Options for Full-Day Services for Children Participating in Head Start . Fiscal Management Strategies


Each grantee had to develop a strategy for allocating funding from their various funding sources. Among the eight grantees, five different strategies were employed. The first method, which is used by two of the sample's Head Start grantees, involves dividing costs among the participating agencies so that each agency alone pays for a particular line item. For example, one participating agency may pay all facilities expenses and Head Start may pay all non-facilities expenses. By keeping the funding separated, grantees greatly simplify the accounting process. The remaining four methods require the Head Start agency to manage multiple funding streams, but demonstrate different ways of allocating costs to funding sources. One grantee used no allocation formula at all; instead, this grantee pooled all of its funds into a single account from which all bills were paid. Another grantee assigned each line item to one funding source only, so that Head Start paid 100 percent of certain line items and its other source paid 100 percent of other items. Two grantees used a single allocation formula to divide costs across funding sources: all line item costs were allocated proportionally by number of children funded by each source or amount of income from each source. Finally, two grantees split costs across funding sources according to formulas tailored specifically for each item.