A State's ability to fully and effectively implement the requirements of
ESEA is directly related to the extent to which it is able to regularly
monitor its LEAs through a variety of means and provide quality
technical assistance based on identified needs. This principle applies
across all Federal programs under ESEA.

Federal law does not specify the particular method or frequency with
which States must monitor their grantees, and States have a great deal
of flexibility in designing their monitoring systems. Whatever process
is used, it is expected that States have mechanisms in place sufficient
to ensure that States are able to collect and review critical
implementation data with the frequency and intensity required to ensure
effective (and fully compliant) programs under ESEA.

**[Finding]{.underline}:** The PRDE's procedures for monitoring programs
funded with Title I funds were insufficient to ensure that all programs
were operating in compliance with all ESEA requirements related to the
Title I programs reviewed by ED. Monitoring forms reviewed by the ED
team appeared to contain general fiscal issues rather than compliance
requirements specific to Title I, Part A. Since the ED team identified a
number of areas where the SEA did not ensure compliance with the
requirements of Title I programs reviewed, the ED team concludes that
the PRDE's current procedures for monitoring its programs are
insufficient to ensure compliance with Title I requirements.

[Citation]{.underline}: Section 80.40 of the Education Department
General Administrative Regulations (EDGAR) -- Grantees must monitor
grant and subgrant activities to ensure compliance with applicable
Federal requirements.

Section 9304(a) of the ESEA requires that the SEA must ensure that (1)
programs authorized under ESEA are administered in accordance with all
applicable statutes, regulations, program plans, and applications; and
(2) the State will use fiscal control and funds accounting procedures
that will ensure the proper disbursement of and accounting for Federal
funds.

[Further action required:]{.underline} The PRDE must ensure that it has
an effective method to monitor for compliance with all requirements of
Title I, Part A, Part B, and Part D, including procedures to identify
and correct issues of noncompliance. The PRDE must submit to ED written
procedures that it will use to monitor for compliance with all
requirements of Title I, Part A, Part B, Part D and the McKinney-Vento
Homeless Education Programs, including procedures to identify and
correct issues of noncompliance.

# Overlapping Issue

States are required to establish a statewide system of intensive and
sustained support and improvement for LEAs and schools receiving funds
under Title I in order to increase the opportunity for students served
by the LEAs and schools to meet the State's academic content standards
and student academic achievement standards. The statewide system of
support must include creating and employing school support teams to
assist schools, provide training to school support team members,
designating and using distinguished teachers and principals, and other
approaches such as providing assistance through institutions of higher
education. The priorities of this system of support are to first serve
schools subject to corrective action; second provide support and
assistance to other LEAs with schools identified as in need of
improvement; and third provide support and assistance to other LEAs and
schools participating in Title I that need support and assistance. Each
school support team must include individuals who are knowledgeable about
scientifically based research and its potential for improving teaching
and learning and about successful schoolwide projects, school reform,
and improving educational opportunities for low-achieving students.

**[Finding:]{.underline}** Neither ED Instructional Support nor
Fiduciary staff found evidence that a statewide system of support was in
place. Funds were provided to the Offices of English, Spanish and
Technology, which, in many instances, use these funds to support general
professional development including professional development for staff at
the central office level and purchase of computer equipment. At least
one principal interviewed by ED staff could not articulate how the
computers placed in his school supported school improvement initiatives.

[Citation:]{.underline} Section 1117(a) of the ESEA requires each State
to establish a statewide system of intensive and sustained support and
improvement for LEAs and schools receiving funds under Title I in order
to increase the opportunity for students served by the LEAs and schools
to meet the State's academic content standards and student academic
achievement standards. The statewide system of support must, at a
minimum, create and employ school support teams to assist schools,
provide training to school support team members, designating and using
distinguished teachers and principals, and other approaches such as
providing assistance through institutions of higher education. The
priorities of this system of support are to first serve schools subject
to corrective action; second provide support and assistance to other
LEAs with schools identified as in need of improvement; and third
provide support and assistance to other LEAs and schools participating
in Title I that need support and assistance. Section 1117(a)(5)(A) of
the ESEA requires that the composition of each support team include
individuals who are knowledgeable about scientifically based research
and its potential for improving teaching and learning and about
successful schoolwide projects, school reform, and improving educational
opportunities for low-achieving students. Section 1117(a)(5)(B) lists
the tasks that each school support team must perform.

[Further action required:]{.underline} See Indicators 2.2 and 3.1 for
specific actions required.

Title I, Part A Monitoring

**Summary of Monitoring Indicators**

+-------+-----------------------------------------+-------------+----+
| #     |                                         |             |    |
| Monit |                                         |             |    |
| oring |                                         |             |    |
|  Area |                                         |             |    |
|  1, T |                                         |             |    |
| itle  |                                         |             |    |
| I, Pa |                                         |             |    |
| rt A: |                                         |             |    |
|  Acco |                                         |             |    |
| untab |                                         |             |    |
| ility |                                         |             |    |
+-------+-----------------------------------------+-------------+----+
| *     | # Description                           | **Status**  | #  |
| *Indi |                                         |             | Pa |
| cator |                                         |             | ge |
| Num   |                                         |             |    |
| ber** |                                         |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.1   | The SEA has approved academic content   | Met         | N  |
|       | standards for all required subjects or  | r           | /A |
|       | an approved timeline for developing     | equirements |    |
|       | them.                                   |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.2   | The SEA has approved academic           | Met         | N  |
|       | achievement standards and alternate     | r           | /A |
|       | academic achievement standards in       | equirements |    |
|       | required subject areas and grades or an |             |    |
|       | approved timeline to create them.       |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.3   | The SEA has approved assessments and    | Rec         | 4  |
|       | alternate assessments in required       | ommendation |    |
|       | subject areas and grades or an approved |             |    |
|       | timeline to create them.                |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.4   | Assessments should be used for purposes | Finding     | 4  |
|       | for which such assessments are valid    |             |    |
|       | and reliable, and be consistent with    |             |    |
|       | relevant, nationally recognized         |             |    |
|       | professional and technical standards    |             |    |
|       | (Section 1111(b)(3)(C)(iii).            |             |    |
|       |                                         |             |    |
|       | Adequate yearly progress shall be       |             |    |
|       | defined by the State in a manner that   |             |    |
|       | is statistically valid and reliable     |             |    |
|       | (Section 1111(b)(2)(C)(ii).             |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.5   | The SEA has implemented all required    | Finding     | 5  |
|       | components as identified in its         |             |    |
|       | accountability workbook.                |             |    |
|       |                                         |             |    |
|       | N.B. Report card requirements are       |             |    |
|       | addressed separately (1.5).             |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.6   | The SEA has published an annual report  | Finding     | 6  |
|       | card as required and an Annual Report   |             |    |
|       | to the Secretary (Section 1111(h)(1).   |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.7   | The SEA has ensured that LEAs have      | Finding     | 6  |
|       | published annual report cards as        |             |    |
|       | required (Section 1111(h)(2).           |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.8   | The SEA indicates how funds received    | Finding     | 7  |
|       | under Grants for State Assessments and  |             |    |
|       | related activities (Section 6111) will  |             |    |
|       | be or have been used to meet the        |             |    |
|       | 2005-06 and 2007-08 assessment          |             |    |
|       | requirements of NCLB.                   |             |    |
+-------+-----------------------------------------+-------------+----+
| 1.9   | The SEA ensures that LEAs meet all      | Met         | N  |
|       | requirements for identifying and        | r           | /A |
|       | assessing the English language          | equirements |    |
|       | proficiency of limited English          |             |    |
|       | proficient students.                    |             |    |
+-------+-----------------------------------------+-------------+----+

Title I, Part A

Monitoring Area 1: Accountability

**Indicator 1.3 - The SEA has approved assessments and alternate
assessments in the required subject areas and grades or has an approved
timeline to create them**.

[Recommendation:]{.underline} The PRDE may wish to consider developing
and implementing a series of validation reports to account for all
students enrolled in public schools. This process could be field tested
during SY 2006-2007 as the agency implements its student information
system. These, along with other verification steps, would ensure the
agency can document the steps it takes to account for all regular and
disabled (SWD) students, including those who take the alternate
assessments. State reports should provide accountability for all
students, including limited Spanish proficient (LSP) students.
Monitoring guidelines are provided; however, the process to ensure that
all LSP students participate in accountability assessments (with
appropriate accommodations) could not be verified. Entry requirements
for LSP students are standardized; however, criteria for exiting the
program are under development. The use of accommodations on the
statewide assessment is another area in which a solid validation process
could strengthen the PRDE's understanding of how its students are
participating in the assessment system.

**Indicator 1.4 - Assessments should be used for purposes for which such
assessments are valid and reliable, and be consistent with relevant,
nationally recognized professional and technical standards. Adequate
yearly progress (AYP) shall be defined by the State in a manner that is
statistically valid and reliable.**

**[Finding:]{.underline}** While the State has clear administration and
security procedures, assessment quality procedures used to ensure the
contractor is scoring the assessment correctly, publishing results in a
timely manner, verifying data using standardized procedures, screening
self-reported information by students, and a process to improve the
on-going quality of its assessment system could not be verified. No
process was evident to review assessment results prior to either public
release or inclusion into accountability decisions. Penalties for vendor
errors are not within the current contract. The SEA's current practices
do not appear to have a series of standardized error detection and
control procedures to ensure all eligible students are included within
the assessment and accountability systems. The appeal process does not
allow for a final decision prior to the beginning of the next school
year.

[Citation:]{.underline} Section 1111(b)(2)(C)(ii) of the ESEA states
that adequate yearly progress (AYP) shall be defined by the State in a
manner that is statistically valid and reliable.

Section 1111(b)(3)(C)(iii) of the ESEA states that assessments should be
used for purposes for which such assessments are valid and reliable, and
be consistent with relevant, nationally recognized professional and
technical standards.

[Further action required]{.underline}: The PRDE must develop assessment
quality control procedures to ensure that its assessment contractors are
scoring assessments accurately using professionally recognized
procedures and processes. Written procedures should be developed to
address any failure of contractors to deliver assessment materials and
results in a timely manner. The PRDE must develop internal procedures
for monitoring the accuracy of assessment data that it provides to the
public and must develop guidelines to ensure that all students are being
assessed appropriately on an annual basis. The PRDE must modify its
appeals process for assessment and accountability to ensure that
corrections are made well in advance of the beginning of the next school
year by which the accurate data must be reported.

**Indicator 1.5** **- The SEA has implemented all required components as
identified in its accountability workbook.**

**[Finding:]{.underline}** While the State has an approved
accountability workbook that requires all students to be included within
the system, small schools that do not have the minimum n-count are
excluded from AYP determinations (deemed as having made AYP for Federal
reporting). Data used to aggregate achievement results, including those
which exclude students under the full academic year (FAY) provision, are
self-reported by students in grades 4 and higher. Policies and
guidelines to ensure these data are accurate and follow the business
rules outlined in the State's accountability workbook are not available
to educators. Also, policies guiding the inclusion of alternate schools
(CASA) are not yet developed to ensure students and schools participate
in the assessment and accountability system. AYP results are not
received by schools prior to the beginning of the upcoming year, thus
parents must make decisions about choice, supplemental educational
services (SES), and others after the upcoming school year has begun.
Schools do not receive an official letter stating their AYP status for
the upcoming school year.

