Compliance Agreement, 30688-30709 [E8-11852]

Agencies

• DEPARTMENT OF EDUCATION
• Part III

[Federal Register Volume 73, Number 103 (Wednesday, May 28, 2008)]
[Notices]
[Pages 30688-30709]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-11852]



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Part III





Department of Education





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Compliance Agreement; Notice

Federal Register / Vol. 73, No. 103 / Wednesday, May 28, 2008 / 
Notices

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DEPARTMENT OF EDUCATION


Compliance Agreement

AGENCY: Department of Education.

ACTION: Notice of written findings and compliance agreement with the 
Commonwealth of Puerto Rico and the Puerto Rico Department of 
Education.

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SUMMARY: This notice is being published in the Federal Register 
consistent with section 457(b)(2) of the General Education Provisions 
Act (GEPA). Section 457 of GEPA authorizes the U.S. Department of 
Education (the Department) to enter into a compliance agreement with a 
recipient that is failing to comply substantially with Federal program 
requirements, and for whom the Department determines that full 
compliance is not feasible until a future date. Section 457(b)(2) 
requires the Department to publish written findings leading to a 
compliance agreement, with a copy of the compliance agreement, in the 
Federal Register. If a recipient fails to comply with the terms and 
conditions of a compliance agreement, the Secretary may take any action 
authorized by law with respect to the recipient.
    On December 17, 2007, the Department entered into a three-year 
compliance agreement (the Agreement) with the Commonwealth of Puerto 
Rico (Puerto Rico) and the Puerto Rico Department of Education (PRDE) 
because PRDE was failing to comply substantially with numerous Federal 
education program requirements, and it was clear to the Department from 
all available information that PRDE would not be able to come into full 
compliance with applicable Federal requirements for the administration 
of Department programs until a future date.
    PRDE receives grant funds under a number of programs administered 
by the Department, including programs authorized under Titles I, II, 
and IV of the Elementary and Secondary Education Act of 1965, as 
amended by the No Child Left Behind Act of 2001 (ESEA), Title IV of the 
Higher Education Act of 1965, as amended (HEA), and the Individuals 
with Disabilities Education Act (IDEA). As a result of program 
monitoring and audits, the Department has identified numerous program 
areas requiring corrective action by PRDE. Specifically, the Agreement 
applies to grant funds awarded to Puerto Rico and PRDE by the 
Department under Titles I, II, and IV of ESEA, Title IV of HEA, and 
IDEA. The purpose of the Agreement is to improve education for the 
students of Puerto Rico by bringing Puerto Rico and PRDE into full 
compliance with the Department's program requirements.

FOR FURTHER INFORMATION CONTACT: Mr. Phil Maestri, U.S. Department of 
Education, Office of the Secretary, 400 Maryland Avenue, SW., room 
7E206, Washington, DC 20202-6132. Telephone: (202) 205-3511.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Relay Service (FRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: In recent years, PRDE has been putting forth 
efforts and working, with technical assistance provided by the 
Department, to make important changes to improve education services to 
Puerto Rico's students in accordance with special conditions the 
Department has imposed on PRDE's grants. These efforts were part of an 
initiative undertaken in 2003 between PRDE and the Department, under 
the Department's Cooperative Audit Resolution and Oversight Initiative 
(CAROI), and under a compliance agreement entered into by the 
Department and PRDE in October 2004 (October 2004 Compliance Agreement) 
(see 72 FR 60186-99).
    The October 2004 Compliance Agreement primarily addressed systemic 
problems in PRDE's program administration and management of Federal 
education funds in areas such as grants management, payroll, financial 
management, property management and procurement. The Department 
identified these systemic problems through numerous audits of PRDE that 
it conducted beginning in 1994. Subsequently, in the process of 
monitoring PRDE's implementation of various Department programs, the 
Department identified significant programmatic issues under a number of 
PRDE's education programs, including programs authorized under Titles 
I, II, and IV of ESEA, Title IV of HEA, and IDEA. The Department 
determined that these significant programmatic issues rose to the level 
of programmatic non-compliance by PRDE.
    In accordance with the requirements of section 457(b) of GEPA, 20 
U.S.C 1234f(b), on October 26, 2007, Department officials conducted a 
public hearing in Puerto Rico to assess whether a compliance agreement 
with Puerto Rico and PRDE addressing the numerous areas of programmatic 
non-compliance might be appropriate. Witnesses representing PRDE and 
other concerned individuals testified at this hearing. The Department 
considered the testimony provided at the October 2007 public hearing 
and all other relevant information and materials and concluded that 
PRDE would not be able to correct the areas of programmatic non-
compliance immediately and would need more than one year to correct the 
identified programmatic deficiencies.
    Therefore, the Department, Puerto Rico and PRDE entered into a 
comprehensive compliance agreement with a three-year term. The 
Agreement, which incorporates and reflects the Department's written 
findings based on the hearing testimony and other relevant information 
and materials, gives PRDE three years to develop effective, long-term 
solutions to problems in the performance and administration of its 
Department programs. Under the terms of the Agreement, by the end of 
the three-year term of the Agreement, PRDE must be in full compliance 
with the requirements of all programs funded by the Department.
    As required by section 457(b)(2) of GEPA, 20 U.S.C. 1234f(b)(2), 
the Agreement (which incorporates the Department's written findings in 
the section entitled ``Overview of Issues Addressed by this Compliance 
Agreement'') is set forth as Appendix A of this notice.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
https://www.ed.gov/news/fedregister.
    To use PDF you must have the Adobe Acrobat Reader , which is 
available free at this site. If you have questions about using PDF, 
call the U.S. Government Printing Office (GPO), toll free, at 1-888-
293-6498; or in the Washington, DC area at (202) 512-1530.

