Honorable Wayne G. Sanstead

Superintendent, North Dakota State Department of Public Instruction

State Capitol Building / 9^th^ Floor -- Dept. 201

Bismarck, North Dakota 58505-0440

Dear Superintendent Sanstead:

During the week of May 16, 2005, a team from the U. S. Department of
Education's (ED) Student Achievement and School Accountability Programs
(SASA) reviewed the North Dakota Department of Public Instruction's
(NDDPI) administration of the following programs authorized by the
Elementary and Secondary Education Act of 1965 (ESEA), as amended by the
No Child Left Behind Act (NCLB): Title I, Part A; Title I, Part B,
Subpart 3; and Title I, Part D. Also reviewed was Title X, Part C,
Subtitle B, of the NCLB (also known as the McKinney-Vento Homeless
Education Assistance Improvements Act of 2001). Enclosed is a report
based upon this review.

Because of the increased emphasis that the ESEA, reauthorized as NCLB,
places on accountability for [all]{.underline} students, and a focus on
States' responsibilities to work with districts and schools to improve
instruction and boost student achievement, ED is committed to working
closely with States to define their responsibilities. ED's monitoring
process is aligned to the changes brought about by the NCLB. Monitoring
for the Title I, Part A, Even Start, Neglected or Delinquent, and
Homeless Education programs is conducted in three broad areas -
accountability, instructional support, and compliance with fiduciary
responsibilities. Prior to, during, and following the onsite monitoring
review, the ED team conducted a number of activities (described in the
attached report) to verify compliance with the critical monitoring
indicators in each of the three broad areas.

The enclosed report contains a listing of the critical monitoring
elements in each of the areas for the four programs monitored, a
description of the scope of the monitoring review, and the findings and
recommendations that the team cited as a result of the review. Beginning
with the 2003-2004 monitoring cycle, every State that participates in an
onsite monitoring review will have a condition placed on its Title I,
Part A grant award specifying that the State must submit (and receive
approval of) documentation that [all]{.underline} compliance issues
identified in the monitoring report have been corrected. Following an
onsite review, the monitoring report will be issued by ED within 30
business days of the team's return. The State education agency (SEA)
then has 30 business days to respond to all of the compliance issues
identified in that report. ED staff will review the

Page 2 -- Superintendent Sanstead

SEA's response for sufficiency and will determine which areas are
acceptable, and which will require further documentation of
implementation. ED will allow 30 additional business days for receipt of
this further documentation. ED recognizes that some corrective actions
may require longer than the prescribed 30 days, and in these instances,
ED will work with the SEA to determine a reasonable timeline. In all
cases, however, evidence of implementation of actions designed to
correct [all]{.underline} compliance issues identified in the monitoring
report must be submitted and approved by ED prior to removing the
condition on the State's grant award.

The ED team would like to thank Laurie Matzke, the NDDPI's Title I
Director and her staff for their hard work and the assistance they
provided prior to and during the review in gathering materials and
providing access to information in a timely manner. The team was
impressed with the efforts of your State's staff to implement the many
requirements of the Title I programs of the ESEA.

We look forward to working further with your staff members on any
follow-up activities, and in assisting them to improve the delivery of
Title I services in North Dakota.

Sincerely,

Jacquelyn C. Jackson, Ed.D.

Director

Student Achievement and

> School Accountability Programs

Enclosure

cc: Laurie Matzke, Director, Title I

Dale Patrick, Program Administrator, Even Start

North Dakota Department of Education

**May 16, 2005**

**Scope of Review:** A team from the US Department of Education's (ED)
Student Achievement and School Accountability Programs (SASA) Office
monitored the North Dakota Department of Education (NDDPI) the week of
May 16, 2005. This was a comprehensive review of NDDPI's administration
of the following programs authorized by the Elementary and Secondary
Education Act of 1965 (ESEA), as amended by the No Child Left Behind Act
(NCLB): Title I, Part A; Title I, Part B, Subpart 3; and Title I, Part
D. Also reviewed was Title X, Part C, Subtitle B, of NCLB (also known as
the McKinney-Vento Homeless Education Assistance Improvements Act of
2001).

In conducting this comprehensive review, the ED team carried out a
number of major activities. In reviewing the Part A program, the ED team
conducted an analysis of State assessments and State accountability
system plans, reviewed the effectiveness of the instructional
improvement and instructional support measures established by the State
to benefit local educational agencies (LEAs) and schools, and reviewed
compliance with fiscal and administrative oversight requirements
required of the SEA. During the onsite review week, the ED team visited
two LEAs -- the Bismarck Public Schools (BPS) and New Town Public
Schools (NTPS) -- and interviewed personnel from four schools in these
LEAs that have been identified for improvement, and one non-public
school official from Bismarck. The ED team also conducted two parent
meetings. The team then interviewed State personnel to confirm data
collected in each of the three monitoring indicator areas. The ED team
conducted conference calls to two additional LEAs (Fargo and Devil's
Lake) upon its return to Washington, DC to confirm information gathered
onsite in the LEAs and in NDDPI.

In its review of the Title I, Part B, Subpart 3 Even Start program, the
ED team examined the State's request for proposals, State Even Start
guidance, State indicators of program quality, and the most recent
applications and local evaluations for two local projects -- the
Heartland Even Start project at the Open Door Community Center in
Bismarck (in partnership with the Mandan LEA), and the Minot Even Start
program. During the onsite review, the ED team visited these local
projects and interviewed administrative and instructional staff. The ED
team also interviewed the Even Start State Coordinator to confirm
information obtained at the local sites and to discuss State
administration issues.

In its review of the Title I, Part D program, the ED team examined the
State's application for funding, procedures and guidance for State
agency (SA) applications under Subpart 1 and LEA applications under
Subpart 2, technical assistance provided to SAs and LEAs, the State's
oversight and monitoring plan and activities, SA and LEA subgrant plans
and local evaluations for projects in Bismarck and Mandan school
districts, as well as programs run by the North Dakota Department of
Youth Corrections. The ED team visited and interviewed administrative,
program and teaching staff. The ED team also interviewed the Title I,
Part D NDDPI coordinator to confirm information obtained at the local
sites and discuss administration of the program.

In its review of the Education for Homeless Children and Youth program
(Title X, Part C, Subpart B), the ED team examined the State's
procedures and guidance for the identification, enrollment and retention
of homeless students, technical assistance provided to LEAs with and
without subgrants, the State's McKinney-Vento application, and LEA
applications for subgrants and local evaluations for projects in
Bismarck and Mandan school districts. The ED team visited and
interviewed administrative, program and teaching staff. The ED team also
interviewed the NDDPI McKinney-Vento coordinator to confirm information
obtained at the local sites and discuss administration of the program.