[Citation:]{.underline} Section 1111(b)(2)(A) of the ESEA states that
each State plan shall demonstrate that the State has developed and is
implementing a single, statewide State accountability system that will
be effective in ensuring that all local educational agencies, public
elementary schools, and public secondary schools make adequate yearly
progress as defined under this paragraph.

[Further action required:]{.underline} The PRDE must develop a process
to ensure that all schools, especially schools with enrollments that
fall below the minimum sample size, are included in AYP decisions based
on clear and objective guidelines. PRDE must train Local education
agency (LEA) staff on the business rules and policies used by the State
education agency (SEA) in making AYP decisions so that accountability
for data can be required at the school level. The PRDE must review its
procedures for coding student test booklets so that the responsibility
for coding such information as whether the student has been enrolled for
the full academic year not be placed primarily in the hands of students,
especially at the elementary level. The PRDE must develop a timetable
for reporting AYP determinations so that parents are aware of their
children's school's status prior to the beginning of each school year.

**Indicator 1.6 - The SEA has published an annual report card as
required and an Annual Report to the Secretary.**

**Indicator 1.7 - The SEA has ensured that LEAs have published annual
report cards as required**.

**[Finding:]{.underline}** An annual report card is not currently in
place; however, the PRDE provided a timeline for compliance. No
templates or other operational details were provided. School-level
report cards meeting the statutory requirements are currently not in
operation within the state.

[Citation:]{.underline} Section 1111(h)(1)(C)(i-vii) of the ESEA
requires that the State shall include in its annual State report card---

\(i\) information, in the aggregate, on student achievement at each
proficiency level on the State academic assessments described in
subsection (b)(3) (disaggregated by race, ethnicity, gender, disability
status, migrant status, English proficiency, and status as economically
disadvantaged, except that such disaggregation shall not be required in
a case in which the number of students in a category is insufficient to
yield statistically reliable information or the results would reveal
personally identifiable information about an individual student);

\(ii\) information that provides a comparison between the actual
achievement levels of each group of students described in subsection
(b)(2)(C)(v) and the State\'s annual measurable objectives for each such
group of students on each of the academic assessments required under
this part;

\(iii\) the percentage of students not tested (disaggregated by the same
categories and subject to the same exception described in clause (i));

\(iv\) the most recent 2-year trend in student achievement in each
subject area, and for each grade level, for which assessments under this
section are required;

\(v\) aggregate information on any other indicators used by the State to
determine the adequate yearly progress of students in achieving State
academic achievement standards;

\(vi\) graduation rates for secondary school students consistent with
subsection (b)(2)(C)(vi);

\(vii\) information on the performance of local educational agencies in
the State regarding making adequate yearly progress, including the
number and names of each school identified for school improvement under
section 1116; and

\(viii\) the professional qualifications of teachers in the State, the
percentage of such teachers teaching with emergency or provisional
credentials, and the percentage of classes in the State not taught by
highly qualified teachers, in the aggregate and disaggregated by
high-poverty compared to low-poverty schools which, for the purpose of
this clause, means schools in the top quartile of poverty and the bottom
quartile of poverty in the State.

[Further action required:]{.underline} The PRDE must develop and publish
its SEA/LEA and school report cards including all of the required NCLB
reporting elements as specified in section 1111(h) of ESEA. Templates,
an updated timeline and operational details for the report cards at each
level must be provided to ED.

**Indicator 1.8** **- The SEA indicates how funds received under Grants
for State Assessments and related activities (§6111) will be or have
been used to meet the 2005-06 and 2007-08 assessment requirements under
NCLB.**

**[Finding:]{.underline}** No evidence was presented by the PRDE
regarding how 6111 State assessment grant funds were being expended.

[Citation]{.underline}: Section 6111of the ESEA states that the
Secretary shall make grants to States to enable the States (1) to pay
the costs of the development of the additional State assessments and
standards required by section 1111(b), which may include the costs of
working in voluntary partnerships with other States, at the sole
discretion of each such State; and (2) if a State has developed the
assessments and standards required by section 1111(b) to administer
those assessments or to carry out other activities described in this
subpart and other activities related to ensuring that the State\'s
schools and local educational agencies are held accountable for results.

[Further action required]{.underline}: The PRDE must provide ED with a
full accounting of how it has expended section 6111 State assessment
funds for the last three Federal fiscal years.

+------------+-------------------------------------+------------+-----+
| ## Monitor |                                     |            |     |
| ing Area 2 |                                     |            |     |
| , Title I, |                                     |            |     |
|  Part A: I |                                     |            |     |
| nstruction |                                     |            |     |
| al Support |                                     |            |     |
+------------+-------------------------------------+------------+-----+
| **I        | ## Description                      | ## Status  | #   |
| ndicator** |                                     |            | # P |
|            | ##                                  |            | age |
| **Number** |                                     |            |     |
+------------+-------------------------------------+------------+-----+
| 2.1        | The SEA designs and implements      | Finding    | 9   |
|            | procedures that ensure the hiring   |            |     |
|            | and retention of qualified          |            |     |
|            | paraprofessionals and ensure that   |            |     |
|            | parents are informed of educator    |            |     |
|            | credentials as required.            |            |     |
+------------+-------------------------------------+------------+-----+
| 2.2        | The SEA has established a statewide | Finding    | 9   |
|            | system of support that provides, or |            |     |
|            | provides for, technical assistance  |            |     |
|            | to LEAs and schools as required.    |            |     |
+------------+-------------------------------------+------------+-----+
| 2.3        | The SEA ensures that the LEA and    | Finding    | 10  |
|            | schools meet parental involvement   |            |     |
|            | requirements.                       |            |     |
+------------+-------------------------------------+------------+-----+
| 2.4        | The SEA ensures that schools and    | Finding    | 11  |
|            | LEAs identified for improvement,    |            |     |
|            | corrective action, or restructuring |            |     |
|            | have met the requirements of being  |            |     |
|            | so identified.                      |            |     |
+------------+-------------------------------------+------------+-----+
| 2.5        | The SEA ensures that requirements   | Finding    | 12  |
|            | for public school choice are met.   |            |     |
+------------+-------------------------------------+------------+-----+
| 2.6        | The SEA ensures that requirements   | Met        | 12  |
|            | for the provision of supplemental   | re         |     |
|            | educational services (SES) are met. | quirements |     |
|            |                                     |            |     |
|            |                                     | Reco       |     |
|            |                                     | mmendation |     |
+------------+-------------------------------------+------------+-----+
| 2.7        | The SEA ensures that LEAs and       | Finding    | 13  |
|            | schools develop schoolwide programs |            |     |
|            | that use the flexibility provided   |            |     |
|            | to them by law to improve the       |            |     |
|            | academic achievement of all         |            |     |
|            | students in the school.             |            |     |
+------------+-------------------------------------+------------+-----+
| 2.8        | The SEA ensures that LEA targeted   | Finding    | 14  |
|            | assistance programs meet all        |            |     |
|            | requirements.                       |            |     |
+------------+-------------------------------------+------------+-----+

**Title I, Part A**

**Monitoring Area 2: Instructional Support**

**Indicator 2.1 -- The SEA has developed procedures to ensure the hiring
and retention of qualified paraprofessionals.**

**[Finding:]{.underline}** The PRDE has not ensured that all its
paraprofessionals met qualification requirements by the enforcement
deadline of the end of the 2005-2006 school year. The PRDE records
indicate that there are 58 paraprofessionals in Title I schools that do
not meet qualification requirements at the time of the monitoring visit.

[Citation:]{.underline} Section 1119(c) and (d) of the ESEA requires
that all paraprofessionals working in a program supported with Title I,
Part A funds have completed at least two years of study in an
institution of higher education; have obtained an associate's or higher
degree; or can demonstrate, through a formal State or local academic
assessment, knowledge of, and the ability to assist in instructing,
reading, writing, and mathematics or reading readiness, writing
readiness or mathematics assessment, as appropriate. Paraprofessionals
hired after January 8, 2002 must have met qualification requirements as
of the date of hire. The enforcement deadline for paraprofessionals
hired before

January 8, 2002 was the end of the 2005-2006 school year.

[Further action required:]{.underline} The PRDE must immediately review
the status of the 58 paraprofessionals not meeting qualification
requirements at the time of the monitoring visit and transfer those who
do not meet the qualification requirements to positions where these
requirements do not apply. The PRDE must provide to ED evidence that
these 58 paraprofessionals currently meet the qualification requirements
and evidence that those who do not meet qualification requirements have
been transferred to positions where the requirements do not apply. The
PRDE must include in its response to the general monitoring indicator
the procedures it will use to ensure that that paraprofessionals hired
to work in programs supported with Title I, Part A funds meet
qualification requirements.

**Indicator 2.2 -- The SEA has established a statewide system of support
that provides, or provides for, technical assistance to LEAs and schools
as required.**

**[Finding:]{.underline}** Although the PRDE is in the process of
developing an RFP for systemic technical assistance, it does not have in
place a statewide system of support that meets the requirements of the
statute.

[Citation:]{.underline} Section 1117(a) of the ESEA requires each State
to establish a statewide system of support and improvement for LEAs and
schools that receive Title I, Part A funds. Each statewide system of
support must include approaches that include creating and employing
school support teams to assist schools, designating and using
distinguished teachers and principals, and other approaches such as
providing assistance through institutions of higher education. As its
first priority, a State must use its system of support to help LEAs with
schools in corrective action and schools in LEAs that have failed to
carry out their responsibilities to provide technical assistance and
support. Section 1117(a)(5) of the ESEA requires that the composition of
each support team include individuals who are knowledgeable about
scientifically based research and its potential for improving teaching
and learning, about successful schoolwide projects, school reform, and
improving educational opportunities for low-achieving students.

[Further action required]{.underline}: The PRDE must provide to ED a
copy of the final request for proposals (RFP), and a detailed plan with
a timeline for how the statewide system of support will be implemented.
Along with the copy of the final Request for Proposal, PRDE must
describe how the system will meet the statutory requirements of section
1117.

**Indicator 2.3 -- The SEA ensures that the LEAs and schools meet
parental notice requirements and parental involvement requirements.**

**[Finding (1)]{.underline}:** The PRDE is in the process of developing
a district parental involvement policy; however, a district policy that
meets the requirements of section 1118 is not currently in place. The
PRDE also has not ensured that school parental involvement policies
address each of the required component or that such policies are
consistently distributed to parents.

[Citation]{.underline}: Section 1118(a) of the ESEA requires each LEA
and school receiving Title I funds to develop jointly with, jointly
agree upon with, and distribute to parents a written parental
involvement policy. This policy must describe how the LEA will carry out
a number of activities, including how the LEA and school will build
parents' capacity for strong parental involvement and conduct an annual
evaluation of the content and effectiveness of the parental involvement
policy.

