understanding the new governance requirements for all five

Understanding the New Governance Requirements for All Five Year Grantees 1

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Understanding the New Governance Requirements for All Five Year Grantees

Trainer: Denes L. Tobie, CPA, Partner

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Agenda

Understanding the new governance requirements:

• Governance and Leadership Capacity Screener.

• Governance Readiness Tool.• Governance System Builder (not issued yet).• Governance Certification (not issued yet)• How we can help you get ready –

Governance DVD’s.

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Where this all started and where it is going……

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2013 Information Memorandum

Number / Date / TitleACF-IM-HS-13-02 / 07/01/2013 / Five-Year Head Start Project PeriodsINFORMATIONThe Office of Head Start (OHS) is moving from indefinite project periods to five year project periods for all Head Start grantees. This requires changes in OHS funding practices and oversight of Head Start programs. Changes in oversight will include improved communication between federal staff and grantees, as well as ongoing analysis of data to determine the type of support needed by grantees. The main purpose of improved oversight is to demonstrate the quality of program services, the effectiveness of management systems, and the achievement of outcomes for children, families, and communities.

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Number / Date / TitleACF-IM-HS-13-02 / 07/01/2013 / Five-Year Head Start Project Periods(cont.)Funding GuidanceGrantees who are eligible for a non-competitive five year grant will receive a detailed funding guidance letter issued by their Regional Office six months prior to their refunding date. Grant applications will be due to the Regional Office three months prior to the start of the new project period. Grantees will be required to describe the program approach, define anticipated outcomes, and include measures of program progress throughout the five year period. Application criteria in years two through five of the project period will focus on grantee progress toward the goals and outcomes defined in either the year one or the competitive application. Grantees will be expected to use program data to analyze and report on their progress. Grantee requests to change or update their program approach must be supported by program data. Throughout the five year project period and at the end of a five year project period, grantees will be expected to provide evidence of the program's cumulative impact on the children, families, and communities served.

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Number / Date / TitleACF-IM-HS-13-02 / 07/01/2013 / Five-Year Head Start Project Periods(cont.)Additional Post-Award RequirementsThe following requirements will be conditions for all five year grants on the Notice of Award (NoA). Each grantee will complete the activities outlined below and, where required, submit the results to their Regional Office within the identified timeframes. Regional Office staff will discuss and validate these conditions/certifications during annual site visits.

Governance Grantee governing body must complete a governance and leadership capacity screening within 90 days of the start of the project period.

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ACF-IM-HS-13-02 / 07/01/2013 / Five-Year Head Start Project Periods(cont.)Health and Safety Grantee must complete a health and safety assessment of each center and/or family child care home where services are provided within 45 calendar days of the start of the program/school year, or within 45 calendar days of the start of the five year project period when the five year project period begins during the program/school year.The grantee governing body must submit to OHS the signed certification of compliance with all applicable health and safety requirements within 15 calendar days of completion of the health and safety assessment.School Readiness Grantee must participate in individual school readiness progress meetings with the OHS Regional Office.Audit Webinar Grantee must participate in an OHS-sponsored single audit webinar within one year of the start of the project period.

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New – First Year Conditions for All Five Year Awards

New tools available or soon to be availableGovernance

• Governance, Leadership, and Oversight Capacity Screener

• Governance Readiness Tool• Governance System Builder (not issued yet)• Governance Certification (not issued yet)

Health and Safety• Health and Safety Screener

**You don’t have to use their tools, you just have to be able to prove you complied.


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New – First Year Conditions for All Five Year Awards

• These criteria apply to the first year of your five year grant, not every year

• Tri-annual reviews will now take place in year 3 of your 5 year grant.

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Head Start and Early Head Start Governance

• Governance in the Head Start Program is complex, challenging and unique.

• Boards are expected to understand and implement their roles as leaders.

• Governing bodies must:– Include members with particular expertise.– Exercise oversight and leadership functions.– Create a governance system that includes an active

role for Policy Council, whose membership includes parents of enrolled children and community representatives.

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Governance, Leadership, and Oversight Capacity Screener

• Introduction

• Suggestions for Use

• Governing body chair, PC chair, ED, HS Director work together to identify:– What is in place

– What you will implement

– What you need help with

• Share with others, identify what still needs to be done and when

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1. The governing body (or Tribal Council) has the required composition.Head Start Act Sec. 642(c)(1)(B)(i-iv)

• At least one member has fiscal/accounting background and expertise.

• At least one member has early childhood education and development background and expertise.