**Previous Audit Findings:** None to report.

**Previous Monitoring Findings:** ED last reviewed Title I, Part A and
Part B programs in North Dakota in November of 1998 as part of a Federal
integrated review initiative. There were several findings identified in
the Title I, Part A program as a result of that review in the areas of:
standards, assessments and accountability, schools/districts identified
for improvement, committee of practitioners, private schools, parental
involvement and professional development. Subsequent to that review, the
NDDPI provided documentation of compliance with all of the required
corrective actions specified in ED's monitoring report. There were no
compliance findings identified in the Part B program as a result of that
review. ED has not previously conducted a comprehensive review of the
Neglected/Delinquent or Education for Homeless Children and Youth
programs in North Dakota.

Title I, Part A Monitoring

Summary of Monitoring Indicators

+------------+-------------------------------------+-------------+----+
| **         |                                     |             |    |
| Monitoring |                                     |             |    |
| Area 1,    |                                     |             |    |
| Title I,   |                                     |             |    |
| Part A:    |                                     |             |    |
| Accoun     |                                     |             |    |
| tability** |                                     |             |    |
+------------+-------------------------------------+-------------+----+
| *          | **Description**                     | **Status**  | #  |
| *Indicator |                                     |             | Pa |
| Number**   |                                     |             | ge |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has approved academic       | Met         | N  |
| 1.1        | content standards for all required  | r           | /A |
|            | subjects or an approved timeline    | equirements |    |
|            | for developing them.                |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has approved academic       | Met         | N  |
| 1.2        | achievement standards and alternate | r           | /A |
|            | academic achievement standards in   | equirements |    |
|            | required subject areas and grades   |             |    |
|            | or an approved timeline to create   |             |    |
|            | them.                               |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has approved assessments    | Met         | N  |
| 1.3        | and alternate assessments in        | r           | /A |
|            | required subject areas and grades   | equirements |    |
|            | or an approved timeline to create   |             |    |
|            | them.                               |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | Assessments should be used for      | Finding     | 6  |
| 1.4        | purposes for which such assessments |             |    |
|            | are valid and reliable, and be      |             |    |
|            | consistent with relevant,           |             |    |
|            | nationally recognized professional  |             |    |
|            | and technical standards.            |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has implemented all         | Rec         | 6  |
| 1.5        | required components as identified   | ommendation |    |
|            | in its accountability workbook.     |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has published an annual     | Finding     | 7  |
| 1.6        | report card as required and an      |             |    |
|            | Annual Report to the Secretary.     |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA has ensured that LEAs have  | Finding     | 7  |
| 1.7        | published annual report cards as    |             |    |
|            | required.                           |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA indicates how funds         | Met         | N  |
| 1.8        | received under Grants for State     | r           | /A |
|            | Assessments and related activities  | equirements |    |
|            | (§6111) will be or have been used   |             |    |
|            | to meet the 2005-06 and 2007-08     |             |    |
|            | assessment requirements of NCLB.    |             |    |
+------------+-------------------------------------+-------------+----+
| Indicator  | The SEA ensures that LEAs meet all  | Finding     | 8  |
| 1.9        | requirements for identifying and    |             |    |
|            | assessing the academic achievement  |             |    |
|            | of limited English proficient       |             |    |
|            | students.                           |             |    |
+------------+-------------------------------------+-------------+----+

+------------+------------------------------------+-------------+-----+
| ## Monitor |                                    |             |     |
| ing Area 2 |                                    |             |     |
| , Title I, |                                    |             |     |
|  Part A: I |                                    |             |     |
| nstruction |                                    |             |     |
| al Support |                                    |             |     |
+------------+------------------------------------+-------------+-----+
| **I        | ## Description                     | ## Status   | #   |
| ndicator** |                                    |             | # P |
|            | ##                                 |             | age |
| **Number** |                                    |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA designs and implements     | Met         | N/A |
| 2.1        | procedures that ensure the hiring  | r           |     |
|            | and retention of qualified         | equirements |     |
|            | paraprofessionals and ensure that  |             |     |
|            | parents are informed of educator   |             |     |
|            | credentials as required.           |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA has established a          | Met         | N/A |
| 2.2        | statewide system of support that   | r           |     |
|            | provides, or provides for,         | equirements |     |
|            | technical assistance to LEAs and   |             |     |
|            | schools as required.               |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that the LEA and   | Finding     | 8,9 |
| 2.3        | schools meet parental involvement  | Rec         |     |
|            | requirements.                      | ommendation |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that schools and   | Reco        | 9   |
| 2.4        | LEAs identified for improvement,   | mmendations |     |
|            | corrective action, or              |             |     |
|            | restructuring have met the         |             |     |
|            | requirements of being so           |             |     |
|            | identified.                        |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that requirements  | Met         | N/A |
| 2.5        | for public school choice are met.  | r           |     |
|            |                                    | equirements |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that requirements  | Met         | N/A |
| 2.6        | for the provision of supplemental  | r           |     |
|            | educational services (SES) are     | equirements |     |
|            | met.                               |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that LEAs and      | Met         | N/A |
| 2.7        | schools develop schoolwide         | r           |     |
|            | programs that use the flexibility  | equirements |     |
|            | provided to them by law to improve |             |     |
|            | the academic achievement of all    |             |     |
|            | students in the school.            |             |     |
+------------+------------------------------------+-------------+-----+
| Indicator  | The SEA ensures that LEA targeted  | Met         | N/A |
| 2.8        | assistance programs meet all       | r           |     |
|            | requirements.                      | equirements |     |
+------------+------------------------------------+-------------+-----+

