SPECIAL
RULE.—The use of assessment 
items and data on any assessment authorized under 
this subchapter by an agent or agents of the Federal 
Government to provide rewards or sanctions for indi-
vidual children or teachers is prohibited. The Sec-
retary shall not use the results of a single assessment 
as the sole or primary method for assessing program 
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effectiveness or making grantee funding determina-
tions at the national, regional, or local level. 
‘‘(6) CONFIDENTIALITY.— 
‘‘(A) The Secretary, through regulation, 
shall ensure the confidentiality of any personally 
identifiable data, information and records col-
lected or maintained by the Secretary and any 
Head Start agency. Such regulations shall pro-
vide the policies, protections, and rights equiva-
lent to those provided a parent, student, or edu-
cational agency or institution under section 444 
of the General Education Provisions Act. 
‘‘(B) Nothing in this subsection shall be 
construed to authorize the development of a na-
tionwide database of personally identifiable in-
formation on children participating in measures 
under this subsection. 
‘‘(c) MONITORING
OF LOCAL AGENCIES
AND PRO-
GRAMS.— 
‘‘(1) IN GENERAL.—To determine whether Head 
Start agencies meet standards established under this 
subchapter with respect to program, administrative, 
financial management, and other requirements and 
in order to help programs identify areas for improve-
ment and areas of strengths as part of an on-going 
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self-assessment process, the Secretary shall develop 
and use a risk-based assessment system to conduct the 
following reviews of Head Start agencies, and of the 
Head Start programs operated by such agencies: 
‘‘(A) A full review of each such agency at 
least once during each 3-year period. 
‘‘(B) A review of each newly designated 
Head Start agency immediately after the com-
pletion of the first year such agency carries out 
a Head Start program. 
‘‘(C) Followup reviews, including unan-
nounced reviews as appropriate, of programs 
with 1 or more findings of deficiencies not later 
than 12 months after the date of such finding. 
‘‘(D) other reviews, including unannounced 
site inspections of Head Start centers, as appro-
priate. 
‘‘(2) CONDUCT
OF
REVIEWS.—The Secretary 
shall ensure that reviews described in subparagraphs 
(A) through (C) of paragraph (1)— 
‘‘(A) are conducted by review teams that— 
‘‘(i) 
include 
individuals 
who 
are 
knowledgeable about Head Start programs 
and, to the maximum extent practicable, the 
diverse (including linguistic and cultural) 
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needs of eligible children (including children 
with disabilities) and limited-English pro-
ficient children and their families; and 
‘‘(ii) include, to the maximum extent 
practicable, current or former employees of 
the Department of Health and Human 
Services who are knowledgeable about Head 
Start programs; 
‘‘(B) include as part of the reviews of the 
programs, a review and assessment of program 
strengths and areas in need of improvement; 
‘‘(C) include as part of the reviews of the 
programs, a review and assessment of whether 
programs have adequately addressed the popu-
lation and community needs (including popu-
lations of children with limited English pro-
ficiency and children of migrant and seasonal 
farm-working families); 
‘‘(D) include as part of the review the extent 
to which the program addresses the community 
needs and strategic plan identified in section 
640(g)(2)(C); 
‘‘(E) include as part of the review the im-
plementation by qualified individuals with dem-
onstrated reliability, of a valid and reliable re-
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search-based observational instrument that as-
sesses classroom quality, including multiple di-
mensions of teacher-child interactions that are 
linked to positive child development and later 
achievement; 
‘‘(F) are conducted in a manner that evalu-
ates program performance, quality, and overall 
operations with consistency and objectivity, and 
based on a transparent and reliable system of re-
view; 
‘‘(G) in the case of Early Head Start pro-
grams, are conducted by a review team that in-
cludes individuals who are knowledgeable about 
the development of infants and toddlers; and 
‘‘(H) include as part of the review a pro-
tocol for fiscal management that shall be used to 
assess the compliance with program requirements 
for— 
‘‘(i) using federal funds appropriately; 
‘‘(ii) using federal funds specifically to 
purchase property and to compensate per-
sonnel; 
‘‘(iii) securing and using qualified fis-
cal officer support; and 
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‘‘(iv) reporting financial information 
and implementing appropriate internal 
controls to safeguard federal funds. 
