July 1, 2003

Honorable William A. Mehojah, Jr.

Acting Director, Office of Indian Education Programs

Bureau of Indian Affairs

MS-3512, MIB

1849 C Street, NW

Washington, DC 20240-0001

Dear Acting Director Mehojah:

This is to inform you that we have conditionally approved the Bureau of
Indian Affairs' (BIA) Eligibility Document Submission for Federal Fiscal
Year (FFY) 2003 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 BIA to the U.S. Department of Education, Office of Special
Education Programs (OSEP):

1.  The Part B Eligibility Document Submission for FFY 2003 including
    the Eligibility Documents submitted June 24, 2000 and subsequent
    revisions to those Eligibility Documents and the Submission
    Statement submitted May 9, 2003; and

2.  The June 26, 2003 letter from the Bureau of Indian Affairs to OSEP,
    in which BIA assures that as soon as possible, but no later than
    July 1, 2004, BIA will complete all of the changes set forth in the
    June 24, 2003 issues chart including: 34 CFR §300.504 (b)(10) and
    (14); §300.505(b); §300.509(b)(2); §300.142; and 300.147(a).

> In the June 26, 2003 letter, the Bureau of Indian Affairs also assures
> that it will take steps to ensure that, throughout the period of this
> grant award, all BIA-funded schools that provide special education and
> related services to children with disabilities will operate their
> programs in a manner fully consistent with Part B. BIA further assures
> that it will provide OSEP with a copy of a memorandum notifying all
> BIA-funded schools of the changes that impact BIA-funded school's
> provision of special education and related services that OSEP requires
> as a result of its review of the BIA's eligibility documents.

Please note that as part of your Eligibility Document Submission for FFY
2003, BIA 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 BIA, after OSEP approval, to information that is a
part of BIA's eligibility documentation, must meet the public
participation requirements of the IDEA and must be approved by OSEP
before implementation.

The Bureau of Indian Affairs FFY 2003 IDEA Part B grant awards are being
released subject to [FFY 2003 Special Conditions]{.underline}, as set
forth in Enclosure A, that are being imposed pursuant to the
Department's authority in 34 CFR §80.12. Specifically, OSEP determined
that the BIA is not reporting publicly on the participation and
performance of children with disabilities in State and district-wide
alternate assessments, as required at 20 U.S.C. 1412(a)(17) and 34 CFR
§300.139.

The requirement that States report publicly on the participation and
performance of children with disabilities in State and district-wide
assessments is 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)(17); 34 CFR §§300.139.

The Bureau of Indian Affairs failure to report on the participation and
performance of children with disabilities in alternate assessments
resulted in the Department imposing the [FFY 2002 Special
Conditions]{.underline} contained in Enclosure A of this letter. Because
BIA did not meet those [Special Conditions]{.underline}, and has not yet
reported to the public on the participation and performance of children
with disabilities in alternate assessments, the Department is imposing
[Special Conditions]{.underline} on the State's FFY 2003 grant awards
under Part B. The reasons for doing so and the specific conditions are
detailed in the enclosure. BIA 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 BIA of these grant awards constitutes an
agreement by the BIA to comply with these [Special
Conditions]{.underline}.

Enclosed is the Bureau of Indian Affairs' Grants to States award of
\$80,458,990 for funds appropriated for Federal Fiscal Year 2003 under
section 611(c) of Part B of the Individuals with Disabilities Education
Act (IDEA).

Under the section 611(i)(1) of IDEA, the award includes \$64,367,192 to
be used by the Secretary of the Interior to meet the need for assistance
for the education of children with disabilities on reservations aged 5
to 21, inclusive, enrolled in elementary and secondary schools for
Indian children operated or funded by the Secretary of the Interior.

Under Section 611(i)(3), the award includes \$16,091,798 to be
distributed by the Secretary of the Interior to tribes or tribal
organizations or consortia of the above to provide for the coordination
of assistance for special education and related services for children
with disabilities aged 3 through 5 on reservations served by elementary
and secondary schools for Indian children operated or funded by the
Secretary of Interior. The funds received by a tribe or tribal
organization must be used to assist in child find, screening, and other
procedures for the early identification of children aged 3 through 5,
parent training, and the provision of direct services. None of the funds
provided under section 611(i)(3) can be used by the Secretary of the
Interior for administrative purposes, including child count and the
provision of technical assistance.

These awards are 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,

/s/Patricia J. Guard for

###### Stephanie S. Lee

> Director
>
> Office of Special Education Programs

Enclosures

cc: Sherry Allison