> June 26, 2007
>
> Honorable Benigno R. Fitial
>
> Governor of the Northern Mariana Islands Caller Box 10007
>
> Saipan, MP 96950
>
> Dear Governor Fitial:
>
> We are pleased with the continued progress that the Commonwealth of
> the Northern Mariana Islands Public School System (CNMI PSS) has made
> in a number of areas to improve its programmatic and fiscal
> accountability. We would also like to recognize the leadership of
> Commissioner David Borja and his staff to ensure fiscal accountability
> of Department funds, while continuing to implement corrective actions
> to address audit findings. The Department will continue to monitor the
> progress of CNMI PSS, and offer technical assistance to the extent
> feasible when it is requested by CNMI PSS.
>
> Grant awards made to CNMI PSS for FY 2007 will be awarded subject to
> the three special conditions enclosed, which the Department will
> incorporate into CNMI PSS\'s FY 2007 grant award documents. However,
> should appropriate corrective actions cease or fiscal or program
> accountability problems recur in the future, the Department reserves
> the right to take appropriate actions, such as: reinstating CNMI
> PSS\'s \"high-risk\" status and imposing additional special conditions
> to CNMI\'s grant awards.
>
> If you have any questions or require further assistance, have your
> staff contact Christine Jackson, the primary contact for the
> Management Improvement Team within the Office of the Secretary, at
> (202) 260-2516.
>
> We are hopeful that CNMI PSS will sustain its progress toward
> improving the use of, and accountability for Department funds to
> support educational services to benefit its students. We look forward
> to continuing to work with you to improve the delivery of Federal
> education services so that no child in CNMI is left behind.
>
> Sincerely,
>
> Hudson La Force, III
>
> Senior Counselor to the Secretary
>
> cc: Dr. David Borja
>
> Commissioner of Education CNMI Public Schools System
>
> Mr. Herman T. Guerrero Chairman
>
> Board of Education
>
> Enclosure
>
> 400 MARYLAND AVE., S.W., WASHINGTON, D.C. 20202-0100\
> www.ed.gov
>
> Our *mission is to ensure equal access to education and to promote
> educational excellence throughout the nation.*

[Commonwealth of the Northern Mariana Islands Public School System -
Special Conditions]{.underline}

1.  **Single Audits and Reports:** CNMI PSS shall continue to conduct
    single audits and submit reports on an annual basis in a timely and
    complete manner. All single audits shall be completed and the
    reports published within nine months after the end of each fiscal
    year, as required by the Single Audit Act of 1984, as amended. If,
    for any reason, CNMI PSS expects an audit or report to be delayed
    and late, it shall notify the Department\'s contact person of the
    reason and extent of the delay as soon as possible.

2.  **Updates on CNMI Web Site:** CNMI PSS shall continue to post
    information regarding its budget, applications, and reports on its
    website for access by the general public.

3.  **Reporting Requirements:** CNMI PSS shall continue to provide a
    detailed report on a biennial basis that describes its
    administration of program funds, including both direct and indirect
    expenditures, and progress of each significant aspect of the
    programs at the district and State levels. Specifically, CNMI PSS
    shall also demonstrate how it is addressing the repeat audit
    findings associated with monitoring and evaluating Department
    programs, and tracking of property purchased with Department funds.
    These reports shall be signed by the authorized official of CNMI PSS
    and submitted to the Department no later than thirty days after the
    end of each 6-month period. If a report is not timely or is not
    considered acceptable by the Department, i.e., does not contain
    enough information to demonstrate progress, after consultation with
    CNMI PSS, the Department may restrict the amount of grant funds that
    can be drawn down until sufficient documentation is provided.

> All required reports submitted by CNMI PSS to the Department under
> these special conditions should be submitted to:
>
> Christine Jackson
>
> 400 Maryland Avenue, S.W. LBJ Building, Room 7E230 Washington, DC
> 20202