‘‘(3) USE OF REVIEW FINDINGS.—The findings of 
the review shall, at a minimum— 
‘‘(A) be presented to an agency in a timely, 
transparent, and uniform manner that conveys 
information of program strengths and weaknesses 
and assists with program improvement; and 
‘‘(B) be used by the Head Start agencies to 
inform the development and implementation of 
their plan for training and technical assistance. 
‘‘(d) EVALUATIONS AND CORRECTIVE ACTIONS FOR 
DELEGATE AGENCIES.— 
‘‘(1) PROCEDURES.—The Head Start agency 
shall establish procedures relating to its delegate agen-
cies, including— 
‘‘(A) procedures for evaluating delegate 
agencies; 
‘‘(B) procedures for defunding delegate 
agencies; and 
‘‘(C) procedures for appealing a defunding 
decision relating to a delegate agency. 
‘‘(2) EVALUATIONS.—Each Head Start agency— 
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‘‘(A) shall evaluate its delegate agencies 
using the procedures established under this sec-
tion; and 
‘‘(B) shall inform the delegate agencies of 
the deficiencies identified through the evaluation 
that are required to be corrected. 
‘‘(3) REMEDIES
TO
ENSURE
CORRECTIVE
AC-
TIONS.—If the Head Start agency identifies a defi-
ciency of a delegate agency through the evaluation, 
the Head Start agency may— 
‘‘(A) initiate procedures to terminate the 
designation of the delegate agency unless such 
agency corrects the deficiency; and 
‘‘(B) conduct monthly monitoring visits to 
such delegate agency until all deficiencies are 
corrected or the Head Start agency decides to 
defund such delegate agency. 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to modify, supersede, or 
affect the powers, duties, or functions of the Secretary 
with respect to Head Start agencies or delegate agen-
cies that receive financial assistance under this sub-
chapter. 
‘‘(e) CORRECTIVE ACTION; TERMINATION.— 
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‘‘(1) DETERMINATION.—If the Secretary deter-
mines, on the basis of a review pursuant to subsection 
(c), that a Head Start agency designated pursuant to 
section 641 fails to meet the standards described in 
subsection (a) or fails to adequately address the com-
munity needs and strategic plan identified in section 
640(g)(2)(C), the Secretary shall— 
‘‘(A) inform the agency of the deficiencies 
that shall be corrected; 
‘‘(B) with respect to each identified defi-
ciency, require the agency— 
‘‘(i) to correct the deficiency imme-
diately, if the Secretary finds that the defi-
ciency threatens the health or safety of staff 
or program participants or poses a threat 
to the integrity of Federal funds; 
‘‘(ii) to correct the deficiency not later 
than 90 days after the identification of the 
deficiency if the Secretary finds, in the dis-
cretion of the Secretary, that such a 90-day 
period is reasonable, in light of the nature 
and magnitude of the deficiency; or 
‘‘(iii) in the discretion of the Secretary 
(taking into consideration the seriousness of 
the deficiency and the time reasonably re-
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quired to correct the deficiency), to comply 
with the requirements of paragraph (2) con-
cerning a quality improvement plan; and 
‘‘(C) initiate proceedings to terminate the 
designation of the agency unless the agency cor-
rects the deficiency. 
‘‘(2) QUALITY IMPROVEMENT PLAN.— 
‘‘(A) AGENCY AND PROGRAM RESPONSIBIL-
ITIES.—To retain a designation as a Head Start 
agency under this subchapter, or in the case of 
a Head Start program to continue to receive 
funds from such agency, a Head Start agency, or 
Head Start program that is the subject of a de-
termination described in paragraph (1) (exclud-
ing an agency or program required to correct a 
deficiency immediately or during a 90-day pe-
riod under clause (i) or (ii) of paragraph (1)(B)) 
shall— 
‘‘(i) develop in a timely manner, a 
quality improvement plan that shall be sub-
ject to the approval of the secretary, or in 
the case of a program, the sponsoring agen-
cy, and which shall specify— 
‘‘(I) the deficiencies to be cor-
rected; 
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‘‘(II) the actions to be taken to 
correct such deficiencies; and 
‘‘(III) the timetable for accom-
plishment of the corrective actions 
specified; and 
‘‘(ii) eliminate each deficiency identi-
fied, not later than the date for elimination 
of such deficiency specified in such plan 
(which shall not be later than 10 months 
after the date the agency or program ob-
tains approval of its quality improvement 
plan). 
