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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

August 10, 2023 

By Email

Honorable Charlie Brereton 

Director

Montana Department of Public Health and Human Services

111 North Sanders, Room 301 

P.O. Box 4210 

Helena, Montana 59604 

By E-mail: charles.brereton@mt.gov

Dear Director Brereton: 

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 Montana Department of 

Public Health and Human Services (MT DPHHS) dated January 24, 2023. 

MT DPHHS emailed OSEP on February 22 and March 29, 2023, requesting an extension to the 90-day timeline

required to submit updated policies and procedures outlined as corrective actions in the monitoring and 

improvement, data, fiscal management and dispute resolution components of the monitoring report. These 

findings and corrective actions were identified as a result of the DMS activities conducted by OSEP during its 

monitoring visit to MT DPHHS which occurred during the month of June 2022. On March 1 and March 29, 

2023, OSEP approved MT DPHHS’ request for an extension through email, and the State provided the required 

information to OSEP on June 24, 2023. 

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, Vinetta Freeman at vinetta.freeman@ed.gov. 

Sincerely,

Valerie C. Williams

Director

Office of Special Education Programs 

cc: Part C Coordinator 
MONTANA-PART C | 2

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

Monitoring and Improvement

1.1 OSEP finds that DPHSS 

does not have a system 

reasonably designed to monitor 

its EIS providers to ensure 

compliance with IDEA Part C 

requirements, such as timely 

service provision to ensure there 

are no waitlists for services, as 

required under IDEA 

34 C.F.R. §§ 303.120(a) and 

303.700. 

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

The State must submit to OSEP updated 

policies and procedures documenting its 

process for monitoring its EIS providers on 

key IDEA Part C requirements such as 

ensuring timely IFSP service provision 

requirements based on a review of child 

records and all other relevant available data 

(once the State has resolved its data finding 

below). These policies must reflect that all 

services (not just service coordination) that 

are identified on the IFSP must be timely 

initiated and provided. 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

document: Montana Milestones 

Comprehensive Monitoring 

Manual. 

OSEP is currently in the process of 

reviewing the State’s submission. 

OPEN 

1.1 OSEP finds that DPHSS 

does not have a system 

reasonably designed to monitor 

its EIS providers to ensure 

compliance with IDEA Part C 

requirements, such as timely 

service provision to ensure there 

are no waitlists for services, as 

required under IDEA 

34 C.F.R. §§ 303.120(a) and 

303.700.

Evidence of Implementation—as soon as 

possible, but no later than one year from 

the date of the DMS monitoring report: 

The State LA must submit evidence that all 

five EIS providers were monitored for 

IDEA Part C requirements, including 

timely service provision and, if a finding 

was issued, a copy of the monitoring report 

which reports identifies the findings of 

noncompliance with IDEA Part C 

requirements, and include the one-year 

timeline for correction. 

OPEN

Data

2.1 OSEP finds that DPHSS 

does not have a system 

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

documents: Montana Milestones 

Data Validation Procedures and 

OPEN
MONTANA-PART C | 3

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

reasonably designed to collect 

valid and reliable data as needed 

to report annually to the 

Secretary under 34 C.F.R 

§ 303.702(b)(2) on three of the 

indicators established by the 

Secretary for the State 

performance plans, as required 

under IDEA 

34 C.F.R. §§ 303.124, 303.224 

and 303.701(c). 

The State must submit to OSEP the 

procedures the State uses to verify the 

SPP/APR data for Indicators C-1, C-2 and 

C-7 that are submitted by its EIS providers 

to the LA as required under IDEA sections 

616 and 618 (as modified by IDEA section 

642) and 34 C.F.R. §§ 303.124, 303.224 

and 303.701(c) and 303.720 through 

303.724. 

Montana Milestones Monitoring 

Record Selection Methodology. 

OSEP is currently in the process of 

reviewing the State’s submission.

2.1 OSEP finds that DPHSS 

does not have a system 

reasonably designed to collect 

valid and reliable data as needed 

to report annually to the 

Secretary under 34 C.F.R 

§ 303.702(b)(2) on three of the 

indicators established by the 

Secretary for the State 

performance plans, as required 

under IDEA 

34 C.F.R. §§ 303.124, 303.224 

and 303.701(c).

Evidence of Implementation—as soon as 

possible, but no later than one year from 

the date of the DMS monitoring report: 

The State will provide with its FFY 2022 

SPP/APR an explanation of how its data 

for Indicators C-1, C-2 and C-7 are valid 

and reliable and reflect the measurement. 

