NHA was served with a lawsuit from formerly contracted Head Start service provider Children of the Rainbow (COTR).Through internal monitoring practices NHA discovered that COTR was not in compliance with financial standards set forth by NHA and the federal Head Start program. COTR would not agree to stricter financial oversight by NHA. As stewards of public and federal trust, NHA ended its contract with COTR and requested COTR to reimburse misused federal funds.

NHA views the COTR lawsuit as retaliation. In keeping with its commitment of transparency NHA has provided the following documents in regards to COTR allegations:

Original NHA contract with COTR LLC for Fiscal Year 2010-2011

Original Contract with COTR INC for Fiscal Year 2010-2011

Images of federal property items held by COTR

Copy of Complaint

NHA Supporting Documents

COTR Wage Obligations

NHA Payment of COTR Accrued Vacation