+----------+--------------------------------------+-------------+-----+
| **Mo     |                                      |             |     |
| nitoring |                                      |             |     |
| Area 3,  |                                      |             |     |
| Title I, |                                      |             |     |
| Part A:  |                                      |             |     |
| F        |                                      |             |     |
| iduciary |                                      |             |     |
| Re       |                                      |             |     |
| sponsibi |                                      |             |     |
| lities** |                                      |             |     |
+----------+--------------------------------------+-------------+-----+
| **I      | **Description**                      | **Status**  | **  |
| ndicator |                                      |             | Pag |
| Number** |                                      |             | e** |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that its LEAs are    | Met         | ### |
| ndicator | audited annually in accordance with  | r           | ### |
| 3.1      | the Single Audit Act, and that all   | equirements | ##  |
|          | corrective actions required through  |             | N/A |
|          | this process are fully implemented.  |             |     |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA complies with the            | Met         | ### |
| ndicator | allocation, reallocation, and        | r           | ### |
| 3.2      | carryover provisions of Title I.     | equirements | ##  |
|          |                                      |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA complies with the            | Met         | ### |
| ndicator | maintenance of effort provisions of  | r           | ### |
| 3.3      | Title I.                             | equirements | ##  |
|          |                                      |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that LEAs comply     | Met         | ### |
| ndicator | with the comparability provisions of | r           | ### |
| 3.4      | Title I.                             | equirements | ##  |
|          |                                      |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that LEAs provide    | Met         | N/A |
| ndicator | Title I services to eligible         | r           |     |
| 3.5      | children attending private schools.  | equirements |     |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA establishes a Committee of   | Met         | ### |
| ndicator | Practitioners (COP) and involves the | r           | ### |
| 3.6      | committee in decision making as      | equirements | ##  |
|          | required.                            |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA has an accounting system in  | Met         | ### |
| ndicator | place that enables it to account for | r           | ### |
| 3.7      | reservation of funds for school      | equirements | ##  |
|          | improvement, State administration,   |             | N/A |
|          | the State academic achievement       |             |     |
|          | awards program.                      |             |     |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA has a system for ensuring    | Met         | ### |
| ndicator | fair and prompt resolution of        | r           | ### |
| 3. 8     | complaints.                          | equirements | ##  |
|          |                                      |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that the LEA         | Met         | ### |
| ndicator | complies with the rank order         | r           | ### |
| 3.9      | procedures for the eligible school   | equirements | ##  |
|          | attendance area.                     |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA conducts monitoring of its   | Met         | ### |
| ndicator | subgrantees sufficient to ensure     | r           | ### |
| 3.10     | compliance with Title I program      | equirements | ##  |
|          | requirements.                        |             | N/A |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that its LEAs comply | Met         | ### |
| ndicator | with the provision for submitting an | r           | ### |
| 3.11     | annual application to the SEA and    | equirements | ##  |
|          | revising LEA plans as necessary to   |             | N/A |
|          | reflect substantial changes in the   |             |     |
|          | direction of their program.          |             |     |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that Title I funds   | Met         | ### |
| ndicator | are used only to supplement or       | r           | ### |
| 3.12     | increase non-Federal sources used    | equirements | ##  |
|          | for the education of participating   |             | N/A |
|          | children and not to supplant funds   |             |     |
|          | from non-Federal sources.            |             |     |
+----------+--------------------------------------+-------------+-----+
| I        | The SEA ensures that equipment and   | Met         | ### |
| ndicator | real property are procured at a cost | r           | ### |
| 3.13     | that are recognized as ordinary and  | equirements | ##  |
|          | the equipment and real property is   |             | N/A |
|          | necessary for the performance of the |             |     |
|          | Federal award.                       |             |     |
+----------+--------------------------------------+-------------+-----+

# Title I, Part A

# Area: Accountability

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 shall be defined by the State in a manner that is
statistically valid and reliable.

**[Finding]{.underline}:** The NDDPI identified 10 students as the
minimum number for reporting data on their school and LEA reports. On
some of their reports for schools the number in the disaggregated group
was 10; however, some of these reports showed data for only one student
at a performance level.

[Citation]{.underline}: Section 1111(b)(3)(C)(xiii) of the ESEA requires
that assessments shall enable results to be disaggregated within each
State, local educational agency, and school by gender, by each major
racial and ethnic group, by English proficiency status, by migrant
status, by student with disabilities as compared to nondisabled student,
and by economically disadvantaged students as compared to students who
are not economically disadvantaged, except that, in the case of a local
educational agency or a school, such disaggregation shall not be
required in 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.

[Further Action Required]{.underline}: The NDDPI must submit to ED
written policies regarding reports of disaggregrated results that would
not reveal personally identifiable information about an individual
student. Also the NDDPI must correct the current disaggregrated LEA and
school reports that report the results of a single student in a
performance level.

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

[Recommendation]{.underline}: The NDDPI's testing window for 2004-05
ended in mid-November 2004, but the Adequate Yearly Progress (AYP)
determinations will not be completed until July 2005. This year's
results were delayed because of standard setting for the new
assessments, which will not be an issue in future years. The AYP
determinations are also delayed by using the current years graduation
and attendance rates and this timeline will continue to delay results in
the future. This timeline does meet the requirements of section 1116(b)
that identification shall take place before the beginning of the school
year following such failure to make adequate yearly progress. In order
to make AYP determinations in the current school year, ED recommends
that the NDDPI use the previous year's graduation and attendance rate
since the assessments relate to the previous year's standards. This will
enable schools and LEAs to get AYP results during the school year so
that they will have the opportunity to address identified needs. If the
NDDPI decides to adopt this recommendation, ED and the NDDPI will work
out a transition plan for graduation and attendance rates.

1.6 -- The SEA has published an annual report card as required.

**[Finding]{.underline}:** In the NDDPI State report card there are two
elements missing: (1) information on LEAs regarding whether they made
AYP, including the number and names of schools identified for school
improvement; and (2) the professional qualifications of teachers in the
State, including the percentage of such teachers teaching with emergency
or provisional credentials, and the percentage of classes not taught by
highly qualified teachers, in the aggregate and disaggregated by high
poverty compared to low poverty schools.

[Citation]{.underline}: Sections 1111(h)(1)(vii) and (viii) of the ESEA
requires that the State report cards include information on the
performance of local educational agencies in the State regarding making
adequate yearly progress, including the number and name of each school
identified for school improvement, and 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
this purpose, means schools in the top quartile of poverty and the
bottom quartile of poverty in the State.

[Further Action Required]{.underline}: The NDDPI must submit to ED a
template of the State report card that includes the missing information.
When the State report card for the fall 2005 assessments is complete,
the NDDPI must submit the completed report card to ED.

1.7 -- The SEA has ensured that LEAs have published annual report cards.

**[Finding]{.underline}:** In the NDDPI LEA report card there are two
elements missing: (1) information on LEAs regarding whether they made
AYP, including the number and names of schools identified for school
improvement; and (2) the professional qualifications of teachers in the
State, including the percentage of such teachers teaching with emergency
or provisional credentials, and the percentage of classes not taught by
highly qualified teachers, in the aggregate and disaggregated by high
poverty compared to low poverty schools.