‘‘(B) SECRETARIAL
RESPONSIBILITY.—Not 
later than 30 days after receiving from a Head 
Start agency a proposed quality improvement 
plan pursuant to subparagraph (A), the Sec-
retary shall either approve such proposed plan or 
specify the reasons why the proposed plan cannot 
be approved. 
‘‘(C) AGENCY
RESPONSIBILITY
FOR
PRO-
GRAM IMPROVEMENT.—Not later than 30 days 
after receiving from a Head Start program, a 
proposed quality improvement plan pursuant to 
subparagraph (A), the Head Start agency shall 
either approve such proposed plan or specify the 
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reasons why the proposed plan cannot be ap-
proved. 
‘‘(3) TRAINING AND TECHNICAL ASSISTANCE.— 
The Secretary shall provide training and technical 
assistance to Head Start agencies and programs with 
respect to the development or implementation of such 
quality improvement plans to the extent the Secretary 
finds such provision to be feasible and appropriate 
given available funding and other statutory respon-
sibilities. 
‘‘(f) SUMMARIES OF MONITORING OUTCOMES.—Not 
later than 120 days after the end of each fiscal year, the 
Secretary shall publish a summary report on the findings 
of reviews conducted under subsection (c) and on the out-
comes of quality improvement plans implemented under 
subsection (e), during such fiscal year. Such report shall 
be made available to all parents with children receiving as-
sistance under this subchapter in an understandable and 
uniform format, and to the extent practicable, provided in 
a language that the parents can understand, and in addi-
tion, make the information widely available through public 
means such as distribution through public agencies, and at 
a minimum posting such information on the Internet im-
mediately upon publication. Such reports shall contain de-
tailed data on compliance with specific performance stand-
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ards and measures sufficient to allow individual Head 
Start agencies to use such data to improve the quality of 
their program. 
‘‘(g) SELF-ASSESSMENTS.— 
‘‘(1) IN GENERAL.—Not less frequently than once 
each program year, with the consultation and partici-
pation of policy councils, and as applicable, policy 
committees, and as appropriate, other community 
members, each Head Start agency and each delegate 
agency that receives financial assistance under this 
subchapter shall conduct a comprehensive self-assess-
ment of its effectiveness and progress in meeting pro-
gram goals and objectives (including professional de-
velopment plans) and in implementing and com-
plying with Head Start program performance stand-
ards. 
‘‘(2) REPORT AND IMPROVEMENT PLANS.— 
‘‘(A) REPORT.—An agency conducting a 
self-assessment shall report the findings of the 
self-assessment to the relevant policy council, pol-
icy committee, governing body, and Secretary. 
Each self-assessment shall identify areas of 
strength and weakness. 
‘‘(B) IMPROVEMENT
PLAN.—The agency 
shall develop and report to the Secretary an im-
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provement plan approved by the governing body 
of the agency to strengthen any areas identified 
in the self-assessment as weaknesses or in need of 
improvement. 
‘‘(3) ONGOING MONITORING.—Each Head Start 
agency, delegate Head Start agency, and entity that 
carries out an Early Head Start program a shall es-
tablish and implement procedures for the ongoing 
monitoring of their respective programs, to ensure 
that the operations of the programs work toward 
meeting program goals and objectives and Head Start 
performance standards. 
‘‘(h) ENROLLMENT REPORTING REQUIREMENT.— 
‘‘(1) Head Start agencies shall report on a reg-
ular basis to the Secretary— 
‘‘(A) the actual enrollment in such program; 
and 
‘‘(B) if such actual enrollment is less than 
the funded enrollment, any apparent reason for 
such enrollment shortfall. 
‘‘(2) The Secretary shall determine on a regular 
basis which Head Start agencies are operating with 
an actual enrollment that is less than the funded en-
rollment and shall provide appropriate and timely 
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training and technical assistance to increase actual 
enrollment, as appropriate. 