    Note: The official version of a document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: https://www.gpoaccess.gov/
nara/.

 [FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
    DATE][NOTICES][NOTICE][PREAMB][AGENCY]*[/AGENCY][SUBJECT]*[/SUBJECT]
(Authority: 20 U.S.C. 1234c, 1234f)


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    Dated: May 16, 2008.
David Dunn,
Chief of Staff for the Office of the Secretary.

Appendix A--Compliance Agreement Among the Commonwealth of Puerto Rico, 
the Puerto Rico Department of Education, and the United States 
Department of Education, December 17, 2007

I. Overview

Purpose of and Issues Addressed By This Compliance Agreement

    The purpose of this Agreement is to improve education for the 
students of Puerto Rico by bringing the Commonwealth of Puerto Rico 
(Puerto Rico) and the Puerto Rico Department of Education (PRDE) into 
full compliance with program requirements of the U.S. Department of 
Education (the Department) (Puerto Rico, PRDE, and the Department shall 
hereafter collectively be referred to as ``the Parties''). The 
Department awards grants to PRDE under a number of Federal education 
programs. As a result of program monitoring and audits, the Department 
has identified several program areas requiring corrective action by 
PRDE. The programs under which PRDE receives funds from the Department 
and in which corrective action is necessary, include Titles I, II, and 
IV of the Elementary and Secondary Education Act (ESEA), Title IV of 
the Higher Education Act of 1965, and the Individuals with Disabilities 
Education Act (IDEA) (hereafter ``covered Federal programs'').
    In recent years, PRDE has been putting forth efforts to make 
important changes to improve education services to Puerto Rico's 
students in accordance with special conditions imposed by the 
Department on PRDE's grants, with technical assistance provided by the 
Department. These efforts were part of an initiative undertaken in 2003 
between PRDE and the Department, under the Department's Cooperative 
Audit Resolution and Oversight Initiative (CAROI), and under a 
Compliance Agreement entered into by the Department and PRDE in October 
2004. The October 2004 Compliance Agreement primarily addressed 
systemic problems in PRDE's program administration and management of 
Federal education funds. Those problems were uncovered and identified 
by numerous audits of PRDE beginning in 1994.
    With regard to the more recent program compliance issues uncovered 
by the Department's monitoring of PRDE's Federal programs, it appears 
that it will take more than one year for PRDE to completely address 
those programmatic issues. It will also take more than one year to 
establish the continued cooperation of other parts of the Puerto Rico 
government in this effort, such as the Puerto Rico Department of the 
Treasury (Hacienda) and PRDE's Office of Management and Budget. 
Therefore, under the authority of section 457 of the General Education 
Provisions Act (GEPA), the Department is entering into this 
comprehensive, three-year Compliance Agreement (Agreement) with Puerto 
Rico and PRDE.
    Through this Agreement, Puerto Rico and PRDE, with technical 
assistance from the Department, agree to develop and implement 
solutions to PRDE's program performance and program implementation 
problems. These programmatic issues are being carefully examined and 
addressed from the perspective of PRDE and other Puerto Rico agencies 
with management responsibility for resources or programs that have an 
impact on education in Puerto Rico and on PRDE's administration of 
Federal education funds. Whatever the solutions Puerto Rico and PRDE 
have chosen to implement, as reflected in this Agreement, Puerto Rico 
and PRDE must ensure that their goal is to achieve the best educational 
systems possible for the students of Puerto Rico.
    This Agreement is also intended to ensure an effective planning and 
evaluation process throughout PRDE's programs and initiatives. Planning 
and evaluation processes are the basis for determining program goals, 
current status, improvement needs, budgets, resources, effectiveness of 
results, and other important aspects of effective program management. 
Through this Agreement, Puerto Rico and PRDE will improve program 
planning and evaluation for education programs and use the plans and 
evaluation results to drive management and resource decisions.
    This Agreement will allow PRDE time to develop and implement 
significant changes and improvements necessary to address the 
deficiencies that the Department has identified in PRDE's 
implementation of the covered Federal programs and to come into full 
compliance with identified Federal program requirements. At the end of 
this three-year period, PRDE must be in full compliance with all 
applicable program requirements in order to continue to receive Federal 
education funds under these programs.

Incorporation By Reference of Corrective Action Plans

    This Agreement lists specific tasks, goals, completion dates, and 
persons and offices responsible for carrying out specific tasks for 
each program area. Corrective Action Plans for each program area will 
contain action steps and sub-steps, measurable objectives, and detailed 
corresponding timelines. Under the terms of the Corrective Action 
Plans, PRDE and identified persons and offices will be responsible for 
addressing the underlying problems to be resolved by Puerto Rico's 
compliance with each task, goal, and action step. PRDE will submit a 
draft of each Corrective Action Plan to the Department by February 1, 
2008. The Department will respond to PRDE's drafts by February 20, 
2008. Following consultations and discussions, the plans will be 
completed by the Parties by March 15, 2008 and are incorporated into 
this Agreement by reference. The Corrective Action Plan for ESEA, Title 
I, Standards and Assessments, is complete and is incorporated by 
reference into this Agreement at its signing as Attachment A. 
Hereinafter, each reference in this Agreement to the ``Agreement,'' is 
intended to include the Corrective Action Plans. Failure by PRDE to 
come to agreement with the Department on specific Corrective Action 
Plans for each of the program areas covered in this Agreement will 
render each such section of this Agreement null and void.