[Further action required:]{.underline} The PRDE must submit to ED a
detailed plan and timeline for how it will develop jointly with parents
a district parental involvement policy and how this policy will be
distributed to parents of participating children. The PRDE must also
provide written guidance to its schools describing the requirements of
section 1118(b) of the ESEA and reminding schools that school parental
involvement policies must be distributed to parents. The PRDE must
provide a copy of this guidance to ED. Additionally, the PRDE must
indicate in its monitoring plan submitted in response to the overarching
finding how it will ensure that school level parental involvement
policies include the required components and are distributed to parents.

**[Finding (2):]{.underline}** The PRDE has not ensured that parent
notices consistently contain all required information or that they are
provided directly to parents. "Parent's Right to Know" letters are not
consistently sent to parents. Instead, parents are sent notices saying
they have to come to the school to learn how to request information on
teacher qualifications.

[Citation:]{.underline} Section 1111(h)(6) of the ESEA requires LEAs
receiving Title I funds to notify parents of each student attending a
school that receives Title I funds that the parents may request, and the
LEA will provide information regarding the professional qualifications
of the student's classroom teacher's and paraprofessionals as
appropriate.

[Further action required:]{.underline} The PRDE must provide written
guidance to its regions and schools that indicate the "Parent's Right to
Know" letters must be sent to parents and that they must be able to
request information about the qualifications of their child's teachers
or paraprofessionals, as appropriate, without coming to the school
building. The PRDE must provide a copy of this guidance to ED. The PRDE
must include in its response to the general monitoring indicator the
procedures it will use to ensure that notices are provided directly to
parents as required.

**[Finding (3):]{.underline}** The PRDE has not ensured that the notices
sent to parents when a school has been identified for improvement,
including information on public school choice options and supplemental
educational services, as appropriate, consistently include all the
required information. Some of these letters indicated that public school
choice and SES are available, but required parents to attend a meeting
at the school to get detailed information.

[Citation:]{.underline} Section 1116(b)(6) of the ESEA requires LEAs to
promptly provide to parents an explanation of the identification of
their child's school that includes (1) how the school compares
academically to other schools in the LEA and the State, (2) why the
school has been identified, (3) what the school is doing to address the
achievement problem, (4) what the LEA and SEA are doing to help the
school to address the achievement problem, (5) how parents can be
involved in addressing the achievement problem, and (6) parents' options
to transfer their child to another school, and, if applicable, obtain
SES. Section 200.37 of the Title I regulations also lists the minimum
information that the notice must contain regarding the choice and SES
options.

[Further action required:]{.underline} The PRDE must provide written
guidance to its regions and schools that indicate the information that
is required to be included in notices sent to parents concerning a
schools identification for improvement, corrective action or
restructuring. The guidance must include a checklist of requirements and
a sample of a parent notification letter that LEAs and schools may use
to develop their notification letters. The PRDE must provide a copy of
this guidance to ED. The PRDE must include in its response to the
general monitoring indicator the procedures it will use to ensure that
notices contain the required information and are provided directly to
parents.

Indicator 2.4 -- The SEA ensures that schools and LEAs identified for
improvement, corrective action, or restructuring have met the
requirements of being so identified.

[Finding:]{.underline} The PRDE has identified schools in corrective
action and restructuring and indicates it has plans to implement a
specific model in schools that have been identified for restructuring
planning and restructuring. However, no evidence was provided that
schools in corrective action, restructuring planning, or restructuring,
are implementing corrective actions, planning for restructuring, or
implementing restructuring that meet the requirements of section 1116(b)
(7) and (8).

[Citation:]{.underline} Section 1116(b)(7)(B) of the ESEA requires an
LEA to implement a system of corrective actions in schools that do not
meet AYP targets for four years, and section 1116(b)(8)(B) of the ESEA
requires an LEA to implement one of several specified alternative
governance arrangements in schools that fail to make AYP for six years.

[Further action required:]{.underline} The PRDE must submit to ED
evidence that it has implemented corrective actions and restructuring as
required. This evidence must include a list of each school in corrective
action or restructuring and the corrective action or restructuring that
was implemented in that school. The evidence must also indicate how the
public and parents were notified of corrective actions taken in
accordance with section (1116)(7)(E), and how parents and teachers were
provided the opportunity to participate in planning for restructuring in
accordance with section 1116(8)(C).

Also see Indicator 2.7.

Indicator 2.5 -- The SEA ensures that requirements for public school
choice are met.

[Finding:]{.underline} The PRDE has not implemented public school choice
as required. At the time of the monitoring visit, the PRDE was planning
to implement a public school choice pilot in about one-third of its
schools in improvement status during the 2006-2007 school year. Schools
participating in the pilot were to receive training in the fall with
implementation to begin in January 2007.

[Citation:]{.underline} Section 1116(b)(1)(E) of the ESEA requires that
all students enrolled in schools identified for improvement be given the
opportunity to attend another public school in the district that has not
been identified for improvement.

[Further action required]{.underline}: The PRDE must submit to ED
evidence that the public school choice pilot is being implemented and a
plan with a detailed timeline for how it will implement public school
choice as required in all schools that must do so by the beginning of
the 2007-2008 school year. The documentation must include a description
of how the PRDE will monitor implementation at the school level.

**Indicator 2.6 -- The SEA ensures that requirements for the provision
of supplemental educational services (SES) are met.**

[Recommendation:]{.underline} The PRDE should revise its document
"Orientation Manual for Supplemental Educational Services Title I,
Section 1116(e), " which provides a format for use at the school level
in implementing the agreement between the LEA and SES consistent with
section 1116(e)(3), to make clear that the agreement is an agreement
between the LEA and the provider, and that the LEA is the entity
responsible for terminating an agreement on behalf of a specific
student. As currently drafted, the introductory information on page one
appears to indicate that terminating an agreement is a parental
responsibility.

**Indicator 2.7 -** T**he SEA ensures that LEAs and schools develop
schoolwide programs that use the flexibility provided to them by law to
improve the academic achievement of all students in the school.**

**[Finding]{.underline}:** Although the PRDE has held meetings to
discuss the school improvement requirements of Title I and training is
provided about schoolwide programs at the district level, the PRDE has
not ensured that the Title I schools operating schoolwide programs and
Title I schools identified as in need of improvement include all the
required components in their school improvement/schoolwide plans.
Examples of missing components include the use of effective methods and
instructional strategies that are based on scientifically based research
to strengthen the core academic program in the school as required,
assisting preschool children in the transition from early childhood
programs, such as Head Start and Even Start, to local elementary school
programs, as appropriate, and strategies for attracting highly qualified
teachers.

In general, the strategies in the plans were often so vague that
monitors were unable to determine what specific actions were being taken
or how the strategy related to an objective. As a result, it was not
clear how the plans could be used to guide changes in teaching and
learning to improve student achievement or how the schoolwide program
could be annually evaluated as required (§200.26 of the Title I
regulations) to determine its effectiveness in increasing student
achievement and making changes as necessary based on the results of the
evaluation.

[Citations:]{.underline} Section 1114(b) of the ESEA requires that a
school implementing a schoolwide program develop a plan that contains
ten required components. The components are: a comprehensive needs
assessment; schoolwide reform strategies; instruction by highly
qualified teachers; high quality and ongoing professional development;
strategies to attract highly qualified teachers to high-need schools;
strategies to increase parental involvement; plans for assisting
preschool children in the transition from early childhood programs;
measures to include teachers in decisions about the use of academic
assessments; provision of timely, additional assistance to students
having difficulty attaining proficient and advanced levels of academic
achievement; and coordination and integration of Federal, State and
local services and programs.

Section 1116(b)(3) of the ESEA requires schools identified for
improvement to develop and implement school improvement plans that: (1)
incorporate strategies based on scientifically based research that will
strengthen the core academic subjects in the school; (2) provide an
assurance that the school will spend not less than 10 percent of its
Title I allocation for high quality professional development for its
teachers and principals;

\(3\) establish specific annual, measurable objectives for continuous
and substantial progress by each subgroup of students; (4) describe how
the school will provide written notification about the identification to
parents of each student enrolled in such school;

\(5\) specify the responsibilities of the school, the LEA, and the SEA
serving the school under the plan, including technical assistance; (6)
include strategies to promote effective parental involvement; (7)
incorporate, as appropriate, activities before school, after school,
during the summer, and during any extension of the school year; and

\(8\) incorporate a teacher mentoring program.

[Further action required]{.underline}: The PRDE must provide to its
schools operating schoolwide programs and its schools in improvement
written guidance that details the requirements of section 1114(b) and
1116(b)(3). The PRDE must provide a copy of this guidance to ED. The
PRDE must also submit a plan to ED with a detailed timeline for how it
will ensure that any targeted assistance schools that are planning to
implement schoolwide programs develop plans that meet the statutory
requirements of sections 1114(b) and 1116(b)(3) as appropriate.

Further, the written monitoring procedures submitted in response to the
general monitoring finding must include a review of schoolwide/school
improvement plans to ensure that the goals, strategies, and activities
described in the plans, including any supporting documentation,
adequately address the individual needs of each school and also meet
State and Federal requirements. The review must also examine the quality
of plans to determine that the goals and strategies directly address the
academic achievement problems of the school and are of the nature to
effectively meet the student progress goals described in the plans.

**Indicator 2.8 -- The SEA ensures that targeted assistance programs
meet all required components.**

[**Finding:**]{.underline} The PRDE has a Work Plan Evaluation Form
which has a section addressing the components of targeted assistance
programs. However, consistent with the general monitoring finding, the
team was unable to determine how the PRDE ensures that schools operate
targeted assistance programs that meet all the required components.
Information obtained from principal interviews suggests that required
components are not being addressed, particularly with regard to the
selection of students for services.

[Citations:]{.underline} Section 80.40 of the Education Department
General Administrative Regulations (EDGAR) -- Grantees must monitor
grant and subgrant activities to ensure compliance with applicable
Federal requirements. Section 9304(a) of the ESEA requires that the SEA
must ensure that (1) programs authorized under ESEA are administered in
accordance with all applicable statutes, regulations, program plans, and
applications; and (2) the State will use fiscal control and funds
accounting procedures that will ensure the proper disbursement of and
accounting for Federal funds. Section 1115 of the ESEA sets out the
requirements for targeted assistance programs including the requirement
that students selected for services must be "failing or most at-risk of
failing to meet the State's challenging student academic achievement
standards based on multiple educationally related, objective criteria."

[Further action required:]{.underline} The written monitoring procedures
submitted in response to the general monitoring finding must include
steps for ensuring that targeted assistance schools meet the
requirements of section 1115.

