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‘‘(3) RULES OF CONSTRUCTION.—Nothing in this
subsection shall be construed as making a tribe act as
a surety for the performance of a grantee under a
grant under this part.
‘‘(4) CLARIFICATION.—The provisions of para-
graphs (2) and (3) shall be construed as a clarifica-
tion of policy in existence on the date of enactment
of the Native American Education Improvement Act
of 2001 with respect to grants under this part and
shall not be construed as altering such policy or as
a new policy.
‘‘(e) EFFECTIVE
DATE
FOR
APPROVED
APPLICA-
TIONS.—Except as provided in subsection (c)(2)(E), a grant
provided under this part shall be made, and any transfer
of the operation of a Bureau school made under subsection
(b) shall become effective, beginning on the first day of the
academic year succeeding the fiscal year in which the appli-
cation for the grant or transfer is made, or on an earlier
date determined by the Secretary.
‘‘(f) DENIAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—If the Secretary disapproves
a grant under this part, disapproves the transfer of
operations of a Bureau school under subsection (b), or
determines that a school is not eligible for assistance
under this part, the Secretary shall—
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‘‘(A) state the objections in writing to the
tribe or tribal organization involved within the
allotted time;
‘‘(B) provide assistance to the tribe or tribal
organization to cure all stated objections;
‘‘(C) at the request of the tribe or tribal or-
ganization, provide to the tribe or tribal organi-
zation a hearing on the record regarding the re-
fusal or determination involved, under the same
rules and regulations as apply under the Indian
Self-Determination and Education Assistance
Act; and
‘‘(D) provide to the tribe or tribal organiza-
tion an opportunity to appeal the decision re-
sulting from the hearing.
‘‘(2) 
TIMELINE
FOR
RECONSIDERATION
OF
AMENDED APPLICATIONS.—The Secretary shall recon-
sider any amended application submitted under this
part within 60 days after the amended application is
submitted to the Secretary and shall submit the deter-
minations of the Secretary with respect to such recon-
sideration to the tribe or the tribal organization.
‘‘(g) REPORT.—The Bureau shall prepare and submit
to Congress an annual report on all applications received,
and actions taken (including the costs associated with such
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actions), under this section on the same date as the date
on which the President is required to submit to Congress
a budget of the United States Government under section
1105 of title 31, United States Code.
‘‘SEC. 5207. DURATION OF ELIGIBILITY DETERMINATION.
‘‘(a) IN GENERAL.—If the Secretary determines that
a tribally controlled school is eligible for assistance under
this part, the eligibility determination shall remain in effect
until the determination is revoked by the Secretary, and
the requirements of subsection (b) or (c) of section 5206,
if applicable, shall be considered to have been met with re-
spect to such school until the eligibility determination is
revoked by the Secretary.
‘‘(b) ANNUAL REPORTS.—
‘‘(1) IN GENERAL.—Each recipient of a grant
provided under this part for a school shall prepare an
annual report concerning the school involved, the con-
tents of which shall be limited to—
‘‘(A) an annual financial statement report-
ing revenue and expenditures as defined by the
cost accounting standards established by the
grant recipient;
‘‘(B) an annual financial audit conducted
pursuant to the standards of chapter 71 of title
31, United States Code;
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‘‘(C) a biennial compliance audit of the
procurement of personal property during the pe-
riod for which the report is being prepared that
shall be in compliance with written procurement
standards that are developed by the local school
board;
‘‘(D) an annual submission to the Secretary
containing information on the number of stu-
dents served and a brief description of programs
offered through the grant; and
‘‘(E) a program evaluation conducted by an
impartial evaluation review team, to be based on
the standards established for purposes of sub-
section (c)(1)(A)(ii).
‘‘(2) EVALUATION
REVIEW
TEAMS.—In appro-
priate cases, representatives of other tribally con-
trolled schools and representatives of tribally con-
trolled community colleges shall be members of the
evaluation review teams.
‘‘(3) EVALUATIONS.—In the case of a school that
is accredited, the evaluations required under this sub-
section shall be conducted at intervals under the terms
of the accreditation.
‘‘(4) SUBMISSION OF REPORT.—
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‘‘(A) TO TRIBAL GOVERNING BODY.—Upon
completion of the annual report required under
paragraph (1), the recipient of the grant shall
send (via first class mail, return receipt re-
quested) a copy of such annual report to the trib-
al governing body.
‘‘(B) TO SECRETARY.—Not later than 30
days after receiving written confirmation that
the tribal governing body has received the report
sent pursuant to subparagraph (A), the recipient
of the grant shall send a copy of the report to the
Secretary.
‘‘(c) REVOCATION OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—The Secretary may not re-
voke a determination that a school is eligible for as-
sistance under this part if—
‘‘(A) the Indian tribe or tribal organization
submits the reports required under subsection (b)
with respect to the school; and
‘‘(B) at least 1 of the following conditions
applies with respect to the school:
‘‘(i) The school is certified or accred-
ited by a State certification or regional ac-
crediting association or is a candidate in
good standing for such certification or ac-
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creditation under the rules of the State cer-
tification or regional accrediting associa-
tion, showing that credits achieved by the
students within the education programs of
the school are, or will be, accepted at grade
level by a State certified or regionally ac-
credited institution.
‘‘(ii) The Secretary determines that
there is a reasonable expectation that the
certification or accreditation described in
clause (i), or candidacy in good standing
for such certification or accreditation, will
be achieved by the school within 3 years.
The school seeking accreditation shall re-
main under the standards of the Bureau in
effect on the date of enactment of the Native
American Education Improvement Act of
2001 until such time as the school is accred-
ited, except that if the Bureau standards
are in conflict with the standards of the ac-
crediting agency, the standards of such
agency shall apply in such case.
‘‘(iii) The school is accredited by a
tribal department of education if such ac-
creditation is accepted by a generally recog-
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nized State certification or regional accred-
iting agency.
‘‘(iv)(I) With respect to a school that
lacks accreditation, or that is not a can-
didate for accreditation, based on cir-
cumstances that are not beyond the control
of the school board, every 3 years an impar-
tial evaluator agreed upon by the Secretary
and the grant recipient conducts evalua-
tions of the school, and the school receives a
positive assessment under such evaluations.
The evaluations are conducted under stand-
ards adopted by a contractor under a con-
tract for the school entered into under the
Indian Self-Determination and Education
Assistance Act (or revisions of such stand-
ards agreed to by the Secretary and the
grant recipient) prior to the date of enact-
ment of the Native American Education
Improvement Act of 2001.
‘‘(II) If the Secretary and a grant re-
cipient other than a tribal governing body
fail to agree on such an evaluator, the tribal
governing body shall choose the evaluator or
perform the evaluation. If the Secretary and