” *s, 8, ADMINISTRATION FOR f a CHILDREN C2 FAMILIES Office of Head Start | 8" Floor Portals Suilding, 1260 Maryland Ave, SW, Washington DC 20024 | ectke.ohs.actihhs.gov February 3, 2014 Mr. Lonnie Miley Macon Bibb County Beonomic Opportunity Council, In. 653 Sccond Street/ Suite 200 Macon, GA 31201 Re: 04CH3110 Dear Mr. Miley: ‘The Improving Head Start for School Readiness Act of 2007 (P.L. 110-134) altered the funding process for Head Start and Barly Head Start programs. Programs no longer automatically qualify for renewed funding if they meet certain criteria. This letter is to inform you that Macon Bibb County Economic in Macon, GA, meets one or more of those criteria, and therefore, if Macon Bibb County Economic wishes to continue to receive Head Start or Early Head Start funding, it must submit an application and compete with other entities in its community for the funding. This letter explains how this determination was made and provides you with initial information on how the competitive process will operate. The Designation Renewal System ‘The Improving Head Start for School Readiness Act of 2007 requires the Department of Health and Human Services (HHS) to establish a system for determining which Head Start and Barly Head Start Programs may be designated for renewal without having to compete with other entities in their community. Only those Head Start and Early Head Start agencies that are found under this system to be delivering high-quality and comprehensive Head Start and Early Head Start programs that meet the educational, health, nutritional, and social needs of the children and families they serve, and meet applicable program and financial management requirements and standards, may be designated for renewal and receive continued funding automatically, without having to compete. All other grantees must compete with other entities for renewed funding, Over the next few years, all ead Start grants are transitioning from indefinite grants to five-year, fixed-term grants. HHS established the Designation Renewal System through a final rule, which specifies seven conditions that HHS will consider when determining whether a grantee is delivering a high-quality and comprehensive program and, thus, whether the grantee may be renewed without having to compete for continued funding. In particular, ifa grantee is found to meet any of those seven conditions during the time periods specified, then that grantee will be required to compete for continued funding, For more detailed information, see Section 641(c)(1) of the Head Start Act and the final rule, which is codified at 45 CER. Part 1307, “Policies and Procedures for Designation Renewal of Head Start and Barly Head Start GranteesBasis of Determination for Macon Bibb County Economic Macon Bibb County Economic in Macon, GA, was determined to be ineligible for automatic renewal and designated for competition based on the following conditions) 45 CF.R. Part 1307.3(a) - The agency has boen determined to have one ot more deficiencies on a review or reviews conducted under section 641A(6\(1)(A), (C), oF (D) of the Act in the relevant time period covered by the responsible HHS officials review under Part 1307.7. Deficiency Condition Based on a review conducted ftom 6/4/2013 to 6/7/2013, HHS determined that Macon Bibb County Economic had one or more deficiencies. Specifically, Macon Bibb County Economie was found to be out of compliance with the following requirement(s) PART 1304 - Program Performance Standards For Operation Of Head Start Programs By Grantees And Delegate Agencies 1304.53 Facilities, Materials, and Equipment. (a) Head Start Physical Environment and Facilities (8) Grantee and delegate agencies must provide a center-based environment free of toxins, such as cigarette smoke, lead, pesticides, herbicides, and other air pollutants as well as soil and water contaminants. Agencies must ensure that no child is present during the spraying of pest herbicides. Children must not return to the affected area until itis safe to do so. (10) Grantee and delegate agencies must conduct a safety inspection, at least annually, to ensure that each facility's space, light, ventilation, heat, and other physical arrangements are consistent the health, safety and developmental needs of children. Ata minimum, agencies must censure that: (x) The selection, layout, and maintenance of playground equipment and surfaces minimize the possibility of injury to children. HHS informed Macon Bibb County Economic of that deficiency or deficiencies on 9/27/2013. If you ‘would like a copy of your review reports), please sce the Reviews tab in HISES. Competitive Process As noted, Macon Bibb County Economic has been designated to compete for renewed funding. This is not a grant termination or suspension notice, but rather a notice that, should your agency wish to continue to receive Head Start funds, Macon Bibb County Economic must submit an application pursuant to a funding opportunity announcement that will be published in 2014. Other entities inthe grantee’s ‘community will have the opportunity to submit applications as well. As stated under the final rule, funds will be awarded to the organization “that demonstrates that itis the most qualified entity to deliver a high- ‘quality and comprehensive Head Start or Early Head Start program.” See 45 C.E.R. Part 13075. ‘The funding opportunity announcement will describe the application procedures in detail as well as the criteria that will be used to evaluate applications. If you have any questions about the competitive process or the designation determination, please direct all questions to the Office of Head Start at DRS@headstartinfo.org.Sincerely, Olam Frid ‘Ann Linehan Acting Director Office of Head Start CC: Mrs. Sarita Hill, CEO/ Executive DirectorHead Start Indefinite Grant Closeout - Inventory Submission Instructions On December 9, 2011, 45 C.E.R. Part 1307, Policies and Procedures for Designation Renewal of Head Start and Early Head Start Programs,' became final. This regulation includes a provision that Head Start and Early Head Start grants change from indefinite project periods to five year project periods. All Head Start grants, regardless of competition status, are undergoing closeout a8 indefinite project periods are phased out and five year project petiods begin. ‘The Administration for Children and Families (ACF) requires a comprehensive inventory as part of the Designation Renewal process and in advance of the completion of the indefinite project period (see 45 CER. Part 7433-35 or 45 CFR. Part 92.33(b). Inventories of Head Start and Early Head Start property, equipment and supplies must be submitted to the responsible awarding agency (ACF). Report all covered property, equipment and supplies used in grantee operations, including property, equipment and supplies in use by contracted service providers and delegate agencies, Standard Forms SF-428, SF-4288 and SF-429 Use of TANGIBLE PERSONAL PROPERTY REPORT (SF-428) and Supplemental Sheet SF-428S and REAL PROPERTY STATUS REPORT (SE-429) for reporting is strongly encouraged. The forms may be accessed at the following link: http/swww.whitehouse.gov/omb/grants_forms. Inventories submitted using another format must contain all of the required elements of the SF-428 and SF-429 and detailed as noted below: Inventory of Supplies by Location and Room ~ SF-428S Include an inventory of supplies by location and room. Please include items such as classroom furniture and fixtures, deskiop and laptop computers and hardware, video and teleconference items, cameras, smart boards and playground items. iquipment Inventory — SF-4285 Provide the most recent equipment inventory that was reconciled to your agency's equipment records. (See 45 CER. Part 74.34(0(3) or 45 CFR. Part 92.32(d)(2). Include a list of all vehicles purchased using Head Start funds, including make, model, year, capacity, and condition of each vehicle. Federally Owned Property Inventory ~SF-429 Include the current inventory of Federally Owned Property see 45 C.E.R. Part 74.33(@\(1) of 45 C.E.R. Part 92.32(4), including all facilities in which the ACF has a federal interest. Submission Instructions Grantees are to submit the information in the Head Start Enterprise System (HSES) under the “DRS” tab. Grantees subject to competition are required to submit inventories not later than March 3, 2014. Please ‘email your Fiscal Specialist in the Office of Grants Management when the materials are uploaded and available in HSES for review. Organizations determined preliminarily eligible to receive a grant for @ five year project period are required to submit the inventories with the Funding application package. If you anticipate not being able to meet the above timeframe or requirements, notify your Regional Grants Management Officer in writing immediately. Please contact your Regional Office with questions. sHeclike-ohs,