Review of Progress

    The Department will review Puerto Rico's and PRDE's progress in 
meeting the terms of this Agreement by assessing how well Puerto Rico 
and PRDE design and implement solutions to the programmatic compliance 
issues in the covered Federal programs that are addressed below, by the 
demonstrated communication, cooperation, and organizational changes 
undertaken by Puerto Rico, PRDE, and other Puerto Rico agencies with 
management responsibility for Federal education funds, and by assessing 
Puerto Rico's and PRDE's completion of specific agreed-upon corrective 
action steps. The approaches adopted by Puerto Rico and PRDE should 
include effective planning and evaluation of resource and management 
decisions that are designed to result in compliance with all 
programmatic requirements by the end of the period covered by this 
Agreement, and to produce better educational results for Puerto Rico 
students.

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    In making the changes required to meet the terms of this Agreement, 
it is important to understand that the Agreement is not only designed 
to bring about compliance with Federal programmatic requirements but to 
improve education for the students of Puerto Rico. The Department, 
Puerto Rico, and PRDE will judge the success of this Agreement by: 
determining whether PRDE has met all the terms of this Agreement, 
assessing whether PRDE is in compliance with all Federal programmatic 
requirements identified below, and determining how successful Puerto 
Rico has been overall in improving its educational programs.

II. Consequences of Not Meeting the Terms and Conditions of This 
Agreement

    There will be consequences should PRDE and Puerto Rico fail to meet 
the terms of this Agreement. Among possible consequences are:

A. Designation of PRDE as a ``High-Risk'' Grantee Under 34 CFR 80.12

    If, during the period covered by this Agreement, PRDE and Puerto 
Rico fail to demonstrate that they are making reasonable progress 
toward meeting the terms of this Agreement, or fail to demonstrate an 
active, good faith commitment to meeting the terms of this Agreement, 
the Department may exercise its authority to designate PRDE a ``high-
risk'' grantee. In addition, if, at the termination of this Agreement, 
PRDE has failed to come into compliance with the education program 
requirements addressed in this Agreement, the Department may exercise 
its authority to designate PRDE a ``high-risk'' grantee.
    As is addressed more fully below, if the Department chooses to 
designate PRDE as a ``high-risk'' grantee, additional special 
conditions or restrictions may include, but will not necessarily be 
limited to: (1) Payment of Federal funds on a reimbursement basis; (2) 
withholding the authority to proceed to the next phase of a program 
until receipt of evidence of acceptable performance within a given 
funding period; (3) requiring PRDE to submit to the Department 
additional, more detailed financial reports than those already being 
submitted in one or more programs; (4) requiring additional project 
monitoring; (5) requiring PRDE to obtain technical or management 
assistance, including the designation of a third-party fiduciary to 
administer all or part of PRDE's grants from the Department; or (6) 
establishing additional prior approvals. The use of a condition for one 
covered Federal program does not require or preclude its use for a 
different covered Federal program.
    In the event that the Department decides to designate PRDE as a 
``high-risk'' grantee, it would notify PRDE as early as possible, in 
writing, of the: (1) Nature of additional special conditions and 
restrictions; (2) reason(s) for imposing them; (3) corrective actions 
that must be taken before special conditions will be removed and time 
allowed for completing any additional corrective actions; and (4) 
method of requesting reconsideration of conditions and restrictions 
imposed.

B. Reimbursement Grant Payments

    For one or more covered Federal programs, the Department may decide 
to place PRDE on a cost reimbursement method of payment rather than on 
an advance payment method of payment. Cost reimbursement would require 
PRDE to submit to the Department receipts and other documentation 
necessary to support all PRDE program expenditures and the Department 
would release Federal program funds to PRDE only after approving each 
of PRDE's expenditures as allowable costs.

C. Requiring PRDE To Contract With a Third-Party Fiduciary To Oversee 
PRDE's Education Program Administration

    If, during the period covered by this Agreement, PRDE and Puerto 
Rico fail to demonstrate reasonable progress toward meeting the terms 
of this Agreement, fail to demonstrate an active, good faith commitment 
to meeting the terms of this Agreement, or fail to meet a significant 
term in this Agreement, the Department may place an appropriate amount 
of Puerto Rico's or PRDE's grant funds into an interest bearing escrow 
account to fund the duties of a third-party fiduciary agent and require 
PRDE and Puerto Rico to enter into a contract with a third-party 
fiduciary agent to assist PRDE and Puerto Rico with the administration 
of its Federal education grant programs.