[Citation]{.underline}: Section 1111(h)(2) of the ESEA requires that the
State educational agency shall ensure that each LEA collects appropriate
data and includes in the LEA's annual report the information described
for the annual State report card as applied to the LEA which includes
information on the performance of LEAs in the State regarding making
adequate yearly progress, including the number and name of each school
identified for school improvement, and 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
this purpose, means schools in the top quartile of poverty and the
bottom quartile of poverty in the State.

[Further Action Required]{.underline}: The NDDPI must submit to ED a
template of the LEA report card that includes the missing information.
When the LEA report card for the fall 2005 assessments is complete, the
NDDPI must submit the completed report card to ED.

1.9 -- SEA ensures that LEAs meet all requirements for identifying and
assessing the English language proficiency of limited English proficient
students.

**[Finding]{.underline}:** The NDDPI provides guidelines to LEAs
identifying limited English proficient (LEP) students including the
requirement for an annual assessment of English proficiency of these
students; however, NTPS does not administer an English proficiency
assessment.

[Citation]{.underline}: Section 1111(b)(7) of ESEA requires that each
State plan shall demonstrate that local educational agencies in the
State will, beginning not later than school year 2002-2003, provide for
an annual assessment of English proficiency (measuring students' oral
language, reading, and writing skills in English) of all students with
limited English proficiency in the schools served by the State
educational agency.

[Further Action Required]{.underline}: The NDDPI must monitor NTPS and
make sure that this school district is administering an English
proficiency assessment on an annual basis. The NDDPI must submit to ED
the results of monitoring visits including the name of the assessment
being administered, the number of students assessed, and the number of
students identified as LEP students in this district.

# Title I, Part A

# Area: Instructional Support

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

**[Finding]{.underline}:** The NDDPI has not ensured that its LEAs have
complied with all parental involvement policy requirements. The parental
involvement policy for the New Town Public School District has an
adoption date of May 11, 1999. Further, parental involvement policies
and school-parent compacts for certain of the schools visited do not
include all the required components.

[Citation]{.underline}: Section 1118(a) and (h) of the ESEA requires the
SEA to review the LEAs' parental involvement policies and practices to
determine if they meet the Title I parental involvement requirements.
Section 1118(a) requires each LEA receiving Title I funds to develop
jointly with, agree on with, and distribute to parents of participating
children a written parental involvement policy that meets the Title I
requirements. Section 1118 (b) and (c) requires that each school served
under Title I jointly develop with and distribute to parents of
participating children a written parental involvement policy agreed on
by the parents that describes the requirements of §1118(c) through (f).

[Further Action Required]{.underline}: The NDDPI must ensure that all
LEAs receiving Title I funds have written district parental involvement
policies developed with parents of participating children. Further, the
NDDPI must ensure that its LEAs verify that each school receiving Title
I funds has a current, written parental involvement policy that meets
the requirements of §1118(b)(1). The NDDPI must provide ED with an
updated parent involvement policy, developed consistent with the content
and process requirements in §1118(a) and (b), for the New Town Public
School District and for the Miller School in the Bismarck Public School
District. The NDDPI must revise the examples of parental involvement
policies and school-parent compacts provided on the NDDPI website and
notify ED when this has occurred.

**[Recommendation]{.underline}:** The NDDPI should do more to encourage
LEAs and schools to use Title I funds to offer family literacy services
if the LEA or school determines that a substantial number of its
students have parents with low levels of literacy and without a
secondary school diploma.

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.

**[Recommendation (1)]{.underline}:** Of the 21 schools in improvement
in North Dakota, 20 have high populations of Native American students.
The NDDPI should work with Native American communities, the Bureau of
Indian Affairs, the Mid-Continent Research and Learning Educational
Laboratory (McCREL), the Region VI Comprehensive Center, other States in
the region, and ED to identify barriers to teaching and learning for
Native American students and practices that have been successful in
improving the academic achievement of these students.

**[Recommendation (2)]{.underline}:** Although the NDDPI has provided
many opportunities for LEAs and other groups to apply on a rolling basis
to become supplemental educational services (SES) providers, there is a
need for the SEA to seek ways to expand the current list of 12
providers. Because it has been difficult to attract providers that are
willing to provide SES to small, rural communities, the NDDPI should
work with parents, community members, tribal councils, and community
organizations to determine the types of services and providers that
could best meet the needs of the students, including on-line and
distance learning opportunities.

# Title I, Part A

# Area: Fiduciary

None.

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

# Summary of Monitoring Indicators

# 

+-----------+-------------------------------------+-------------+-----+
| # Monitor |                                     |             |     |
| ing Area  |                                     |             |     |
| 1, Title  |                                     |             |     |
| I, Part B |                                     |             |     |
| , Subpart |                                     |             |     |
|  3: Accou |                                     |             |     |
| ntability |                                     |             |     |
+-----------+-------------------------------------+-------------+-----+
| **        | **Description**                     | # Status    | #   |
| Indicator |                                     |             |  Pa |
| Number**  |                                     |             | ge  |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA complies with the subgrant  | Finding     | 14  |
| 1.1       | award requirements.                 |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA requires applicants to      | Finding     | 14  |
| 1.2       | submit applications for subgrants   |             |     |
|           | with the necessary documentation.   |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | In making non-competitive           | Finding     | 15  |
| 1.3       | 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.      |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA refuses to award subgrant   | Finding     | 15  |
| 1.4       | funds to an eligible entity if the  |             |     |
|           | agency finds that the entity has    |             |     |
|           | not sufficiently improved the       |             |     |
|           | performance of the program, as      |             |     |
|           | evaluated, based on the Indicators  |             |     |
|           | of Program Quality.                 |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA develops, based on the best | Met         | N/A |
| 1.5       | available research and evaluation   | r           |     |
|           | data, Indicators of Program Quality | equirements |     |
|           | for Even Start programs.            |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA uses the Indicators of      | Finding     | 15  |
| 1.6       | Program Quality to monitor,         |             |     |
|           | evaluate, and improve local         |             |     |
|           | programs within the State.          |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA conducts monitoring of its  | Met         | N/A |
| 1.7       | subgrantees sufficient to ensure    | r           |     |
|           | compliance with Even Start program  | equirements |     |
|           | requirements.                       |             |     |
+-----------+-------------------------------------+-------------+-----+
| Indicator | The SEA ensures that projects       | Met         | N/A |
| 1.8       | provide for an independent local    | r           |     |
|           | evaluation of the program that is   | equirements |     |
|           | used for program improvement.       |             |     |
+-----------+-------------------------------------+-------------+-----+