‘‘(3) In this subsection: 
‘‘(A) The term ‘actual enrollment’ means, 
with respect to a Head Start program, the actual 
number of children enrolled in such program in 
a given month. 
‘‘(B) The term ‘base grant’ means, with re-
spect to Head Start agency for a fiscal year, that 
portion of the grant derived from— 
‘‘(i) amounts reserved for use in ac-
cordance with section 640(a)(2)(A), for a 
Head Start agency administering an In-
dian Head Start program or migrant and 
seasonal Head Start program; 
‘‘(ii) amounts reserved for payments 
under section 640(a)(2)(B); or 
‘‘(iii) amounts available under section 
640(a)(2)(D) or allotted among States 
under section 640(a)(4). 
‘‘(C) The term ‘funded enrollment’ means, 
with respect to the program of a Head Start 
agency in a fiscal year, the number of children 
that the agency is funded to serve through a 
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grant for the program during such fiscal year, as 
indicated in the grant award. 
‘‘(i) REDISTRIBUTION OF FUNDS.—Funds held by the 
Secretary as a result of recapturing, withholding, or reduc-
ing a base grant, except when such action is the result of 
an open competition 641(d)) or termination 646(d) shall 
be redistributed in such fiscal year as follows: 
‘‘(1) If such funds are derived from an Indian 
Head Start program, then such funds shall be redis-
tributed to increase enrollment in such fiscal year in 
1 or more Indian Head Start programs. 
‘‘(2) If such funds are derived from the operation 
of a migrant and seasonal Head Start program, then 
such funds shall be redistributed to increase enroll-
ment in such fiscal year in 1 or more migrant and 
seasonal Head Start programs. 
‘‘(3) If such funds are derived from the operation 
of a Head Start program in a State (excluding In-
dian Head Start program and migrant and seasonal 
Head Start programs), then such funds shall be redis-
tributed to increase enrollment in such fiscal year in 
1 or more Head Start programs (excluding Indian 
Head Start programs and migrant and seasonal 
Head Start programs) that are carried out in such 
State, except that— 
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‘‘(A) not less than 50 percent of the funds 
shall be prioritized to increase the program par-
ticipation of children and families served under 
Early Head Start; and 
‘‘(B) not less than 25 percent of the funds 
shall be prioritized to increase program partici-
pation of underserved populations of eligible 
children.’’. 
SEC. 8. POWERS AND FUNCTIONS OF HEAD START AGEN-
CIES. 
Section 642 of the Head Start Act (42 U.S.C. 9837) 
is amended to read as follows: 
‘‘SEC. 642. POWERS AND FUNCTIONS OF HEAD START AGEN-
CIES. 
‘‘(a) LEGAL AUTHORITY.—To be designated as a Head 
Start agency under this subchapter, an agency must have 
authority under its charter or applicable law to receive and 
administer funds under this subchapter, funds and con-
tributions from private or local public sources which may 
be used in support of a Head Start program, and funds 
under any Federal or State assistance program pursuant 
to which a public or private nonprofit or for-profit agency 
(as the case may be) organized in accordance with this sub-
chapter, could act as grantee, contractor, or sponsor of 
projects appropriate for inclusion in a Head Start pro-
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gram. Such an agency must also be empowered to transfer 
funds so received, and to delegate powers to other agencies, 
subject to the powers of its governing board and its overall 
program responsibilities. The power to transfer funds and 
delegate powers must include the power to make transfers 
and delegations covering component projects in all cases 
where this will contribute to efficiency and effectiveness or 
otherwise further program objectives. 
‘‘(b) FAMILY AND COMMUNITY INVOLVEMENT; FAMILY 
SERVICES.—To be so designated, a Head Start agency 
shall, at a minimum, do all the following to involve and 
serve families and communities: 
‘‘(1) Establish effective procedures by which par-
ents and area residents concerned will be enabled to 
directly participate in decisions that influence the 
character of programs affecting their interests. 
‘‘(2) Seek the involvement of parents, area resi-
dents, and local business in the design and implemen-
tation of the program. 
