121 STAT. 1392
a delegate agency through the evaluation, the Head Start agency shall take action, which may include— ‘‘(A) initiating procedures to terminate the designation of the agency unless the agency corrects the deficiency; ‘‘(B) conducting monthly monitoring visits to such delegate agency until all deficiencies are corrected or the Head Start agency decides to defund such delegate agency; and ‘‘(C) releasing funds to such delegate agency— ‘‘(i) only as reimbursements except that, upon receiving a request from the delegate agency accompanied by assurances satisfactory to the Head Start agency that the funds will be appropriately safeguarded, the Head Start agency shall provide to the delegate agency a working capital advance in an amount sufficient to cover the estimated expenses involved during an agreed upon disbursing cycle; and ‘‘(ii) only if there is continuity of services. ‘‘(4) TERMINATION.—The Head Start agency may not terminate a delegate agency’s contract or reduce a delegate agency’s service area without showing cause or demonstrating the costeffectiveness of such a decision. ‘‘(5) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to limit the powers, duties, or functions of the Secretary with respect to Head Start agencies or delegate agencies that receive financial assistance under this subchapter. ‘‘(e) CORRECTIVE ACTION FOR HEAD START AGENCIES.— ‘‘(1) DETERMINATION.—If the Secretary determines, on the basis of a review pursuant to subsection (c), that a Head Start agency designated pursuant to this subchapter fails to meet the standards described in subsection (a)(1) or fails to address the communitywide strategic planning and needs assessment, the Secretary shall— ‘‘(A) inform the agency of the deficiencies that shall be corrected and identify the assistance to be provided consistent with paragraph (3); ‘‘(B) with respect to each identified deficiency, require the agency— ‘‘(i) to correct the deficiency immediately, if the Secretary finds that the deficiency threatens the health or safety of staff or program participants or poses a threat to the integrity of Federal funds; ‘‘(ii) to correct the deficiency not later than 90 days after the identification of the deficiency if the Secretary finds, in the discretion of the Secretary, that such a 90-day period is reasonable, in light of the nature and magnitude of the deficiency; or ‘‘(iii) in the discretion of the Secretary (taking into consideration the seriousness of the deficiency and the time reasonably required to correct the deficiency), to comply with the requirements of paragraph (2) concerning a quality improvement plan; and ‘‘(C) initiate proceedings to terminate the designation of the agency unless the agency corrects the deficiency. ‘‘(2) QUALITY IMPROVEMENT PLAN.— ‘‘(A) AGENCY AND PROGRAM RESPONSIBILITIES.—To retain a designation as a Head Start agency under this subchapter, or in the case of a Head Start program to
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