D. Requiring PRDE To Operate One or More Programs Under the Terms of a 
Cooperative Agreement With the Department

    If, during the period covered by this Agreement, PRDE and Puerto 
Rico fail to demonstrate reasonable progress toward meeting the terms 
of this Agreement, fail to demonstrate an active, good faith commitment 
to meeting the terms of this Agreement, or fail to meet a significant 
term in this Agreement, under authority of the Federal Grant and 
Cooperative Agreement Act of 1977 (31 U.S.C. 6301-6308), the Department 
may determine that substantial involvement by the Department in PRDE's 
program grant administration is necessary in one or more covered 
Federal programs and award one or more education grants to PRDE under 
the terms of corresponding Cooperative Agreements, in lieu of issuing 
grant award notifications. If determined by the Department to be 
necessary, one or more Cooperative Agreements between the Department 
and PRDE will be drafted and their terms applied to the management of 
one or more projects, after which the Department will provide education 
program assistance to PRDE with the Department having substantial 
direct involvement in the management of the affected program 
project(s).
    Specifically, if the Department chooses to require PRDE to 
administer one or more of its covered Federal programs under the terms 
of a Cooperative Agreement, the relationship between the Department and 
PRDE will be characterized as follows:
    (1) The Department will halt a PRDE program activity immediately, 
if detailed performance specifications or requirements are not met;
    (2) The Department will review and approve one stage of work before 
PRDE can begin a subsequent stage during the period covered by the 
award;
    (3) The Department will review substantive provisions of PRDE's 
proposed contracts;
    (4) The Department will be directly involved in the selection of 
key PRDE personnel;
    (5) The Department will collaborate with PRDE or participate 
jointly with PRDE in program activities;
    (6) The Department will undertake monitoring that permits it to 
direct or redirect specific program work or activities, for example, 
because of interrelationships with other projects;
    (7) The Department will have substantial and direct operational 
involvement and participation in anticipated or planned projects, 
before an award is made, to ensure compliance with statutory 
requirements;
    (8) The Department will generally participate closely with PRDE in 
program administration in such a way as to exceed what is normally 
undertaken to comply with general statutory requirements that are a 
condition of every award; and
    (9) The Department will establish highly prescriptive requirements 
before an award is made, so as to limit PRDE's discretion with respect 
to the scope of services offered, organizational

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structure, staffing, mode of operations and other management processes.

E. Withholding, Termination, or Suspension of Grant Funds--20 U.S.C. 
1234c(a)(1), 1234d, and 1416

    If the Department finds, after reasonable notice and after 
providing PRDE and Puerto Rico with an opportunity for a hearing, that 
PRDE has failed to comply with a requirement of law, including with 
those program requirements specifically identified and discussed in 
this Agreement, the Department may, after notifying Puerto Rico or 
PRDE, withhold future grant payments in whole or in part, or terminate 
one or more of PRDE's grants. The Department may limit withholding to a 
particular Federal grant or part of a grant.

F. Recovery of Funds Under Authority of 20 U.S.C. 1234a

    Any program funds improperly expended by PRDE or not properly 
accounted for by PRDE will be subject to recovery by the Department 
under authority of 20 U.S.C. Sec.  1234a.

G. Judicial Enforcement

1. Cease and Desist Order Under 20 U.S.C. 1234c(a)(2) and 1234e
    The Department may seek injunctive relief to compel specific 
actions or to stop specific actions. Under this process, the Department 
issues a complaint to Puerto Rico or PRDE, describing the factual and 
legal basis for the Department's belief that Puerto Rico or PRDE is 
failing to comply with a requirement of law, including this Agreement, 
and containing a notice of hearing. A hearing before an Administrative 
Law Judge (ALJ) could then occur. The ALJ's report and order, requiring 
Puerto Rico or PRDE to stop specific actions or compelling specific 
actions, becomes the final agency decision. The Department may enforce 
the final order by withholding any portion of Puerto Rico's or PRDE's 
grant award or certifying the facts to the U.S. Attorney General who 
may bring an appropriate action for enforcement of the order.
2. Referral to the U.S. Department of Justice for Appropriate 
Enforcement--20 U.S.C. 1416
    If the Department finds that Puerto Rico or PRDE has failed to 
comply with any provision of applicable Federal laws (with regard to 
the programs to which 20 U.S.C. 1416 applies) (including with the terms 
and timelines of this Agreement), the Department may, after notifying 
Puerto Rico or PRDE, refer the matter for an appropriate enforcement 
action, which may include referral to the U.S. Department of Justice.

III. Mutual Agreements and Understandings Regarding the Terms, 
Conditions, and Enforcement of This Compliance Agreement

Presentation of Documents, Reports, and Other Materials in English

    PRDE will submit all documentation, reports, summaries, updates, or 
other materials to the Department under the terms of this Agreement, to 
demonstrate progress toward compliance with the terms of this 
Agreement, in English. In the case of original supporting documents 
written in Spanish, PRDE will, to the extent reasonable and as mutually 
agreed upon by the Parties, provide such documents to the Department 
accompanied by translations from Spanish to English that are attested 
to by PRDE.

Criteria for Determining Compliance and Consequences of Non-Compliance

    Puerto Rico or PRDE will provide the Department with progress 
reports--as required in Section IV below--for the action steps set 
forth in this Agreement. Puerto Rico, PRDE, and the Department agree 
that a failure to: (1) Provide all required reports in a timely manner, 
(2) show progress in completing action steps, as required by this 
Agreement, (3) complete action steps within the timeframes designated 
in this Agreement, or (4) achieve critical measurable objectives as 
specified in the Corrective Action Plans incorporated into this 
Agreement, will be considered a failure to meet the terms and 
conditions of this Agreement.

