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

March 12, 2024 

By Email

Honorable Michael Rice, Ph.D. 

Superintendent of Public Instruction

Michigan Department of Education

608 West Allegan Street

P.O. Box 30008 

Lansing, Michigan 48909 

Email: RiceM6@Michigan.gov

Dear Superintendent Rice: 

OSEP is pleased to inform you that Michigan has resolved all but one 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 submissions to OSEP to date to address the corrective actions 

noted in the January 12, 2023, DMS monitoring report. The chart, included in this letter,

summarizes the monitoring component, finding, required actions, OSEP’s analysis, and status of 

finding(s) based on the evidence received from MDE. 

OSEP understands from Governor Whitmer’s November 20, 2023, letter that the decision to 

make the Michigan Department of Lifelong Education Advancement and Potential (MiLEAP), 

the new State lead agency responsible for implementing the IDEA Part C program will not be

effective until July 1, 2024. The Department (including OSEP staff and staff from our Office of 

General Counsel) have been working extensively with the Michigan IDEA Part C program to 

provide technical assistance on this change in lead agency. Thus, with respect to the one finding 

that remains under review in this letter regarding a method or interagency agreement needed with 

the State’s Medicaid agency, OSEP will continue to work with MDE and MiLEAP to review 

Michigan’s IDEA Part C Federal Fiscal Year (FFY) 2024 grant application that is due May 2024.
SUMMARY OF MONITORING FINDINGS AND STATUS

We appreciate your efforts to ensure compliance and improve results for infants and toddlers 

with disabilities and their families. If you have any questions, please contact your OSEP State 

Lead. 

Sincerely,

Valerie C. Williams

cc: Part C Coordinator
3 | Page

MICHIGAN PART C 

SUMMARY OF MONITORING FINDINGS AND STATUS

MONITORING COMPONENT &

FINDING REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

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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 individualized family 

service plan (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.

The State submitted a corrective action plan (CAP) 

on April 11, 2023; and subsequent revisions to the 

CAP on October 20, October 23, November 30, and 

December 12, 2023. 

On October 23, 2023, the State submitted updated 

policies and procedures that document the states

process of providing oversight of the provision of 

early intervention services consistent with the IDEA 

Part C. Additionally, the updated policies explained 

how the State will collect information on the length, 

duration, frequency, intensity, and method of early 

intervention services in MDE’s local service areas. 

No further action needed at this time.

CLOSED

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 

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 

implementation and provision 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

On October 12, 2023, the Stated submitted evidence 

of system updates, including design modules, child 

record review forms, and monitoring protocols that 

ensure the oversight of IFSP implementation and the 

provision of Part C services. 

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

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303.700 through 303.702. of early intervention services. No further action needed at this time.

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.

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

Specifically, the State submitted evidence and OSEP 

reviewed its timeline for monitoring and other 

oversight activities in its October 20, 2023, 

submission. OSEP appreciates the States efforts in 

revising its monitoring timelines and associated 

activities. 

No further action needed at this time.

CLOSED

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). 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The State submitted evidence that it has implemented 

its revised policies and procedures in its December

12, 2023, submission and provided four monitoring 

reports as evidence that MDE has implemented its 

revised monitoring procedures. 

No further action needed at this time.

CLOSED

Fiscal

2.1 OSEP finds that MDE 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 

Corrective Action Plan—within 

90 days of the date of the DMS 

monitoring report the State must 

submit: 

1. A CAP that includes timelines 

for implementation of 

activities related to ensuring 

that MDE’s system of 

The State submitted a CAP on April 11, 2023; and

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The corrective action plan included timelines for 

implementation of activities specific to the fiscal 

management component required actions. The CAP 

included timelines for implementation of correction 

activities to address the fiscal finding to ensure 

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

MICHIGAN PART C 5 | Page

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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. 

payments is implemented 

consistently in all regions of 

the State incorporating IDEA 

Part C POLR requirements. 

MDE’s system of payment in all regions of the State 

incorporating IDEA Part C POLR requirements. 

No further action needed at this time.

Fiscal

2.1 OSEP finds that MDE 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 

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: 

a. Monitoring and other oversight 

of IDEA requirements such as 

Statewide implementation of 

its system of payments and 

POLR policies. 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The State submitted the following documents for 

OSEP review: Monitoring Letters with Findings and 

corrective actions and timelines.

The State submitted evidence of correction, including 

monitoring reports which identified findings of 

noncompliance with IDEA Part C fiscal 

requirements, and the timeline for correction 

required. The State also provided documentation of 

the implementation of its revised monitoring 

procedures and protocols. Based on the 

documentation such as updated fiscal monitoring 

protocol, update module in Catamaran to address 

frequency and intensity of services being provided, 

updated child record review, and updates to staff 

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

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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. 

personnel payroll reviews. The information 

submitted demonstrated the updated processes are 

reasonably designed to provide oversight of IDEA 

requirements such as Statewide implementation of its 

system of payments and POLR policies. 

