ࡱ>  @ bjbj{{ +@AvvvrLrLrL8L M^OtO(OOOwPwPwPlnnnnnn$!Rs_wPwP__OO6HdHdHd_^OOlHd_lHdHdn|PORO |qeqVrL"`̆ |ݔ<#(a#@#wPULHdaX[wPwPwP$<B c^BHIGHLY QUALIFIED TEACHERS AND IMPROVING TEACHER QUALITY STATE GRANTS (ESEA TITLE II, PART A) MONITORING REPORT Indiana Department of Education August 25-26, 2009 U.S. Department of Education Monitoring Team: Carol Manitaras Elizabeth Dabney (Westat) Indiana Department of Education: Lee Ann Kwiatkowski, Director of Differentiated Learners Terri Banks, Coordinator of Educator Licensing Operations Tracy Brown, Director of Accounting Molly Chamberlin, Director of Data Analysis, Collection & Reporting Becky Johnson, Title II Specialist Karen Lane, Data Management Specialist Kelly Linz, Center for Curriculum and Instructional Leadership Pat Mapes, Director of Educator Licensing & Development Nicole Nussbaum, Title II Specialist State Agency for Higher Education: Catisha Coates, Indiana Commission for Higher Education LEAs participating in the monitoring visit: Indianapolis Public Schools (in-person interview) Avon Community School Corporation (telephone interview) Tri-County School Corporation (telephone interview) Overview: Number of LEAs: 342 Number of Schools: 2,840 Number of Teachers: 62,516 State Allocation (FY 2007) 49,204,264 State Allocation (FY 2008) 50,368,699 LEA Allocation (FY 2007) 46,276,610 LEA Allocation (FY 2008) 47,371,763 State Activities (FY 2007) 1,217,806 State Activities (FY 2008) 1,246,625 SAHE Allocation (FY 2007) 1,217,806 SAHE Allocation (FY 2008) 1,246,625 SEA Administration (FY 2007) 431,152 SEA Administration (FY 2008) 441,355 SAHE Administration (FY 2007) 60,890 SAHE Administration (FY 2008) 62,331 Scope of Review: Like all State educational agencies (SEAs), the Indiana Department of Education, as a condition of receiving funds under Title I, Part A and Title II, Part A of the Elementary and Secondary Education Act (ESEA), provided an assurance to the U.S. Department of Education (the Department) that it would administer these programs in accordance with all applicable statutory and regulatory requirements, including those in Title I, Part A that concern Highly Qualified Teachers (HQT) and those that govern the use of Title II, Part A funds. See 9304(a)(1) of the ESEA. One of the specific requirements the Department established for an SEAs receipt of program funds under its consolidated state application (9302(b)) was submission to the Department of annual data on how well the State has been meeting its performance target for Performance Indicator 3.1: The percentage of classes being taught by highly qualified teachers (as the term is defined in 9101(23) of the ESEA), in the aggregate and in high-poverty schools (as the term is defined in 1111(h)(1)(C)(viii) of the ESEA). The Departments monitoring visit to Indiana had two purposes. One was to review the progress of the State in meeting the ESEAs HQT requirements. The second was to review the use of ESEA Title II, Part A funds by the SEA, selected LEAs and the State agency for higher education (SAHE), to ensure that the funds are being used to prepare, retain and recruit high-quality teachers and principals so that all children will achieve to a high academic achievement standard and to their full potential. Summary of Monitoring Indicators State Educational AgencyCritical ElementRequirementCitationStatusPageI.1.The State has established appropriate HQT requirements for all teachers who teach core subjects.9101(23)Findings Recommendation6, 7 I.2.The State has established appropriate HQT requirements for special education teachers who teach core academic subjects.602(10) of the IDEAFindings7, 8I.3.Teachers who are enrolled in approved alternative certification programs AND who have already earned a bachelors degree AND successfully demonstrated subject matter competence may be counted as highly qualified for a period of three years.(34 CFR 200.56(a)(2)(ii))Finding8I.4.The SEA ensures that all teachers hired after the first day of the 2002-2003 school year to teach in Title I programs were highly qualified at the time of hire.1119(a)(1) Finding See also I.1, I.2, I.3 8, 9 6-8I.5.The SEA ensures that all teachers paid with Title II, Part A funds for class size reduction are highly qualified.2123(a)(2)(B) See also I.1, I.2, I.3 6-8I.6.The SEA ensures that all LEAs that receive Title I funds notify parents of their right to request and receive information on the qualifications of their childrens teachers.1111(h)(6)(A)Met RequirementNAI.7.The SEA ensures that all schools that receive Title I funds notify parents when their children are taught by teachers who are not highly qualified.1111(h)(6)(B)(ii) See also I.1, I.2, I.3 6-8II.A.1.The SEA reports annually to the Secretary in the Consolidated Performance Report (CSPR) the number and percentage of classes taught by highly qualified teachers, in the aggregate and in high- and low-poverty schools.1111(h)(4)(G) Finding 9 II.B.1.The SEA has published an annual report card with the required teacher information.1111(h)(1)(c)(viii)Findings9, 10II.B.2.The SEA has ensured that LEAs have published annual report cards with the required teacher information