Severability

    The Parties agree that this Agreement includes terms and conditions 
that apply to the various Federal programs included in the Agreement. 
To that end, the Parties agree that each such term and condition for 
each covered Federal program may constitute a separate agreement among 
Puerto Rico, PRDE, and the Department. For purposes of 20 U.S.C. 1234f, 
each such term or condition as to each covered Federal program shall be 
severable from each other term or condition for each of the covered 
Federal programs. Unless set out otherwise, a determination by the 
Department under 20 U.S.C. 1234f (d) that Puerto Rico or PRDE is not 
meeting terms and conditions may be specific to such term, condition, 
or program without impacting Puerto Rico's or PRDE's continuing 
obligations under this Agreement. That is, all other terms and 
conditions for all covered Federal programs or the specific term or 
condition for other covered Federal programs would remain in place for 
the duration of the Agreement, or until such time as the Department 
were to determine that Puerto Rico or PRDE had failed to meet those 
terms and conditions.
    Alternatively, the Parties understand and agree that a 
determination by the Department under 20 U.S.C. 1234f(d) that Puerto 
Rico or PRDE has failed to meet any of the terms and conditions shall, 
at the Department's discretion, be grounds for finding the Agreement, 
as to such terms and conditions, no longer in effect and that the 
Department may take any and all additional actions authorized by law. 
At the same time, if Puerto Rico or PRDE fails to meet the terms and 
conditions of this Agreement, the Department may terminate the entire 
Agreement, and may take any and all actions authorized by law. Some 
examples of such actions are set forth above.

Fraudulent Activity

    In the event that fraudulent activity in the administration of 
Federal education funds in Puerto Rico is uncovered in one or more 
programs--by an independent audit, PRDE's Internal Audit Office, the 
Department's Office of Inspector General, a Department program review 
team, a Department monitoring team, or by any other party--the terms of 
this Agreement pertaining to the affected program may be deemed null 
and void. In addition, in the event that such fraudulent activity is 
uncovered, following written notice to PRDE, the Department will take 
whatever actions it deems appropriate, including withholding Federal 
funds for the affected program.

IV. Reporting Requirements

    Under this Agreement, PRDE agrees to submit regular progress 
reports covering all program and performance issues. Generally, and 
unless the Department requires more frequent reporting, Puerto Rico and 
PRDE must provide the Department with progress reports on a quarterly 
basis.
    PRDE's submission of each written report will be preceded by a 
meeting or conference call among representatives of Puerto Rico (which 
may include representatives of the Puerto Rico agencies mentioned in 
Section I above), PRDE, and the Department, within five business days 
(according to PRDE's business calendar) of the end of the quarter, to 
discuss Puerto Rico's and PRDE's progress and the level of detail the 
Department wants Puerto Rico and PRDE to include in its written 
quarterly

[[Page 30692]]

report that will be submitted within fifteen business days (according 
to PRDE's business calendar) of the call or meeting. The Parties may 
modify this schedule by mutual agreement.
    Subject to the meeting or call above, in general, each quarterly 
report will include information such as: (1) A description of 
activities and progress for each task and its related sub-tasks during 
the reporting period, (2) the status of each critical action step 
required to be taken during the reporting period, (3) detailed 
documentation of critical action step completion for those steps 
required to be completed during the reporting period (including 
explanations of delays for all steps not completed that were scheduled 
to be completed during the period, and expected completion dates for 
all unimplemented steps), (4) documentation of measures of performance 
and results, and (5) other data or documentation as specified within 
the action steps for each task or related sub-task in this Agreement, 
and/or discussed in the pre-report meeting among the Department, Puerto 
Rico, and PRDE.
    Per discussions with the Department, Puerto Rico and PRDE will 
transmit reporting information to the Department via e-mail and/or an 
Internet web site. If transmittal of the reporting information is not 
possible via a website, Puerto Rico and PRDE will continue to be 
responsible for tracking, monitoring, and reporting progress on all 
requirements and milestones in this Agreement, in English and in a 
manner that is fully accessible to the Department and the public. 
Reporting information will be updated continuously, but in any event, 
on a quarterly basis, no later than within fifteen business days 
(according to PRDE's business calendar) from the day of the call or 
meeting among the Department, Puerto Rico, and PRDE, specifying the 
specific reporting required for that quarterly period. These reports 
also will fulfill the reporting requirements required under PRDE's 
special conditions that are currently in effect, or as modified.
    The first quarterly period will encompass the time from which the 
Parties sign this Agreement through March 31, 2008. Within the first 
forty-five days of the signing of this Agreement, the Department will 
work with PRDE to agree on a more rigorous reporting schedule for 
reporting progress during the first six months following the signing of 
this Agreement (the early implementation phase of this Agreement).

V. Independent Internal Audit Office and Audit Committee

    PRDE commits to full implementation of its Internal Audit Office 
(IAO) and its Audit Oversight Committee (the Committee) in accordance 
with the terms of the IAO and Committee charters. Both signed charters 
are attached to this Agreement and are hereby incorporated by reference 
as Attachment B. Therefore, under the terms of this Agreement, PRDE 
commits to an IAO that is fully independent, staffed, and trained.

