### Enclosure B

##### **VIRGIN ISLANDS -- SPECIAL CONDITIONS**

PREAMBLE: These special conditions are imposed on the Virgin Islands
Department of Education's federal fiscal year (FFY) 2003 Part B of the
Individuals with Disabilities Education Act (IDEA) grant award from the
U.S. Department of Education (Department) to the Virgin Islands
Department of Education (VIDE) under the Department's regulations
governing "high risk" grantees in 34 CFR §80.12. The special conditions
are imposed to help ensure that the VIDE award is expended in accordance
with applicable legal requirements.

#### EXPLANATION OF HIGH RISK STATUS

Under the authority of the Education Department General Administration
Regulations (EDGAR), 34 CFR §80.12, the Department has determined that
VIDE is a "high risk" grantee for purposes of its FFY 2002 Grant Award
because of the inability of VIDE to meet all of the conditions of the
Compliance Agreement between the U.S. Department of Education and the
Office of Special Education Programs dated December 10, 1999.

As part of the 1999 Compliance Agreement, VIDE agreed, by no later than
December 2002, to meet certain benchmarks or outcomes to bring it into
compliance with the requirements of Part B of the Individuals with
Disabilities Education Act (IDEA). The December 2000 and February 2002
onsite visits by OSEP and subsequent May 2001 and October 2002 OSEP
monitoring reports, as well as the quarterly progress reports required
under the 1999 Compliance Agreement and OSEP's February 2003 on-site
monitoring visit demonstrated that, despite progress in many areas,
certain benchmarks and outcomes were not met. These documents are
incorporated by reference herein. Specifically, OSEP makes the following
findings regarding unmet provisions of the Compliance Agreement of 1999.

####### Timeliness of Evaluations

VIDE: 1) was to have eliminated its existing backlog of 302 overdue
initial evaluations (due prior to 10/99); 2) was to have eliminated its
existing backlog of 667 overdue triennial evaluations (due prior to
10/99); and 3) was to have eliminated the current backlog of initial
evaluations and triennial evaluations for newly due evaluations (those
due on or after 10/99). See Compliance Agreement Outcomes 1.1a through
1.1d. OSEP finds that, although there are concerns regarding the
accuracy of its reporting system, VIDE is still reporting a backlog of
overdue initial and triennial evaluations. In February 2003, VIDE
reported approximately: zero overdue initial evaluations (due after
10/99); 234 overdue initial evaluations (due after 10/99); 18 overdue
triennial evaluations (due before 10/99); and 178 overdue triennials
(due after 10/99) for a total of 430 overdue evaluations. Further, while
VIDE reported that some of the more severely overdue evaluations were
due to a lack of cooperation from parents and students, it was unable to
produce any documentation regarding contacts with parents or students or
other school system efforts to schedule the evaluations. Moreover, VIDE
staff indicated that it was unable, in certain cases, to verify the
numbers being reported, and that it has yet to implement its proposed
computerized student information system (GoalView) for special education
students. The bi-monthly progress reports in April and June 2003
reported 77 overdue initial evaluations (due after 10/99), 57 overdue
reevaluations (due before 10/99),[^1] and 81 overdue triennials (due
after 10/99).

B.  **Provision of Related Services**

VIDE was to have eliminated its existing backlog of students not
receiving related services on their IEPs (listed on IEP prior to October
1999) and was to have eliminated its current backlog of students with
related services on their IEP (added to IEP on or after October 1999)
who are not receiving those services. See Compliance Agreement Items
2.1e. In its previous quarterly data reports, VIDE alleged that this
area was in compliance. During the on-site visit VIDE reported a total
of 27 students not receiving speech language services. In OSEP's review
of 22 student files where counseling was listed as a related service,
OSEP was unable to verify that any of these students received the
counseling that was indicated on their IEPs. An internal memorandum
reported at least 11 students not receiving counseling services. OSEP
interviews indicated that VIDE has no system to verify whether students
are receiving counseling as a related service. The bi-monthly progress
reports in April and June 2003 reported 38 students for whom VIDE could
not verify whether they received counseling due to lack of proper
documentation. VIDE reported 36 students not receiving speech language
services, 44 not receiving occupational therapy services, and 5 not
receiving physical therapy services.

C.  **Provision of Transportation Services**

VIDE was to have eliminated the existing backlog of students not
receiving transportation services on their IEPs (listed on IEP prior to
October 1999). For students with newly identified transportation needs
on their IEPs (added to IEP on or after October 1999), VIDE was to have
eliminate the current backlog. See Compliance Agreement Item 2.1f.
VIDE's report did not include specific numbers of students not receiving
transportation services but acknowledged continuing transportation
problems as well as ongoing efforts to address the problems. OSEP
concludes that transportation problems persist, and VIDE's failure to
properly report on this issue is especially troubling in light of the
findings on full school day and compensatory services below. The
bi-monthly progress reports in April and June 2003 reported 35 students
not receiving transportation services.