for both the LEA and the schools it serves.1111(h)(2)(B)Findings10III.A.1.The SEA ensures that each LEA that has not met annual measurable objectives for highly qualified teachers for two consecutive years has an improvement plan in place and that the SEA has provided technical assistance to the LEA in formulating the plan.2141(a) and 2141(b) Finding See also I.1, I.2, I.3 10 11 6-8III.A.2. The SEA enters into an agreement on the use of funds with any LEA that has not made progress toward meeting its annual measurable objectives in meeting the highly qualified teacher challenge for three consecutive years and has also failed to make AYP for three years.2141(c)  Finding Recommendation See also I.1, I.2, I.3 11 6-8III.B.1.The SEA has a plan in place to ensure that poor and minority students are not taught at higher rates than other students by inexperience, unqualified, or out-of-field teachers. 1111(b)(8)(C)Finding Recommendation11 III.B.2. The SEA ensures that LEA plans include an assurance that through the implementation of various strategies, poor and minority students are not taught at higher rates than other students by inexperienced, unqualified, or out-of-field teachers.1112()(1)(L)Finding12IV.A.1.Once hold harmless provisions are taken into consideration, the SEA allocated additional funds to LEAs using the most recent Census Bureau data found at  HYPERLINK "http://www.census.gov/hhes/www/saipe/district.html" http://www.census.gov/hhes/www/saipe/district.html.2121(a)Met RequirementNAIV.A.2.The SEA has ensured that LEAs have completed assessments of local needs for professional development.2122(c)Met RequirementNAIV.A.3.To be eligible for Title II, Part A funds, LEAs must submit an application to the State educational agency at such time, in such manner, and containing such information as the State educational agency may reasonably require.2122(b)Met RequirementNAIV.B.1.The SEA has ensured that LEAs maintain effort.9521Met RequirementNAIV.B.2.The SEA ensures that LEA funds do not supplant other, non-Federal funds.2123(b)Met RequirementNAIV.B.3.The SEA and LEAs are audited, as required by EDGAR 80.26.EDGAR 80.26Met RequirementNAIV.B.4.The SEA regularly and systematically monitors LEAs for compliance with Federal statutes and regulations, applicable State rules and policies, and the approved sub grantee application, as required by EDGAR 76.770 and 80.40(a).EDGAR 76.770 and 80.40(a)Finding12IV.B.5.The SEA ensures that LEAs comply with requirements with regards to services to eligible nonpublic schools.9501Met RequirementNAV.1.The SEA ensures that state level activity funds are expended on allowable activities.2113(c) Finding12 13V.2.The SEA ensures that state level activity funds do not supplant other, non-Federal funds. 2113(f)Met RequirementNAV.3.The SEA complies with requirements with regards to services to eligible nonpublic schools using State-level activity funds.9501Finding13 State Agency for Higher EducationCritical ElementRequirementCitationStatusPage1.The SAHE manages a competition to award grants to carry out appropriate professional development activities.2132 and 2133Met RequirementNA2.The SAHE works in conjunction with the SEA (if the two are separate agencies) in awarding the grants. 2132(a)Finding133.The SAHE awards grants only to eligible partnerships that include at least an institution of higher education and the division of the institution that prepares teachers and principals; a school of arts and sciences; and a high-need LEA.2131Met RequirementNA4.The SAHE ensures that each partnership awarded a grant engages in eligible activities.2134Met RequirementNA5.The SAHE has procedures in place to ensure that no partner uses more than 50 percent of the funds in the grant.2132(c)Met RequirementNA6.The SAHE regularly and systematically monitors grantees for compliance with Federal statutes and regulations, applicable State rules and policies, and the approved subgrantee application, as required by EDGAR 76.770 and 80.40(a)EDGAR 76.770 and 80.40(a)Finding13 Area I: HQT Definitions and Procedures Critical Element I.1: The State has established appropriate HQT requirements for all teachers who teach core subjects. Citation: 9101(23) Finding 1: The State allows teachers who are new to the profession to use HOUSSE to demonstrate subject matter competence in subject areas where the State does not have Praxis tests available. Further Action Required: Within 30 business days, the State must submit a timeline and a plan to the Department for implementing the correct HQT requirements for new teachers. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class-size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Finding 2: The State does not require ESL teachers to meet the HQT requirements when these teachers are teaching core academic subjects. Further Action Required: Within 30 business days, the State must submit a timeline and a plan to the Department for implementing the correct HQT requirements for ESL teachers who teach core academic subjects. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class-size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Finding 3: The State uses the Praxis II: Social Studies Content Knowledge test to determine subject matter competence in civics and government, economics, history and geography for secondary teachers; however, the State has not yet determined whether this broad-field social studies test provides adequate subject-matter preparation in each of the four subject areas specified in the statute. The State failed to complete this determination, which it had agreed to do as the resolution to a similar finding in its 2006 monitoring report. Further Action Required: Within 30 business days, the State must submit to the Department a written plan and timeline that the State will implement to ensure that all teachers of civics and government, economics, history and geography are highly qualified in compliance with the statute. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Recommendation: The State should update its communication documents to ensure that LEAs and schools have the correct information about HQT requirements. Critical Element I.2: The State has established appropriate HQT requirements for special education teachers who teach core academic subjects. Citation: 602(10) of the IDEA Finding 1: The State allows special education teachers who are new to the profession to use HOUSSE to demonstrate subject matter competence in subject areas where the State does not have Praxis tests available. Further Action Required: Within 30 business days, the State must submit a timeline and a plan to the Department for implementing the correct HQT requirements for new special education teachers. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class-size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Finding 2: The State does not require special education ESL teachers to meet the HQT requirements when these teachers are teaching core academic subjects. Further Action Required: Within 30 business days, the State must submit a timeline and a plan to the Department for implementing the correct HQT requirements for special education ESL teachers who teach core academic subjects. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class-size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Finding 3: The State uses the Praxis II: Social Studies Content Knowledge test to determine subject matter competence in civics and government, economics, history and geography for secondary special education teachers; however, the State has not yet determined whether this broad-field social studies test provides adequate subject-matter preparation in each of the four subject areas specified in the statute. The State failed to complete this determination, which it had agreed to do as the resolution to a similar finding in its 2006 monitoring report. Further Action Required: Within 30 business days, the State must submit to the Department a written plan and timeline that the State will implement to ensure that all teachers of civics and government, economics, history and geography are highly qualified in compliance with the statute. In addition to correcting this for future HQ determinations, the State needs to identify which teachers it has erroneously deemed HQ and work to ensure that they become HQ. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. The State must also provide the Department with evidence that it is taking this corrective action. Critical Element I.3: Teachers who are enrolled in approved alternative certification programs AND who have already earned a bachelors degree AND successfully demonstrated subject matter competence may be counted as highly qualified for a period of three years. Citation: 34 CFR 200.56(a)(2)(ii) Finding: The State cannot ensure that all elementary education teachers enrolled in approved alternative certification programs have demonstrated subject matter competence before being counted as highly qualified. Further Action Required: Within 30 business days, the State must submit to the Department a written plan and timeline plan that the State will implement to ensure that all teachers of core academic subjects are highly qualified in compliance with the statute. The submitted plan and timeline must address how the State will differentiate between those elementary education teachers enrolled in approved alternative certification programs who are highly qualified and those who are not. Because this change has ramifications in regard to how the State carries out other statutory provisions related to the proper identification of HQT, the plan for correcting this finding must address how the State will ensure that parents are notified, as required, when teachers who are not highly qualified teach their children; how the State will ensure that all teachers hired for Title I positions are highly qualified; how the State will ensure that all teachers paid with Title II, Part A for the purpose of class size reduction are highly qualified; and that 2141(a) and 2141(c) requirements are met when LEAs have not met the goal of having all teachers of core academic subjects highly qualified. Critical Element I.4: The SEA ensures that all teachers hired after the first day of the 2002-2003 school year to teach in