VI. Corrective Action Plans, Action Steps, and Timelines

Corrective Action Plans

    With the exception of the Title I, Standards and Assessments 
Corrective Action Plan, which is attached and incorporated into this 
Agreement at the signing as Attachment A, Corrective Action Plans, that 
address each area of noncompliance are to be completed and incorporated 
into this Agreement by March 15, 2008. The Corrective Action Plans will 
either address specifically the action steps and timelines that are 
included in the task descriptions in this Agreement, or the Corrective 
Action Plans will delineate one or more alternative approaches that 
will be used to bring PRDE and Puerto Rico into compliance with 
Department requirements. Alternative approaches may include: (1) 
Consolidating administrative funds under Sec. Sec.  9201 and 9203 of 
the ESEA; (2) Utilizing Federal funds to establish and operate a 
Statewide system of intensive and sustained support and improvement 
(Statewide system of support, Sec.  1117 of the ESEA) for schools 
funded under Title I, ESEA including schoolwide programs under Sec.  
1114 of Title I, (3) Transferring funds, under Sec. Sec.  6121-6123 of 
the ESEA, (4) Contracting for technical assistance services from a 
qualified and experienced third-party providers and receiving services 
from the Florida and the Islands Regional Comprehensive Center (FLICC); 
and/or (5) Contracting for specific services under one or more of the 
covered Federal programs.

Schoolwide Programs

    Under Sec.  1114 of Title I of the ESEA, the Department authorizes 
schools with concentrations of poverty of at least 40 percent, to use 
Title I funds, along with other Federal, State, and local funds, to 
operate a schoolwide program that upgrades the entire education program 
in the school to improve the academic performance of all students, but 
especially the lowest achieving students. To operate a schoolwide 
program, a school must conduct a comprehensive needs assessment of the 
entire school and, using data from the needs assessment, develop a 
comprehensive plan that meets the requirements of Sec.  1114(b) of the 
Title I of the ESEA and Sec.  200.27 of the Title I regulations. In 
operating a schoolwide program, a school may consolidate funds from 
Federal, State, and local sources into one ``pool'' of funds and is not 
required to account for those funds separately, provided that the 
school meets the intent and purposes of the programs included in the 
consolidation. This differs from a Title I ``targeted assistance'' 
program, where Title I funds may be used only for supplementary support 
services for specific students identified as being most at risk of not 
meeting State standards.
    Under Sec.  1114, Federal, State, and local funds, may be combined 
so that PRDE would operate Federal education programs with greater 
flexibility, improve its entire educational program, and improve the 
academic achievement of all Puerto Rico students. A Schoolwide program 
differs from a Title I, Part A ``targeted assistance'' program, where 
Title I funds may be used only for supplementary support services for 
targeted students identified as being most at risk of not meeting State 
standards.
    As part of the Corrective Action Plan, PRDE agrees to report to the 
Department with regard to which funds have been consolidated into 
PRDE's schoolwide programs, including funds awarded under Title I of 
ESEA, and how PRDE is undertaking a comprehensive reform strategy to 
improve the academic achievement of all students in each eligible 
Puerto Rico school, particularly the lowest achieving students. In 
addition, PRDE and the Department may determine that they should 
consider additional ways for improving the operation of schoolwide 
programs, including alternative arrangements for the management and 
operations of schoolwide programs in Puerto Rico, such as management at 
the regional level and operation at the school level.

Continuous and Meaningful Reassessment of Compliance Status

    The Department, with PRDE and Puerto Rico, will continuously 
reassess the action steps and timelines in this Agreement and in the 
various Corrective Action Plans to determine whether: (1) The action 
steps fully meet the requirements of this Agreement, (2) the action 
steps will move Puerto Rico and PRDE toward achieving required 
measurable objectives, and ultimately,

[[Page 30693]]

full programmatic compliance within three years, and (3) the timelines' 
need to be modified within the time boundaries set forth in this 
Agreement.

Additional Areas To Be Covered by Corrective Action Plans

    The Corrective Action Plans for which Puerto Rico and PRDE will be 
accountable are critical to PRDE and Puerto Rico's compliance with each 
task and sub-task in this Agreement. Once Puerto Rico and PRDE develop 
Corrective Action Plans that address each task or sub-task in this 
Agreement, or that are based on an alternative approach for addressing 
compliance, and the Department agrees to the revised Corrective Action 
Plans, the action steps and timelines in the Corrective Action Plans 
will become additional requirements of this Agreement and will be 
subject to the reporting requirements and consequences for not meeting 
terms and conditions as set forth in this Agreement. The Department 
will assist by consulting with Puerto Rico and PRDE to develop reports 
or reporting formats that satisfy the reporting requirements set forth 
in this Agreement. The Department will also assist Puerto Rico and 
PRDE, to the extent that resources are available, with training 
personnel and technical assistance.