The explanation should include a 

discussion of the methodology used by the 

State to verify the validity and reliability of 

the data for C-1 (the percentage of infants 

and toddlers with IFSPs who receive all EI 

services on their IFSPs in a timely 

manner); C-2 (the percentage of infants 

and toddlers with IFSPs who primarily 

receive EI services in the home or 

community-based settings); and C-7 (the 

percentage of infants and toddlers with 

IFSPs for whom an evaluation and initial 

assessment and an initial IFSP meeting 

OPEN
MONTANA-PART C | 4

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

were conducted within Part C’s 45-day 

timeline).

Fiscal

3.1 OSEP finds that DPHSS 

does not have a general 

supervision system reasonably 

designed to monitor its EIS 

providers to ensure fiscal 

compliance with IDEA Part C, 

as required under 

34 C.F.R. §§ 303.120(a)(1) and 

(2) and 303.700(a) and (b). 

Specifically, the DPHSS 

monitoring system is not 

reasonably designed to identify 

and verify correction of fiscal 

noncompliance. 

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

1. Revised fiscal monitoring policies and 

procedures to ensure that the LA has a 

system in place to identify and verify 

the correction of noncompliance (such 

as coordination of all available funding 

sources and payor of last resort) as 

soon as possible and in no case later 

than one year after the LA's notification 

of the noncompliance as required under 

34 C.F.R. §§ 303.120(a)(1) and (2) and 

303.700(a) and (b). 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

document: Montana Milestones 

Fiscal Program Monitoring. 

OSEP is currently in the process of 

reviewing the State’s submission.

OPEN 

3.1 OSEP finds that DPHSS 

does not have a general 

supervision system reasonably 

designed to monitor its EIS 

providers to ensure fiscal 

compliance with IDEA Part C, 

as required under 

34 C.F.R. §§ 303.120(a)(1) and 

(2) and 303.700(a) and (b). 

Specifically, the DPHSS 

monitoring system is not 

reasonably designed to identify 

and verify correction of fiscal 

noncompliance. 

Evidence of Implementation—as soon as 

possible, but no later than one year from 

the date of the DMS monitoring report: 

1. Evidence of the State’s implementation 

of its fiscal monitoring policies and 

procedures such as, notification letters, 

monitoring reports, letters of findings, 

examples of fiscal finding close-out 

and verification of correction, or other 

supporting documentation 

demonstrating oversight of the State’s 

fiscal monitoring as required under 34 

C.F.R. §§ 303.120(a)(1) and (2) and 

303.700(a) and (b). 

OPEN
MONTANA-PART C | 5

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

3.2 OSEP finds that DPHHS has 

failed to monitor its EIS 

providers for compliance as 

required under 

34 C.F.R. § 303.120(a) for the 

statewide system of payments 

policy requirements in 

34 C.F.R. §§ 303.520 and 

303.521. 

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP:

2. Revised fiscal monitoring policies that 

demonstrate how the LA will provide 

oversight of the State’s system of 

payments as required under 34 C.F.R. 

§§ 303.120(a), 303.520 and 303.521. 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

document: Montana Milestones 

Fiscal Program Monitoring. 

OSEP is currently in the process of 

reviewing the State’s submission.

OPEN 

3.2 OSEP finds that DPHHS has 

failed to monitor its EIS 

providers for compliance as 

required under 

34 C.F.R. § 303.120(a) for the 

statewide system of payments 

policy requirements in 

34 C.F.R. §§ 303.520 and 

303.521. 

Evidence of Implementation—as soon as 

possible, but no later than one year from 

the date of the DMS monitoring report: 

2. Evidence of the State’s system of 

payments practices such as, the process 

for evaluating the payor source, 

evidence of training to EIS providers, 

access to insurance, interim payments, 

or other supporting documentation 

demonstrating oversight of the State’s 

system of payments as required under 

34 C.F.R. §§ 303.120(a), 303.520 and 

303.521. In addition, the State must 

provide evidence that families have 

been provided a copy of the State’s 

system of payments policy and have 

consented, as appropriate, for the use of 

public and/or private insurance. 

OPEN

3.3 OSEP finds that DPHHS 

does not have procedures and 

practices that are reasonably 

designed to ensure the 

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

documents: Fiscal Monitoring 

Policies and Procedures, Fiscal 

OPEN 
MONTANA-PART C | 6

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

appropriate use of IDEA Part C 

funds as required under 

34 C.F.R. §§ 303.120(a) and 

303.205, and the OMB Uniform 

Guidance in 2 C.F.R. Part 200. 