No further action needed at this time.

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: 

b. Submit with its FFY 2023 

grant application to OSEP 

under Section II.A.3.[b]. its 

method [to implement the 

payor of last resort and fiscal 

responsibility requirements]

with its Medicaid agency. 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

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. 

The Governor of Michigan provided OSEP with a 

letter in November 2023 confirming that a lead 

agency change from the Michigan Department of 

Education to a newly created agency Michigan 

Department of Lifelong Education Advancement and 

Potential (MiLEAP) would be effective July 1, 2024. 

OSEP is working with MiLEAP and MDE to ensure 

that the State’s method with its Medicaid agency is 

updated as part of the State’s FFY 2024 IDEA Part C 

grant application.

UNDER 

REVIEW

While there is 

no further 

action needed at 

this time, OSEP 

is working with 

MiLEAP and 

MDE to ensure 

that the State’s 

method with the 

State Medicaid 

agency (as well 

as other 

documents) are

updated as part 

of the State’s 

FFY 2024 

IDEA Part C 

grant 

application.

Fiscal

2.1 OSEP finds that the State does 

Corrective Action Plan—within 

90 days of the date of the DMS 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

MICHIGAN PART C 7 | Page

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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 (SOP) requirements 

in 34 C.F.R. §§ 303.520 and 

303.521. In addition, OSEP 

finds that the State does not 

consistently implement its 

Statewide 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 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.

October 23, November 30, and December 12, 2023.

The State provided documentation of its 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. MDE reviewed all 56 intermediate

school districts (ISDs) and compared billing to 

services, frequency and intensity of services. The 

State then ranked the ISDs based on the developed 

methodology. The 13 ISDs varied in ranking. Based 

on the analysis MDE concluded there was not a 

negative impact to infant and toddlers with 

disabilities and their families. The State concluded 

that IDEA Part C services were not impacted because 

of EIS providers not using Medicaid as a payor 

source. 

No further action needed at this time.

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 

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 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The State submitted evidence of training activities 

conducted for the 13 ISDs identified. OSEP received 

copies of the presentation and attendance lists for the 

trainings. Additionally, the State schedule trainings 

for all ISDs on the IDEA Part C fiscal requirements

which includes MDE’s system of payments and 

IDEA POLR requirements. 

No further action needed at this time.

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

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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. 

of payments and ensuring 

compliance with IDEA POLR

requirements.

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 

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. 

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The State submitted evidence of training activities 

conducted for the 13 ISDs identified. OSEP received 

copies of the presentation and attendance lists for the 

trainings. Additionally, the State schedule trainings 

for all ISDs on the IDEA Part C fiscal requirements 

which includes MDE’s system of payments and 

IDEA POLR requirements. 

No further action needed at this time.

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

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34 C.F.R. § 303.510. 

Fiscal

2.2 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. OSEP finds that the 

State does not consistently 

implement its Statewide SOP

policy 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:

2. Implementation of MDE’s 

State-wide SOP policy in 

service areas impacted by their 

lack of access to Medicaid 

funding for early intervention

services.

The State submitted a CAP on April 11, 2023; and 

subsequent revisions to the CAP on October 20, 

October 23, November 30, and December 12, 2023. 

The State submitted four fiscal monitoring reports 

which were conducted in the Fall of 2023 utilizing 

the State’s updated monitoring protocol. MDE also

submitted a sustainability plan which outlines the 

State’s plan to conduct training to all ISDs on its 

system of payments, POLR policy annually and 

IDEA fiscal requirements. 

No further action needed at this time.

CLOSED

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 

On April 11, 2023, the State submitted an updated 

Frequently Asked Questions (FAQ) for Mediation 

and Facilitation that is located on the Special 

Education Mediation Services (SEMS) website (the 

contractor designated to manage mediation and 

facilitation) along with other evidence. MDE’s

updated document indicates the State must select the 

mediator on a random, rotational, or other impartial 

CLOSED
SUMMARY OF MONITORING FINDINGS AND STATUS

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implement the IDEA dispute 

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.

basis.

The State provided a list with links to public facing 

documents available on the MDE: Dispute 

Resolution Options webpage, the Michigan Alliance 

for Families website, and the Family Matters

webpage, which were revised on February 23, 2023, 

to reflect the requirements in 34 C.F.R. § 303.431. 

No further action needed at this time.

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 

confidential.

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 reasonably designed 

to implement the IDEA 

dispute resolution 

requirements of 

34 C.F.R. § 303.431. MDE 

must: 

b. Provide evidence that 

discussions occurring 

during the mediation 

process, whether in-person 

or virtual, are confidential.

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 addresses 

mediation confidentiality as required under the 

federal regulations.

No further action needed at this time.

CLOSED