####### Full School Day

For those students eligible to attend school for a full school day, VIDE
was to have ensured that all eligible students were receiving a full
school day. See Compliance Agreement Item 2.1i. OSEP found reports of
late arrival and early pick-ups by the bus at one of the four schools
visited. VIDE was unaware of these problems despite reporting that its
spot-check plan for transportation had been implemented. OSEP found that
late arrival and early pick-ups due to transportation problems have
resulted in some students not receiving a full school day. The
bi-monthly progress reports in April and June 2003 reported 18 students
impacted.

D.  **Compensatory Education**

VIDE was to have ensured that all families requiring compensatory
services and/or reimbursement for parentally-funded compensatory
services were to be provided in a timely manner. See Compliance
Agreement Item 2.1g. OSEP finds that VIDE failed to accurately report on
those students who were entitled to or were provided compensatory
services and/or reimbursed for parentally-funded services. For example,
VIDE reported numbers of students not receiving related services, but
some of these students were not reported as requiring compensatory
services. Further, OSEP found additional students who were denied
services, who were not included on the list of students requiring
compensatory services.

####### Extended School Year Services

VIDE was to have implemented an appropriate system that ensures that, by
May 15 of each year of the agreement, students who required extended
school year services (ESY) in order to receive a free appropriate public
education receive those services. See Compliance Agreement Item 2.1d.
OSEP finds that at one of the four schools visited, the teachers were
not aware of the guidelines or requirements for ESY.

####### Transition from Part C (early intervention services) to Part B

VIDE was to have ensured that all eligible preschoolers transitioning
from Part C to Part B have timely IEPs or Individualized Family Service
Plans (IFSPs) and are receiving special education and related services
under Part B by their third birthday. See Compliance Agreement Item
2.1j. OSEP finds that VIDE and VIDH have failed to adequately revise the
interagency agreement that covers the responsibilities of the two
agencies with regard to students' transition from Part C to Part B. OSEP
finds that VIDE does not provide preschool summer school services
because public school staff do not work during the summer, and that
currently, Part C students whose third birthday occurs during the summer
months remain in the Part C program until the next school year. Due to
the lack of a revised agreement, the financial responsibility for the
services that VIDH is providing during the summer months also remains at
issue.

####### Continuum of Placement Options

Under the Compliance Agreement VIDE was to have ensured that services
and programs are provided in the least restrictive environment and that
VIDE has made available a full continuum of placement options. As part
of this goal, VIDE was to have implemented a revised placement process
and ensured physical accessibility to services and programs. See
Compliance Agreement Items 3.1a through 3.1f. VIDE appears to have made
significant progress in the area of physical accessibility to its
programs and the use of the regular content standards for students with
disabilities. VIDE acknowledged that the continuum of placement options
for preschool students continues to be a problem. For school-age
students, at one school visited, OSEP found that even though the
children's IEPs indicated participation in regular classes with
nondisabled peers, staff confirmed that participation in nonacademic
classes was not integrated consistent with student's abilities. Students
with disabilities attend these classes as a segregated group and staff
reported a class size rule that was a barrier to integration. At two
schools, regular education teachers reported no mechanism for receiving
information about children with disabilities in their classes.

[]{.mark}

####### Sufficient Qualified Personnel

Under the Compliance Agreement, VIDE was required to ensure a sufficient
supply of qualified personnel by seeking appropriate legislative and/or
executive authority to hire needed staff. VIDE was to have eliminated
its staff vacancies by December 2002. See Compliance Agreement Items
4.1a through 4.1d. OSEP finds that VIDE reported a small number of
vacancies for special education teachers and administrators that
represents a very small percentage of total positions. However, OSEP is
concerned with VIDE's report of vacancies for both of the two speech
language therapist positions on St. Croix. These positions have remained
vacant for more than a year. While VIDE indicated it is continuing to
work on filling those vacancies and is using contractors in some
instances, as a result of these long-standing vacancies, approximately
27 students on St. Croix did not receive speech and language therapy as
required by their IEPs. VIDE did not submit the required documentation
to address this issue by July 1, 2003, as required in the Special
Conditions to the FFY 2002 Part B grant award.

####### General Supervision and Monitoring

By December 2002, in order to meet the terms of the compliance
agreement, VIDE was to have ensured that its policies and procedures are
consistent with IDEA, including but not limited to, implementation of a
comprehensive and effective monitoring system. See Compliance Agreement
Items 6.1a and 6.1b. VIDE submitted its revised policies and procedures
September 15, 2002. In a letter dated March 13, 2003 OSEP identified a
number of areas in which VIDE polices and procedures were not consistent
with the IDEA. On July 2, 2003, VIDE submitted revised policies and
procedures that includes both changes that OSEP required in its March
13, 2003 letter and chart and additional changes not required by OSEP
and impacting OSEP's prior review. Due to these additional changes, OSEP
must review all revised submissions to determine whether the new
documentation meets the eligibility requirements under Part B of the
IDEA.

#### SPECIAL CONDITIONS

Under the authority of the Education Department General Administrative
Regulations, 34 CFR §80.12, the Department is imposing these Special
Conditions on the Virgin Islands Federal Fiscal Year 2003 awards under
Part B of the IDEA.