Title I programs were highly qualified at the time of hire. Citation: 1119(a)(1) Finding: The State cannot ensure that all teachers hired after the first day of the 2002-03 school year to teach in Title I programs were highly qualified at the time of hire. Two LEAs interviewed reported that not all Title I teachers hired after the first day of the 2002-03 school year to teach in Title I programs were highly qualified at the time of hire. Further Action Required: Within 30 business days, the State must submit to the Department a written plan with specific procedures and a timeline the State will implement to ensure that all teachers hired for Title I positions are highly qualified. Also, the State must provide the Department with evidence that it is taking corrective actions when LEAs are found to be out of compliance. Area II: HQT Data Reporting and Verification Critical Element II.A.1: The SEA reports annually to the Secretary in the Consolidated Performance Report (CSPR) the number and percentage of classes taught by highly qualified teachers, in the aggregate and in high- and low-poverty schools. Citation: 1111(h)(4)(G) Finding: Because the State is out of compliance on the definition of HQT (see Critical Elements I.1, I.2 and I.3 above), the HQT data included in the CSPR are incorrect. Further Action Required: Based on the plans and timelines submitted to correct the findings in Critical Elements I.1, I.2 and I.3, the State must, within 30 business days, notify the Department when it will be able to correct deficiencies in the HQT data reported in its CSPR. If the State is able to submit correct data for the 2008-09 school year in the December 2009 CSPR, it should do so. If the data cannot be corrected before December 2009, the State must provide (1) information on the limitations that prevent the State from submitting accurate data in the December 2009 CSPR and (2) the steps, including a timeline for completion, that the State will take to ensure that the data reported in the December 2010 CSPR will be accurate. Critical Element II.B.1: The SEA has published an annual report card with the required teacher information. Citation: 1111(h)(1)(C)(viii) Finding 1: Because the State is out of compliance on the definition of HQT (see Critical Elements I.1, I.2 and I.3 above), the HQT data included in the annual report card are incorrect. Further Action Required: The State must, within 30 business days, provide the Department with a written plan and timeline for correcting its HQT data in future releases of the State Report Card. The submitted procedures and timeline must ensure that data reported in the report cards are accurate, taking into account any data errors resulting from the States being out of compliance on its HQT definition (see Critical Elements I.1, I.2 and I.3 above). If the State is able to correct data for the 2008-09 school year in the 2009 annual report card, it should do so. If the data cannot be corrected in time to do that, the State must provide (1) information on the limitations that prevent the State from reporting accurate data in the 2009 annual report card and (2) the steps, including a timeline for completion, that the State will take to ensure that the data reported in the 2010 annual report card will be accurate. Finding 2: The State report card does not disaggregate the data by high- and low-poverty schools; and it does not include the percentage of teachers on emergency or provisional credentials. In addition, the State includes the percentage of teachers that are highly qualified rather than the required percentage of classes NOT taught by HQT. Further Action Required: Within 30 business days, the State must submit to the Department a written plan with specific procedures and a timeline the State will implement to correct deficiencies in its Annual State Report Card. Critical Element II.B.2: The SEA has ensured that LEAs have published annual report cards with the required teacher information for both the LEA and the schools it serves. Citation: 1111(h)(2)(B) Finding 1: Because the State is out of compliance on the definition of HQT (see Critical Elements I.1, I.2 and I.3 above), the HQT data included in the annual LEA and school report cards are incorrect. Further Action Required: Within 30 business days, the State must provide the Department with a written plan with specific procedures and a timeline for correcting the HQT data in future releases of the LEA and school report cards. The submitted procedures and timeline must ensure that data reported in the report cards are accurate, taking into account any data errors resulting from the States being out of compliance on its HQT definition (see Critical Elements I.1, I.2 and I.3 above). If the State is able to correct data for the 2008-09 school year in the 2009 annual report cards, it should do so. If the data cannot be corrected in time to do that, the State must provide (1) information on the limitations that prevent the State from reporting accurate data in the 2009 annual report cards and (2) the steps, including a timeline for completion, that the State will take to ensure that the data reported in the 2010 