+----------+---------------------------------------+-------------+-----+
| **Mo     |                                       |             |     |
| nitoring |                                       |             |     |
| Area 3,  |                                       |             |     |
| Title I, |                                       |             |     |
| Part A:  |                                       |             |     |
| F        |                                       |             |     |
| iduciary |                                       |             |     |
| Re       |                                       |             |     |
| sponsibi |                                       |             |     |
| lities** |                                       |             |     |
+----------+---------------------------------------+-------------+-----+
| **I      | # Description                         | **Status**  | **  |
| ndicator |                                       |             | Pag |
| Number** |                                       |             | e** |
+----------+---------------------------------------+-------------+-----+
| I        | SEA complies with---                  | Finding     | ### |
| ndicator |                                       |             | ### |
| 3.1      | -   The procedures for adjusting      |             | ##  |
|          |     ED-determined allocations         |             |     |
|          |     outlined in §§200.70 -- 200.75 of |             | 16  |
|          |     the regulations.                  |             |     |
|          |                                       |             |     |
|          | -   The procedures for reserving      |             |     |
|          |     funds for school improvement,     |             |     |
|          |     State administration, and (where  |             |     |
|          |     applicable) the State Academic    |             |     |
|          |     Achievement Awards program.       |             |     |
|          |                                       |             |     |
|          | -   The reallocation and carryover    |             |     |
|          |     provisions in section 1126(c) and |             |     |
|          |     1127 of Title I statute.          |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | SEA ensures that its LEAs comply with | Met         | ### |
| ndicator | the provision for submitting an       | r           | ### |
| 3.2      | annual application to the SEA and     | equirements | ##  |
|          | revising LEA plans as necessary to    |             | N/A |
|          | reflect substantial changes in the    |             |     |
|          | direction of the program.             |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | SEA ensures that all its LEAs comply  | Findings    | ##  |
| ndicator | with the requirements in section 1113 |             | ### |
| 3.3      | of the Title I Statute and §§200.77   |             | ### |
|          | and 200.78 of the regulations with    |             |  16 |
|          | regard to (1) Reserving funds for the |             |     |
|          | various set-asides either required or |             |     |
|          | allowed under the statute, & (2)      |             |     |
|          | Allocating funds to eligible school   |             |     |
|          | attendance areas or schools in rank   |             |     |
|          | order of poverty based on the number  |             |     |
|          | of children from low-income families  |             |     |
|          | who reside in an eligible attendance  |             |     |
|          | area.                                 |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | -   SEA complies with the maintenance | Finding     | ##  |
| ndicator |     of effort (MOE) provisions of     |             | ### |
| 3.4      |                                       |             | ### |
|          | > Title I.                            |             |  17 |
|          |                                       |             |     |
|          | -   SEA ensures that its LEAs comply  |             |     |
|          |     with the comparability provisions |             |     |
|          |     of Title I.                       |             |     |
|          |                                       |             |     |
|          | -   SEA ensures that Title I funds    |             |     |
|          |     are used only to supplement or    |             |     |
|          |     increase non-Federal sources used |             |     |
|          |     for the education of              |             |     |
|          |     participating children and do not |             |     |
|          |     supplant funds from non-Federal   |             |     |
|          |     sources.                          |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | SEA ensures that its LEAs comply with | Met         | ### |
| ndicator | all the auditee responsibilities      | r           | ### |
| 3.5      | specified in Subpart C, Section       | equirements | ##  |
|          | 300(a) through (f) of OMB Circular    |             | N/A |
|          | A-133.                                |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | SEA ensures that its LEAs comply with | Findings    | ##  |
| ndicator | requirements regarding services to    |             | ### |
| 3.6      | eligible private school children,     |             | ### |
|          | their teachers and families.          |             |  18 |
+----------+---------------------------------------+-------------+-----+
| I        | SEA complies with the requirement for | Met         | ### |
| ndicator | implementing a system for ensuring    | r           | ### |
| 3.7      | prompt resolution of complaints.      | equirements | ##  |
|          |                                       |             | N/A |
+----------+---------------------------------------+-------------+-----+
| I        | SEA complies with the requirement to  | Finding     | ##  |
| ndicator | establish a Committee of              |             | ### |
| 3.8      | Practitioners and involves the        |             | ### |
|          | committee in decision-making as       |             |  24 |
|          | required.                             |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | The SEA and LEAs maintain controls    | Not         | ### |
| ndicator | over the procurement, recording,      | reviewed    | ### |
| 3.9      | custody, use, and disposition of      |             | ##  |
|          | Title I equipment in accordance with  |             | N/A |
|          | the provisions of State policies and  |             |     |
|          | procedures, the ESEA, the Improper    |             |     |
|          | Payments Information Act, standards   |             |     |
|          | of internal control, and any other    |             |     |
|          | relevant standards, circulars, or     |             |     |
|          | legislative mandates.                 |             |     |
+----------+---------------------------------------+-------------+-----+
| I        | SEA and LEAs comply with requirements | Not         | ### |
| ndicator | regarding procurement of goods and    | reviewed    | ### |
| 3.10     | services and the disbursement of      |             | ##  |
|          | Title I funds in accordance with      |             | N/A |
|          | State policies and procedures, NCLB,  |             |     |
|          | the Improper Payments Information     |             |     |
|          | Act, and any other relative           |             |     |
|          | standards, circulars, or legislative  |             |     |
|          | mandates.                             |             |     |
+----------+---------------------------------------+-------------+-----+

**Title I, Part A**

# Monitoring Area 3: Fiduciary Responsibilities

### Indicator 3.1 -- Within State Allocations, Reallocations and Carryover

[**Finding**:]{.underline} The PRDE did not expend funds it reserved
under Section 1003(a) of the ESEA to create and maintain a statewide
system of intensive and sustained support and improvement to schools
identified for corrective action or improvement. Instead, funds were
provided to the Offices of English, Spanish and Technology. Documents
provided to ED staff indicated that, in at least one instance, these
funds were used to provide the salary or portion of salary for a
secretary. A further review of these documents indicated that, in many
cases, professional development activities were provided that were
general in nature, and did not focus on strategies that address the
specific academic issues that caused the school to be identified for
improvement.

[Citation]{.underline}: Section 1003(a) of the ESEA requires SEAs to
reserve funds from the amount received under subpart 2 of Part A in
2004-2007. The SEA is required to carry out its responsibilities related
to the statewide system of technical assistance and support. Section
1117(a)(5) of the ESEA requires that the composition of each support
team include individuals who are knowledgeable about scientifically
based research and its potential for improving teaching and learning and
about successful schoolwide projects, school reform, and improving
educational opportunities for low-achieving students.

[Further action required]{.underline}: The PRDE must submit to ED a
description of its statewide system of support including the composition
of that team. Additionally, the PRDE must submit to ED a plan that
specifies how the system of support will, for the 2006 -- 2007 school
year, provide a statewide system of intensive and sustained support to
schools identified for corrective action or improvement.

**Indicator 3.3 -** **Within District Allocation Procedures**

**[Finding (1):]{.underline}** The PRDE has not correctly calculated
equitable services for the families of private school participants. In
calculating the amount of funds for equitable services to families of
participating private school students, the PRDE has used \$3,000 per
private school, the same amount as each Title I public school received,
rather than calculating the based on the proportion of students in
poverty.

[Citation:]{.underline} Section 200.65(a)(2) of the Title I regulations
requires that the amount of funds available to provide equitable
services from the reserved funds must be proportionate to the number of
private school children from low-income families residing in
participating public school attendance areas.

[Further action required]{.underline}: The PRDE must ensure that it
reserves an equitable portion of its Title I funds for services to
families of participating private school children. The PRDE must ensure
that it correctly calculate the required equitable services reservations
for parental involvement as a part of the budget determination process.
The PRDE must submit to ED evidence that, for the 2006--2007 school
year, it has correctly calculated the amount of Title I funds that
should be made available for parental involvement activities for
families of children attending private school.

**[Finding (2):]{.underline}** The PRDE has not correctly calculated
equitable services for the teachers of private school participants. The
PRDE has used the number of private school students in poverty rather
than the proportion of students in poverty to calculate equitable
services for the teachers of participating private school students

[Citation:]{.underline} Section 200.65(a)(2) of the Title I regulations
requires that the amount of funds available to provide equitable
services from the reserved funds must be proportionate to the number of
private school children from low-income families residing in
participating public school attendance areas.

[Further action required]{.underline}: The PRDE must ensure that it
reserves an equitable portion of its Title I funds for services to
teachers of participating private school children. The PRDE must ensure
that it correctly calculate the required equitable services reservations
for professional development as a part of the budget determination
process. The PRDE must submit to ED evidence that, for the 2006--2007
school year, it has correctly calculated the amount of Title I funds
that should be made available for professional development activities
for teachers of children attending private school.

### Indicator 3.4 -- Fiscal Requirements

**[Finding:]{.underline}** The PRDE has not ensured that it uses State
and local funds to provide services in Title I schools that, taken as a
whole, are at least comparable to the services provided in schools that
are not receiving Title I funds. Comparability documentation provided to
ED staff provided information for several schools; however, there was no
information provided that discussed how the PRDE, functioning as both an
LEA and SEA, ensures that it uses State and local funds to provide
services in Title I schools throughout Puerto Rico that, taken as a
whole, are at least comparable to the services provided in schools that
are not receiving Title I funds.

[Citation:]{.underline} Section 1120A(c)(3) of the ESEA requires that
LEAs develop procedures for compliance with comparability requirements.

[Further action required:]{.underline} The PRDE must submit to ED a copy
of procedures that the PRDE uses to ensure that it uses State and local
funds to provide services in Title I schools throughout Puerto Rico
that, taken as a whole, are at least comparable to the services provided
in schools that are not receiving Title I funds. Those procedures
should, at a minimum, include the PRDE's timeline for demonstrating
comparability, identification of the office responsible for making
comparability calculations, the measure and process used to determine
whether schools are comparable, and how and when the PRDE makes
adjustments in schools that are not comparable.

**Indicator 3.6 - Services to Private School Children**

**[Finding (1)]{.underline}:** The PRDE has not ensured that the Title I
program is administered in accordance with the statute and the
regulations nor has it ensured that it exercises proper administration
(control) of the Title I services it is responsible for providing to
private school teachers and families of participants. While the PRDE is
providing services through contract to eligible private school children,
the ED team found that there is not sufficient oversight by the PRDE's
implementation of Title I programs for eligible private school children,
their teachers, and their families. The PRDE staff members are not
involved in planning or implementing professional development and parent
involvement activities nor do they attend the planned activities to
ensure that the activities meet Title I requirements. Private school
principals are required to "certify" the number of participating
students for the period covered by each quarterly report submitted by
the third-party contractor.

[Citation]{.underline}: Section 80.40 of the Education Department
General Administrative Regulations (EDGAR) -- Grantees must monitor
grant and subgrant activities to ensure compliance with applicable
Federal requirements.

Section 9304 (a) of the ESEA requires that the SEA must ensure that (1)
programs authorized under ESEA are administered in accordance with all
applicable statutes, regulations, program plans, and applications; and
(2) the State will use fiscal control and funds accounting procedures
that will ensure the proper disbursement of and accounting for Federal
funds.

Section 1120(a)(1) of the ESEA requires that the LEA shall, after
meaningful consultation with appropriate private school officials,
ensure that teachers and families of participants receive equitable
services. In addition, section 1120(d)(1) of the ESEA requires the LEA
to administer and maintain control of Title I funds.