• At least one member is a licensed attorney.

• Members reflect the community served and include parents of children who currently, or were formerly, enrolled in Head Start programs.

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Recommendations

Keep an ongoing list of board members and what positions they are representing and have experience with.

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2. The Policy Council has the required composition.Head Start Act Sec. 642(c)(2)(B)(i)

Sec. 642(c)(2)(B)(ii)(I-II)

• At least 51 percent of Policy Council members are parents of children who are currently enrolled in the Head Start program (including delegate agencies).

• The Policy Council includes at least one member of the at-large community served by the program or any delegate agency.

• Members are elected by parents of children currently enrolled in the program.

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Recommendations

Keep an ongoing list of PC members, if they are parents, how long they have served and if they represent the community at-large.

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3. Members of the governing body (or Tribal Council) receive effective and ongoing training and technical assistance (T/TA) to ensure that they understand the information they receive and are able to provide effective oversight of, make appropriate decisions for, and participate in programs of the Head Start agency.Head Start Act Sec. 642(d)(3)

• The agency has a system for identifying the T/TA needs of the governing body (or Tribal Council) and using this information to develop a T/TA plan.

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4. Members of the Policy Council receive effective and ongoing training and technical assistance (T/TA) to ensure that they understand the information they receive and can provide effective oversight of, make appropriate decisions for, and participate in programs of the Head Start agency.Head Start Act Sec. 642(d)(3)

• The agency has a system for identifying the T/TA needs of the Policy Council and using this information to develop and T/TA plan.

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Recommendations

• Create a training plan each year for the board and PC

• Arrange for annual training

• Keep a list of those that attended

• Retain documentation of actual training conducted and how it accomplished your plan/goals

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5. The governing body (or Tribal Council) exercises the following responsibilities:Head Start Act Sec. 642(c)(1)(E)(iv)(I-III)Sec. 642 (c)(1)(E)(iv)(VI)

• Establishes procedures and criteria for recruiting, selecting, and enrolling children.

• Selects delegate agencies, as appropriate.

• Develops procedures for selecting Policy Council members.

• Reviews applications for funding and amendments to applications for funding.

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6. The governing body (or Tribal Council) assumes responsibility for the following:Head Start Act Sec. 642(c)(1)(E)(iv)(VII)(aa)-(dd)

• All major financial expenditures of the agency.

• The operating budget of the agency.

• The selection (except when a financial auditor is assigned by the state under state law or is assigned under local law) of independent financial auditors to report all critical accounting policies and practices to the governing body (or Tribal Council).

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6. The governing body (or Tribal Council) assumes responsibility for the following: (cont.)Head Start Act Sec. 642(c)(1)(E)(iv)(VII)(aa)-(dd)

• The financial audit.

• The agency’s progress in carrying out the programmatic and fiscal provisions in the agency’s grant application, including implementation of corrective actions.

• Monitoring of the agency’s actions to correct any audit findings and other actions necessary to comply with applicable laws (including regulations) governing financial statement and accounting practices.

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7. The governing body (or Tribal Council) is engaged in reviewing and approving each of the following:Head Start Act Sec. 642(c)(1)(E)(iv)(V)(aa-cc)Sec. 642(c)(1)(E)(iv)(IX)

• The Self-Assessment.

• Personnel policies of the agency regarding the hiring, evaluation, termination, and compensation of agency employees.

• Results from monitoring conducted under section 641A(c), including appropriate follow-up activities.

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7. The governing body (or Tribal Council) is engaged in reviewing and approving each of the following: (cont.)Head Start Act Sec. 642(c)(1)(E)(iv)(V)(aa-cc)Sec. 642(c)(1)(E)(iv)(IX)

• Personnel policies and procedures, including those regarding the hiring, evaluation, compensation, and termination of the Executive Director, Head Start Director, Director of Human Resources, Chief Fiscal Officer, and any other person in an equivalent position with the agency.

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8. The Policy Council engages in the oversight of program operations in each of the following decision-making areas:Head Start Act Sec. 642(c)(2)(D)(i-viii)Sec. 642(c)(2)(A)

• Activities to support the active engagement of families in the program.

• Program recruitment, selection, and enrollment priorities.

• Applications for funding and amendments to applications for funding.

• Budget planning for program expenditures, including policies for reimbursement related to participation in policy Council activities.

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8. The Policy Council engages in the oversight of program operations in each of the following decision-making areas: (cont.)Head Start Act Sec. 642(c)(2)(D)(i-viii)Sec. 642(c)(2)(A)

• Bylaws for the operation of the Policy Council.