+-----------+-------------------------------------+-------------+------+
| ## Monit  |                                     |             |      |
| oring Are |                                     |             |      |
| a 2, Titl |                                     |             |      |
| e I, Part |                                     |             |      |
|  B, Subpa |                                     |             |      |
| rt 3: Ins |                                     |             |      |
| tructiona |                                     |             |      |
| l Support |                                     |             |      |
+===========+=====================================+=============+======+
| **        | # Description                       | ### Status  | ##   |
| Indicator |                                     |             | Page |
| Number**  |                                     |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA uses funds to provide       | Met         | N/A  |
| 2.1       | technical assistance to local       | r           |      |
|           | programs to improve the quality of  | equirements |      |
|           | Even Start family literacy          |             |      |
|           | services.                           |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | Each program assisted shall include | Finding     | 16   |
| 2.2       | the identification and recruitment  |             |      |
|           | of families most in need, and serve |             |      |
|           | those families.                     |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | Each program shall include          | Met         | N/A  |
| 2.3       | screening and preparation of        | r           |      |
|           | parents and enable those parents    | equirements |      |
|           | and children to participate fully   |             |      |
|           | in the activities and services      |             |      |
|           | provided.                           |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | Families are participating in all   | Finding     | 17   |
| 2.4       | four core instructional services.   |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | Each program shall be designed to   | Met         | N/A  |
| 2.5       | accommodate the participants' work  | r           |      |
|           | schedule and other                  | equirements |      |
|           | responsibilities, including the     |             |      |
|           | provision of support services, when |             |      |
|           | those services are unavailable from |             |      |
|           | other sources.                      |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | Each program shall include          | Finding     | 17   |
| 2.6       | 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.         |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | All instructional staff of the      | Met         | N/A  |
| 2.7       | program hired after enactment of    | r           |      |
|           | the LIFT Act (December 21, 2000),   | equirements |      |
|           | whose salaries are paid in whole or |             |      |
|           | in part with Even Start funds, meet |             |      |
|           | the Even Start staff qualification  |             |      |
|           | requirements.                       |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | By December 21, 2004, a majority of | Met         | N/A  |
| 2.8       | the individuals providing academic  | r           |      |
|           | instruction shall have obtained an  | equirements |      |
|           | associate's, bachelor's, or         |             |      |
|           | graduate degree in a field related  |             |      |
|           | to early childhood education,       |             |      |
|           | elementary school or secondary      |             |      |
|           | school education, or adult          |             |      |
|           | education.                          |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | By December 21, 2004, if            | Met         | N/A  |
| 2.9       | applicable, a majority of the       | r           |      |
|           | individuals providing academic      | equirements |      |
|           | instruction shall meet the          |             |      |
|           | qualifications established by the   |             |      |
|           | [State]{.underline} for early       |             |      |
|           | childhood education, elementary or  |             |      |
|           | secondary education, or adult       |             |      |
|           | education provided as part of an    |             |      |
|           | Even Start program or another       |             |      |
|           | family literacy program.            |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | By December 21, 2004, the person    | Met         | N/A  |
| 2.10      | responsible for administration of   | r           |      |
|           | family literacy services has        | equirements |      |
|           | received training in the operation  |             |      |
|           | of a family literacy program.       |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | By December 21, 2004,               | Met         | N/A  |
| 2.11      | paraprofessionals who provide       | r           |      |
|           | support for academic instruction    | equirements |      |
|           | have a secondary school diploma or  |             |      |
|           | its recognized equivalent.          |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local programs shall include    | Met         | N/A  |
| 2.12      | special training of staff,          | r           |      |
|           | including child-care workers, to    | equirements |      |
|           | develop the necessary skills to     |             |      |
|           | work with parents and young         |             |      |
|           | children.                           |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local programs shall provide    | Met         | N/A  |
| 2.13      | and monitor integrated              | r           |      |
|           | instructional services to           | equirements |      |
|           | participating parents and children  |             |      |
|           | through home-based programs.        |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local programs shall operate on | Met         | N/A  |
| 2.14      | a year-round basis, including the   | r           |      |
|           | provision of some program services, | equirements |      |
|           | including instructional and         |             |      |
|           | enrichment services, during the     |             |      |
|           | summer months.                      |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local program shall be          | Met         | N/A  |
| 2.15      | 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.                  |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local programs shall use        | Finding     | 18   |
| 2.16      | instructional programs based on     |             |      |
|           | scientifically based reading        |             |      |
|           | research for children and adults.   |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local program shall encourage   | Met         | N/A  |
| 2.17      | participating families to attend    | r           |      |
|           | regularly and to remain in the      | equirements |      |
|           | program a sufficient time to meet   |             |      |
|           | their program goals.                |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local programs shall use        | Finding     | 18   |
| 2.18      | reading-readiness activities for    |             |      |
|           | preschool children based on         |             |      |
|           | scientifically based reading        |             |      |
|           | research.                           |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The local program shall, if         | Met         | N/A  |
| 2.19      | applicable, promote the continuity  | r           |      |
|           | of family literacy to ensure that   | equirements |      |
|           | individuals retain and improve      |             |      |
|           | their educational outcomes.         |             |      |
+-----------+-------------------------------------+-------------+------+

+-----------+-------------------------------------+-------------+------+
| # Moni    |                                     |             |      |
| toring Ar |                                     |             |      |
| ea 3, Tit |                                     |             |      |
| le I Part |                                     |             |      |
|  B, Subpa |                                     |             |      |
| rt 3: SEA |                                     |             |      |
|  Fiduciar |                                     |             |      |
| y Respons |                                     |             |      |
| ibilities |                                     |             |      |
+-----------+-------------------------------------+-------------+------+
| **        | # Description                       | ### Status  | ##   |
| Indicator |                                     |             | Page |
| Number**  |                                     |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA complies with the           | Met         | N/A  |
| 3.1       | allocation requirements for State   | r           |      |
|           | administration and technical        | equirements |      |
|           | assistance and award of subgrants.  |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA ensures that subgrantees    | Findings    | 18   |
| 3.2       | comply with statutory and           |             |      |
|           | regulatory requirements on uses of  |             |      |
|           | funds and matching.                 |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA complies with the           | Finding     | 19   |
| 3.3       | cross-cutting maintenance of effort |             |      |
|           | provisions.                         |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA ensures timely and          | Finding     | 20   |
| 3.4       | 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 and their        |             |      |
|           | teachers or other instructional     |             |      |
|           | personnel, and local programs       |             |      |
|           | provide an appropriate amount of    |             |      |
|           | those services and benefits through |             |      |
|           | an eligible provider.               |             |      |
+-----------+-------------------------------------+-------------+------+
| Indicator | The SEA has a system for ensuring   | Met         | N/A  |
| 3.5       | fair and prompt resolution of       | r           |      |
|           | complaints and appropriate hearing  | equirements |      |
|           | procedures.                         |             |      |
+-----------+-------------------------------------+-------------+------+

