There are now three divisions for levels 1-3. the 'A' division are kids who will probably go on and do elite, very few clubs do this division (pretty much just the HPC, waverly, MLC and a couple of others). The majority of kids compete in B and C categories. 'B' division is for kids likely to go on and do national level 4 and 'C' division is for kids in a rec program or likely to go on and do state level 4. there are different numbers of reccomended/allowed hours each division and level are allowed to train. (this is my understanding of it all anyway!!)
They are scored/judged the same as for the internation/elite code of points.
'A' division routines have an A score of 7.00, 'B' division routines have an A score of 6.00 and 'C' division routines have an A score of 5.00. As long as they do/attempt all the skills in the routines they will recieve this start score (all execution marks are then marked out of 10).
To be eligible to compete in a certain division depends on the overall start value. I can't remember exactly what they are but since you are taking C division kids you just need to know they can do either 4 5.00 routines or 3 5.00 routines and a 6.00 routine.
I hope this has explained it all to you and you can understand my rambling!!

Feel free to ask any questions about anything! scoring/routines/comps etc!!
Good luck with your coaching
