INFORMATION MEMORANDUM

TO: All Early Head Start Grantee and Delegate Agencies

SUBJECT: Planning for Conversion of Computer Hardware and Software by January 1, 2000.

INFORMATION: You have undoubtedly read and heard about the efforts that businesses and government agencies are undertaking to be prepared to meet any challenges which may occur at the close of the calendar year. Such challenges may occur because computer software or computer hardware must be replaced or modified to accommodate what has become known as the "Y2K" phenomenon. Systems must be replaced, redesigned or adapted to recognize and compute using a four-digit year field beginning in the year 2000.

The Administration for Children and Families is not anticipating any interruption in making grant payments to Head Start grantees at the start of calendar year 2000. Throughout the balance of this year ACF, together with the Department's Payment Management System, will be testing the payments processing and other systems. In addition, ACF will develop contingency plans to ensure that services will continue even if ACF computer services are temporarily interrupted.

Part of our contingency planning includes urging grantees with budget periods beginning January 1, and February 1, 2000 to be certain that refunding applications are submitted in time to permit processing by funding offices during December, 1999.

As a prudent business practice we are recommending that grantee and delegate agencies have contingency plans which could be implemented, if necessary, to ensure that core business practices can be continued. Accounting and payroll systems should be modified, if necessary, and testing performed where feasible, especially where grantees are dependent large systems, such as county or municipal payroll and accounting services. We recommend that grantees explore ways in which Head Start program staff and key outside personnel can work together in implementing contingency plans in the event that payroll and accounting services are temporarily interrupted.

Grantees which are providing their own in-house accounting and payroll services should consult hardware and software professionals to assure that computer hardware or software will be compliant with year 2000 requirements. Outside providers of payroll services should certify that their systems are now, or will be, operational in the new year.

As has been the practice in the past, grantees should make reasonable expenditures for the purchase of computer hardware and software necessary to assure continued operations in the new year to enhance the management of the Head Start program. Purchases of items of equipment costing less than $5,000 do not require prior approval.

Finally, we are requesting that grantees notify their funding offices if you are anticipating any interruption of your automated systems.

INQUIRIES TO:
Regional Administrators, ACF
American Indian and Migrant Programs Branches
/S/Helen H. Taylor
Associate Commissioner
Head Start Bureau