• Program personnel policies and decisions regarding the employment of program staff, consistent with 642(c)(1)(E)(iv)(IX), including standards of conduct for program staff, contractors, and volunteers and criteria for the employment and dismissal of program staff.

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8. The Policy Council engages in the oversight of program operations in each of the following decision-making areas: (cont.)Head Start Act Sec. 642(c)(2)(D)(i-viii)Sec. 642(c)(2)(A)

• Developing procedures for how members of the Policy Council of the Head Start program are elected.

• Recommendations on the selection of delegate agencies and the service areas for such agencies.

• Program design and operation.

• Planning program goals and objectives.

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Recommendations

• Be sure both board and PC minutes clearly and accurately reflect each and every one of these criteria

• Keep a list of items that need to be addressed and document which minutes contain the approvals for both board and PC.

• The budget is of the AGENCY not just the award.

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9. The following reports are received by the Policy Council and members find them useful:Head Start Act Sec. 642(d)(2)(A-I)

• Annual reports:– The financial audit.– The Self-Assessment, including any findings related

to such assessment.– Program Information Reports (PIRs).

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9. The following reports are received by the Policy Council and members find them useful: (cont.)Head Start Act Sec. 642(d)(2)(A-I)

• Monthly reports:– Financial statements, including credit card

expenditures (if the program uses credit cards).

– Program information summaries.

– Program enrollment reports,, including attendance reports for children whose care is partially subsidized by another public agency.

– Reports of meals and snacks provided through programs of the U.S. Department of Agriculture (USDA).

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9. The following reports are received by the Policy Council and members find them useful (Continued):Head Start Act Sec. 642(d)(2)(A-I)

• Additional reports:– Community Assessment, completed every three

years with annual updates.

– The strategic plan, including program goals, school readiness goals, and short-term programmatic and financial objectives.

– Applicable and current updates from the Secretary (e.g., Program Instructions, Information Memorandums, etc.).

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Recommendations

• Keep copies of all items given to the PC with the minutes

• Keep a list of what is supposed to be shared and document where and when it was shared.

• Be sure everything is shared with the entire PC and not just a few.

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10. The following reports are received by the governing body (or Tribal Council) and members find them useful:Head Start Act Sec. 642(d)(2)(A-I)

• Annual reports:– The financial audit.

– The Self-Assessment, including any findings related to such assessment.

– Program Information Reports (PIRs).

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10. The following reports are received by the governing body (or Tribal Council) and members find them useful: (cont.)Head Start Act Sec. 642(d)(2)(A-I)

• Monthly reports:– Financial statements, including credit card

expenditures (if the program uses credit cards).

– Program information summaries.

– Program enrollment reports, including attendance reports for children whose care is partially subsidized by another public agency.

– Reports of meals and snacks provided through programs of the U.S. Department of Agriculture (USDA).

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10. The following reports are received by the governing body (or Tribal Council) and members find them useful: (cont.)Head Start Act Sec. 642(d)(2)(A-I)

• Additional reports:– Community Assessment, completed every three

years with annual updates.

– The strategic plan, including program goals, school readiness goals, and short term programmatic and financial objectives.

– Applicable and current updates from the Secretary (e.g., Program Instructions, Information Memorandums, etc.).

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Recommendations

• Keep copies of all items given to the board with the minutes

• Keep a list of what is supposed to be shared and document where and when it was shared.

• Be sure everything is shared with the entire board and not just the finance committee nor executive committee.

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1. The Head Start agency works with the governing body (or Tribal Council) and Policy Council to make available to the public a report published at least once each year that discloses the following information from the most recently concluded fiscal year:Head Start Act Sec. 644(a)(2)(A-H)

• The total amount of public and private funds received and the amount from each source.

• An explanation of budgetary expenditures and proposed budget for the fiscal year.

• The total number of children and families served, the average monthly enrollment (as a percentage of funded enrollment), and the percentage of eligible children served.

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1. The Head Start agency works with the governing body (or Tribal Council) and Policy Council to make available to the public a report published at least once each year that discloses the following information from the most recently concluded fiscal year: (cont.)Head Start Act Sec. 644(a)(2)(A-H)

• The results of the most recent review by the Secretary and the financial audit.

• The percentage of enrolled children that received medical and dental exams.

• Information about family engagement activities.

• The agency’s efforts to prepare children for kindergarten.

• Any other information required by the Secretary.