[Further action required]{.underline}: The PRDE must exercise proper
oversight for the Title I services it provides to private school
teachers and families of private school participants and ensure that the
third party provider who are providing these services are not in
violation of Title I requirements. The PRDE must provide ED with a
detailed description of how it will oversee and monitor the program
being provided to private school students, their teachers and families.
This description must include information on how PRDE staff members will
be involved in planning or implementing professional development and
parent involvement activities and how they will ensure that the
activities meet Title I requirements. The written monitoring procedures
submitted in response to the general monitoring finding must include
steps for ensuring that services for eligible private school students
meet these requirements.

**[Finding (2)]{.underline}:** The PRDE has not ensured that it has
exercised proper oversight in awarding contracts for the provision of
Title I services to participating private school students. The contracts
reviewed by the ED team did not have enough detail to enable the PRDE to
determine that the Title I statutory and regulatory requirements will be
met.

[Citation]{.underline}: Section 9306(a)(1) & (2) of the ESEA requires an
LEA when submitting a consolidated application to ensure that Title I
will be administered in accordance with all applicable rules,
regulations, program plans, and applications and the LEA will maintain
control of funds provided and title to any property acquired with Title
I funds will be in the LEA and the LEA will administer those funds and
property as required by Title I. Contracts must contain enough detail on
how the third party provider will implement Title I requirements with
detail sufficient to enable the PRDE to determine that the Title I
statutory and regulatory requirements will be met.

[Further action required]{.underline}: The PRDE must ensure that the
third parties are providing Title I services to eligible private school
children, their teachers, and their families in accordance with all
Title I requirements. In order for the PRDE to exercise proper
oversight, the PRDE must have signed contracts or agreements with third
party providers that provide technical descriptions of the Title I
services with such detail sufficient to determine that the Title I
statutory and regulatory requirements will be met as required by section
9306 of the ESEA. The PRDE must provide ED with a copy of two contracts
that meet this requirement.

**[Finding (3):]{.underline}** The PRDE has not ensured that it has
consulted with private school officials regarding services that will be
provided to eligible students. Staff from several private schools
indicated that the PRDE did not consult with them concerning the
services that would be provided including when those services would be
provided. Staff members also indicated that they were not consulted
about when services would be provided. They were also not aware that
there are options regarding to the "pooling of funds." The PRDE does not
consult with private school officials, develop a Request for Proposal
(RFP) based on that consultation and then have vendors respond to the
RFP. Rather, vendors submit proposals to the PRDE in which they describe
the services they will provide to eligible students.

[Citation:]{.underline} Under section 200.63 of the Title I regulations
consultation must, at a minimum, address the following issues:

-   How the LEA will identify the needs of eligible private school
    children.

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-   What services the LEA will offer to eligible private school
    children.

-   How and when the LEA will make decisions about the delivery of
    services.

-   How, where, and by whom the LEA will provide services to eligible
    private school children.

-   How the LEA will assess academically the services to private school
    children and how the LEA will use the results of that assessment to
    improve Title I services.

-   The size and scope of the equitable services that the LEA will
    provide to eligible private school children and the proportion of
    its Title I funds that the LEA will allocate for these services and
    the amount of funds that the LEA reserves from its Title I
    allocation for the purposes listed in §200.77 of the Title I
    regulations.

-   The method, or the sources of data, that the LEA will use to
    determine the number of private school children from low-income
    families residing in participating public school attendance areas,
    including whether the LEA will extrapolate data if a survey is used.

-   The services the LEA will provide to teachers and families of
    participating private school children.

> Consultation must also include -- --

-   Discussion of service delivery mechanisms the LEA will use to
    provide services; and

-   Thorough consideration and analysis of the views of the private
    school officials on whether the LEA should contract with a
    third-party provider.

Consultation must occur before an LEA makes any decision that affects
the opportunity for eligible private school children, their teachers,
and their families to participate in the Title I program.

In addition, section 200.64(a)(2)(ii)(A-B) of the Title I regulations
requires LEAs to reserve funds generated by private school children,
and, in consultation with private school officials, and, may:

-   Combine those amounts, along with funds generated by students in
    other private schools to create a pool of funds from which the LEA
    provides equitable services to eligible private school children, in
    the aggregate, in greatest need of those services; or,

-   Provide equitable services to eligible children in each private

school with the funds generated by children who attend that private
school.

[Further action required:]{.underline} The PRDE must submit to ED
evidence that, for the 2007 -- 2008 school year, it has consulted with
private school officials regarding what services will be provided to
eligible students, including when the services will be provided, and,
whether the school will pool its funds. The PRDE must also submit to ED
evidence that, for the 2007 -- 2008 school year, the PRDE has developed
an RFP that has been developed in response to the consultation with
private school officials regarding the services that will be provided to
eligible students.

**[Finding (4)]{.underline}:** The PRDE has not ensured that it has
established, in consultation with private school officials, multiple,
educationally related, objective criteria to identify private school
students for Title I services. The PRDE has no documented process for
the selection of students from the private schools. It appears that each
private school selects students using different criteria from a list of
possible factors that the PRDE has established. Although teachers
recommend participants, the PRDE has no form that the private school
classroom teachers use to recommend students so that there is
consistency from one teacher to another. The PRDE has not ensured that
students in grades 3 and above attending private schools who are
selected for Title I services meet multiple, educationally related
objective criteria established in consultation with private school
officials. In many instances, students attending private schools were
selected based solely on a single academic selection criteria.
Additionally, in many instances, students were selected solely on the
basis of being identified for special education services.

As a result, the PRDE has not determined which private school children
from the eligible pool are those who are most at risk. Thus, the Title I
programs are not designed to meet the needs of the participants who are
most at risk. In addition, the PRDE has not established, in consultation
with the private schools, procedures for adding to or exiting students
from the Title I program.

[Citation]{.underline}: Section 200.62(b)(1) of the Title I Regulations
require that, to be eligible for Title I services, a private school
student must reside in a participating public school attendance area and
meet the requirements in Section 1115(b) of the ESEA which requires the
LEA to use for students in grades 3 and above multiple, educationally
related, objective criteria in selecting children to participate in the
Title I program. Children with disabilities are eligible for Part A
services on the same basis as other children who are selected for
services.

[Further action required]{.underline}: The PRDE must provide ED with
evidence that it has provided guidance on the selection of private
school students to private school staff and contractors serving private
school children. The PRDE must provide ED with a detailed description of
how and when the PRDE informed private school staff and contractors
serving private school children of this requirement. This documentation
must include written documentation such as letters, agendas for
technical assistance meetings, etc. The PRDE must also provide ED with a
copy of the criteria that it has determined, in consultation with
private school officials, it will use select private school students for
Title I services for the 2007- 2008 school year. The PRDE must also
provide to ED with a description of how it will ensure the correct
implementation of this requirement.

**[Finding (5):]{.underline}** The PRDE has not met the requirements for
evaluation of the Title I program for private school students including
what constitutes annual progress for the Title I program serving
eligible private school children, and has not annually assessed the
progress of the Title I program toward enabling participants to meet the
agreed-upon standards. Although contractors serving private school
students assess individual students using pre and post tests, the PRDE
has not determined in consultation with private school officials, how
the Title I program that is provided to private school children will be
assessed, what the agreed upon standards are, and how the annual
progress will be measured.

[Citation]{.underline}: Section 1120(b)(1)(D) of the ESEA and section
200.63 (b)(5) of the Title I regulations require an LEA to consult with
appropriate officials from private schools during the design and
development of the LEA's program for eligible private school children on
issues such as how the LEA will assess academically the services to
eligible private school children and how the LEA will use the results of
that assessment to improve Title I services.

[Further action required:]{.underline} The PRDE must consult with
private school officials, and, as part of the consultation process, make
a determination as to what standards and assessments will be used to
measure the annual progress of the Title I program for private school
children. The PRDE must provide ED with a description of the agreed upon
standards and assessments and how the annual progress will be measured
for services in San Juan II and Ponce III for the 2006 -- 2007 school
year.

**[Finding (6):]{.underline}** The PRDE has not maintained control of
equipment and materials purchased with Title I funds and located in the
private schools. Several pieces of equipment funded by Title I and
located at the private schools were labeled with the name of the third
party contractor.

[Citation]{.underline}: Section 1120(d)(1) of the ESEA requires that the
LEA maintain control of the Title I funds, materials, equipment and
property. State and local government requirements for equipment are set
forth in section 80.32(d) of the Education Department General
Administrative Regulations (EDGAR), which requires that a control system
must be developed that ensures adequate safeguards to prevent loss,
damage, or theft of the property. These controls are essential given
that the property is located in space at private school sites and there
can be misuse of the equipment and property by the private school
officials if improperly labeled. The LEA is required under section
1120(d)(1) of the ESEA to administer all property purchased with Title I
funds.

[Further action required:]{.underline} The PRDE must maintain control of
any supplies, materials or equipment purchased with Title I funds should
be provided for the sole use of the Title I-funded staff to support the
Title I services being provided. The PRDE must establish a control
system for properly tagging all property and equipment purchased with
Title I funds and located at private school sites with the words
"Property of Puerto Rico Department of Education" placed on labels that
cannot be either erased and/or removed. The PRDE must provide to ED with
information on procedures they will use to ensure the correct
implementation of this requirement.

**[Finding (7):]{.underline}** The PRDE had not ensured that Title I
programs for children attending private schools provide services only to
eligible children identified as having the greatest need and are
supplemental to what the private school is providing. One of the
third-party contractors uses Title I funds to pay for Title I students
to participate in field trips with the entire class, grade, or school.
The trips meet the general educational needs of the class, grade, or
school, rather than the specific needs of the participants and are not
supplemental to what nonparticipating students receive.

[Citation:]{.underline} Section 1120A(1) of the ESEA requires that Title
I programs provided to eligible children attending private schools
supplement the educational services that the school would, in the
absence of Title I, provide to its students. Section 200.67 of the Title
I regulations requires that an LEA must use Title I funds to meet the
educational needs of the private school participants and the LEA may not
use any Title I funds for the needs of the private school or the general
needs of children in the private school.

Consequently, the Title I services provided by the LEA for private
school participants must be designed to meet their educational needs and
supplement the educational services provided by the private school.
Since field trips are designed for all students at a particular grade or
school, Title I students are receiving the same services that non-Title
I students are receiving, and these activities would not have been
designed to meet the special educational needs of the Title I
participants.

[Further action required:]{.underline} The PRDE must require any
contractor using this practice to cease this practice immediately. The
PRDE must provide ED with a detailed description of how and when the
PRDE informed its contractors providing services to eligible private
school students of this requirement. This documentation must include
written documentation such as letters to contractors, agendas for
technical assistance meetings, etc.

**[Finding (8):]{.underline}** The PRDE has not ensured that
consultation requirements regarding professional development provided to
classroom teachers of participating students attending private schools
are met. Several private school principals indicated that they had not
been consulted regarding professional development activities that were
provided for their teachers. Rather, private school staff indicated that
the third-party contractor had developed a "menu of professional
activities" for classroom teachers of participating students without any
input regarding the needs of the private school teachers. Schools were
to choose from this menu. In many instances, they indicated that the
activities offered did not meet the needs of their classroom teachers in
order to help them meet the specific needs of the Title I participants.