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

# Area: Accountability

1.  **-- The SEA complies with the subgrant award requirements.**

**[Finding]{.underline}:** (1) The State coordinator was not aware of
the membership of the Committee of Practitioners (COP) and had not used
it for the year he has held the position. (2) The SEA made a subgrant
award for the Minot project to a single entity (the LEA), which violates
the requirement in Section 1233(b)(1) of the ESEA that eligible entities
for subgrant awards must be a partnership between one or more LEAs and
one or more other types of non-profit entities (Section 1232(e)(1) of
the ESEA). In the Minot project, the LEA is the Head Start grantee and
administers the Head Start program (the Open Door Community Center);
therefore, that Head Start program does not qualify as a separate entity
for the purposes of the required Even Start partnership.

[Citation]{.underline}: (1) Section 1903(b) of the ESEA generally
requires SEAs to use one overall COP to advise the State in carrying out
its responsibilities under Title I, including its responsibilities for
administration of the Even Start program (Title I, Part B, Subpart 3).
SEAs may choose to use a subgroup of its members who are familiar with
the particular subject matter of a program, such as family literacy, to
review rules and regulations or policies related to that program and
advise the overall committee of practitioners in that area. (2) Section
1233(b)(1) of the ESEA requires SEAs to award subgrants to "eligible
entities" to carry out local Even Start programs. Section 1232(e)(1) of
the ESEA defines "eligible entity" as a partnership composed of (A) a
local education agency; and (B) a nonprofit community-based
organization, a public agency other than a local educational agency, an
institution of higher education, or a public or private nonprofit
organization other than an LEA of demonstrated quality.

[Further action required]{.underline}: (1) The NDDPI must develop and
submit to ED a list of members for the COP or evidence that development
of the COP is occurring, including any appropriate timelines. Also,
NDDPI could meet this requirement by establishing a subcommittee from
the Title I office's COP; however, the Even Start office has the
flexibility to establish its own COP should that be more appropriate.
(2) The NDDPI must advise ED of the action it will take to correct this
deficiency.

1.2 -- The SEA requires applicants to submit applications for subgrants
with the necessary documentation.

**[Finding]{.underline}:** The program application and guidance do not
include all information required by the statute and therefore the NDDPI
does not require the applicants to submit applications with the
necessary documentation. For example, the application was missing a
description of the population to be served.

[Citation]{.underline}: Section 1237 of the ESEA states that an
application submitted to the SEA in request of an Even Start subgrant
includes certain required documentation, and a plan of operation and
continuous improvement for the program that includes specific
information, including a description of how the applicant project will
meet the 15 required program elements in Section 1235 and a description
of the population to be served.

[Further action required]{.underline}: The NDDPI must add these omitted
requirements into the application and any guidance, and submit to ED for
approval.

1.3 -- The SEA reviews subgrantees' progress based on the indicators of
program quality when making non-competitive continuation awards.

**[Finding]{.underline}:** The NDDPI does not use the indicators of
program quality to review the annual progress of subgrantees.

[Citation]{.underline}: Section 1238(b)(3) of the ESEA requires that,
when awarding subgrant funds to continue a program after the first year,
the SEA shall review the progress of each eligible entity in meeting the
objectives of the program and shall evaluate the program based on the
indicators of program quality developed by the State under Section 1240.

[Further action required]{.underline}: The NDDPI must develop and submit
a plan for using its indicators of program quality to determine if
projects are making sufficient progress and to make decisions about
non-competitive continuation awards.

**1.4 -- The SEA refuses to make awards to grantees that are not making
sufficient progress.**

**[Finding]{.underline}:** The NDDPI has not defined sufficient progress
against the State performance indicators and therefore had not been able
to use the State indicators to refuse continuation subgrant awards.

[Citation]{.underline}: Section 1238(b)(4) of the ESEA requires States
to use their indicators of program quality to evaluate whether projects
are making sufficient progress toward program improvement for the
purpose of making decisions about continuation awards.

[Further action required]{.underline}: The NDDPI must provide evidence
to ED that it will keep records of projects' progress and reasons for
discontinuation. Furthermore, the State must provide evidence that it
will use its performance indicators to determine whether projects are
making sufficient progress.

1.6 -- The SEA uses the Indicators of Program Quality to monitor,
evaluate, and improve local programs within the State.

**[Finding]{.underline}:** The NDDPI is not using a required indicator
related to achievement in the areas of reading, writing, English
language acquisition, problem solving and numeracy with respect to
eligible participants who are adults to monitor, evaluate, and improve
local programs within the State. The State also has not included the
indicators of program quality into its monitoring protocol.

[Citation]{.underline}: Section 1240 states that with respect to
eligible participants in a program who are adults, the indicators shall
include achievement in the areas of reading, writing, English-language
acquisition, problem solving, and numeracy and that States must use all
required indicators to monitor, evaluate, and improve local programs
within the State.

[Further action required]{.underline}: The NDDPI must provide evidence
to ED that it is has established and is using an Indicator of Program
Quality in the area of reading, writing, and English-language
acquisition for the purposes of monitoring, evaluating, and improving
local programs within the State. The NDDPI must also submit to ED an
action plan for how it will incorporate all the Indicators of Program
Quality into the monitoring protocol and management of its local
projects.

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

**Area: Instructional Support**

**2.2 - Funded programs shall include the identification and recruitment
of eligible families most in need and serve those families.**

**[Finding]{.underline}:** The Heartland Even Start project, located in
an area of extremely high need, was not operating at full capacity. In
addition, eight of the nine families being served were not eligible
because at the time of recruitment the parents had completed their GED
and were beginning or attending college, and therefore are not eligible
for services under the Adult Education and Family Literacy Act. The
Minot Even Start project had recruited more than 30 families, but
several of these families were also not eligible because of the
education level of the parents. Neither project had defined a population
most in need of Even Start services based on income and education or
other need related factors.

[Citation]{.underline}: Section 1236 of the ESEA defines eligible
participants, in general, as parents who are eligible for participation
in adult education and literacy activities under the Adult Education and
Family Literacy Act, or who are within the State's compulsory school
attendance age range, or who are attending secondary school. In
addition, section 1235(1) and (14) requires projects to recruit and
serve eligible families that are most in need of Even Start services, as
indicated by low income, a low level of adult literacy or English
language proficiency, and other need-related indicators.