VII. General Measurable Objectives

    Puerto Rico, PRDE, and the Department agree that the following 
measurable objectives apply for each task and sub-task contained in 
this Agreement and that will be in the Corrective Action Plans that are 
to be incorporated into this Agreement by March 15, 2008:
    1. PRDE plans, other documents, and reports are timely, provided to 
the Department in English, complete, accurate, and address the 
requirements set forth in this Agreement.
    2. PRDE implements action steps within the timeframes set forth in 
this Agreement and in the Corrective Action Plans to be developed.
    3. PRDE's implementation of sub-tasks and action steps demonstrates 
progress towards achieving the outcomes or measurable objectives set 
forth in this Agreement or in the Corrective Action Plans to be 
developed.
    The remainder of this Agreement provides task descriptions, goals, 
and action steps for the program areas in the covered Federal programs 
addressed in this Agreement. By signing this Agreement, Puerto Rico and 
PRDE commit to taking the necessary actions to be in full compliance, 
by the end of the three-year period covered by this Agreement, with the 
program requirements applicable to all Department grants for which 
Puerto Rico and PRDE expend funds and any other requirements set forth 
in this Agreement, unless the Department determines that an alternative 
approach to program compliance as delineated in one or more Corrective 
Action Plans is the approach by which PRDE can best serve the 
educational needs of its students, as provided for in Section VI of 
this Agreement. Puerto Rico and PRDE commit to full implementation of 
this Agreement, and in greater detail, of the action steps in the PRDE 
Corrective Action Plans that will be incorporated by reference into 
this Agreement.

VIII. Tasks

    Because the stated purpose of this Agreement is to improve 
education for the students of Puerto Rico, it is critical to the 
success of this Agreement that Puerto Rico and PRDE develop and refine 
long-term goals, assess the current status of each program receiving 
Federal assistance, and design coherent plans to bridge the gap between 
the current status of education in Puerto Rico and its goals of 
improving education and fully complying with all Federal program 
requirements.
    This ``Tasks'' section represents what the Parties have generally 
agreed to at the time of execution of this Agreement. With the 
exception of the Standards and Assessments Corrective Action Plan, some 
of the subtasks and steps set forth below may be modified by mutual 
consent of the Department, Puerto Rico, and PRDE, in the Corrective 
Action Plans that will be developed by March 15, 2008. If modifications 
are made to the subtasks and steps set forth below through the 
Corrective Action Plans, they will be incorporated by reference into 
this Agreement.

Title I, ESEA

Task 1.0: Title I--Standards and Assessments (Attachment A)

Overall Task Description
    Title I of the ESEA, as amended by the No Child Left Behind Act of 
2001 (NCLB), requires Puerto Rico and PRDE to develop content and 
performance standards and to develop and implement an appropriate 
assessment system. Puerto Rico and PRDE have failed to meet certain of 
the statutory and regulatory requirements in these areas.
    Specific action steps that PRDE must meet to come into compliance 
with the standards and assessment requirements of Title I have been 
articulated and are hereby attached and incorporated by reference into 
this Agreement. As with all other programmatic issues included in and 
addressed by this Agreement, Puerto Rico and PRDE must timely submit 
documentation concerning their compliance with the action steps 
regarding standards and assessments in accordance with Section IV of 
this Agreement.
    Responsible Offices/Persons: Carmen Ayuso, Janet De Jesus, Angel 
Canales.

Task 2.0: Title I--Improvement of Programmatic Performance

    Goal: Develop and implement procedures that ensure proper 
computation and allocation of programmatic fiscal requirements.
    Completion Date: July 31, 2009.
    Responsible Offices/Persons: Janet De Jesus, Carmen M. Rivera, Edna 
Ramos.
    Sub-Task 2.1: Title I Programmatic Fiscal Procedures--Formalize 
comparability procedures so they are standardized and consistent with 
Title I fiscal guidance provided by the Department.
    Completion Date: July 31, 2008.
    Sub-Task 2.2: Develop and implement procedures that ensure the 
proper allocation of reserved school improvement funds to schools in 
improvement, corrective action, or restructuring, through the following 
steps:
     Develop formal policies and procedures.
     Disseminate policies and procedures.
     Train relevant staff on policies and procedures.
     Monitor implementation of policies and procedures.
    Completion Date: July 31, 2009.

Task 3.0: Adequate Yearly Progress (AYP)

    Goal: To develop and implement an approved plan for the timely 
calculation of AYP, consistent with all statutory and regulatory 
requirements.
    Completion Date: August 1, 2008.
    Responsible Offices/Persons: Carmen Ayuso, Janet De Jesus, Angel 
Canales.
    Sub-Task 3.1: Establish the manner in which AYP will be calculated 
in a timely manner consistent with all statutory and regulatory 
requirements.
    Completion Date: August 1, 2008.
    Sub-Task 3.2: Train relevant PRDE staff in, and confirm their 
understanding of, the AYP requirements and the use of AYP to make 
school improvement decisions.
    Completion Date: August 1, 2008.