[Citation:]{.underline} Section 200.63 of the Title I regulations
requires that LEAs consult with private school officials on the
equitable services that the LEA will provide to teachers and families of
participating private school students. Consultation by an LEA must occur
before the LEA makes any decision that affects the opportunity for
eligible private school students, their teachers, and their families to
participate in Title I programs and must continue throughout the
implementation and assessment of Title I services.

[Further action required:]{.underline} The PRDE must require any
contractor using this practice to cease this practice immediately. The
PRDE must provide ED with a detailed description of how and when the
PRDE informed its contractors of this requirement. This description must
include any documents such as letters to contractors and/or agendas for
technical assistance meetings. The PRDE must provide to ED with written
documentation that it has informed its contractors of this requirement
and provide to ED information on procedures it will use to monitor this
requirement.

[Finding (9):]{.underline} The PRDE has not ensured that it has provided
to third party contractors that provide services to eligible private
school students with written information that accurately differentiates
instructional and administrative costs. Written information provided by
the PRDE indicated that salaries such as directors, instructional
technology coordinators and secretaries are considered to be
instructional rather than administrative.

[Citation]{.underline}: Section 9306(a)(5) of the ESEA requires an LEA
when submitting a consolidated application to use fiscal control and
fund accounting procedures that will ensure proper disbursement of, and
accounting for, Federal funds paid to the LEA.

Section 443 of the General Education Provisions Act (GEPA) requires each
recipient of Federal funds such as an LEA to keep records which fully
disclose the amount and disposition of the funds, the total costs of the
activity for which the funds are used ... and such other records as will
facilitate an effective financial or programmatic audit.

Section 1120(a)(3) of the ESEA, requires that funds generated by private
school children must be used for instructional activities if the funds
generated by public school children from low-income families are used
for instructional activities.

[Further action required]{.underline}: The PRDE must provide ED with a
detailed description of the steps it has taken to provide information to
contractors providing services to private school students to accurately
differentiate between instructional and administrative costs. Within
each category (administrative and instructional), the contractors must
provide detail sufficient to enable the LEA to determine that the
requested invoices are in accordance with Title I requirements and the
GEPA. Information could include the name and salary of each teacher, the
instructional materials purchased, and the specific administrative costs
such as supervisor's salary, office expenses, travel costs, capital
expense type costs, and fees. LEAs have the authority under the GEPA to
require documentation to support requested expenditures. In addition,
the PRDE must provide to ED a description of how the PRDE will monitor
the oversight of invoices.

**Indicator 3.8** **-- Committee of Practitioners**

**[Finding]{.underline}:** The PRDE has not ensured that the Committee
of Practitioners (COP) has the required membership and that it has been
involved in matters regarding State administration of the Title I
program. The PRDE was not able to provide a current list of COP members
or agendas of any meetings held within the past year.

[Citation]{.underline}: Section 1903(b)(2) of the ESEA requires that the
COP include: as a majority of its members, representatives from LEAs;
administrators, including the administrators of programs described in
other parts of this title; teachers, including vocational educators;
parents; members of local school boards; representatives of private
school students; and pupil services personnel.

[Further action required]{.underline}: The PRDE must ensure that the
individuals serving on its COP reflect the membership requirements in
section 1903(b)(2) of the ESEA. The PRDE must provide ED with a revised
list of COP members that meets that statutory requirement, including the
membership category that each member represents. The PRDE must also
submit to ED a timeline of projected meetings of the COP for the 2006 --
2007 school year.

# Summary of Title I, Part B, Subpart 3 (Even Start) Monitoring Indicators

# 

+-----------+-------------------------------------+-------------+-----+
| # Monitor |                                     |             |     |
| ing Area  |                                     |             |     |
| 1, Title  |                                     |             |     |
| I, Part B |                                     |             |     |
| , Subpart |                                     |             |     |
|  3: Accou |                                     |             |     |
| ntability |                                     |             |     |
+-----------+-------------------------------------+-------------+-----+
| **        | **Description**                     | # Status    | #   |
| Indicator |                                     |             |  Pa |
| Number**  |                                     |             | ge  |
+-----------+-------------------------------------+-------------+-----+
| 1.1       | The SEA complies with the subgrant  | Met         | N/A |
|           | award requirements.                 | r           |     |
|           |                                     | equirements |     |
+-----------+-------------------------------------+-------------+-----+
| 1.2       | The SEA requires applicants to      | Met         | N/A |
|           | submit applications for subgrants   | r           |     |
|           | with the necessary documentation.   | equirements |     |
+-----------+-------------------------------------+-------------+-----+
| 1.3       | In making non-competitive           | Finding     | 27  |
|           | continuation awards, the SEA        |             |     |
|           | reviews the progress of each        |             |     |
|           | subgrantee in meeting the           |             |     |
|           | objectives of the program and       |             |     |
|           | evaluates the program based on the  |             |     |
|           | Indicators of Program Quality.      |             |     |
+-----------+-------------------------------------+-------------+-----+
| 1.4       | The SEA refuses to award subgrant   | Met         | N/A |
|           | funds to an eligible entity if the  | r           |     |
|           | agency finds that the entity has    | equirements |     |
|           | not sufficiently improved the       |             |     |
|           | performance of the program, as      |             |     |
|           | evaluated, based on the Indicators  |             |     |
|           | of Program Quality.                 |             |     |
+-----------+-------------------------------------+-------------+-----+
| 1.5       | The SEA develops, based on the best | Finding     | 27  |
|           | available research and evaluation   |             |     |
|           | data, Indicators of Program Quality |             |     |
|           | for Even Start programs.            |             |     |
+-----------+-------------------------------------+-------------+-----+
| 1.6       | The SEA uses the Indicators of      | Met         | N/A |
|           | Program Quality to monitor,         | r           |     |
|           | evaluate, and improve local         | equirements |     |
|           | programs within the State.          |             |     |
+-----------+-------------------------------------+-------------+-----+
| 1.7       | The SEA conducts monitoring of its  | Met         | N/A |
|           | subgrantees sufficient to ensure    | r           |     |
|           | compliance with Even Start program  | equirements |     |
|           | requirements.                       |             |     |
+-----------+-------------------------------------+-------------+-----+
| 1.8       | The SEA ensures that projects       | Met         | N/A |
|           | provide for an independent local    | r           |     |
|           | evaluation of the program that is   | equirements |     |
|           | used for program improvement.       |             |     |
+-----------+-------------------------------------+-------------+-----+

**Title I, Part B, Subpart 3 (Even Start)**

**Area 1: Accountability**

## Indicator 1.3-- In making non-competitive continuation awards, the SEA reviews the progress of each subgrantee in meeting the objectives of the program and evaluates the program based on the indicators of program quality, and refuses to award subgrant funds to an eligible entity if the agency finds that the entity has not sufficiently improved the performance of the program.

**[Finding:]{.underline}** The PRDE has developed performance indicators
but does not have a clear process for determining insufficient progress,
nor does it have procedures for discontinuing a project that has not
made sufficient progress. The indicators of program quality are not
being used to evaluate programs.

[Citation:]{.underline} Section 1238(b)(3) of the ESEA states that in
awarding subgrant funds to continue a program under this subpart after
the first year, the SEA shall review the progress of each eligible
entity in meeting the objectives of the program referred to in section
1237(c)(1)(A) and will evaluate the program based on the indicators of
program quality developed by the State under section 1240 of the ESEA.
Section 1238(b)(4) states that the SEA may refuse to award subgrant
funds to continue a program if the SEA finds that the eligible entity
has not sufficiently improved the performance of the program as
evaluated based on the State's indicators of program quality.

[Further action required:]{.underline} The PRDE must establish a clear
definition of adequate progress for the purposes of implementing its
State's performance indicators and share these guidelines with local
projects. Further, the PRDE must use the indicators of program quality
during monitoring in order to evaluate the progress of each project for
the purposes of making continuation-funding decisions, and discontinue
local projects that fail to make sufficient progress as evaluated on
those indicators of program quality. The PRDE must provide evidence to
ED that it has established an adequate progress definition and
documentation that this information has been shared with local projects.

**Indicator 1.5 -- The State ensures that projects provide for an
independent local evaluation of the program that is used for program
improvement.**

**[Finding]{.underline}:** There is no evidence that independent
evaluations are being conducted for Even Start programs. The last
external evaluation available for review by the ED team was dated
2003-2004.

[Citation]{.underline}: Section 1235(15) of the ESEA requires that each
funded program provide for an independent evaluation of the program that
is to be used for program improvement.

[Further action required:]{.underline} The PRDE must ensure that all
Even Start programs receive an independent local evaluation and use that
data for program improvement. Evaluations should include an analysis of
data and provide recommendations for program improvement. The PRDE must
provide Ed with a copy of the completed independent evaluation for the
2005-2006 school year for each program supported with Even Start funds.

