400 MARYLAND AVE. S.W., WASHINGTON, DC 20202-2800

www.ed.gov

The Department of Education’s mission is to promote student achievement and preparation for global competitiveness

by fostering educational excellence and ensuring equal access.

UNITED STATES DEPARTMENT OF EDUCATION

OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES

OFFICE OF SPECIAL EDUCATION PROGRAMS

DIRECTOR

November 21, 2023 

By Email

Honorable Michael Rice, Ph.D.

State Superintendent 

Michigan Department of Education 

608 West Allegan Street

P.O. Box 30008 

Lansing, Michigan 48909 

Email: RiceM6@Michigan.gov 

Dear Superintendent Rice: 

The purpose of this letter is to provide an update on the status of the findings and corrective actions identified 

by the U.S. Department of Education’s (the Department) Office of Special Education Programs (OSEP) 

reported in the Differentiated Monitoring and Support (DMS) monitoring report to the Michigan Department of 

Education (MDE) dated January 12, 2023. 

This letter is in response to MDE’s April 11, 2023, email to OSEP to address the corrective actions noted in the 

January 12, 2023, DMS monitoring report. These findings and corrective actions were identified as a result of 

the DMS activities conducted by OSEP during its on-site monitoring visit on May 9 -11, 2022 and virtual 

engagement May 16 -17, 2022. 

The summary of monitoring priorities and outcomes chart, included in this letter, describes the monitoring 

component, finding, required actions, OSEP analysis, and status of finding(s) based on the evidence received by 

OSEP to date.

We appreciate your efforts to ensure compliance and improve results for children with disabilities. If you have 

any questions, please contact your OSEP State Lead. 

Sincerely,

Valerie C. Williams

Director

Office of Special Education Programs

cc: Part C Coordinator 
 

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MICHIGAN PART C 

SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT 

STEPS/STATUS

Monitoring and Improvement

1.1 OSEP finds that MDE does not 

have a general supervision system 

that is reasonably designed to 

monitor the provision of IDEA Part 

C services as required under 

34 C.F.R. §§ 303.120, 303.342(e), 

303.344(d) and 303.700 through 

303.702. 

Policies and Procedures—within 

90 days of the date of the DMS 

monitoring report the State must 

submit to OSEP: 

1. Updated policies and procedures 

documenting its process for 

monitoring or otherwise providing 

oversight of the provision of early 

intervention services consistent 

with the IDEA Part C IFSP 

requirements in 

34 C.F.R. § 303.344(d). This 

oversight should include the 

collection of information related 

to the length, duration, frequency, 

intensity, and method of early 

intervention services in MDE’s 

local service areas. 

On April 11, 2023, the State submitted a 

Corrective Action Plan (CAP). 

In the CAP, the State indicated it is working 

on its policies and procedures. As of October 

16, 2023, the policies and procedures have not 

been submitted. 

OPEN

Monitoring and Improvement

1.1 OSEP finds that MDE does not 

have a general supervision system 

that is reasonably designed to 

monitor the provision of IDEA Part 

C services as required under 

34 C.F.R. §§ 303.120, 303.342(e), 

303.344(d) and 303.700 through 

Policies and Procedures—within 

90 days of the date of the DMS 

monitoring report the State must 

submit to OSEP: 

2. Evidence of any system updates 

and/or monitoring protocols that 

it has developed to provide 

oversight of IFSP 

On April 11, 2023, the State submitted a 

CAP. 

In the CAP, the State indicated it is working 

on its monitoring protocols and system 

updates to provide oversight of the IFSP 

implementation and provision of early 

intervention services. As of October 16, 2023, 

OPEN 
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

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STEPS/STATUS

303.702. implementation and provision of 

early intervention services. 

the monitoring protocols and system updates 

have not been submitted. 

Monitoring and Improvement

1.1 OSEP finds that MDE does not 

have a general supervision system 

that is reasonably designed to 

monitor the provision of IDEA Part 

C services as required under 

34 C.F.R. §§ 303.120, 303.342(e), 

303.344(d) and 303.700 through 

303.702. 

Policies and Procedures—within 

90 days of the date of the DMS 

monitoring report the State must 

submit to OSEP: 

3. A timeline for monitoring or 

other oversight activities.

On April 11, 2023, the State submitted a 

Corrective Action Plan (CAP). 

In the CAP, the State indicated it is working 

on its policies and procedures documenting 

timelines for monitoring and other oversight 

activities. As of October 16, 2023, the policies 

and procedures have not been submitted.

