HHS News Release

The Administration for Children and Families (ACF) in the Department of Health and Human Services announced today that it is terminating Head Start funding to the Human Development Corporation (HDC), effective November 30, 1998 for failure to meet minimum Head Start requirements for program and fiscal management.

ACF assures all Head Start families that they will continue to receive services without disruption. HDC is funded through November 30 to provide services and has 10 days to appeal the ACF's decision to terminate its funding. After November 30, the ACF will designate an interim grantee to continue services until new grantees are selected. ACF also will insure that the federal funds for Head Start in St. Louis City will remain in St. Louis and will be provided by community-based organizations. The new grantees will be selected through a competitive process.

HDC currently receives $11,619,585 in federal funds to serve 2,519 children and their families in the City of St. Louis.

ACF is committed to assuring that all Head Start families receive quality services. Nationwide, ACF has aggressively reviewed the performance of Head Start programs to ensure the highest standard of quality. This effort has resulted in the termination of 100 grantees since 1994.

This termination comes as the result of HDC's failing to meet minimum Head Start requirements for program and fiscal management. A full review of the agency conducted in April 1997 found significant deficiencies, including failure to serve the number of children funded, to provide appropriate services for children with disabilities, to maintain proper fiscal and administrative management. In June 1998, a subsequent review by federal staff found financial irregularities and HDC was placed on a high risk status, the most serious designation of a troubled Head Start program. Even after nearly a year from identification of the original deficiencies, HDC failed to make the necessary corrections.

This continued failure to meet regulatory, administrative and financial management requirements has convinced ACF that HDC lacks the capacity to operate a quality Head Start program. Through direct and contracted training and technical assistance, ACF makes every attempt to insure that this and other Head Start grantees meet program performance standards. This termination of HDC as a Head Start grantee is necessary to insure that St. Louis children receive quality Head Start services.

ACF will continue to inform and involve parents and local officials as decisions are made on an interim organization and the competitive process to select new providers of Head Start services.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen, (202) 401-9215