Head Start

An Effective Program but the Fund Distribution Formula Needs Revision and Management Controls Need Improvement Gao ID: HRD-81-83 July 23, 1981

GAO reviewed the management and administration of the Head Start program because Congress has shown considerable interest in early childhood and family development. The objective of the review was to determine whether this program, which has progressed over the years from a demonstration project to an ongoing service program, is being effectively managed and administered by the Department of Health and Human Services.

Since fiscal year 1977, Head Start funds have been redistributed among States in accordance with congressional intent by using the distribution formula mandated by the 1978 legislation. However, the increased Head Start enrollments envisioned by Congress and provided for by the 1978 amendments have not been sustained. Operating cost increases provided to States have varied. Both Congress and the Administration have emphasized the importance of maintaining high quality in local Head Start programs; however, program quality is being threatened by a trend among many grantees to reduce services to children and families because of escalating operating costs and insufficient funding. Although these service reductions appear to be widespread through the program, not all grantees are finding it necessary to reduce program services, indicating that some grantees may not need increased levels of funding while others do if service reductions are to be avoided. Although the Administration for Children, Youth, and Families regional offices use the Federal average cost per child as one basis in determining the amount of Federal funding to be allocated to grantees within the States, as it is presently calculated, average cost per child should not be used in the funding decision process. Since 1972, the responsibilities and administrative workloads of Head Start staff have increased dramatically. However, staffing levels and funding for salaries and expenses have not kept pace.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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