3. Revised fiscal monitoring policies and 

procedures that demonstrate how the 

LA will provide oversight of the EIS 

providers use of IDEA Part C funds 

(including internal controls) as required 

under 34 C.F.R. §§ 303.120(a) and 

303.205, and the OMB Uniform 

Guidance in 2 C.F.R. Part 200. 

Monitoring Part C Annex, and

Montana Milestones Internal 

Controls and Fiscal Monitoring. 

OSEP is currently in the process of 

reviewing the State’s submission.

3.3 OSEP finds that DPHHS 

does not have procedures and 

practices that are reasonably 

designed to ensure the 

appropriate use of IDEA Part C 

funds as required under 

34 C.F.R. §§ 303.120(a) and 

303.205, and the OMB Uniform 

Guidance in 2 C.F.R. Part 200. 

Evidence of Implementation—as soon as 

possible, but no later than one year from 

the date of the DMS monitoring report: 

3. Evidence of the State’s monitoring of 

its EIS providers use of IDEA Part C 

funds such as, fiscal monitoring reports, 

and local EIS provider budgets, and 

fiscal data system 

procedures/screenshots, demonstrating 

the system’s capacity for oversight of 

Federal IDEA Part C funds.

OPEN

Dispute Resolution

4.1 OSEP finds that Montana 

Milestones’ State complaint 

policies and procedures are 

inconsistent with 

34 C.F.R. § 303.434(a). 

Specifically, publicly available 

documents indicate that families 

must engage in an informal 

process prior to filing a formal 

State complaint.

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

1. For State complaints: 

a. Revised procedural safeguards 

documents to ensure compliance 

with Part C requirements regarding 

complaints, under 34 C.F.R. 

§303.434(a); 

b. A copy of the memo sent to all EIS 

providers explaining the revised 

complaint procedures; and 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

documents: Montana Milestones 

Part C of IDEA Procedural 

Safeguards Dispute Resolution, 

Montana Milestones Dispute 

Resolution Memo, and Montana 

Milestones Dispute Resolution 

Training Schedule. 

OSEP is currently in the process of 

reviewing the State’s submission.

OPEN 
MONTANA-PART C | 7

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

c. A training schedule for its EIS 

providers on implementing the 

revised Montana Milestones 

complaint procedures. 

4.2 OSEP finds that the State 

does not maintain a list of 

trained mediators as required 

under 34 C.F.R. § 303.431(a)(2).

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

2. For Qualified Mediators: 

a. Policies and procedures that detail 

the State’s training activities and 

assurance that their mediators are 

knowledgeable on the Part C IDEA 

regulations relating to the provision 

of EI services.

b. A list of individuals who are 

qualified mediators in the State and 

available on a random, rotational, 

or other impartial basis.

DPHHS submitted to OSEP on 

June 24, 2023, the following 

documents: Montana Milestones 

Dispute Resolution Training 

Schedule, ATTACHMENT I Dispute 

Resolution Presentation 2023, and 

Montana Milestones Part C 

Mediator List 2023. 

OSEP is currently in the process of 

reviewing the State’s submission.

OPEN 

4.3 OSEP finds that the State 

does not ensure hearing officers 

possess knowledge of IDEA Part 

C consistent with 

34 C.F.R. § 303.435(a).

Policies and Procedures—within 90 days 

of the date of the DMS monitoring report 

the State must submit to OSEP: 

3. For Hearing Officers: 

a. Policies and procedures that 

demonstrate that the State trains its 

hearing officers on IDEA Part C 

requirements and the EI services 

available to infants and toddlers 

with disabilities and their families. 

b. Policies and procedures that 

demonstrate that the State ensures 

DPHHS submitted to OSEP on 

June 24, 2023, the following 

document: Montana Milestones 

Dispute Resolution Training 

Schedule. OSEP is currently in the 

process of reviewing the State’s 

submission. 

OPEN 
MONTANA-PART C | 8

SUMMARY OF MONITORING PRIORITIES AND OUTCOMES

MONITORING COMPONENT &

FINDING

REQUIRED ACTIONS OSEP ANALYSIS AND COMMENTS

NEXT STEPS/REQUIRED 

ACTIONS/STATUS

its hearing officers listen to the 

presentation of relevant viewpoints 

about the due process complaint, 

will examine all information 

relevant to the issues, will seek to 

reach a timely resolution of due 

process complaints and provide a 

record of the proceedings, including 

a written decision to the LA and 

parties involved in the due process 

hearing.