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Recommendations

• Decide how this report will be distributed:– Website

– Regional office

– Post notices that it is available at the centers

– Share with community partners

– Others you think will benefit or will benefit you!

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Governance Readiness Tool

Designed to evaluate the strength of the governing body of the grantee and determine their readiness to oversee Head Start.

Three Sections1. Indicator Worksheets

2. Governance Readiness Plan

3. Resources

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Structural

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Indicator #1: Bylaws

The governing body adheres to a set of bylaws that members regularly review and update. The bylaws

• Outline the qualifications of members,

• Clearly delineate the roles and responsibilities of members,

• Establish a functional committee structure,

• Include policies that define expectations for attendance and membership on committees, and

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Take Stock

Are your bylaws an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• All Governing body members have a copy of the current bylaws.

• The bylaws indicate when they were last updated.

• The bylaws include the five items listed above.

• Governing body members regularly reference the bylaws during meetings to clarify how the governing body is expected to function.

• The governing body has a system for regularly reviewing and updating the bylaws.

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Indicator #2: Major Policies

The governing body has established major policies that include but are not limited to

• a conflict of interest policy,

• personnel policies, and

• a formal process for employees and consumers to report complaints without retaliation.

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Take Stock

Are your policies an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• At a minimum, policies exist in the three areas listed above and are current and easy to locate.

• The policies are referenced during meetings to provide guidance to the organization and governing body during their decision-making processes.

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Indicator #3: Measuring Governing Body Performance

The governing body has a system for measuring its own performance and evaluating the engagement of individual members, and it uses the results to strengthen the governance system.

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Take Stock

Is measuring governing body performance an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• The governing body chair, other members, and the organization’s director are committed to continually improving the governance system.

• The governing body has measured its own performance, documented the results, and used the results to make improvements.

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Take Stock (cont.)

• Governing body members are able to recall their individual evaluations; some members report they have increased their level of engagement as a result.

• Governing body members are aware of tipoffs that indicate the need for evaluating governance policies and practices, such as‒ Spotty attendance and lack of quorum at meetings,

‒ Late arrivals and early departures at meetings,

‒ Lack of preparation for meetings, and

‒ Meetings that reflect micromanagement rather than strategic focus.

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• There are many board governance evaluation tools available

• It is included on our DVD series

• Other resources, CAP and CAPLAW

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Indicator #4: Membership

The governing body successfully recruits diverse and qualified members whose experience and expertise align with governing body responsibilities and ensure that the community served is adequately represented.

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Take Stock

Is membership an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• The bylaws describe specific qualifications that are sought when recruiting governing body members to fill vacancies.

• The governing body has a nominating committee that has been successful in recruiting qualified members.

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Take Stock (cont.)

• The governing body includes members with different areas of expertise that align with key governing body responsibilities as well as members who represent the community served.

• The governing body is prepared to change its membership in accordance with the Head Start Act.

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Indicator #5: Orientation and Training

The governing body provides orientation to all new members and ongoing training, as needed, so that members fully understand their responsibilities and are knowledgeable about the organization’s systems, services, and financial health.

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Take Stock

Is orientation and ongoing training an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• A comprehensive governing body orientation is held annually for all new members.

• A current governing body handbook exists, is distributed to all new members, and is used to guide members in embracing their new roles.

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Take Stock (cont.)

• The executive director is responsive to the ongoing needs of members by providing yearly training activities that support their continuous growth and development.

• The executive director utilizes internal and external resources to ensure that all training content is current and the professional development strategies are appropriate to the audience.

• Governing body members can describe the orientation and ongoing training they received and how it helped prepare them for their role.

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Fiduciary

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Indicator #6: Fiscal Oversight

The governing body exercises fiscal oversightby

• approving the organization’s annual Head Start budget and other major program budgets;

• establishing and adhering to procedures and guidelines for accessing, reviewing, and approving regular budget reports;

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Indicator #6: Fiscal Oversight (cont.)

• implementing a system of checks and balances to ensure that proper internal controls are in place for expenditures; and

• regularly analyzing budget reports to monitor the organization’s financial health, compare actual fiscal performance against the budget, ensure that appropriate financial controls are in place, and initiate corrective action when indicated.

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Take Stock

Is fiscal oversight an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• One or more governing body members have fiscal expertise.

• Financial management is included in the governing body orientation and training process so that all members have the skills to review and assess budget reports.

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Take Stock (cont.)

• Minutes from either full governing body meetings or finance committee meetings clearly document the budget review and approval process.

