In Sept. 2003, the Head Start Bureau, in the Dept. of Health & Human Services, Admin. for Children & Families, implemented the Nat. Reporting System (NRS), the first nationwide skills test of over 400,000 4- & 5-year-old children. The NRS is intended to provide information on how well Head Start grantees are helping children progress. Given the importance of the NRS, this report examines: what information the NRS is designed to provide; how the Head Start Bureau has responded to concerns raised by grantees & experts during the first year of implementation; & whether the NRS provides the Head Start Bureau with quality information. Includes recommendations. Charts & tables.