In February 2005, the U.S. Government Accountability Office (GAO) issued a report that raised concerns about the effectiveness of the Department of Health and Human Services (HHS) Administration for Children and Families' (ACF) oversight of about 1,600 local organizations that receive nearly $7 billion in Head Start grants. GAO was asked to report on: (1) ACF's progress in conducting a risk assessment of the Head Start program and ensuring the accuracy and reliability of data from its annual Program Information Report (PIR) survey of grantees; (2) efforts to improve on-site monitoring of grantees; and (3) how data are used to improve oversight and help grantees meet program standards. For this report, GAO surveyed a nationally representative sample of Head Start program directors and interviewed ACF officials. GAO also reviewed ACF studies on the validity of PIR data and conducted tests of data from the 2006 PIR database. GAO recommends that ACF develop a more strategic approach to assessing risks to the Head Start program, expand its efforts to collect data on and estimate improper payments, improve the accuracy of data from its annual PIR survey, and develop clear criteria for providing additional assistance for high-risk grantees. ACF agreed with the latter two recommendations and emphasized progress already made toward developing a comprehensive risk assessment process and reducing improper payments. Four appendixes include: (1) Scope and Methodology: (2) Comments from the Department of Health and Human Services; (3) GAO Contacts and Staff Acknowledgments; and (4) Related GAO Products. (Contains 28 footnotes, 1 figure, and 1 table.) [This document was published by the U.S. Government Accountability Office.]