July 5, 2002

Honorable Rita H. Inos

Commissioner of Education

CNMI Public School System

P.O. Box 501370CK

Saipan, MP 96950

Dear Commissioner Inos:

This is to inform you that we have conditionally approved the
Commonwealth of the Northern Mariana Islands' Eligibility Document
Submission for Federal Fiscal Year (FFY) 2002 under Part B of the
Individuals with Disabilities Education Act (IDEA). Our determination
that you are eligible for a conditional approval is based on our receipt
of the following documents submitted by the Commonwealth of the Northern
Mariana Islands to the Office of Special Education Programs:

1\. The Part B Eligibility Document Submission for FFY 2002 including
the Eligibility Documents submitted April 11, 2000, subsequent revisions
to those Eligibility Documents and the Submission Statement submitted
May 21, 2002; and

> 2\. The July 1, 2002 letter from the Commonwealth of the Northern
> Mariana Islands to OSEP, in which the Commonwealth of the Northern
> Mariana Islands assures that as soon as possible, but no later than
> July 1, 2003, the Commonwealth of the Northern Mariana Islands will
> complete all of the changes set forth in the June 20, 2002 issues
> chart including: \[1\] [Issues Chart I]{.underline} (issues from the
> policies and procedures that
>
> are not resolved) that includes: §300.136(g)(3)(ii), §300.347(c),
> §300.504(a), §300.381(b), §300.382(d), (g) and (h), and §300.142(a)(1)
> and (2); \[2\] [Issues Chart II and procedural manual issues from
> Issues Chart I]{.underline} that includes: §300.7(a)(ii) and
> (c)(1)(i), §300.24(a), (b)(5), (b)(7) and (b)(13), §300.26(a)(2),
> (a)(4) and (b)(3)(ii), §300.28, §300.29(a) and (b), §300.121(a),
> §300.450, §300.532(b), §300.533(a), §300.535(a), §300.574(c),
> §300.347(a), §300.514(a), §300.517(a), §300.550(b)(2), §300.455,
> §300.456(b), and §300.457(b), and \[3\] [Issues Chart III regarding
> the procedural safeguards notice]{.underline} that includes:
> §300.504(b), §300.500(b)(1), §300.502(a)(1) and (2), §500.502(b)(2)
> and (4), §500.502(e) and (e)(2), §500.505(a)(2), (a)(3), (b),(c),(d)
> and (e), §500.506(a) and (c)(1), (c)(2), (d)(1) and (d)(2),
> §300.507(b), (c)(1), (c)(3), (c)(4), §300.512(b); §300.513(c)(1),
> (c)(2)(ii) and (c)(3), §300.514(c), §300.519(a) and (b), §300.520(a),
> (b), and (c), §300.521, §300.522(a) and (b), §300.523(a), (b),
> (c),(d), (e), and (f), §300.524(b) and (c), §300.525(a) and (b),
> §300.526(a), (b) and (c), §300.527(a), (b), (c) and (d), §300.528 (a),
> (b), (c), and (d), §300.403(a), (b) and (c), §300.660(a) and (b),
> §300.661(a), (b) and (c), §300.662(a), (b) and (c), §300.568,
> §300.569, §300.569(a), §300.570, §300.571(a), (b) and (c),
> §300.572(a), (b), (c), and (d), §300.573(a) and (b), §300.574(a), (b)
> and (c), §300.575, and §300.576(a), (b), and (c).

In the July 1, 2002 letter, the Commonwealth of the Northern Mariana
Islands also assures that it will take steps to ensure that, throughout
the period of this grant award, all public agencies in the Commonwealth
of the Northern Mariana Islands that provide special education and
related services to children with disabilities will operate their
programs in a manner fully consistent with Part B. The Commonwealth of
the Northern Mariana Islands further assures that it will provide OSEP
with a copy of a memorandum notifying all public agencies of the changes
that impact on public agencies' provision of special education and
related services that OSEP requires as a result of its review of the
Commonwealth of the Northern Mariana Islands' eligibility documents.

Please note that as part of your Eligibility Document Submission for FFY
2002, the Commonwealth of the Northern Mariana Islands has made an
assurance, under 34 CFR §80.11(c), that it will comply with all
applicable Federal statutes and regulations in effect with respect to
the periods for which it receives grant funding. Any changes made by the
Commonwealth of the Northern Mariana Islands, after OSEP approval, to
information that is a part of a State's eligibility documentation, must
meet the public participation requirements of the IDEA and must be
approved by OSEP before implementation.

The Commonwealth of the Northern Mariana Islands' FFY 2002 IDEA Part B
grant award is being released subject to [FFY 2002 Special
Conditions]{.underline} as set forth in Enclosure B that are being
imposed pursuant to the Department's authority in 34 CFR §80.12.
Specifically, OSEP determined that the Commonwealth of the Northern
Mariana Islands is not developing and administering alternate
assessments for children with disabilities in *grades 10 and 11* and
reporting on their participation and performance publicly, and to the
Secretary, with the same frequency and in the same detail as for
nondisabled children in grades 10 and 11 as required at 20 U.S.C.
1412(a)(16-(17); 34 CFR §§300.137-300.139.