annual report cards will be accurate. Finding 2: The State does not ensure that LEAs and schools annual report cards include all required information. Though the State creates the report cards, it does not include the percentage of teachers on emergency or provisional credentials. The school-level report cards do not disaggregate the data by high- and low-poverty schools. Further Action Required: Within 30 business days, the State must submit to the Department a written plan with specific procedures and a timeline the State will implement to correct deficiencies in its Annual LEA and school-level Report Cards. Area III: HQT Plans Critical Element III.A.1: The SEA ensures that each LEA that has not met annual measurable objectives for highly qualified teachers for two consecutive years has an improvement plan in place and that the SEA has provided technical assistance to the LEA in formulating the plan. Citation: 2141(a) and 2141(b) Finding: The State does not currently require each LEA that has not met annual measurable objectives for HQT for two consecutive years to have an improvement plan in place. The State has not yet provided technical assistance to the LEAs in formulating such plans. Further Action Required: Within 30 business days, the State must provide the Department with a list of any LEAs that currently have not met annual measurable objectives for two consecutive years (school years 2007-08 and 2008-09) accompanied by a plan and a timeline for ensuring that these LEAs have the required improvement plan in place. The plan submitted must also describe how the SEA will provide technical assistance to the LEAs in formulating and implementing their required plans. Critical Element III.A.2: The SEA enters into an agreement on the use of funds with any LEA that has not made progress toward meeting its annual measurable objectives in meeting the highly qualified teacher challenge for three consecutive years and has also failed to make AYP for three years. Citation: 2141(c) Finding: The State has not entered into an agreement on the use of funds with LEAs that have not met annual measurable objectives for HQT and have failed to make AYP for three consecutive years. Further Action Required: Within 30 business days, the State must provide the Department with a list of any LEAs that currently have not made progress on meeting their HQT annual measurable objectives for three consecutive years (school years 2006-07, 2007-08 and 2008-09) and have also failed to make AYP for three years (school years 2006-07, 2007-08 and 2008-09). In addition to the list described above, the State must also, within 30 business days, provide documentation that it has a plan and a timeline in place for entering into agreements on the use of Title II, Part A funds for the 2009-10 school year with any LEAs that may require them. Recommendation: The State should create written policy concerning the requirements of 2141(c), including what the agreements cover and the tracking of data and notification of LEAs, and should establish procedures for entering into written 2141(c) funding agreements. In addition, the State should provide technical assistance to all LEAs in understanding both the requirements and the consequences associated with the statute. The State should provide written guidance and technical assistance as soon as possible. Critical Element III.B.1: The SEA has a plan in place to ensure that poor and minority students are not taught at higher rates than other students by inexperienced, unqualified or out-of-field teachers. Citation: 1111(b)(8)(C) Finding: Though the State has a plan to ensure that poor and minority students are not taught at higher rates than other students by inexperienced, unqualified or out-of-field teachers, the State has not implemented this plan, nor is it measuring the progress or reporting on this plan. Further Action Required: Within 30 business days, the State must provide the Department with a written plan with specific procedures and a timeline that the State will implement to ensure that it will measure and publicly report on its progress in carrying out its plan to ensure that poor and minority children are not taught at higher rates than other children by inexperienced, unqualified or out-of-field teachers. The State must also provide the Department with evidence that it is taking this corrective action. Recommendation: The State should update officially, on a regular basis, its plan to ensure that poor and minority students are not taught at higher rates than other students by inexperienced, unqualified or out-of-field teachers. The State should ensure that it updates both its data and its strategies to reflect needs evidenced by the data. This will ensure that LEAs and the public have access to the most current information. Critical Element III.B.2: The SEA ensures that LEA plans include an assurance that through the implementation of various strategies, poor and minority students are not taught at higher rates than other students by inexperienced, unqualified or out-of-field teachers. Citation: 1112(c)(1)(L) Finding: The State does not require that LEA plans include an assurance