+---------+--------------------------------------+-------------+------+
| #       |                                      |             |      |
| # Monit |                                      |             |      |
| oring A |                                      |             |      |
| rea 2,  |                                      |             |      |
| Title I |                                      |             |      |
| , Part  |                                      |             |      |
| B, Subp |                                      |             |      |
| art 3:  |                                      |             |      |
| Instruc |                                      |             |      |
| tional  |                                      |             |      |
| Support |                                      |             |      |
+=========+======================================+=============+======+
| **In    | # Critical Element                   | ### Status  | ##   |
| dicator |                                      |             | Page |
| N       |                                      |             |      |
| umber** |                                      |             |      |
+---------+--------------------------------------+-------------+------+
| 2.1     | The SEA uses funds to provide        | Met         | N/A  |
|         | technical assistance to local        | r           |      |
|         | projects to improve the quality of   | equirements |      |
|         | Even Start family literacy services  |             |      |
|         | or comply with State indicators of   |             |      |
|         | program quality.                     |             |      |
+---------+--------------------------------------+-------------+------+
| 2.2     | Each program assisted shall include  | Met         | N/A  |
|         | the identification and recruitment   | r           |      |
|         | of families most in need, and serve  | equirements |      |
|         | those families.                      |             |      |
+---------+--------------------------------------+-------------+------+
| 2.3     | Each program shall include screening | Met         | N/A  |
|         | and preparation of parents and       | r           |      |
|         | enable those parents and children to | equirements |      |
|         | participate fully in the activities  |             |      |
|         | and services provided.               |             |      |
+---------+--------------------------------------+-------------+------+
| 2.4     | SEA ensures that all families        | Met         | N/A  |
|         | receiving services participate in    | r           |      |
|         | all four core instructional          | equirements |      |
|         | services.                            |             |      |
+---------+--------------------------------------+-------------+------+
| 2.5     | Each program shall be designed to    | Met         | N/A  |
|         | accommodate the participants' work   | r           |      |
|         | schedule and other responsibilities, | equirements |      |
|         | including the provision of support   |             |      |
|         | services, when those services are    |             |      |
|         | unavailable from other sources.      |             |      |
+---------+--------------------------------------+-------------+------+
| 2.6     | Each program shall include           | Finding     | 30   |
|         | high-quality, intensive              |             |      |
|         | instructional programs that promote  |             |      |
|         | adult literacy and empower parents   |             |      |
|         | to support the educational growth of |             |      |
|         | their children, and in preparation   |             |      |
|         | of children for success in regular   |             |      |
|         | school programs.                     |             |      |
+---------+--------------------------------------+-------------+------+
| 2.7     | Individuals providing academic       | Met         | N/A  |
|         | instruction, whose salaries are paid | r           |      |
|         | in whole or part with Even Start     | equirements |      |
|         | funds, meet the statutory            |             |      |
|         | requirements for Even Start staff    |             |      |
|         | qualifications.                      |             |      |
+---------+--------------------------------------+-------------+------+
| 2.8     | By December 21, 2004, the person     | Finding     | 31   |
|         | responsible for administration of    |             |      |
|         | family literacy services, if that    |             |      |
|         | person's salary is paid in whole or  |             |      |
|         | part with Even Start funds, has      |             |      |
|         | received training in the operation   |             |      |
|         | of a family literacy program.        |             |      |
+---------+--------------------------------------+-------------+------+
| 2.9     | By December 21, 2004,                | Met         | N/A  |
|         | paraprofessionals who provide        | r           |      |
|         | support for academic instruction,    | equirements |      |
|         | whose salaries are paid in whole or  |             |      |
|         | part with Even Start funds, have a   |             |      |
|         | secondary school diploma or its      |             |      |
|         | recognized equivalent.               |             |      |
+---------+--------------------------------------+-------------+------+
| 2.10    | The local programs shall include     | Met         | N/A  |
|         | special training of staff, including | r           |      |
|         | child-care workers, to develop the   | equirements |      |
|         | necessary skills to work with        |             |      |
|         | parents and young children.          |             |      |
+---------+--------------------------------------+-------------+------+
| 2.11    | The local programs shall provide and | Met         | N/A  |
|         | monitor integrated instructional     | r           |      |
|         | services to participating parents    | equirements |      |
|         | and children through the home-based  |             |      |
|         | portion of the instructional         |             |      |
|         | program.                             |             |      |
+---------+--------------------------------------+-------------+------+
| 2.12    | The local programs shall operate on  | Met         | N/A  |
|         | a year-round basis, including the    | r           |      |
|         | provisions of some program services, | equirements |      |
|         | including instructional and          |             |      |
|         | enrichment services, during the      |             |      |
|         | summer months.                       |             |      |
+---------+--------------------------------------+-------------+------+
| 2.13    | The local program shall be           | Met         | N/A  |
|         | coordinated with other relevant      | r           |      |
|         | programs under the Adult Education   | equirements |      |
|         | and Family Literacy Act, the         |             |      |
|         | Individuals with Disabilities Act,   |             |      |
|         | and Title I of the Workforce         |             |      |
|         | Investment Act of 1988 and the Head  |             |      |
|         | Start program, volunteer literacy    |             |      |
|         | programs, and other relevant         |             |      |
|         | programs.                            |             |      |
+---------+--------------------------------------+-------------+------+
| 2.14    | The local programs shall use         | Met         | N/A  |
|         | instructional programs based on      | r           |      |
|         | scientifically based reading         | equirements |      |
|         | research for children and adults,    |             |      |
|         | and reading-readiness activities for |             |      |
|         | preschool children based on          |             |      |
|         | scientifically based reading         |             |      |
|         | research.                            |             |      |
+---------+--------------------------------------+-------------+------+
| 2.15    | The local program shall encourage    | Met         | N/A  |
|         | participating families to attend     | r           |      |
|         | regularly and to remain in the       | equirements |      |
|         | program a sufficient time to meet    |             |      |
|         | their program goals.                 |             |      |
+---------+--------------------------------------+-------------+------+
| 2.16    | The local program shall, if          | Met         | N/A  |
|         | applicable, promote the continuity   | r           |      |
|         | of family literacy to ensure that    | equirements |      |
|         | individuals retain and improve their |             |      |
|         | educational outcomes.                |             |      |
+---------+--------------------------------------+-------------+------+

**Title I, Part B, Subpart 3 (Even Start)**

**Area 2: Instructional Support**

## Indicator 2.6 - Each program shall include high-quality, intensive instructional programs that promote adult literacy and empower parents to support the educational growth of their children, and in preparation of children for success in regular school programs.

**[Finding:]{.underline}** The Pearson Digital Learning/Waterford
Literacy Skills was present in each Even Start classroom; however, there
was no evidence that the instructional staff were using this resource.
There were few literacy materials evident in any part of the classrooms
observed by the ED team, and there were no literacy materials in the
centers. Programs for infants and toddlers contained no literacy
materials. The ED team did not observe any evidence of planned
instruction and/or language reinforcement. There was no evidence that
parents had been prepared in any way for interactive literacy
activities. Parents did not seem aware of appropriate developmental
expectations. Parents did not engage in conversation with their children
or in shared book reading. There were no appropriate literacy materials
available in the infant room observed by the ED team for parents or
children to access to support interactive literacy activities.

[Citation:]{.underline} Section 1235(4) states that each project must
provide high-quality, intensive instructional programs that promote
adult literacy and empower parents to support the educational growth of
their children, developmentally appropriate early childhood services,
and preparation of children for success in regular school programs. Each
of the four core components is considered an instructional program.

## [Further action required]{.underline}: The PRDE must develop, implement, and submit to ED a plan for Even Start projects to implement high-quality, intensive instructional programs that promote adult literacy and empower parents to support the educational growth of their children. The plan must include training for Even Start staff on developmentally appropriate literacy materials for the classroom. 

**Indicator 2.8 -- By December 21, 2004, the person responsible for
administration of family literacy services, if that person's salary is
paid in whole or part with Even Start funds, has received training in
the operation of a family literacy program.**

**[Finding:]{.underline}** The project director in both of the Even
Start projects visited by the ED team had not taken the required
training in the operation of a family literacy program.

[Citation:]{.underline} Section 1235(5)(A)(ii) of the ESEA states that
the individual responsible for administration of family literacy
services must have received training in the operation of a family
literacy program.

[Further action required:]{.underline} The PRDE must submit to ED an
action plan for ensuring that all Even Start project directors meet the
requirement in section 1235(5)(A)(ii) of the ESEA that the person
responsible for administration of family literacy services must receive
training in the operation of a family literacy program.

+--------+----------------------------------------+-------------+------+
| # Moni |                                        |             |      |
| toring |                                        |             |      |
|  Area  |                                        |             |      |
| 3, Tit |                                        |             |      |
| le I P |                                        |             |      |
| art B, |                                        |             |      |
|  Subpa |                                        |             |      |
| rt 3:  |                                        |             |      |
| SEA Fi |                                        |             |      |
| duciar |                                        |             |      |
| y Resp |                                        |             |      |
| onsibi |                                        |             |      |
| lities |                                        |             |      |
+--------+----------------------------------------+-------------+------+
| **Ind  | # Critical Element                     | ### Status  | ##   |
| icator |                                        |             | Page |
| Nu     |                                        |             |      |
| mber** |                                        |             |      |
+--------+----------------------------------------+-------------+------+
| 3.1    | The SEA complies with the allocation   | Finding     | 32   |
|        | requirements for State administration  |             |      |
|        | and technical assistance and award of  |             |      |
|        | subgrants.                             |             |      |
+--------+----------------------------------------+-------------+------+
| 3.2    | The SEA ensures that subgrantees       | Finding     | 33   |
|        | comply with statutory and regulatory   |             |      |
|        | requirements on uses of funds and      |             |      |
|        | matching.                              |             |      |
+--------+----------------------------------------+-------------+------+
| 3.3    | The SEA complies with the              | Finding     | 33   |
|        | cross-cutting maintenance of effort    |             |      |
|        | provisions.                            |             |      |
+--------+----------------------------------------+-------------+------+
| 3.4    | The SEA ensures timely and meaningful  | Finding     | 34   |
|        | consultation with private school       |             |      |
|        | officials on how to provide Even Start |             |      |
|        | services and benefits to eligible      |             |      |
|        | elementary and secondary school        |             |      |
|        | students attending non-public schools  |             |      |
|        | and their teachers or other            |             |      |
|        | instructional personnel, and local     |             |      |
|        | programs provide an appropriate amount |             |      |
|        | of those services and benefits through |             |      |
|        | an eligible provider.                  |             |      |
+--------+----------------------------------------+-------------+------+
| 3.5    | The SEA has a system for ensuring fair | Finding     | 34   |
|        | and prompt resolution of complaints    |             |      |
|        | and appropriate hearing procedures.    |             |      |
+--------+----------------------------------------+-------------+------+

**Title I, Part B, Subpart 3 (Even Start)**

**Area 3: Fiduciary Responsibilities**

## Indicator 3.1 -- The SEA complies with the allocation requirements for State administration and technical assistance and award of subgrants.

## [Finding:]{.underline} The PRDE has not ensured that of the six percent it sets aside for State-level activities not more than 50 percent is used for administration. The PRDE sets aside six percent of its Even Start grant funds for administration, but there are none of these funds set aside for technical assistance.

## 

[Citation:]{.underline} Section 1233(a) of ESEA states that each SEA
that receives a grant under section 1232(d)(1) may use up to six percent
of the Even Start grant funds for State-level activities, which may
include the costs of administration, technical assistance, and carrying
out the State indicators of program quality, but that the amount used
for administration shall not exceed half of the total.

[Further action required:]{.underline} The PRDE must provide to ED
documentation that it has complied with the requirements in section
1233(a) of the ESEA for the 2006-2007 school year.

## Indicator 3.2 -- The SEA ensures that subgrantees comply with statutory and regulatory requirements on uses of funds and matching. 

**[Finding:]{.underline}** The PRDE does not require projects to submit
actual documentation of the required match. Even Start projects are only
required to submit a projection of the required match costs. Local
projects were unable to provide documentation of the actual match. Two
projects visited by the ED team included indirect costs in their
documentation of local match.

[Citation:]{.underline} Section 1234(b)(i)-(vi) of the ESEA stipulates
the Federal share for Even Start projects may not exceed:

-   \(i\) 90 percent in the first year,

-   \(ii\) 80 percent in the second year,

-   \(iii\) 70 percent in the third year,

-   \(iv\) 60 percent in the fourth year,

-   \(v\) 50 percent in the fifth year, and

-   \(vi\) 35 percent in any subsequent year.

A local project may provide its local share in cash or through in-kind
contributions, fairly evaluated. The project may obtain its local share
from any source, including any Federal funds other than Even Start
funds.

[Further action required:]{.underline} The PRDE must provide technical
assistance to all Even Start projects to ensure that they are meeting
the match requirement and not including indirect costs as part of the
match. In addition, the PRDE must provide evidence to ED that all Even
Start projects are: 1) meeting the required local match for the
2006-2007 school year, 2) maintaining records to document that match on
an annual basis, and 3) not including indirect costs as part of their
match.

**Indicator 3.3 - The SEA complies with cross-cutting maintenance of
effort provisions.**

**[Finding]{.underline}:** The PRDE could not provide the ED team with
any documentation that maintenance of effort procedures were completed.