• Governing body members can recall times when budget reports have revealed potential fiscal issues and members have worked with management to take corrective action.

• Governing body members regularly review their fiscal policies and develop new, more efficient procedures as necessary.

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Indicator #7: External Audit

The governing body enlists an independent auditor to conduct an annual external audit and works with the executive director to take corrective actions, as warranted, to strengthen the organization’s financial management operations.

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Take Stock

Is external auditing an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Governing body members are involved in the selection of a qualified and independent auditor.

• Governing body members have thoroughly reviewed the most recent audit report and all members are familiar with the results.

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Take Stock (cont.)

• Governing body members recall times when they have worked with the chief financial officer and the executive director during the audit resolution process to ensure compliance and avoid a repeat finding.

• Governing body members have evaluated the relevance of audit findings and have changed audit firms over time to ensure that audits are independent, objective, and useful to the organization.

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Indicator #8: Managing Federal Funds

The governing body has a history of successfully managing federal funds.

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Take Stock

Is managing federal funds an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• The organization has a track record of successfully managing programs supported by federal funds.

• The governing body is confident that the organization has a highly qualified chief financial officer and fiscal management staff who can manage federal funds based on their prior experience.

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Take Stock (cont.)

• The governing body has supported organizational staff in developing their professional skills and expertise related to managing federal funds.

• The chief financial officer and fiscal management staff have the ability to address compliance issues, especially as they relate to financial reporting requirements.

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Strategic Direction

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Indicator #9: Strategic Planning

The governing body has an ongoing process for examining internal and community data in order to analyze trends and develop and strategic plan that includes an organizational vision, short-term and long-term goals, and operational and fiscal objectives.

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Take Stock

Is strategic planning an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• The strategic plan is a key reference point during the governing body’s orientation and ongoing training.

• Governing body members can describe how they have worked with senior program managers on the development of a strategic plan.

• Governing body members can share examples of how they have used data to make decisions regarding the goals and objectives to be included in the strategic plan.

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Leadership

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Indicator #10: Oversee Organizational Performance

The governing body oversees organizational performance by monitoring and evaluating metrics of major programs, services, and initiatives.

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Take Stock

Is organizational performance review an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Organizational staff regularly share progress reports with the governing body.

• Progress reports contain information regarding core services and are tied to program goals and objectives.

• Meeting minutes confirm that the governing body regularly reviews reports that provide information on the status of program services.

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Take Stock (cont.)

• Governing body members utilize progress reports to determine the progress the organization is making in meeting organizational and program-specific objectives.

• Governing body members can recall instances when they have used progress reports to identify trends and emerging issues with organizational performance and have worked with the executive director to address these issues and support the organization in meeting objectives.

• Governing body members spend time observing program services in action in order to obtain their own perspective on program operations.

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Indicator #11: Relationship with Executive Director

The governing body hires the executive director, works collaboratively with him or her in leading the organization. Holds him or her accountable, and regularly evaluates his or her performance.

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Take Stock

Is the relationship with the executive director an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Governing body members are involved in the process of hiring the executive director.

• Governing body members annually evaluate the performance of the executive director.

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Take Stock (cont.)

• Governing body members have a system for insuring that the opinions of parents, staff, and community members are included in the hiring and evaluation of the executive director.

• Governing body members, when asked, can provide examples of ways they have worked with the executive director to provide leadership to the organization.

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Community Relations

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Indicator #12: Community Partners and Stakeholders

Governing body members speak on behalf of the organization with community partners and stakeholders and create connections with resource providers who can benefit the organization and its programs.

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Take Stock

Are relationships with community partners and stakeholders an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Governing body members can provide examples of ways they have enhanced community partnerships on behalf of the organization.

• Governing body members are actively involved with community organizations that will serve as effective partners and provide resources for the Head Start and/or Early Head Start program.

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Indicator #13: Communication Strategies

The governing body shares accomplishments with the community through its annual report and other communication strategies.

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Take Stock

Are communication strategies an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place?

• The organization produces an annual report.

• The governing body is aware of the contents of the annual report and can provide examples of how this information is shared with the broader community.

• The organization regularly communicates its accomplishments to the community through newsletters, website content, media outreach, and other communication channels.

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Decision-Making

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Indicator #14: Constituent Voice

The governing body includes members from the organization’s constituent group and/or has other mechanisms to endure that a constituent voiceinforms its decision-making.