‘‘(3) Establish effective procedures to facilitate 
and seek the involvement of parents of participating 
children in activities designed to help such parents 
become full partners in the education of their chil-
dren, and to afford such parents the opportunity to 
participate in the development and overall conduct of 
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the program at the local level, including a process 
through which parents of children currently partici-
pating in a Head Start program or an Early Head 
Start program select the parent representatives to 
serve on the council under section 642(b)(4)(B)(ii). 
‘‘(4) Offer (directly or through referral to local 
entities, such as entities carrying out Even Start pro-
grams under subpart 3 of part B of title I of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 2741 et seq.)), to parents of participating chil-
dren, family literacy services and parenting skills 
training. 
‘‘(5) Offer to parents of participating children 
mental health services (either directly or through re-
ferral to local entities), including substance abuse 
counseling, and including information on maternal 
depression and on drug-exposed infants and fetal al-
cohol syndrome. 
‘‘(6) At the option of such agency, offer (directly 
or through referral to local entities) to such parents— 
‘‘(A) training in basic child development 
(including cognitive, social, and emotional devel-
opment); 
‘‘(B) assistance in developing literacy and 
communication skills; 
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‘‘(C) opportunities to share experiences with 
other parents (including parent-mentor relation-
ships); 
‘‘(D) mental and behavioral health services; 
‘‘(E) regular in-home visitation; or 
‘‘(F) any other activity designed to help 
such parents become full partners in the edu-
cation of their children. 
‘‘(7) Provide, with respect to each participating 
family, a family needs assessment that includes con-
sultation with such parents, in a manner and lan-
guage that such parents can understand, about the 
benefits of parent involvement and about the activities 
described in paragraphs (5) through (8) in which 
such parents may choose to be involved (taking into 
consideration their specific family needs, work sched-
ules, and other responsibilities). 
‘‘(8) Consider providing services to assist young-
er siblings of children participating in its Head Start 
program to obtain health, including mental health, 
services from other sources. 
‘‘(9) Perform community outreach to encourage 
individuals previously unaffiliated with Head Start 
programs to participate in its Head Start program 
as volunteers. 
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‘‘(10)(A) Inform custodial parents in single-par-
ent families that participate in programs, activities, 
or services carried out or provided under this sub-
chapter about the availability of child support serv-
ices for purposes of establishing paternity and acquir-
ing child support; and 
‘‘(B) Refer eligible parents to the child support 
offices of State and local governments. 
‘‘(11) Provide parents of limited English pro-
ficient children outreach and services under this sub-
chapter, in an understandable and uniform format 
and, to the extent practicable, in a language that such 
parents can understand. 
‘‘(12) Provide technical and other support needed 
to enable parents and area residents to secure on their 
own behalf available assistance from public and pri-
vate sources. 
‘‘(13) Promote the continued involvement of the 
parents (including grandparents and kinship care-
givers, as appropriate) of children that participate in 
Head Start programs in the education of their chil-
dren upon transition to school, the Head Start agency 
shall work with the local educational agency— 
‘‘(A) to provide training to the parents; 
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‘‘(i) to inform the parents about their 
rights and responsibilities concerning the 
education of their children; and 
‘‘(ii) to enable the parents— 
‘‘(I) to understand and work with 
schools in order to communicate with 
teachers and other school personnel; 
‘‘(II) to support the schoolwork of 
their children; and 
‘‘(III) to participate as appro-
priate in decisions relating to the edu-
cation of their children; and 
‘‘(B) to take other actions, as appropriate 
and feasible, to support the active involvement of 
the parents with schools, school personnel, and 
school-related organizations. 
‘‘(14) Provide parents of a child suspected of 
having a disability information about services avail-
able under section 619 or part C of the Individuals 
With Disabilities Education Act (20 U.S.C. 1419, 
1431 et seq.) and refer such child to the appropriate 
agency for an evaluation of eligibility under such Act. 
‘‘(c) PROGRAM GOVERNANCE.—Head Start agencies 
must establish and maintain a formal structure of shared 
governance through which an independent governing body 
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with legal and fiscal responsibility for administering and 
overseeing programs under this subchapter and a parent 
policy council and parent policy committee, as appropriate, 
shall ensure that such agency operates a high quality Head 
Start program in compliance with all applicable Federal, 
State, and local laws. 