[Citation]{.underline}: Section 9521(b)(1) of the ESEA states that the
SEA shall reduce the amount of the allocation of funds under a covered
program in any fiscal year in the exact proportion by which a local
educational agency fails to meet the maintenance of effort requirement
in section 9521(a) by falling below 90 percent of the previous year's
combined fiscal effort per student or aggregate expenditures (using the
measure most favorable to the local agency).

[Further action required]{.underline}: The PRDE must provide ED with
documentation demonstrating it has notified local projects about the
maintenance of effort provisions, and that the PRDE is including the
Even Start programs in maintenance of effort calculations.

## Indicator 3.4 -- The SEA ensures timely and meaningful consultation with private school officials on how to provide Even Start services and benefits to eligible elementary and secondary school students attending non-public schools. 

**[Finding:]{.underline}** Although the projects visited by the ED team
were aware of the requirement for equitable participation of private
school students, there was no documentation that requirements were being
met. (Pat, the fact that no students are participating is not
necessarily an indication that requirements haven't been met, so you may
need to follow up on this finding.)

[Citation:]{.underline} Section 9501 of the ESEA requires recipients of
Federal funds to provide eligible school-age children who are enrolled
in private elementary and secondary schools, and their teachers or other
educational personnel, educational services and benefits under those
programs on an equitable basis. Eligible entities must provide the
equitable services after timely and meaningful consultation with the
appropriate private school officials.

[Further action required]{.underline}: The PRDE must provide all Even
Start projects with technical assistance on equitable participation. In
addition, the PRDE must provide ED with documentation that this
technical assistance has occurred and the contents of the technical
assistance provided.

**Indicator 3.5 - The SEA has a system for fair and equitable resolution
of complaints.**

**[Finding]{.underline}:** The PRDE does not have a system in place for
fair and equitable resolution of complaints.

[Citation]{.underline}: Section 1238(b)(4)(B) of the ESEA states that
the State may refuse to award subgrant funds to an eligible entity if
the agency finds that the eligible entity has not sufficiently improved
the performance of the program, as evaluated based on the indicators of
program quality developed by the State, after affording the eligible
entity notice and an opportunity for a hearing. In addition, section
76.401(d), 76.770, 76.783 of EDGAR, and section 299.10 of the Title I
regulations require the State to have in place various other hearing
procedures related to disapproval of subgrant applications, recovery of
funds, termination of assistance, and resolution of complaints.

[Further action required:]{.underline} The PRDE must develop and submit
to ED procedures for ensuring fair and equitable resolution of hearing
requests, appeals, and complaints, or evidence that such a system is in
development, including any appropriate timelines.

**Summary of Title I, Part D Neglected, Delinquent or At-Risk of
Dropping Out Program**

+----------+-------------------------------------+------------+------+
| #        |                                     |            |      |
| Neglecte |                                     |            |      |
| d, Delin |                                     |            |      |
| quent or |                                     |            |      |
|  At-Risk |                                     |            |      |
|  of Drop |                                     |            |      |
| ping-Out |                                     |            |      |
|  Program |                                     |            |      |
+----------+-------------------------------------+------------+------+
| **Ind    | # Description                       | ### Status | ##   |
| icator** |                                     |            | Page |
|          |                                     |            |      |
| **       |                                     |            |      |
| Number** |                                     |            |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA has implemented all         | Met        | >    |
| ndicator | required components as identified   | re         |  N/A |
| 1.1      | in its Title I, Part D (N/D) plan.  | quirements |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA ensures that State Agency   | Finding    |      |
| ndicator | (SA) plans for services to eligible |            |      |
| 1.2      | N/D students meet all requirements. | Reco       |      |
|          |                                     | mmendation |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA ensures that Local          | Met        | >    |
| ndicator | Educational Agency (LEA) plans for  | re         |  N/A |
| 1.3      | services to eligible N/D students   | quirements |      |
|          | meet all requirements.              |            |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA ensures that                | Met        | >    |
| ndicator | institutionwide programs developed  | re         |  N/A |
| 2.1      | by the SA under Subpart 1 use the   | quirements |      |
|          | flexibility provided to them by law |            |      |
|          | to improve the academic achievement |            |      |
|          | of all students in the school.      |            |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA ensures each State agency   | Met        | >    |
| ndicator | has reserved not less than 15       | re         |  N/A |
| 3.1      | percent and not more than 30        | quirements |      |
|          | percent of the amount it receives   |            |      |
|          | under Subpart 1 for transition      |            |      |
|          | services.                           |            |      |
+----------+-------------------------------------+------------+------+
| I        | The SEA conducts monitoring of its  | Finding    | > P# |
| ndicator | subgrantees sufficient to ensure    |            |      |
| 3.2      | compliance with Title I, Part D     |            |      |
|          | program requirements.               |            |      |
+----------+-------------------------------------+------------+------+

# Title I, Part D 

**Indicator 1.2 - The SEA ensures that State Agency (SA) plans for
services to eligible N/D students meet all requirements**.

**[Finding:]{.underline}** The ED team could not identify in the
facilities visited an individual responsible for transition.

[Citation:]{.underline} 20 USC 6434, section 1414(c)(11) of the ESEA
requires the PRDE as the State agency to designate an individual in each
affected correctional facility or institution for neglected or
delinquent children and youth who is responsible for issues relating to
the transition of children.

[Further action required**:**]{.underline} The PRDE must review all
facilities that receive funding under Part D and determine if there is
an individual assigned for the purposes of assisting with educational
activities related to transition services. ED requires PRDE to identify
and submit to ED the names of transition persons in the facilities
visited: San Juan - Manuel Fernández Juncos; and Ponce - Centro de
Tratamiento Social.

[Recommendation:]{.underline} Smaller institutions are not serving
residential students for Part D as institution programs are only
provided funds after they have provided services. Smaller institutions
may not have the resources or capacity to participate in the program if
there is no forward funding prior to services. ED recommends that the
PRDE review the Federal funds reimbursement schedule to encourage
smaller institutions to serve neglected or delinquent students.

**Indicator 3.2 - The SEA conducts monitoring of its subgrantees
sufficient to ensure compliance with Title I, Part D program
requirements.**

**[Finding]{.underline}:** The ED team found no evidence that the PRDE
used the results of evaluations required to plan and improve programs
for participating Part D youth. Over 400 youth were enrolled in GED
programs in 2004-2005 and only 19 received GEDs.

[Citation]{.underline}: 20 USC 6434, section 1414(c)(6) of the ESEA
requires a description of how the State agency will carry out evaluation
requirements and how the results of the most recent evaluation will be
used to plan and improve the program. Additionally, 20 USC 6471, section
1431 of the ESEA requires the State agency to evaluate the Part D
program for student participation that will determine the program\'s
impact on the ability of participants to complete secondary school (or
secondary school equivalency requirements).

[Further action required:]{.underline} The PRDE must provide evidence to
ED that demonstrates how it uses the data of recent evaluations of
students in Part D programs to determine if such data indicate that the
program is effective, requires additional activities or change to
support student academic needs. Additionally, ED requires the PRDE to
investigate and report to ED why over 400 students were enrolled in GED
programs in SY 2004-2005 and only nineteen students received a
certificate.

#### Summary of McKinney-Vento Homeless Program

+------------+------------------------------------+------------+------+
| # M        |                                    |            |      |
| cKinney-Ve |                                    |            |      |
| nto Homele |                                    |            |      |
| ss Educati |                                    |            |      |
| on Program |                                    |            |      |
+------------+------------------------------------+------------+------+
| *          | # Description                      | ### Status | ##   |
| *Indicator |                                    |            | Page |
| Number**   |                                    |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA implements procedures to   | Finding    | 37   |
| 2.1        | address the identification,        |            |      |
|            | enrollment and retention of        |            |      |
|            | homeless students.                 |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA provides, or provides for, | Met        | N/A  |
| 2.2        | technical assistance for LEAs to   | Re         |      |
|            | ensure appropriate implementation  | quirements |      |
|            | of the statute.                    |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA ensures that LEA subgrant  | Met        | N/A  |
| 3.1        | plans for services to eligible     | Re         |      |
|            | homeless students meet all         | quirements |      |
|            | requirements.                      |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA ensures that the LEA       | Finding    | 38   |
| 3.2        | complies with providing comparable |            |      |
|            | Title I, Part A services to        |            |      |
|            | homeless students attending        |            |      |
|            | non-Title I schools.               |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA has a system for ensuring  | Met        | N/A  |
| 3.3        | the prompt resolution of disputes. | Re         |      |
|            |                                    | quirements |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA conducts monitoring of     | Met        | N/A  |
| 3.4        | LEAs with and without subgrants,   | Re         |      |
|            | sufficient to ensure compliance    | quirements |      |
|            | with McKinney-Vento program        |            |      |
|            | requirements.                      |            |      |
+------------+------------------------------------+------------+------+

# McKinney-Vento Homeless Education Program 

**Indicator 2.1 - The SEA implements procedures to address the
identification, enrollment and retention of homeless students**.

**[Finding:]{.underline}** Two local facilities - Fundación Niñito Jesús
and Hogar Grupo de Niñas - may fall under Part D as foster care
institutions and not be eligible for subgrants under McKinney-Vento.

[Citation]{.underline}: ED has determined that incarcerated children and
youth and children and youth in foster care are *not* considered
homeless. In guidance provided in 1995 on the McKinney-Vento program ED
determined: "Many foster children are in the care of a public
agency-awaiting placement in more permanent situations. The foster home
\[or institution\], although temporary, serves as a fixed, regular and
adequate nighttime residence."

[Further action required]{.underline}: ED requires that the PRDE
immediately investigate both programs to determine if the students in
these facilities are under the care of the Puerto Rico Department of
Social Services and are considered by the Department as foster children.
The PRDE must report to ED such findings and determine, if the programs
are serving foster care students, how to transfer over services from
McKinney-Vento subgrant funds to the Part D program.

**Indicator 3.2 - The SEA ensures that comparable Title I, Part A
services to homeless students attending non-Title I schools.**

**[Finding:]{.underline}** The ED team found that there was no
indication that local Title I plans are aligned with McKinney-Vento and
the use of reserved funds serves the needs of identified homeless youth.
For the 2005-2006 school year, the PRDE Title I reservation was
\$35,000. However, 7,662 students were identified on the 2004-2005
McKinney-Vento report. State and local plans do not address how and on
what basis reserved funds for homeless students are used.

[Citation]{.underline}: Section 1113(c)(3)(A) of the ESEA requires LEAs
to reserve funds to provide comparable services for homeless students
not attending Title I schools. Educationally related support services
may occur in shelters or other locations where homeless children reside.
Additionally, section 1112(a)(2)(1)(O) requires LEAs to include in their
consolidated Title I plan application a description of the services they
will provide with funds reserved under section 1113(c)(3)(A).

[Further action required]{.underline}: ED requires that the PRDE
identify the uses of funds reserved under Title I, Part A to serve
homeless students. ED requires the PRDE to review local Title I plans to
determine if there is an assurance or other indication that such plans
are aligned with student needs under McKinney-Vento.

##