Neighborhood House Association Committed to Excellence

February 7, 2008

Neighborhood House Association (NHA) has recently made improvements in many areas, including achieving a clean audit for the first time in five years, increasing our unrestricted funds in order to ensure financial viability, recruiting a top-notch Board of Directors to guide this organization into the future and hiring an exceptional senior management team.

NHA has been providing Head Start services for more than 40 years and stands, today, stronger than ever. Across the board, NHA is more efficient, transparent and committed to excellence. On February 7, 2008, NHA and the Department of Social Services Community Care Licensing Division (CCL) reached a successful settlement regarding 13 Head Start centers whose licenses were under revocation proceedings. An Administrative Law Judge for the California Office of Administrative Hearings facilitated NHA and CCL in reaching the settlement. We are proud of this settlement as it results in NHA's ability to continue to serve all of its existing families and children.

As part of its commitment to improving all 130 Head Start sites for the continued safety of our children, NHA implemented the following safety measures in 2007:

• Raised gate latches above the state standard requirement
• Required that staff conduct a head count of all children when transitioning between teachers or transitioning between their classroom and the playground
• Placed red safety lines at key exits to warn children not to cross
• Hired playground monitors whose sole responsibility is to watch all gates through which children can exit
• Installed alarms on Head Start gates and exterior doors
• Implemented a child safety vest system, which requires children wear red vests imprinted with the NHA logo and phone number when outside the classroom
• Required staff to perform a head count and line children up holding a rope when walking between the classroom and playground
• Increased frequency of Quality Assurance Program Monitoring Inspections from semi-annually to quarterly
• Instituted weekly Head Start Management Inspections of centers
• Hired a childcare consultant to assess our health and safety measures

We have made tremendous improvements at all the Head Start sites and we are committed to providing excellent service to the individuals and families who depend on the many vital programs we provide.

Sincerely,

Rudolph A. Johnson, III
President and CEO

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Neighborhood House Association Achieves an Unqualified Audit for FY2007

December 13, 2007

I am proud to announce that Neighborhood House Association earned an unqualified, or "clean," single audit for FY2007.

The Single Audit (OMB A133) noted that NHA was compliant for all internal control measures relative to its nine key program areas offered at approximately 130 facilities throughout the county. A clean audit provides independent confirmation that NHA's financial statements are presented fairly in conformity with generally accepted accounting principles.

This is the first time in over five years that NHA has been able to submit an unqualified annual audit to the state on time. This confirms that NHA has been laser-focused on the healthy fiscal growth and development of this organization. The audit is the result of improved tracking, maintenance and reporting of our fiscal responsibilities. I am extremely proud of this accomplishment.

All non-federal entities that expend $500,000 or more of federal awards annually are required to provide an annual audit in accordance with the Single Audit Act Amendments of 1996, OMB Circular A-133, the OMB Circular Compliance Supplement and Government Auditing Standards. A single audit is intended to provide a cost-effective audit for non-federal entities in that one audit is conducted in lieu of multiple audits of individual programs.

NHA offers an array of services designed to meet the cultural, social, health, mental health and emergency daily living needs of 30,000 under-served and unserved San Diegans every year, including the working poor. Program service areas are focused on: Health, Youth, Teenage Pregnancy Prevention, Childhood Development, Seniors, Mental Health, Nutrition, HIV/AIDS Services, Housing and Emergency Assistance Services.

We are confident that the organization's high standards and dedication to meeting strong federal guidelines will earn NHA another clean audit in FY2008.

Sincerely,

Rudolph A. Johnson, III
President and CEO

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Neighborhood House Association’s Head Start Program Achieves 100 Percent Enrollment for Second Straight Year

Neighborhood House Association, in conjunction with delegate agencies Alpha Kappa Alpha (AKA) and Episcopal Community Services (ECS), has achieved 100 percent enrollment for the second straight year. NHA announced this on September 17, the official start date for the agency’s Head Start program.

Head Start is a federally-funded child development program designed to provide a comprehensive program to meet the emotional, social, health, nutritional and psychological needs of eligible preschool children and those with disabilities. Early Head Start focuses on children six weeks to three years of age, as well as pregnant women. NHA is funded to serve San Diego County children and their families every year through its Head Start program.

We are required to submit end-of-month enrollment reports in October, January and March to the U.S. Department of Health and Human Services. We forwarded an official start date enrollment report to the regional Head Start office in San Francisco on September 17, indicating we have certified the enrollment and eligibility for 10,106 children.

Our promise to the children and families we serve is that we will continue to provide the best possible early childhood education program available in San Diego County, while remaining truthful, transparent and forthright with information related to our programs and services. As President and CEO, I will continue to work closely with our senior management team, 1,500 employees, Board of Directors, delegate agencies and school district partnerships throughout San Diego County to achieve excellence in all the programs and services we provide to the community for which we care so deeply.

Sincerely,

Rudolph A. Johnson III
President and CEO

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Dear Parents and Guardians of NHA Head Start Children:

September 20, 2007

First, let me extend to each of you a warm welcome to Head Start Year for the 2007/2008 school year. For the second year in a row, NHA's Head Start program has achieved 100% enrollment in our Head Start program on the official first day of school, which was September 17. I am very proud of NHA's staff for achieving this major step in our move toward excellence in providing the best early childhood development and health services program in the country. On September 17 we forwarded our child income and eligibility report certifying full enrollment of our Head Start program, as required, to the National Office of Head Start. We receive funding from the National Office of Head Start to run Head Start programs at NHA's 130 Head Start sites in San Diego County.

While we were working to achieve full program enrollment, we continued to focus our efforts on child safety and security. We have recently taken the following measures, which should help in increasing the safety of your child:

• Established two levels of perimeter security for all 83 licensed Head Start sites
• Revised procedures for accounting for and supervising children during transition periods from indoor to outdoor activities
• Increased health and safety site inspections from once to four times a years
• Hired a full-time Safety Officer to conduct quarterly Head Start Health and Safety inspections.

While we are taking every safeguard possible to ensure the safety and welfare of your children, we can't do it without your help. Here are a few things you can do to help us, no matter how late you are dropping you child off or picking them up:

• Make sure you sign your child in when dropping him or her off or signing them out
• When you enter and leave the center grounds, make certain you close and latch all exterior facility gates behind you
• Be certain to tell staff if your child has a tendency to climb fences or run away from supervised areas
• Immediately report any safety concerns to your child's center director or teacher
• Instruct your children to remain with their assigned teachers at all times

At NHA, we are committed to remaining focused on continuous site monitoring and frequent health, safety and security inspections. Together we can work to ensure increased child safety and security for our most precious assets: our children, our future. Together we can make a difference

Sincerely,

Rudolph A. Johnson III
President and CEO