A.  As soon as possible, but no later than March 31, 2004, VIDE must
    eliminate the backlog of overdue initial and triennial evaluations
    and document progress on this item by submitting bi-monthly reports,
    beginning October 14, 2003, utilizing reporting forms provided by
    OSEP;

B.  As soon as possible, but no later than March 31, 2004, VIDE must
    eliminate the backlog of students not receiving related services on
    their IEPs and document progress on this item by submitting
    bi-monthly reports, beginning October 14, 2003, utilizing reporting
    forms provided by OSEP;

C.  VIDE must:

    1.  As soon as possible, but no later than March 31, 2004, eliminate
        the backlog of students not receiving transportation services on
        their IEPs;

    2.  As soon as possible, but no later than October 14, 2003,
        implement appropriate changes to the transportation spot-check
        plan to address VIDE's failure to identify transportation
        problems at certain schools;

    3.  Beginning October 14, 2003, document progress on this item by
        submitting bi-monthly reports utilizing reporting forms provided
        by OSEP.

D.  As soon as possible, but no later than March 31, 2004, VIDE must
    ensure that all students with disabilities receive a full school day
    and document progress on this item by submitting bi-monthly reports,
    beginning October 14, 2003, utilizing reporting forms provided by
    OSEP;

E.  As soon as possible, but no later than March 31, 2004, VIDE must
    ensure that compensatory services and reimbursement for
    parentally-funded compensatory services are provided in a timely
    manner and document progress on this item by submitting bi-monthly
    reports, beginning October 14, 2003, utilizing reporting forms
    provided by OSEP;

F.  As soon as possible, but no later than March 31, 2004, 1) VIDE must
    ensure that all school personnel have received training on the ESY
    guidelines and that it conducts monitoring to ensure that the ESY
    guidelines are being properly implemented; and 2) VIDE must document
    progress on this item by submitting bi-monthly reports, beginning
    October 14, 2003, utilizing reporting forms provided by OSEP;

G.  VIDE must:

    1.  As soon as possible, but no later than March 31, 2004, ensure
        that all eligible students transitioning from Part C to Part B
        have timely IEPs or IFSPs and are receiving special education
        and related services by their third birthday, including those
        eligible children who turn three during the summer months;

    2.  As soon as possible, but no later than March 31, 2004, make all
        revisions necessary to ensure that the final Interagency
        Agreement between VIDH and VIDE for Part C to Part B transition
        meets all federal requirements.

H.  VIDE must:

    1.  As soon as possible, but no later than March 31, 2004, ensure
        that services and programs are provided in the least restrictive
        environment and that VIDE makes a full continuum of placement
        options available, including preschool options; and

    2.  Document progress on this item by submitting bi-monthly reports,
        beginning October 14, 2003, utilizing reporting forms provided
        by OSEP.

I.  As soon as possible, but no later than the October 14, 2003 report,
    VIDE must submit a revised plan to address all long-standing
    vacancies (more than one year) impacting the provision of services
    to students with disabilities, including but not limited to the
    vacancies for speech language therapists on St. Croix.

J.  As soon as possible, but no later than December 15, 2003 VIDE must
    either fully implement its previously purchased computerized student
    information system for special education or implement another
    special education information management system, that must be
    approved by OSEP and that, at a minimum, provides accurate student
    information for all reports required under [Special
    Conditions]{.underline} for II.A through G.

K.  As soon as possible, but no later than March 31, 2004 VIDE must
    submit the following final documents, based on OSEP's March 13, 2003
    letter and chart and final approval by OSEP: (1) state complaint
    procedures; (2) procedural safeguards; and (3) interagency agreement
    between Part C (early intervention services) and Part B.

L.  As soon as possible, but no later than March 31, 2004, VIDE must
    resubmit its final revised policies and procedures (VIPP) addressing
    all issues identified in OSEP's March 13, 2003 letter and chart and
    resolving any other issues identified by OSEP in VIDE's July 2, 2003
    submission.

M.  VIDE must promptly provide the Department any requested records and
    information.

**III. EVIDENCE NECESSARY FOR SPECIAL CONDITIONS TO BE REMOVED**

The Department will remove the special conditions if, at any time prior
to the expiration of the grant year, the Virgin Islands provides
documentation, satisfactory to the Department, that it has fully met the
requirements of the 1999 Compliance Agreement as set out in Section I,
Subsections A-J of this document.

**IV. METHOD OF REQUESTING RECONSIDERATION**

The Virgin Islands may write to Assistant Secretary Robert H.
Pasternack, if it wishes the Department to reconsider any aspect of
these [Special Conditions]{.underline}. Any such request should describe
in detail the changes to the [Special Conditions]{.underline} sought by
the Territory and the reasons for those requested changes.

### V. SUBMISSION OF REPORTS

All documents and reports that are required to be submitted by the
Virgin Islands to the Department under these [Special
Conditions]{.underline} should be signed by the State Director of
Special Education and submitted to:

Maral Taylor

Office of Special Education Programs

330 C Street SW, Room 3624

Washington, DC 20202

Dated: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[^1]: It is not clear why this number has been revised upward from
    previous reporting.