[Further action required]{.underline}: The NDDPI must ensure, through
technical assistance, monitoring, and training, that local projects are
aware of and follow the requirements of recruiting and serving eligible
families most in need of program services. The NDDPI must submit to ED
an action plan for how it will work with local projects to ensure that
only eligible families are served, and that those families are most in
need of Even Start services.

**2.4 - The SEA ensures that family members are participating in all
four core instructional services.**

**[Finding]{.underline}:** Because neither of the two projects visited
were retaining detailed information on attendance, ED could not
determine whether families were consistently participating in all four
core instructional services.

[Citation]{.underline}: Section 1235(2) of the ESEA requires that
parents and children participate fully in the activities and services
provided by the Even Start program. Section 9101(20) defines family
literacy services as those services provided to participants on a
voluntary basis that are of sufficient intensity in terms of hours, and
of sufficient duration, to make sustainable changes in a family, and
that integrate interactive literacy activities between parents and their
children, training for parents regarding how to be the primary teacher
for their children and full partners in the education of their children,
parent literacy training that leads to economic self-sufficiency, and an
age-appropriate education to prepare children for success in school and
life experiences.

[Further action required]{.underline}: The NDDPI must develop, submit to
ED, and implement a plan to ensure that all family members participate
in all core instructional services in local Even Start projects. The
NDDPI must also include a method for monitoring the extent to which
subgrantees are ensuring that all families receiving services
participate in all four core instructional activities.

**2.6 - Each program shall include high-quality, intensive instructional
programs.**

**[Finding]{.underline}:** The Heartland Even Start project was only
offering an hour and a half a month of early childhood education to
children who were not participating in center based services through the
Head Start program. An hour and a half a month of early childhood
education is not sufficiently intensive. Parenting education was not
also sufficiently intensive and it was not sufficiently focused on
parent supports for children's language and literacy development and
success in school.

[Citation]{.underline}: Section 1235(4) of the ESEA requires that Even
Start programs include high-quality, intensive instructional programs
that promote adult literacy and empower parents to support the
educational growth of their children, developmentally appropriate early
childhood education services, and preparation of children for success in
regular school programs. Each of the required four core components
(adult literacy training, early childhood education, parenting
education, and interactive literacy activities) is considered an
instructional program.

[Further action required]{.underline}: The NDDPI must develop, submit to
ED, and implement an action plan to ensure that local projects provide
high quality and intensive instructional programs that promote adult
literacy and empower parents to support the educational growth of their
children, developmentally appropriate early childhood education
services, and preparation of children for success in regular school
programs. Since research has shown that there is a positive correlation
between the numbers of hours offered and the number of hours
participants actually partake in the recommended minimum intensities for
hours *offered* for the four core components are:

> Adult Education - 60 hours per month\
> Early Childhood Education (birth - 3) - 60 hours per month
>
> Early Childhood Education (3 - 4) - 65 hours per month
>
> Parenting Education and Interactive Literacy Activities between
> Parents and Children - 20 hours per month

**Indicators 2.16 and 2.18 -- The local programs shall use instructional
programs and reading-readiness activities based on scientifically based
reading research (SBRR) for children and adults.**

**[Finding]{.underline}:** The Heartland Even Start project coordinator
was not knowledgeable about the curriculum and instruction being
provided through the Head Start or Early Head Start programs, although
this was the primary source of early childhood education being provided
to the children in the program. Parenting education was not based on
SBRR and there was insufficient focus on literacy, and there was no
curriculum for the home visits.

[Citation]{.underline}: Sections 1235 (10) and (12) of the ESEA requires
local Even Start projects to use instructional services based on
scientifically based reading research, including reading readiness
activities for preschool children based on scientifically based reading
research.

[Further action required]{.underline}: The NDDPI must provide technical
assistance to all the projects, and to the Heartland Even Start project
in particular, and monitor to ensure that instructional programs and
practices are based on scientific research, including practices that
promote language development and early reading skills in the early
childhood education component. ED recommends that additional site visits
and professional development be conducted to ensure that educators at
these sites increase the quality of early childhood instruction. The
NDDPI must submit evidence of the technical assistance plan it will use
to improve services at this and other projects.

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

# Area: Fiduciary

**3.2 -- The SEA ensures that subgrantees comply with requirements on
uses of funds and matching.**

**[Finding (1)]{.underline}:** The Minot project was not using the
correct formula to determine the appropriate cost of the space being
leased from the school district. Since this is a "less-than-arms-length"
transaction, the project should be using the depreciation and use
formula. The leased space was being used as a large part of the required
65% match.

**[Finding (2]{.underline}):** The Executive Director of the Head Start
program that is a part of the LEA (the Open Door Community Center),
acting on behalf of the LEA fiscal agent, had issued a contract to her
husband to conduct a local evaluation. This is a violation of Federal
procurement standards in 34 CFR § 80.36(b)(3), which with State and
local conflict of interest standards must conform.

[Citation]{.underline}: (1) Section 76.530 of EDGAR designates the
general cost principles that apply to State-administered Even Start
subgrants, which, for State and local governments, are incorporated in
34 CFR § 80.22. The applicable cost principles are found in OMB Circular
A-87, which states in Attachment B, paragraph 37, that the rental costs
of buildings under less-than-arms-length transactions are allowable only
up to the amount that would be allowed based on the entity's ownership
interest, which includes expenses such as depreciation or use allowance,
maintenance, taxes, and insurance. In addition, 34 CFR § 80.24 provides
that any matching contributions must be allowable costs.

\(2\) Under 34 CFR § 80.37(a), the SEA may require a subgrantee that is
a local government to follow State conflict of interest procedures.
However, those procedures must conform to applicable Federal standards
in 34 § 80.36(b), which provide, among other things, that no employee,
officer or agent of the grantee or subgrantee shall participate in
selection, award, or administration of a contract supported by Federal
funds if a real or apparent conflict of interest would be involved.

[Further action required]{.underline}: (1) The NDDPI must ensure,
through technical assistance, monitoring, and training, that local
projects are aware of and follow the correct cost provisions and
principles, particularly the provisions in the applicable OMB cost
principles for rental or lease of space in the case of
less-than-arms-length transactions. The NDDPI must submit to ED an
action plan for how it will ensure that such guidance will occur. The
NDDPI must also provide evidence that the misuse of funds in the two
projects visited has been rectified. (2) The SEA must ensure that local
projects are aware of and follow either the State or the Federal
procurement conflict of interest standards, and provide a copy of the
applicable standards to ED. In addition, the SEA must submit to ED an
action plan for how it will ensure that local projects are aware of
those standards, and provide evidence that it has taken appropriate
action to rectify the local evaluation contract.

