Summer Reading Program for 5 Year Old

Read to them each and every night. There is not an expectation that children are reading entering Kindergarten. The fact that she has solified her literacy readiness skills is fantastic!

I would strongly suggest that you call your local library. Many of them run summer reading programs that are wonderful. They are incentive-based and encourage children to maintain their skills over the summer. The librarian will also help you and your children find books that are interesting and at their level!

You're right! It's never too early. And it does kids a lot of good to hear you reading aloud to them. They will absorb tones, inflections, vocabulary, language!
Our local library has a Pre-K reading program every summer. Maybe yours does too.

Check your local library for books on CD or cassette - often times there will be books packaged *with* an audio CD or cassette and they come in a variety of levels (IME the ones packaged together are usually picture books e.g. Curious George). My own unscientific opinion is that teaching a kid to read is not necessarily the same as teaching a kid to *love* reading - and IMO the best way for a kid to learn to love reading is to be exposed to books that will interest him/her. Combining a book with its companion audio CD/cassette would be one way for the child to be able to independently look at a book and hear it at the same time.
Also, check your library for videos/DVDs of the PBS program "Reading Rainbow", which is a fun way for kids to see and hear some classic kids books being read, with some fun/informative introduction to the topic (for example, see this excerpt from the episode on bees: http://www.youtube.com/watch?v=HJg-eXI7Pxg)

Reading based does not mean reading, it means reading readiness. I found myself in the same situation. My daughter took off reading and the teacher was willing to give her books she was not offering to the rest of the class because she was so far ahead. I wouldn't worry about their reading. You can go to the library for books on cd or hooked on phonics. No matter what, the best thing for them would be to read to them every night.