CAPLAW NATIONAL TRAINING CONFERENCE SESSION 2D HEAD START REAUTHORIZATION JUNE 19, 2008

1. CAPLAW NATIONAL TRAINING CONFERENCESESSION 2DHEAD START REAUTHORIZATION JUNE 19, 2008 ROBERT E. SASSER, ESQ. R. BRIAN TIPTON, ESQ. SASSER, SEFTON, CONNALLY, TIPTON & DAVIS, P.C. 100 COLONIAL BANK BLVD., SUITE B-201 MONTGOMERY, AL 36117 TELEPHONE: (334) 532-3400 WWW.SASSERLAWFIRM.COM

2. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 2 OVERVIEW OF PRESENTATION HEAD START REAUTHORIZATION BACKGROUND ON THE NEW ACT KEY CHANGES POLICY ISSUANCES RELATED TO THE NEW ACT ACF-IM-HS-08-01 (SUMMARY) ACF-IM-HS-08-03 (ENROLLMENT) ACF-IM-HS-08-04 (IMPLEMENTATION) ACF-PI-HS-08-02 (BACKGROUND CHECKS) ACF-PI-HS-08-03 (SALARY CAP) HEAD START RISK MANAGEMENT PROCESS

3. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 3 HEAD START REAUTHORIZATION HEAD START REAUTHORIZATION "IMPROVING HEAD START FOR SCHOOL READINESS ACT OF 2007" BEGAN IN U.S. HOUSE OF REPRESENTATIVES AS H.R. 1429 NOW PUBLIC LAW 110-134 FULL TEXT OF PUBLIC LAW 110-134 AVAILABLE AT WWW.CAPLAW.ORG OR WWW.SASSERLAWFIRM.COM

4. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 4 HEAD START REAUTHORIZATION CONGRESS PASSED REAUTHORIZATION LEGISLATION NOVEMBER 14, 2007 HOUSE AND SENATE EACH PASSED SEPARATE VERSIONS OF REAUTHORIZATION IN SPRING 2007 FINAL LAW RESULT OF CONFERENCE COMMITTEE COMPROMISE BILL OVERWHELMING "YEA" VOTES IN BOTH HOUSE AND SENATE PRESIDENT SIGNED DECEMBER 12, 2007

5. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 5 OVERVIEW OF REAUTHORIZATION HEAD START HAS ISSUED A SHORT SUMMARY OF SOME OF THE MAJOR CHANGES FOUND IN THE NEW ACT (SEE INFORMATION MEMORANDUM ACF-IM-HS-08-01) HEAD START HAS ADVISED GRANTEES THAT THEY "ARE EXPECTED TO CAREFULLY REVIEW THE NEW HEAD START ACT AND MOVE FORWARD EXPEDITIOUSLY TO TAKE THOSE STEPS NECESSARY TO ACHIEVE FULL COMPLIANCE WITH THESE NEW REQUIREMENTS" (SEE INFORMATION MEMORANDUM ACF-IM-HS-08-04)

6. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 6 OVERVIEW OF REAUTHORIZATION REAUTHORIZATION LEGISLATION IS A SECTION BY SECTION RE-WRITE OF THE HEAD START ACT, LAST REVISED IN 1998 SIGNIFICANT CHANGES RECOMPETITION GOVERNANCE REQUIREMENTS FISCAL AND ADMINISTRATIVE REQUIREMENTS REVIEWS, CORRECTIVE ACTION, AND APPEALS ELIGIBILITY AND ENROLLMENT STAFF CREDENTIALS SALARY LIMITS POLITICAL AND VOTER REGISTRATION ACTIVITIES

7. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 7 RECOMPETITION NEW ACT ESTABLISHES SYSTEM FOR "DESIGNATION RENEWAL" [42 U.S.C. � 9836(c)] EXPERT PANEL TO MAKE RECOMMENDATIONS ON "TRANSPARENT, RELIABLE, AND VALID SYSTEM" AGENCIES "DELIVERING A HIGH-QUALITY AND COMPREHENSIVE HEAD START PROGRAM" REDESIGNATED AS HEAD START AGENCIES FOR 5 YEARS OTHER AGENCIES SUBJECT TO OPEN RECOMPETITION NO "DESIGNATION RENEWALS" FOR AT LEAST 18 MONTHS

8. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 8 RECOMPETITION EXPERT PANEL HAS BEEN NAMED FIRST MEETING HELD IN MARCH HANDOUTS CAN BE REQUESTED BY E-MAILING AdvisoryCommittee@pal-tech.com AT LEAST TWO MORE MEETINGS (LATE SPRING AND FALL) FINAL REPORT REQUIRED BY DECEMBER 12, 2008 PROPOSED REGULATIONS ISSUED WITHIN 3 MONTHS OF FINAL REPORT (BY MARCH 12, 2009) AT LEAST 90 DAY COMMENT PERIOD ON PROPOSED REGULATIONS

9. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 9 GOVERNANCE REQUIREMENTS COMPOSITION GOVERNING BODY (MEMBER BACKGROUNDS) POLICY COUNCIL (TYPES AND SELECTION) CONFLICT OF INTEREST PROHIBITIONS SIMILAR FOR GOVERNING BODY AND POLICY COUNCIL HOWEVER, NOT IDENTICAL RESPONSIBILITIES GOVERNING BODY (GENERAL "LEGAL AND FISCAL RESPONSIBILITY" FOR AGENCY) POLICY COUNCIL (PROGRAM "DIRECTION")

10. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 10 GOVERNANCE REQUIREMENTS GOVERNING BODY COMPOSITION [42 U.S.C. � 9837(c)(1)(B)] ONE MEMBER WITH FISCAL MANAGEMENT BACKGROUND AND EXPERTISE ONE MEMBER WITH EARLY CHILDHOOD EDUCATION AND DEVELOPMENT EXPERTISE ONE MEMBER LICENSED ATTORNEY "FAMILIAR WITH ISSUES THAT COME BEFORE THE GOVERNING BODY" CAN USE CONSULTANTS INSTEAD

11. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 11 GOVERNANCE REQUIREMENTS ADDITIONAL GOVERNING BODY MEMBERS MUST "REFLECT THE COMMUNITY SERVED" INCLUDING CURRENT OR FORMER HEAD START PARENTS MUST BE SELECTED "FOR THEIR EXPERTISE IN EDUCATION, BUSINESS ADMINISTRATION, OR COMMUNITY AFFAIRS" EXCEPTIONS FOR GOVERNING BODY MEMBERSHIP FOR PUBLIC GRANTEES

12. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 12 GOVERNANCE REQUIREMENTS POLICY COUNCIL COMPOSITION IS SIMILAR BUT SELECTION PROCESS MODIFIED IN NEW LAW [42 U.S.C. � 9837(c)(2)(B)] STILL TWO TYPES OF MEMBERS CURRENT HEAD START PARENTS, WHO MUST BE MAJORITY COMMUNITY REPRESENTATIVES, WHICH MAY INCLUDE FORMER PARENTS UNDER NEW ACT, ENTIRE POLICY COUNCIL ELECTED BY PARENTS OF CURRENTLY ENROLLED CHILDREN (BUT GOVERNING BODY MUST DEVELOP SELECTION PROCEDURES CONSISTENT WITH THIS REQUIREMENT)

13. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 13 GOVERNANCE REQUIREMENTS CONFLICTS OF INTEREST NOW PROHIBITED GOVERNING BODY MEMBERS [42 U.S.C. � 9837(c)(1)(C)] NO FINANCIAL CONFLICTS OF INTEREST NO COMPENSATION FOR SERVING ON GOVERNING BODY OR PROVIDING SERVICES TO AGENCY (BUT PUBLIC AGENCY EXCEPTION) NO EMPLOYMENT OF MEMBERS OR IMMEDIATE FAMILY BY AGENCY (BUT PUBLIC AGENCY EXCEPTION) MUST OPERATE INDEPENDENTLY OF STAFF POLICY COUNCIL MEMBERS [42 U.S.C. � 9837(c)(2)(C)] NO CONFLICTS OF INTEREST NO COMPENSATION FOR SERVING ON POLICY COUNCIL OR PROVIDING SERVICES TO AGENCY

14. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 14 GOVERNANCE REQUIREMENTS PRIOR LAW: "SHARED GOVERNANCE" FOR KEY DECISIONS (45 C.F.R. � 1304.50 Appendix A) GOVERNING BODY GENERAL RESPONSIBILITY; AND GENERALLY "MUST APPROVE OR DISAPPROVE" POLICY GROUP "APPROVE OR DISAPPROVE" AUTHORITY MUST APPROVE BEFORE ACTION CAN BE TAKEN OR PROPOSAL ADOPTED

15. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 15 GOVERNANCE REQUIREMENTS KEY AREAS OF SHARED GOVERNANCE (OLD LAW) PLANNING PROCESS PROGRAM GOALS (LONG AND SHORT TERM) SELECTION OF DELEGATE AGENCIES RECRUITMENT, SELECTION, AND ENROLLMENT PRIORITIES FUNDING APPLICATIONS AND AMENDMENTS SELF-ASSESSMENT POLICY COUNCIL COMPOSITION AND SELECTION SHARED DECISION-MAKING POLICIES DISPUTE RESOLUTION PROCEDURES HEAD START PERSONNEL POLICIES DECISIONS TO HIRE OR FIRE HEAD START DIRECTOR AND OTHER EMPLOYEES WORKING PRIMARILY FOR HEAD START

16. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 16 GOVERNANCE REQUIREMENTS NEW ACT [42 U.S.C. � 9837(c)] REQUIRES FORMAL GOVERNANCE STRUCTURE CONSISTING OF GOVERNING BODY AND POLICY COUNCIL, EACH WITH DEFINED RESPONSIBILITIES NEW ACT LISTS BOTH GENERAL AND SPECIFIC AREAS OF RESPONSIBILITY FOR THE GOVERNING BODY AND POLICY COUNCIL GOVERNING BODY HAS GENERAL "LEGAL AND FISCAL RESPONSIBILITY" FOR GRANTEE AGENCY [42 U.S.C. � 9837(c)(1)(A)] POLICY COUNCIL HAS GENERAL RESPONSIBILITY FOR PROGRAM "DIRECTION" [42 U.S.C. � 9837(c)(2)(A)]

17. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 17 GOVERNANCE REQUIREMENTS INTERESTING FEATURES OF THE NEW ACT'S GOVERNANCE STRUCTURE NOT DESCRIBED AS A "SHARED" GOVERNANCE STRUCTURE POLICY COUNCIL'S SPECIFIC RESPONSIBILITIES APPEAR MORE NARROW THAN GENERAL DESCRIPTION SUGGESTS GOVERNING BODY'S SPECIFIC RESPONSIBILITIES MORE DETAILED THAN POLICY COUNCIL'S LIKELY SHIFT AWAY FROM OLDER "SHARED GOVERNANCE MODEL" STILL SOME UNCERTAINTY AND APPARENT OVERLAP OF RESPONSIBILITIES

18. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 18 GOVERNANCE REQUIREMENTS EXAMPLE OF GOVERNANCE ISSUE: PERSONNEL POLICIES AND DECISIONS GOVERNING BODY RESPONSIBLE FOR APPROVING AGENCY PERSONNEL POLICIES (INCLUDING HIRING, FIRING, EVALUATION, AND COMPENSATION) AND MUST APPROVE SPECIFIC PERSONNEL POLICIES FOR EXECUTIVE DIRECTOR, HEAD START DIRECTOR, HUMAN RESOURCES DIRECTOR, CFO, AND EQUIVALENT "AGENCY PERSONNEL" POLICY COUNCIL MUST APPROVE AND SUBMIT TO GOVERNING BODY "PROGRAM" PERSONNEL POLICIES AND DECISIONS ABOUT EMPLOYMENT OF "PROGRAM STAFF"

19. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 19 OVERVIEW OF RESPONSIBILITIES GOVERNING BOARD [42 U.S.C. � 9837(c)(1)(E)] BE LEGALLY AND FINANCIALLY RESPONSIBLE FOR ADMINISTERING AND OVERSEEING HEAD START PROGRAMS, INCLUDING SAFEGUARDING OF FEDERAL FUNDS ADOPT PRACTICES THAT ASSURE ACTIVE, INDEPENDENT AND INFORMED GOVERNANCE OF AGENCY FULLY PARTICIPATE IN DEVELOPMENT, PLANNING, AND EVALUATION OF HEAD START PROGRAM POLICY COUNCIL [42 U.S.C. � 9837(c)(2)(D)] APPROVE AND SUBMIT TO GOVERNING BODY DECISIONS ON FOLLOWING ITEMS: ACTIVITIES TO SUPPORT ACTIVE PARENT INVOLVEMENT IN SUPPORTING PROGRAM OPERATIONS, INCLUDING RESPONSIVENESS TO COMMUNITY NEEDS POLICY COUNCIL BYLAWS

20. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 20 OVERVIEW OF RESPONSIBILITIES GOVERNING BOARD [42 U.S.C. � 9837(c)(1)(E)] ENSURE COMPLIANCE WITH FEDERAL, AND APPLICABLE STATE AND LOCAL, LAWS AND REGULATIONS SELECT DELEGATE AGENCIES AND THEIR SERVICE AREAS ESTABLISH PROCEDURES AND CRITERIA FOR RECRUITMENT, SELECTION, AND ENROLLMENT ESTABLISH PROCEDURES AND GUIDELINES FOR ACCESSING AND COLLECTING INFORMATION REQUIRED TO BE SHARED WITH GOVERNING BODY AND POLICY COUNCIL POLICY COUNCIL [42 U.S.C. � 9837(c)(2)(D)] RECOMMENDATIONS ON SELECTION OF DELEGATE AGENCIES AND THEIR SERVICE AREAS PROGRAM RECRUITMENT, SELECTION, AND ENROLLMENT PRIORITIES

21. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 21 OVERVIEW OF RESPONSIBILITIES GOVERNING BOARD [42 U.S.C. � 9837(c)(1)(E)] REVIEW APPLICATIONS FOR HEAD START FUNDING AND AMENDMENTS REVIEW AND APPROVE ALL MAJOR AGENCY POLICIES, INCLUDING: ANNUAL SELF-ASSESSMENT FINANCIAL AUDIT AGENCY PROGRESS IN CARRYING OUT PROGRAMMATIC AND FISCAL PROVISIONS IN APPLICATION, INCLUDING IMPLEMENTING CORRECTIVE ACTIONS PERSONNEL POLICIES (HIRING, EVALUATION, TERMINATION, AND COMPENSATION) FOR AGENCY EMPLOYEES POLICY COUNCIL [42 U.S.C. � 9837(c)(2)(D)] APPLICATIONS FOR PROGRAM FUNDING AND AMENDMENTS, PRIOR TO SUBMISSION PROGRAM PERSONNEL POLICIES AND DECISIONS REGARDING EMPLOYMENT OF PROGRAM STAFF, CONSISTENT WITH SECTION (1)(E)(iv)(IX), INCLUDING STANDARDS OF CONDUCT AND CRITERIA FOR EMPLOYMENT AND DISMISSAL OF PROGRAM STAFF

22. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 22 OVERVIEW OF RESPONSIBILITIES GOVERNING BOARD [42 U.S.C. � 9837(c)(1)(E)] DEVELOP SELECTION PROCEDURES FOR POLICY COUNCIL MEMBERS APPROVE FINANCIAL MANAGEMENT, ACCOUNTING, AND REPORTING POLICIES, AND COMPLY WITH LAWS REGARDING FINANCIAL STATEMENTS, INCLUDING: APPROVE MAJOR FINANCIAL EXPENDITURES OF GRANTEE ANNUALLY APPROVE AGENCY OPERATING BUDGET SELECT AUDITOR WHO REPORTS CRITICAL ACCOUNTING POLICIES AND PRACTICES TO BOARD MONITOR CORRECTION OF AUDIT FINDINGS AND OTHER ACTIONS NEEDED TO COMPLY WITH LAWS REGARDING FINANCIAL STATEMENT AND ACCOUNTING PRACTICES POLICY COUNCIL [42 U.S.C. � 9837(c)(2)(D)] DEVELOPING PROCEDURES FOR ELECTION OF POLICY COUNCIL BUDGET PLANNING FOR PROGRAM EXPENDITURES, INCLUDING POLICIES FOR REIMBURSEMENT AND PARTICIPATION IN POLICY COUNCIL ACTIVITIES

23. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 23 OVERVIEW OF RESPONSIBILITIES GOVERNING BOARD [42 U.S.C. � 9837(c)(1)(E)] REVIEW FEDERAL MONITORING RESULTS AND FOLLOW-UP ACTIVITIES APPROVE PERSONNEL POLICIES AND PROCEDURES, INCLUDING THOSE FOR HIRING, EVALUATION, COMPENSATION, AND TERMINATION OF EXECUTIVE DIRECTOR, HEAD START DIRECTOR, HR DIRECTOR, CFO, AND EQUIVALENT AGENCY POSITIONS [SEC. (1)(E)(iv)(IX)] ADOPT AND PERIODICALLY UPDATE WRITTEN CONFLICT OF INTEREST POLICY WHERE APPROPRIATE, ESTABLISH ADVISORY COMMITTEES TO OVERSEE RESPONSIBILITIES REGARDING PROGRAM GOVERNANCE AND IMPROVEMENT POLICY COUNCIL [42 U.S.C. � 9837(c)(2)(D)] PROGRAM PERSONNEL POLICIES AND DECISIONS REGARDING EMPLOYMENT OF PROGRAM STAFF, CONSISTENT WITH SECTION (1)(E)(iv)(IX), INCLUDING STANDARDS OF CONDUCT AND CRITERIA FOR EMPLOYMENT AND DISMISSAL OF PROGRAM STAFF

24. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 24 FISCAL AND ADMINISTRATIVE INFORMATION SHARING REQUIREMENTS [42 U.S.C. � 9837(d)(2)] AGENCY MUST SHARE CERTAIN INFORMATION WITH GOVERNING BODY AND POLICY COUNCIL MONTHLY FINANCIAL STATEMENTS (INCLUDING CREDIT CARD USE) MONTHLY PROGRAM INFORMATION SUMMARIES ENROLLMENT REPORTS MONTHLY USDA MEAL AND SNACK REPORTS FINANCIAL AUDITS ANNUAL SELF-ASSESSMENT (WITH FINDINGS) COMMUNITY NEEDS ASSESSMENT "COMMUNICATION AND GUIDANCE" FROM HHS PROGRAM INFORMATION REPORTS

25. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 25 FISCAL AND ADMINISTRATIVE PUBLIC REPORTING REQUIREMENTS [42 U.S.C. � 9839(a)(2)] HEAD START AGENCIES MUST MAKE AVAILABLE TO PUBLIC AT LEAST ONCE EACH FISCAL YEAR A REPORT CONTAINING CERTAIN INFORMATION: TOTAL PUBLIC AND PRIVATE FUNDS RECEIVED AND SOURCES BUDGET EXPENDITURES AND PROPOSED BUDGET TOTAL NUMBERS SERVED, AVERAGE ENROLLMENT, AND PERCENTAGE OF ELIGIBLE CHILDREN SERVED RESULTS OF MOST RECENT FEDERAL REVIEW AND FINANCIAL AUDIT EFFORTS TO PREPARE CHILDREN FOR KINDERGARTEN "ANY OTHER INFORMATION REQUIRED BY THE SECRETARY" OF HHS

26. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 26 DELEGATE AGENCIES GRANTEE RESPONSIBILITIES [42 U.S.C. � 9836A(d)] UNDER THE NEW ACT, GRANTEE AGENCIES ARE RESPONSIBLE FOR THE FOLLOWING: ESTABLISHING PROCEDURES TO EVALUATE AND DEFUND DELEGATE AGENCIES AND FOR DELEGATES TO APPEAL INFORMING DELEGATES OF DEFICIENCIES ENSURING CORRECTIVE ACTION THROUGH: TERMINATION IF NOT CORRECTED MONTHLY MONITORING UNTIL CORRECTED OR TERMINATED REIMBURSEMENT, RATHER THAN ADVANCES TERMINATION OR REDUCTION OF SERVICE AREAS OF DELEGATES ONLY FOR CAUSE OR DEMONSTRATED COST-EFFECTIVENESS

27. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 27 ELIGIBILITY AND ENROLLMENT NEW ELIGIBILITY STANDARDS [42 U.S.C. � 9840(A)(1)] THREE CATEGORIES: AUTOMATICALLY ELIGIBLE ("CATEGORY A") EXTENDED INCOME ELIGIBLE ("CATEGORY B") NO INCOME RESTRICTION ("CATEGORY C") PRIORITY GOES TO "CATEGORY A" BUT UP TO 45% OF ENROLLMENT FROM OTHER TWO CATEGORIES (35% FROM "CATEGORY B" AND 10% FROM CATEGORY C")

28. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 28 ELIGIBILITY AND ENROLLMENT CATEGORY A (AT LEAST 55% OF ENROLLMENT): BELOW POVERTY LINE; OR ELIGIBLE FOR PUBLIC ASSISTANCE; OR HOMELESS UNDER MCKINNEY-VENTO DEFINITION CATEGORY B (UP TO 35% OF ENROLLMENT): NOT ELIGIBLE UNDER "CATEGORY A" BUT FAMILY INCOME BELOW 130% OF POVERTY LINE, IF: AGENCY HAS IMPLEMENTED POLICIES TO ENSURE THAT NEEDS OF "CATEGORY A" CHILDREN ARE BEING MET; AND SELECTION PRIORITY GIVEN TO "CATEGORY A" CHILDREN, WHO WILL BE SERVED PRIOR TO SERVING "CATEGORY B" CATEGORY C (UP TO 10% OF ENROLLMENT): NO INCOME RESTRICTION

29. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 29 ELIGIBILITY AND ENROLLMENT

30. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 30 ELIGIBILITY AND ENROLLMENT NEW ACT PROVIDES THAT HHS IS TO ISSUE REGULATIONS TO IMPLEMENT NEW ELIGIBILITY STANDARDS HOWEVER, HEAD START HAS ISSUED AN INFORMATION MEMORANDUM (ACF-IM-HS-08-03) ALLOWING GRANTEES TO BEGIN SERVING CHILDREN FROM FAMILIES WITH INCOMES UP TO 130% OF POVERTY SUBJECT TO STATUTORY LIMITS THE INFORMATION MEMORANDUM ALSO LISTS FACTORS THAT GRANTEES REQUESTING A REDUCTION IN FUNDED ENROLLMENT MUST ADDRESS IN PROPOSING THE REDUCTION

31. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 31 ELIGIBILITY AND ENROLLMENT NEW ENROLLMENT RULES FOR CHILDREN WITH DISABILITIES OLD LAW: AT LEAST 10% OF ENROLLMENT OPPORTUNITIES AVAILABLE FOR CHILDREN WITH DISABILITIES NEW ACT: AT LEAST 10% OF CHILDREN ACTUALLY ENROLLED MUST BE CHILDREN WITH DISABILITIES [42 U.S.C. � 9835(d)]

32. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 32 ELIGIBILITY AND ENROLLMENT NEW UNDERENROLLMENT PROVISIONS [42 U.S.C. � 9836A(h)] MONTHLY ENROLLMENT REPORTS TO HHS CONSEQUENCES OF UNDERENROLLMENT FIRST, UNDERENROLLMENT ELIMINATION PLAN AND TECHNICAL ASSISTANCE "CHRONIC UNDERENROLLMENT" STILL LESS THAN 97% ENROLLED AFTER 12 MONTHS OF PLAN AND TECHNICAL ASSISTANCE HHS CAN RECAPTURE, WITHHOLD, OR REDUCE BASE GRANT EQUAL TO PERCENTAGE UNDERENROLLED

33. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 33 FULL-DAY AND EHS OPTIONS AGENCY MAY APPLY TO CONVERT PART-DAY SESSIONS TO FULL-DAY BUT MUST FIRST DEMONSTRATE NEED THROUGH PLANNING AND NEEDS ASSESSMENT [42 U.S.C. � 9840(a)(4)] AGENCY MAY APPLY FOR USE OF HEAD START FUNDS TO SERVE INFANTS AND TODDLERS [42 U.S.C. � 9840(a)(5)] NEEDS ASSESSMENT SHOWING HOW USE OF SUCH FUNDS WOULD BEST MEET COMMUNITY NEEDS OTHER INFORMATION AS PROVIDED IN RULES TO BE ISSUED BY HHS

34. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 34 STAFF CREDENTIALS NEW ACT CHANGES QUALIFICATIONS FOR TEACHERS, EDUCATION COORDINATORS, AND TEACHING ASSISTANTS [42 U.S.C. � 9843a(a)] TEACHERS BY SEPTEMBER 30, 2013, AT LEAST 50% OF CENTER-BASED TEACHERS NATIONWIDE MUST HAVE AT LEAST: A BACHELOR'S DEGREE IN EARLY CHILDHOOD EDUCATION, OR A BACHELOR'S DEGREE AND COURSEWORK EQUIVALENT TO MAJOR RELATED TO EARLY CHILDHOOD EDUCATION WITH PRESCHOOL TEACHING EXPERIENCE [42 U.S.C. � 9843A(A)(2)(A)] ALTERNATIVE CREDENTIALING FOR CLASSROOMS WITHOUT TEACHER MEETING ABOVE REQUIREMENTS [42 U.S.C. � 9843A(A)(3)]

35. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 35 STAFF CREDENTIALS ALTERNATIVE CREDENTIALING FOR TEACHERS [42 U.S.C. � 9843a(a)(3)(A)] THROUGH SEPTEMBER 30, 2011, ALL CENTER-BASED CLASSROOMS MUST HAVE AT LEAST ONE TEACHER WITH: CDA (APPROPRIATE TO AGE OF CHILDREN); STATE CERTIFICATE FOR PRESCHOOL TEACHERS WITH REQUIREMENTS AT LEAST EQUIVALENT TO CDA; ASSOCIATE'S DEGREE IN RELATED FIELD AND COURSEWORK EQUIVALENT TO MAJOR RELATED TO EARLY CHILDHOOD EDUCATION WITH PRESCHOOL TEACHING EXPERIENCE; OR BACHELOR'S DEGREE, ADMITTED INTO TEACH FOR AMERICA, PASSED EARLY CHILDHOOD CONTENT EXAM, TEACH FOR AMERICA TRAINING INSTITUTE, AND ON-GOING PROFESSIONAL DEVELOPMENT FROM TEACH FOR AMERICA

36. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 36 STAFF CREDENTIALS ALTERNATIVE CREDENTIALING FOR TEACHERS [42 U.S.C. � 9843a(a)(3)(B)] AS OF OCTOBER 1, 2011, ALL CENTER-BASED CLASSROOMS MUST HAVE AT LEAST ONE TEACHER WITH: ASSOCIATE'S DEGREE IN EARLY CHILDHOOD EDUCATION; ASSOCIATE'S DEGREE IN RELATED FIELD AND COURSEWORK EQUIVALENT TO MAJOR RELATED TO EARLY CHILDHOOD EDUCATION WITH PRESCHOOL TEACHING EXPERIENCE; OR BACHELOR'S DEGREE, ADMITTED INTO TEACH FOR AMERICA, PASSED EARLY CHILDHOOD CONTENT EXAM, TEACH FOR AMERICA TRAINING INSTITUTE, AND ON-GOING PROFESSIONAL DEVELOPMENT FROM TEACH FOR AMERICA

37. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 37 STAFF CREDENTIALS EDUCATION COORDINATORS [42 U.S.C. � 9843a(a)(2)(B)(i)] BY SEPTEMBER 30, 2013, ALL CENTER-BASED EDUCATION SPECIALISTS (INCLUDING CURRICULUM SPECIALISTS), MUST HAVE: "THE CAPACITY TO OFFER ASSISTANCE TO OTHER TEACHERS IN THE IMPLEMENTATION AND ADAPTATION OF CURRICULA TO THE GROUP AND INDIVIDUAL NEEDS OF CHILDREN IN A HEAD START CLASSROOM" DEGREE REQUIREMENTS AT LEAST A BACHELOR'S DEGREE IN EARLY CHILDHOOD EDUCATION, OR AT LEAST A BACHELOR'S DEGREE AND COURSEWORK EQUIVALENT TO MAJOR RELATED TO EARLY CHILDHOOD EDUCATION WITH PRESCHOOL TEACHING EXPERIENCE

38. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 38 STAFF CREDENTIALS TEACHING ASSISTANTS [42 U.S.C. � 9843a(a)(2)(B)(ii)] BY SEPTEMBER 30, 2013, ALL CENTER-BASED TEACHING ASSISTANTS MUST: HAVE AT LEAST A CDA, BE ENROLLED IN AN ASSOCIATE'S OR BACHELOR'S DEGREE PROGRAM, OR BE ENROLLED IN A CDA PROGRAM TO BE COMPLETED WITHIN 2 YEARS

39. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 39 BACKGROUND CHECK NEW ACT HAS REQUIREMENT FOR PRE-EMPLOYMENT BACKGROUND CHECKS OF HEAD START EMPLOYEES [42 U.S.C. � 9843a(g)] INTERVIEW VERIFICATION OF REFERENCES CRIMINAL RECORDS CHECK SIMILAR TO EXISTING REGULATIONS AT 45 C.F.R. � 1301.31(b) HEAD START PI-HS-08-02 WARNS THAT FAILURE TO CONDUCT BACKGROUND CHECK FOR ALL "PERMANENT EMPLOYEES" WILL RESULT IN DEFICIENCY FINDING

40. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 40 SALARY CAP THE NEW ACT CONTAINS A MODIFIED SALARY CAP HEAD START AGENCY CANNOT USE ANY FEDERAL FUNDS TO PAY ANY PORTION OF COMPENSATION OF ANY EMPLOYEE OVER EXECUTIVE LEVEL II [42 U.S.C. � 9848(b)] INCLUDES SALARY, BONUS AND VALUE OF ANNUAL AND COMP LEAVE BUT EXCLUDES HEALTH AND OTHER INSURANCE AND RETIREMENT BENEFITS LEVEL II IS $172,200 AS OF JANUARY 2008

41. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 41 SALARY CAP AFTER NEW ACT PASSED, CONGRESS PASSED 2008 APPROPRIATIONS LAW (PUBLIC LAW 110-161) THE APPROPRIATIONS LAW RETAINED THE PRIOR COMPENSATION CAP LANGUAGE NO HEAD START FUNDS CAN BE USED, AS EITHER A DIRECT OR INDIRECT COST, TO PAY COMPENSATION (INCLUDING SALARY AND BENEFITS) OVER EXECUTIVE LEVEL II CONSEQUENTLY, THE MODIFIED SALARY CAP IN THE NEW ACT IS NOT EFFECTIVE UNTIL AT LEAST THE 2009 FISCAL YEAR (SEE PROGRAM INSTRUCTION ACF-PI-HS-08-03)

42. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 42 POLITICAL ACTIVITIES POLITICAL ACTIVITIES AND VOTER REGISTRATION [42 U.S.C. � 9851] POLITICAL ACTIVITIES NEW LAW NARROWS RESTRICTIONS TO APPLY TO HEAD START STAFF DURING WORKING HOURS DELETES BROAD �RESULTING IN IDENTIFICATION OF HEAD START PROGRAM WITH� LANGUAGE VOTER REGISTRATION NO USE OF HEAD START FUNDS BUT NONPARTISAN GROUP CAN CONDUCT ACTIVITIES ON HEAD START SITE DURING PROGRAM HOURS TO INCREASE VOTER REGISTRATION �IN ELECTIONS FOR FEDERAL OFFICE�

43. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 43 FEDERAL MONITORING/REVIEWS REVISED FEDERAL REVIEW PROCESS [42 U.S.C. � 9836A(c)] TIMING OF REVIEWS LIMITED UNANNOUNCED REVIEWS TIMELINES FOR FOLLOW-UP REVIEWS CONDUCT OF REVIEWS MORE SIGNIFICANT CHANGES TO CONDUCT OF REVIEWS SPECIFIC CONTENT FOR REVIEWS AND STANDARDS FOR THEIR CONDUCT

44. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 44 FEDERAL MONITORING/REVIEWS CHANGES TO TIMING AND PURPOSES OF REVIEWS FIRST-YEAR AND TRIENNIAL REVIEWS RETAINED BUT "UNANNOUNCED SITE INSPECTIONS OF HEAD START CENTERS" AND OTHER REVIEWS "AS APPROPRIATE" ADDED IN ADDITION, FOLLOW-UP REVIEWS OF PROGRAM WITH DEFICIENCIES TO BE CONDUCTED WITHIN 6 MONTHS OF DEFICIENCY NOTICE, UNLESS ADDITIONAL CORRECTION TIME GRANTED, BUT NO LATER THAN 12 MONTHS AFTER DEFICIENCY NOTICE

45. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 45 FEDERAL MONITORING/REVIEWS NEW SPECIFIC REQUIREMENTS FOR REVIEW CONTENT AND CONDUCT REQUIREMENTS INCLUDE THE FOLLOWING: MUST ADDRESS BOTH PROGRAM STRENGTHS AND WEAKNESSES MUST USE "VALID AND RELIABLE RESEARCH-BASED OBSERVATIONAL INSTRUMENT, IMPLEMENTED BY QUALIFIED INDIVIDUALS WITH DEMONSTRATED RELIABILITY" TO ASSESS "CLASSROOM QUALITY" MUST BE "CONDUCTED IN A MANNER THAT EVALUATES PROGRAM PERFORMANCE, QUALITY, AND OVERALL OPERATIONS WITH CONSISTENCY AND OBJECTIVITY, ARE BASED ON A TRANSPARENT AND RELIABLE SYSTEM OF REVIEW, AND ARE CONDUCTED IN A MANNER THAT INCLUDES PERIODIC INTERRATER RELIABILITY CHECKS"

46. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 46 CORRECTIVE ACTION FOR PROGRAM WITH DEFICIENCY, NEW LAW RETAINS THREE-TIERED CORRECTIVE ACTION STRUCTURE [42 U.S.C. � 9836A(e)] IMMEDIATE CORRECTION FOR THREATS TO HEALTH OR SAFETY OR TO FEDERAL FUNDS 90 DAY CORRECTIVE ACTION PERIOD QUALITY IMPROVEMENT PLAN (UP TO 1 YEAR) HOWEVER, UNLIKE OLD LAW, NEW ACT CONTAINS DEFINITION OF "DEFICIENCY"

47. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 47 DEFICIENCY NEW ACT [42 U.S.C. � 9832(2)] DEFINES "DEFICIENCY" IN THREE WAYS THAT ECHO CURRENT HEAD START REGULATIONS [45 C.F.R. � 1304.3(a)(6)] UNDER NEW ACT, A DEFICIENCY IS EITHER: A "SYSTEMIC OR SUBSTANTIAL MATERIAL FAILURE" RELATED TO AREAS CURRENTLY LISTED IN 45 C.F.R. � 1304.3(a)(6); A "SYSTEMIC OR MATERIAL FAILURE" OF THE GOVERNING BODY TO EXERCISE LEGAL AND FIDUCIARY RESPONSIBILITIES; OR "AN UNRESOLVED AREA OF NONCOMPLIANCE"

48. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 48 TERMINATION AND APPEALS NEW LAW ALSO CHANGES TERMINATION APPEALS PROCESS [42 U.S.C. � 9841] CERTAIN CURRENT PRACTICES CODIFIED 30 DAYS TO FILE NOTICE OF APPEAL "ACCESS TO A FULL AND FAIR HEARING OF THE APPEAL, NOT LATER THAN 120 DAYS AFTER RECEIPT" OF NOTICE OF APPEAL HOWEVER, CONTINUED FUNDING AND LEGAL FEE PROVISIONS ARE DIFFERENT UNDER NEW ACT

49. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 49 TERMINATION AND APPEALS UNDER REGULATIONS FOR OLD LAW, FUNDING NORMALLY CONTINUED DURING APPEALS AND LIMITED AMOUNTS OF GRANT FUNDS COULD BE USED FOR LEGAL FEES CHANGES IN THE NEW ACT NOW HHS CAN SUSPEND FUNDING DURING APPEAL NO HEAD START FUNDS FOR LEGAL FEES FOR AN APPEAL, BUT NEW ACT APPEARS TO PERMIT HHS DISCRETION TO REIMBURSE "REASONABLE AND CUSTOMARY" FEES IF GRANTEE PREVAILS

50. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 50 STATUS OF CONTROVERSIAL PROVISIONS CONTROVERSIAL PROVISIONS DEFEATED RELIGIOUS HIRING PREFERENCES TERM LIMITS FOR GOVERNING BODIES CONTROVERSIAL PROVISIONS RETAINED NATIONAL REPORTING SYSTEM TERMINATED BUT REAUTHORIZATION INCLUDES PROVISIONS FOR A NEW SYSTEM OF "SCIENTIFICALLY BASED" MEASUREMENTS

51. JUNE 19, 2008 CAPLAW NATIONAL TRAINING CONFERENCE 51 RISK MANAGEMENT PROCESS NEW HEAD START RISK MANAGEMENT PROCESS ANNOUNCED (SEE INFORMATION MEMORANDUM ACF-IM-HS-08-06) PROCESS INTENDED TO "TIE TOGETHER" FUNDING, MONITORING, AND TECHNICAL ASSISTANCE CENTERPIECE OF NEW PROCESS IS THE "RISK MANAGEMENT MEETING" PRIOR TO REFUNDING AND DEVELOPMENT OF AN "ACTION PLAN"