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

**[Finding]{.underline}:** Neither project visited by the ED team was
aware of the maintenance of effort requirements, and the State
coordinator had not been tracking the administration of the requirement
to ensure that the requirement was being applied to Even Start.

[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 NDDPI must submit evidence to
ED of whether its local projects meet the maintenance of effort
requirement. ED recommends that the State

Title I, Part A office jointly establish a procedure to check to see if
any of the LEAs that have not maintained effort for Title I are Even
Start grantees.

**3.4 - The SEA ensures timely and meaningful consultation and provision
of equitable services to private school children.**

**[Finding]{.underline}:** Neither project visited was aware of the
equitable participation requirements as they apply to Even Start and
therefore was not implementing this requirement.

[Citation]{.underline}: Sections 9501-9506 of the ESEA require local
Even Start projects to meaningfully consult, on a timely basis, 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 to provide an appropriate amount of those services and benefits
through an eligible provider.

[Further action required]{.underline}: The NDDPI must submit evidence to
ED of how it will ensure that all Even Start projects are aware of such
requirements, are given guidance on how to meet such requirements, and
meaningfully consult with private school officials in order to provide
Even Start services and benefits to eligible private school students and
their teachers or other educational personnel on an equitable basis. The
State should refer to the Even Start guidance document for assistance.

#  Title I, Part D 

# Summary of Monitoring Indicators

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

.

**McKinney-Vento Homeless Education Program**

**Summary of Monitoring Indicators**

+------------+------------------------------------+------------+------+
| # M        |                                    |            |      |
| cKinney-Ve |                                    |            |      |
| nto Homele |                                    |            |      |
| ss Educati |                                    |            |      |
| on Program |                                    |            |      |
+------------+------------------------------------+------------+------+
| **Element  | # Description                      | ### Status | ##   |
| Number**   |                                    |            | Page |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA implements procedures to   | Recom      | 22   |
| 2.1        | address the identification,        | mendations |      |
|            | enrollment and retention of        |            |      |
|            | homeless students.                 |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA provides, or provides for, | Recom      | 23   |
| 2.2        | technical assistance for LEAs to   | mendations |      |
|            | ensure appropriate implementation  |            |      |
|            | 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       | Met        | N/A  |
| 3.2        | complies with providing comparable | Re         |      |
|            | Title I, Part A services to        | quirements |      |
|            | homeless students attending        |            |      |
|            | non-Title I schools.               |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA has a system for ensuring  | Finding    | 23   |
| 3.3        | the prompt resolution of disputes. |            |      |
+------------+------------------------------------+------------+------+
| Indicator  | The SEA conducts monitoring of     | Finding    | 23   |
| 3.4        | LEAs with and without subgrants,   |            |      |
|            | sufficient to ensure compliance    |            |      |
|            | with McKinney-Vento program        |            |      |
|            | requirements.                      |            |      |
+------------+------------------------------------+------------+------+

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

**[Recommendation (1)]{.underline}:** A key function of the office of
the State Coordinator is to facilitate coordination with agencies that
provide services to preschool-aged homeless children and youth. In
addition, the State plan requires a description of the State's
procedures that ensure homeless preschool students have equal access to
programs provided for preschoolers and homeless youth are identified.
The ED team observed that very few homeless preschool-aged children and
youth were identified for services in North Dakota. There is also a
discrepancy between the numbers of unaccompanied youth reported by The
NDDPI and programs serving youth in Bismarck.

ED recommends that the State Coordinator become directly involved with
groups, such as Head Start, runaway and homeless youth programs, as well
as agencies serving unaccompanied youth in the State, to better direct
and serve as a representative of school interests of homeless
preschoolers and youth.

**[Recommendation (2)]{.underline}:** The ED team observed that the
NDDPI State Coordinator is only 0.20 FTE for the homeless education
program. Given the scope of responsibilities, ED recommends that the
NDDPI review the functions of the State Coordinator to determine if more
time is available for this key role and function to identify and serve
this most at-risk population of children and youth.

**2.2 -- The SEA provides, or provides for, technical assistance for
LEAs to ensure appropriate implementation of the statute.**

**[Recommendation]{.underline}:** The ED team observed that the NDDPI
does not have a systematic way to regularly communicate with LEAs
without subgrants. Only LEAs that attend conferences are provided with
updates on the program. ED recommends that the State Coordinator
increase coordination and collaboration, including technical assistance,
to local district liaisons through activities in addition to attendance
at State and local conferences.

**3.3 -- The SEA has a system for ensuring the prompt resolution of
disputes.**

**[Finding]{.underline}:** While the NDDPI has a written dispute
resolution policy, ED observed that LEAs visited did not. Additionally,
LEAs were unaware of the State's policy for resolving disputes.

[Citation]{.underline}: Section 722(g)(1)(C)(3) of the ESEA requires a
description of procedures for the prompt resolution of disputes
regarding the educational placement of homeless children and youth. In
addition, section 722(g)(3)(E) (iii) requires the child, youth, parent,
or guardian be referred to the LEA liaison to carry out the dispute
resolution process as described in paragraph (1)(C) as expeditiously as
possible.

[Further Action Required]{.underline}: ED requires that the NDDPI
immediately notify all LEA liaisons about NDDPI's dispute resolution
policy and require LEAs to develop a local policy that reflects NDDPI's,
and document how it has completed these actions.

**3.4 -- The SEA conducts monitoring of LEAs with and without subgrants,
sufficient to ensure compliance with McKinney-Vento program
requirements.**

**[Finding]{.underline}:** ED staff found that the NDDPI does not
sufficiently monitor LEAs for homeless education program requirements to
ensure compliance. There is no compliance monitoring of LEAs without
subgrants.

[Citation]{.underline}: Section 722(g)(2) of the ESEA State plans for
the education of homeless children and youth requires the State to
ensure that LEAs will comply with the requirements of the McKinney-Vento
statute. Section 80.40 of the Education Department General Regulations
(EDGR) further requires that the State, as the grantee, is responsible
for monitoring grant and subgrant-supported activities to assure
compliance with applicable Federal requirements.

[Further action required]{.underline}: The NDDPI must provide a plan to
ED that indicates how it will provide monitoring to ensure that all LEAs
implement McKinney-Vento program requirements.