OPEN

Monitoring and Improvement

1.1 OSEP finds that MDE does not 

have a general supervision system 

that is reasonably designed to 

monitor the provision of IDEA Part 

C services as required under 

34 C.F.R. §§ 303.120, 303.342(e), 

303.344(d) and 303.700 through 

303.702.

Evidence of Implementation—as 

soon as possible, but no later than 

one year from the date of the DMS 

monitoring report: 

1. Actual monitoring reports or 

data demonstrating that MDE 

has implemented its revised 

policies and procedures and 

provided monitoring or other 

oversight of the requirements in 

34 C.F.R. §§ 303.120, 

303.342(e), and 303.344(d). 

OPEN

Fiscal

2.1 OSEP finds that the State does not 

Corrective Action Plan—within 90 

days of the date of the DMS 

On April 11, 2023, the State submitted a 

CAP. 

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

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STEPS/STATUS

conduct fiscal monitoring as 

required under 

34 C.F.R. § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

monitoring report the State must 

submit: 

1. A corrective action plan that 

includes timelines for 

implementation of activities 

related to ensuring that MDE’s 

system of payments is 

implemented consistently in all 

regions of the State 

incorporating IDEA Part C 

POLR requirements. 

OSEP has determined that the CAP is 

insufficient, specific to the fiscal management 

component. MDE did not provide 

documentation to support how the State 

proposed activities will ensure consistent 

implementation of MDE’s system of 

payments consistently in all regions on the 

State. OSEP will meet with the State to 

discuss the areas of the CAP that need more 

information related to the fiscal component. 

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

34 C.F.R § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

Corrective Action Plan—within 90 

days of the date of the DMS 

monitoring report the State must 

submit a CAP that must include 

timelines and a list of supporting 

documentation that will be 

On April 11, 2023, the State submitted a 

CAP. 

OSEP has determined that the CAP is 

insufficient, specific to the fiscal management 

component. MDE did not provide 

documentation to support implementation of 

monitoring and other oversight of IDEA 

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

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STEPS/STATUS

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

submitted to OSEP, including 

documentation related to: 

a. Monitoring and other oversight 

of IDEA requirements such as 

Statewide implementation of its 

system of payments and POLR

policies. 

requirements such as Statewide 

implementation of its system of payments and 

POLR policies. OSEP will meet with the 

State to discuss the areas of the CAP that need 

more information related to the fiscal 

component. 

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

34 C.F.R. § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 34 

C.F.R. §§ 303.500 and 303.510 and 

system of payment requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

Corrective Action Plan—within 90 

days of the date of the DMS 

monitoring report the State must 

submit a CAP that must include 

timelines and a list of supporting 

documentation that will be 

submitted to OSEP, including 

documentation related to: 

b. Submit with its FFY 2023 grant 

application to OSEP under 

Section II.A.3.a. its method with 

its Medicaid agency.

On April 11, 2023, the State submitted 

documentation of their CAP with timelines 

for implementation.

OSEP issued a memorandum to the State on 

May 19, 2023, and found that the interagency 

agreement, submitted under the State’s FFY 

2023 grant application, 

Section II.A.3.b (Method), is incomplete due 

to the issues identified in an attached 

checklist. OSEP cannot approve the 

interagency agreement until the State submits 

a revised, signed agreement that meets the 

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT 

STEPS/STATUS

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

requirements under Section II.A.3.b. 

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

34 C.F.R § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

Corrective Action Plan—within 90 

days of the date of the DMS 

monitoring report the State must 

submit a CAP that must include 

timelines and a list of supporting 

documentation that will be 

submitted to OSEP, including 

documentation related to: 

c. Analysis of the impact of 

inconsistent access of Medicaid 

as a payor source on the 

provision of early intervention

services and outcomes for 

infants and toddlers with 

disabilities.

On April 11, 2023, the State submitted a 

CAP. 

The CAP included the State’s activities, 

timeline, and a list of supporting 

documentation, but did not provide the 

supporting documentation or evidence of 

correction. OSEP will meet with the State to 

discuss the areas of the CAP that need more 

information related to the fiscal component.

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT 

STEPS/STATUS

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R § 303.510. 

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

34 C.F.R. § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

Corrective Action Plan—within 90 

days of the date of the DMS 

monitoring report the State must 

submit a CAP that must include 

timelines and a list of supporting 

documentation that will be 

submitted to OSEP, including 

documentation related to: 

d. Training activities provided to 

service areas regarding IDEA 

Part C fiscal requirements for a 

statewide system implementing 

MDE’s system of payments and 

ensuring compliance with IDEA 

POLR requirements.