‘‘(1) GOVERNING BODY.— 
‘‘(A) COMPOSITION.—The governing body 
shall be composed as follows: 
‘‘(i) Not less than 1 member with sig-
nificant financial management or account-
ing experience. 
‘‘(ii) Not less than 1 member shall have 
a background and expertise in early child-
hood development. 
‘‘(iii) Not less than 1 member shall be 
a licensed attorney familiar with issues that 
come before the governing body. 
‘‘(iv) Additional members shall be se-
lected for their expertise in education, busi-
ness administration, and community affairs 
and shall reflect the community served. 
‘‘(v) Exceptions shall be made when 
members of the governing body oversee a 
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public entity and are selected by public elec-
tion or are political appointments. 
‘‘(B) CONFLICT OF INTEREST.—Members of 
the governing body shall— 
‘‘(i) not have a conflict of interest with 
the Head Start agency or delegate agencies, 
exceptions shall be made when a board 
member of a public entity is selected by 
election or politically appointed; 
‘‘(ii) not receive compensation for the 
purposes of serving on the governing body 
or for providing services to the Head Start 
agency, exceptions shall be made when a 
board member of a public entity is selected 
by election or politically appointed; 
‘‘(iii) not be employed nor shall mem-
bers of their immediate family be employed 
by the Head Start agency or one of its dele-
gate agencies, exceptions shall be made 
when a board member of a public entity is 
selected by election or politically appointed; 
and 
‘‘(iv) operate as an entity independent 
of staff employed by the Head Start agency 
entity or applicant, exceptions shall be 
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made when a board member of a public en-
tity is selected by election or politically ap-
pointed. 
‘‘(C) CONSULTANTS.—In the case that per-
sons described in subparagraph (A) are not 
available to serve as members, the governing 
body shall make use of consultants in the areas 
described in subparagraph (A) to work directly 
with the governing body. 
‘‘(D) TRAINING.—All members of the gov-
erning body shall receive training in manage-
ment responsibilities and obligations, ethics, and 
financial literacy management. 
‘‘(E) RESPONSIBILITIES
OF
GOVERNING 
BODY.—The governing body shall be responsible 
for— 
‘‘(i) adoption of practices that assure 
active, independent and informed govern-
ance of the Head Start agency; 
‘‘(ii) oversight to ensure that the Head 
Start agency under the direction of the exec-
utive director is delivering high quality 
services to children and families in compli-
ance with all applicable standards in effect 
under this subchapter and with the applica-
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ble performance measures established by the 
Secretary under section 644; 
‘‘(iii) establish an audit and finance 
committee whose primary responsibility 
shall be— 
‘‘(I) to approve annually the oper-
ating budget of the Head Start agency; 
‘‘(II) to review and recommend to 
the governing body the selection of 
independent auditors who shall report 
all critical accounting policies and 
practices to the finance and audit com-
mittee, except when the auditor is as-
signed by the State under State law; 
‘‘(III) to review and recommend 
to the governing body the termination 
or extension of the existing audit firm 
at least once every 5 years; 
‘‘(IV) to review and advise the 
governing body of the audit manage-
ment letter provided pursuant to the 
chapter 75 of title 31, United States 
Code, and of any audit findings; and 
‘‘(V) to monitor agency actions to 
correct any such audit findings or 
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other actions necessary to comply with 
applicable laws (including regulations) 
governing financial statements and ac-
counting practices; 
‘‘(iv) approve all major policies of the 
agency, including the mission of the agency 
and policies addressing accounting, finan-
cial management, procurement, record con-
fidentiality, and personnel (including spe-
cific standards governing salaries, salary 
adjustments, travel and per diem allow-
ances, and other employee benefits); 
‘‘(v) approve all major financial ex-
penditures of the agency; 
‘‘(vi) approve the selection or dismissal 
of the Head Start Director or the equivalent 
position within the Head Start agency; 
‘‘(vii) approve or disapprove all poli-
cies, applications, and decisions of the Pol-
icy Council made under the authority of 
paragraph (2); 
‘‘(viii) to oversee the program planning 
of the Head Start agency, including adop-
tion of policies for setting long- and short- 
range goals and objectives; 
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