The Biennial Performance Report for Part B of the IDEA for grant years
1999-2000 and 2000-2001 was due on May 31, 2002. Among other
information, the Biennial Performance Report required that States submit
information regarding children with disabilities' participation in and
performance on Statewide assessments. 34 CFR §300.138 requires that
children with disabilities participate in general State and
district-wide assessment programs with appropriate accommodations and
modifications in administration, if necessary. In addition, States are
required to develop alternate assessments for those children with
disabilities who cannot participate in State and district-wide
assessment programs, even with appropriate accommodations and
modifications in administration. States also must report on the progress
of children with disabilities in the State toward meeting the
established performance goals and indicators for children with
disabilities on assessment, dropout rates and graduation rates, at a
minimum (34 CFR §300.137).

The requirements that States establish performance goals and indicators
on performance of children with disabilities on assessments, drop-out
rates and graduation rates and report publicly and to the Secretary
every two years on the progress of the State and of children with
disabilities within the State toward meeting those goals, ensure that
children with disabilities participate in State and district-wide
assessment systems; develop and administer alternate assessments, if
necessary; and report publicly on the participation and performance of
children with disabilities in State and district-wide assessments are
crucial to ensuring that children with disabilities are provided access
to high-quality instruction in the general curriculum, and that States
and districts are held accountable for the progress of these children.
20 U.S.C. 1412(a)(16)-(17); 34 CFR §§300.137-300.139. The requirements
regarding the participation of children with disabilities in, and
reporting on participation and performance of children with disabilities
in regular assessments have been in effect since July 1, 1998; the same
requirements regarding alternate assessments have been in effect since
July 1, 2000. The information reported to the Department in the
Commonwealth of the Northern Mariana Islands' Biennial Performance
Report for the 2000-2001 school year demonstrates that the Commonwealth
of the Northern Mariana Islands has not developed and administered
alternate assessments for children with disabilities in *grades 10 and
11,* and reported on their participation and performance publicly, and
to the Secretary, with the same frequency and in the same detail as for
nondisabled children in grades 10 and 11 as required by Part B.

The Commonwealth of the Northern Mariana Islands' failure to develop and
administer alternate assessments for children with disabilities *in
grades 10 and 11,* and report on their participation and performance
publicly, and to the Secretary, with the same frequency and in the same
detail as for nondisabled children in grades 10 and 11, has resulted in
the Department imposing the [FYY 2002 Special Conditions]{.underline}
contained in Enclosure B of this letter. The reasons for doing so and
the specific conditions are detailed in the enclosure. The Commonwealth
of the Northern Mariana Islands must administer these awards both in
keeping with the applicable provisions of Federal law and regulations
and the [Special Conditions]{.underline} attached to the grant award
document. Acceptance by the Commonwealth of the Northern Mariana Islands
of this grant award constitutes an agreement by the State to comply with
these [Special Conditions]{.underline}.

Enclosed is a grant award for funds currently available under the
Department of Education FFY 2002 Appropriations Act for the Part B
Section 611 (Grants to States) program. These funds are for use
primarily in school year 2002-2003 and are available for obligation by
States from July 1, 2002 through September 30, 2004.

The amount shown in your award for the Section 611 program is only part
of the total funds that will be awarded to you for FFY 2002. Of the
\$7,528,533,000 appropriated for Section 611 in FFY 2002,
\$2,456,533,000 is available for awards on July 1, 2002, and
\$5,072,000,000 will be available on October 1, 2002.

The funding formula for the Section 611 program is the same as was
implemented for FFY 2000. Subject to certain maximum and minimum funding
requirements, State allocations are based on the amount that each State
received from FFY 1999 funds, the general population in the age range
for which each State ensures a free appropriate public education (FAPE)
to all children with disabilities, and the number of children living in
poverty in the age range for which each State ensures FAPE to all
children with disabilities.

Enclosure A provides a short description of how Section 611 funds were
allocated and how those funds can be used. In addition, Table I in
Enclosure A shows funding levels for distribution of Section 611 funds.

This award is based on submission of a complete eligibility document
package, a signed assurance statement regarding resolution of issues
identified in OSEP's review of that eligibility document package, and
implementation of the provisions of the Individuals with Disabilities
Education Act. The complete eligibility document package and assurances
must be made available for public inspection.

We appreciate your ongoing commitment to the provision of quality
educational services to children with disabilities.

> Sincerely,

###### Stephanie S. Lee

> Director
>
> Office of Special Education Programs

Enclosures

cc: Suzanne Lizama