that the LEA has effective strategies in place to ensure that poor and minority children are not taught at higher rates by inexperienced, unqualified or out-of-field teachers. In addition, the State does not monitor to ensure that LEAs have such successful strategies in place. Further Action Required: Within 30 business days, the State must submit to the Department a timeline detailing how the State will ensure that LEA plans include the required assurance. The State must also provide a written plan to ensure that these assurances from LEAs are backed up by appropriate activities and strategies. Area IV: Administration of Title II, Part A Critical Element IV.B.4: The SEA regularly and systematically monitors LEAs for compliance with Federal statutes and regulations, applicable State rules and policies, and the approved sub grantee application, as required by EDGAR 76.770 and 80.40(a). Citation: EDGAR 76.770 and 80.40(a) Finding: The State did not provide evidence that it regularly and systematically monitors LEAs for compliance with Federal statutes and regulations, applicable State rules and policies, the approved subgrantee application and the fiscal management of Federal funds. Further Action Required: Within 30 business days, the State must provide the Department with a written plan with specific procedures and a timeline that the State will implement to ensure that it regularly and systematically monitors LEAs for compliance, as required by statute. The State must also provide the Department with evidence that it is taking this corrective action. Area V: Title II, Part A State-Level Activities Critical Element V.1: The SEA ensures that state level activity funds are expended on allowable activities. Citation: 2113(c) Finding: The State could not provide detailed evidence or documentation to ensure that FY2007 state-level activity funds, all of which have been drawn down, were expended on allowable activities. Also, the State did not provide any information on the FY2008 state-level activity funds, either in regard to what has been obligated or the allowability of any obligations. Further Action Required: Within 30 business days, the State must submit documentation describing allowable activities that were provided using FY2007 and FY2008 state-level activity funds. The State must also provide the Department with a written plan with specific procedures and a timeline that the State will implement to ensure that all State-level activity funds will be tracked and spent on allowable activities. Critical Element V.3: The SEA complies with requirements with regards to services to eligible nonpublic schools using State-level activity funds. Citation: 9501 Finding: The State could provide no evidence indicating that it is complying with requirements with regard to providing equitable services to eligible nonpublic schools using State-level activity funds. Further Action Required: Within 30 business days, the State must submit to the Department evidence of services that were provided to eligible nonpublic schools using state-level activity funds for FY2007 and FY2008. Also, the State must provide a written plan with specific procedures and a timeline detailing how it will ensure compliance with requirements with regard to services to eligible nonpublic schools using state-level activity funds. State Agency for Higher Education Critical Element 2: The SAHE works in conjunction with the SEA (if the two are separate agencies) in awarding the grants. Citation: 2132(a) Finding: The SAHE did not provide evidence that it works in conjunction with the State in awarding the grants. Further Action Required: Within 30 business days, the SAHE must submit to the Department a plan and a timeline detailing how it will ensure compliance with requirements with regard to working in conjunction with the State in awarding the grants. Critical Element 6: The SAHE regularly and systematically monitors grantees for compliance with Federal statutes and regulations, applicable State rules and policies, and the approved subgrantee application, as required by EDGAR 76.770 and 80.40(a). Citation: EDGAR 76.770 and 80.40(a) Finding: The SAHE did not provide evidence that it regularly and systematically monitors grantees for compliance with Federal statutes and regulations, applicable State rules and policies and the approved subgrantee application. Further Action Required: Within 30 business days, the SAHE must submit to the Department a plan and a timeline to ensure that the SAHE will monitor all grantees for compliance, as required by statute. The SAHE must also provide the Department with evidence that it is taking this corrective action.  FY 2007 funds are those that became available to the State on July 1, 2007.  FY 2008 funds are those that became available to the State on July 1, 2008.     PAGE 10 PAGE 13 October 5, 2009 FJZ^opqxy    Y D Q  < = > h i j k ֺֺȳ~zhhV> h'5 hh3h3 hV>h3 hV>hV> h&5 hV>5 h^5hS+ h^5\ h<65CJ hS+5CJ h^5CJ h&5CJ hV>5CJ h^CJh^OJQJh OJQJh,P h^6h^0]^pq Y  E  = > gdV>gd3 ] gdV>$a$A> j k  , E ` a K 0Bz$$ 6$gd,4  6$gd,4 udh^`u u^`u !h^h & F   $ ' , ? 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