Regional Offices' Cost/Performance Negotiations with Head Start Grantees

摘要

This study reviewed the current process of negotiation between Head Start regional staff and grantees over the amount and disposition of grant monies and tested a set of cost instruments which could be used in future negotiations and in constructing a national data base. An analysis of data from 11 grantees demonstrated that collecting cost information can help programs decide if they can increase enrollment while holding cost and quality at current levels. Moreover, the cost analysis system supplies valuable data for national and regional staff. Specifically, staff will have data on annual cost per child, cost per child hour, each line item's cost from a grant application's budget, home and center - based costs, and the structure and quality of the program. Staff can use this information to set levels of reasonable costs for grantees of different types and construct a national data base that would be invaluable in responding to questions about program operations. Finally, the cost approach assures that grantees' budget information is forwarded from the regional to the national level and provides program specialists with key questions to ask grantees in the negotiation process. However, six major issues must be addressed before implementing the cost approach: rationale for collecting cost data, introduction of national rather than regional guidelines for negotiation, division of responsibility for cost analysis between program and fiscal staff, training, monitoring, and methods for sending data to the national office. Tables are provided. (Author abstract modified).