On April 11, 2023, the State submitted a 

CAP. 

The CAP included the State’s activities, 

timeline, and a list of supporting 

documentation, but did not provide the 

supporting documentation or evidence of 

correction. OSEP will meet with the State to 

discuss the areas of the CAP that need more 

information related to the fiscal component. 

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT 

STEPS/STATUS

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

34 C.F.R. § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

Evidence of Implementation—as 

soon as possible, but no later than 

one year from the date of the DMS 

monitoring report: 

1. Training and implementation for 

each of the remaining 13 service 

areas on accessing Medicaid for 

eligible infants and toddlers 

consistent with the MDE’s system 

of payments. 

OPEN

Fiscal

2.1 OSEP finds that the State does not 

conduct fiscal monitoring as 

required under 

Evidence of Implementation—as 

soon as possible, but no later than 

one year from the date of the DMS 

monitoring report: 

OPEN
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT 

STEPS/STATUS

34 C.F.R. § 303.120(a)(1) for two 

areas: payor of last resort (POLR)

requirements in 

34 C.F.R. §§ 303.500 and 303.510 

and system of payment 

requirements in 

34 C.F.R. §§ 303.520 and 303.521. 

In addition, OSEP finds that the 

State does not consistently 

implement its Statewide system of 

payment (SOP) to ensure that 

IDEA Part C funds are not used for 

services that would have been 

otherwise paid for from another 

public or private source in its local 

service areas as required under the 

POLR requirements in 

34 C.F.R. § 303.510. 

2. Implementation of MDE’s Statewide SOP policy in service areas 

impacted by their lack of access to 

Medicaid funding for early 

intervention services.

Dispute Resolution 

3.1 OSEP finds that the State does not 

select mediators on a random, 

rotational, or other impartial basis 

as required under 

34 C.F.R § 303.431(b)(2)(ii). 

Policies and Procedures—within 

90 days of the date of the DMS 

monitoring report the State must 

submit to OSEP: 

1. Documentation demonstrating 

that it has procedures and 

practices in place that are 

reasonably designed to 

implement the IDEA dispute 

On April 11, 2023, the State submitted an 

updated FAQ for Mediation and Facilitation 

that is located on the Special Education 

Mediation Services (SEMS) website 

(contractor designated to manage mediation 

and facilitation). The updated document 

indicates the State must select the mediator on 

a random, rotational, or other impartial basis. 

https://www.mikids1st.org/faq/ 

CLOSED
MICHIGAN PART C STATUS LETTER

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resolution requirements of IDEA 

in accordance with 

34 C.F.R. § 303.431. 

Specifically, MDE must: 

a. Provide evidence that 

mediators are selected on a 

random, rotational, or other 

impartial basis.

The State also provided a list with links to

public facing documents available on the 

MDE website, the Michigan Alliance for 

Families website, and the Family Matters 

website that were revised on February 23, 

2023, to reflect language in accordance with

federal regulations in the area of mediation. 

Also submitted on April 11, 2023, the State 

provided evidence of their mediation selection 

process. The submitted evidence provides a 

step-by-step mediator selection process, 

including screen shots, that has been 

implemented by SEMS. The steps with 

description include the intake process, case 

assignment, scheduling of session, 

determining mediator availability, mediator 

selection, assignment of mediator, and the 

notification of parties.

Dispute Resolution

3.2 OSEP finds that the State’s 

mediation policies and procedures 

are not consistent with the 

requirement under 

34 C.F.R § 303.431(b)(7) that 

discussions that occur during the 

mediation process must be 

Policies and Procedures—within 

90 days of the date of the DMS 

monitoring report the State must 

submit to OSEP: 

1. Documentation demonstrating 

that it has procedures and 

practices in place that are 

reasonably designed to 

implement the IDEA dispute 

On April 11, 2023, the State submitted a 

revised Statement of Understanding 

Regarding the Special Education Mediation 

Process that also includes the Virtual 

Agreement for Mediation. Language and 

practice not aligned with 

34 C.F.R § 303.431(b)(7) was removed. The 

revised document clearly addresses mediation 

confidentiality under the federal regulations 

CLOSED
MICHIGAN PART C STATUS LETTER

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SUMMARY OF MONITORING FINDINGS AND STATUS

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confidential. resolution requirements of IDEA 

in accordance with 

34 C.F.R. § 303.431. 

Specifically, MDE must: 

a. Provide evidence that 

discussions occurring 

during the mediation 

process, whether inperson or virtual, are 

confidential.

and Michigan Administrative Rules for 

Special Education (MARSE).