If your organization has a history of managing Head Start services, also include this indicator in your assessment: The governing body carefully considers the opinions and recommendations of the Policy Council when making decisions pertaining to the Head Start program.

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Take Stock

Is constituent voice an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Governing body members recognize that the opinions and ideas of those being served should be used to shape the organization and its service delivery systems.

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Take Stock (cont.)

• Governing body members are able to share examples of how they have utilized feedback from constituents in their decision-making.

• The governing body, wen making decisions, has mechanisms in place for obtaining and considering the viewpoints of those being served.

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Take Stock (cont.)

If your organization has a history of managing Head Start services, also think about the following:

• Policy Council and governing body meetings are designed and scheduled to support a coordinated flow of information between the two groups that results in sound and inclusive decision-making.

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Indicator #15: Informed and Inclusive Process

The governing body holds meetings that are well attended and characterized by full and meaningful participation. The chairperson encourages diversity of opinion, and decisions reflect an informed and inclusive process.

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Take Stock

Is informed and inclusive decision-making an area of strength for your governing body or an area you wish to improve? Think about whether or not the following are in place:

• Governing body meetings are well attended, allowing for diverse expertise and perspectives in resolving issues.

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Take Stock (cont.)

• Governing body members report that their views and the views of others are respected and considered during meeting discussions.

• Governing body members receive a packet of materials prior to meetings so they can review the information and prepare for discussions.

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Summary

Based on the indicator worksheets summarize your responses

• Strong

• In Process

• Needs improvement

Develop a Readiness Plan to address those areas that you are in the process of strengthening and areas that need improvement

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Resources

As stated earlier you don’t HAVE to use their tools but you have to be able to demonstrate that you complied. There are many resources available.

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Governance DVD Series Agenda

Board Governance Overview PART 1

• Board Governance – How Has it Changed Over the Years

• Board Responsibilities – Management’s Expectations

• How NPO’s Differ From Other Organizations

PART 2 • Keys to Success and Best Practices

• Rights of a Board Member

• Responsibilities of a Board Member

• Strategies for an Effective Board

• Boards and Internal Controls

• Board Evaluation

• Board’s Role in the Audit Process 91

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IRS Form 990 • New Form 990 - Overview and Guiding Principles

• Specific Governance Practices and Policies

• Compensation Reporting

• Related Organizations and Transactions With Them

• Activities Involving Interested Persons

Financial Statements • Overview of audited financial statement components

• Understanding of factors not directly related to the audit report

• Application of key financial indicators

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Head Start / Early Head Start Governance Requirements • Head Start and Early Head Start program governance

requirements are unique, no other program has such strict requirements

• Governance has received a lot of attention lately in both OIG review and On-Site Reviews

• Training on governance responsibilities is required under the Improving Head Start for School Readiness Act of 2007

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Risk Management • First and foremost there needs to be discussion

amongst the board regarding the amount of risk they are willing to take on and understand this may change over time. • Identify financial, operational, and external risks

• Assess insurance coverage purchased for various exposures.

• Understand and manage process for internal controls.

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How to Hire an Auditor • Who manages the Request for Proposal (RFP) process

• The RFP timeline/process

• How to compare proposals

• Wrapping up the process

Roles and Responsibilities of the Audit Committee • Finance vs. audit committee: Are they the same or do

you need separate committees?

• The history of the audit committee

• The makeup of the audit committee

• General roles of the audit committee

• Specific responsibilities of the audit committee 95

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Governance System Builder

• Supports taking the results of the screening and/or readiness tool and move forward to building or strengthening their systems

• Available at the end of the summer (still not issued yet)

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Governance Certification

• Orientation for leaders of new Head Start grantee agencies

• Online tool with different modules

• Once completed will receive a certification of completion

• Slated to be rolled out in 2014

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Summary

• Much more focus on the governing body’s and PC’s knowledge of and evidence of oversight.

• Both are being held more accountable

• Providing evidence for agencies with a long history will be easier than new agencies but the requirements will apply to all.

• Start planning and gathering information now so you are prepared to meet the 90 day deadline.

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Materials/Disclaimer

• Understanding the New Governance Requirements for All Five Year Grantees PowerPoint*

• ACF Information Memorandum• Orientation for First Year Conditions for All Five Year

Awards• OHS Governance, Leadership, and Oversight Capacity

Screener• Governance Readiness Tool

* Please note that these materials are incomplete without the accompanying oral comments by Denes L. Tobie, CPA of Wipfli LLP.

These materials are informational and educational in nature and represent the speaker’s own views.

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Thank You!

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Documents