[[Page 30694]]

Task 4.0: Accountability Requirements

    Goal: To develop and implement a methodology by which PRDE will 
comply with all ESEA Title I accountability requirements.
    Completion Date: December 31, 2008 (unless otherwise agreed to in 
the Corrective Action Plan).
    Responsible Offices/Persons: Carmen Ayuso, Angel Canales, Janet De 
Jesus.
    Sub-Task 4.1: Make final determination as to what methodology PRDE 
will use to include small schools in the accountability system.
    Completion Date: June 30, 2010 (unless otherwise specified in the 
Corrective Action Plan).
    Responsible Offices/Persons: Carmen Ayuso, Angel Canales, Janet De 
Jesus.
    Sub-Task 4.2: Establish the manner in which the graduation rate 
will be calculated in accordance with statutory and regulatory 
requirements.
    Completion Date: December 31, 2008 (unless otherwise agreed to in 
the Corrective Action Plan).
    Responsible Offices/Persons: Carmen Ayuso, Angel Canales, Janet De 
Jesus
    Sub-Task 4.3: Develop and implement procedures that ensure PRDE's 
adherence to and compliance with all State and local report card 
requirements by:
     Including PPEA results and information on accommodations 
on separate forms.
     Including all ``Subgroup'' assessment information.
     Migrating all Highly Qualified Teacher (HQT) classroom 
level data from the data warehouse into the school report card.
     Developing State and local report card templates.
    Completion Date: December 22, 2008.
    Responsible Offices/Persons: Carmen Ayuso, Angel Canales, Janet De 
Jesus.
    Sub-Task 4.4: Establish specific procedures that will ensure that 
PRDE adheres to and complies with all Federal School Improvement and 
School Level Planning requirements and ensure the implementation of the 
required activities for schools in improvement, corrective action, 
restructuring, and alternative governance.
    Completion Date: June 30, 2008.
    Responsible Offices/Persons: Norma Mendez, Lisandra Fradera, 
Zoraida Mercado, Rafael Cruz, Angel Canales.
    Sub-Task 4.5: Assessments should be used for purposes for which 
such assessments are valid and reliable, and be consistent with 
relevant, nationally recognized professional and technical standards. 
AYP shall be defined by the State in a manner that is statistically 
valid and reliable. PRDE shall:
     Develop assessment quality control procedures to ensure 
that its assessment contractors are scoring assessments accurately 
using professionally recognized procedures and processes.
     Develop written procedures to address any failure of 
contractors to deliver assessment materials and results in a timely 
manner.
     Develop internal procedures for monitoring the accuracy of 
assessment data that it provides to the public and guidelines to ensure 
that all students are being assessed appropriately on an annual basis.
     Modify its appeals process for assessment and 
accountability to ensure that corrections are made well in advance of 
the beginning of the next school year by which the accurate data must 
be reported.
    Completion Date: May 2009 (unless otherwise specified in the 
Corrective Action Plan).
    Responsible Offices/Persons: Carmen Ayuso, Carmen Ramos, Angel 
Canales.
    Sub-Task 4.6: Implement all required components as identified in 
Puerto Rico's accountability workbook. PRDE shall:
     Develop a process with clear and objective guidelines to 
ensure that all schools, especially schools with enrollments that fall 
below the minimum sample size, are included in AYP decisions.
     Train appropriate staff on the business rules and policies 
used by PRDE in making AYP decisions.
     Review procedures for coding student test booklets so that 
the responsibility for coding information, such as whether the student 
has been enrolled for a full academic year, is not placed primarily in 
the hands of students, especially at the elementary level.
     Develop a timetable for reporting AYP determinations so 
that parents are aware of their children's school's status prior to the 
beginning of each school year.
    Completion Date: June 2010 (unless otherwise specified in the 
Corrective Action Plan).
    Responsible Offices/Persons: Carmen Ayuso, Carmen Ramos, Angel 
Canales, Janet De Jesus.
    Sub-Task 4.7: Publish an annual report card and an Annual Report to 
the Secretary. PRDE shall:
     Develop and publish its SEA/LEA and school report cards 
including all of the required NCLB reporting elements, as specified in 
section 1111(h) of ESEA.
     Provide to the Department templates, an updated timeline, 
and operational details for the report cards at each level.
    Completion Date: December 2008.
    Responsible Offices/Persons: Carmen Ayuso, Carmen Ramos, Angel 
Canales.
    Sub-Task 4.8: PRDE indicates how funds received under Grants for 
State Assessments and Related Activities (section 6111) will be or have 
been used to meet the 2005-06 and 2007-08 assessment requirements under 
NCLB.
     PRDE must provide the Department with a full accounting of 
how it has expended section 6111 State assessment funds for the last 
three Federal fiscal years.
    Completion Date: December 2008.
    Responsible Offices/Persons: Rafael Cruz, Carmen Ramos.

Task 5.0: Activities for Schools in Corrective Action, Improvement, 
Restructuring, and Alternative Governance

    Goal: To develop and implement an approved methodology for PRDE to 
come into full compliance with all program requirements.
    Completion Date: June 30, 2008.
    Responsible Offices/Persons: Norma Melendez, Lisandra Fradera, 
Zoraida Mercado, Rafael Cruz, Angel Canales.
    Sub-Task 5.1: Implement actions for schools in corrective action or 
restructuring at the end of the current school year based on the 
recommendations of District level staff (on a yearly basis before the 
beginning of the school year).
    Sub-Task 5.2: Develop and train school directors on necessary 
corrective actions for schools in corrective action or restructuring 
(on a yearly basis before the beginning of the school year).

Task 6.0: Public School Choice and Supplemental Educational Services

    Goal: To develop and implement procedures that ensure PRDE's 
adherence to all Federal requirements on Public School Choice.
    Completion date: June 30, 2008.
    Responsible Offices/Persons: Norma Melendez, Lisandra Fradera, 
Zoraida Mercado, Rafael Cruz, Angel Canales.
    PRDE will develop and implement procedures that ensure adherence to 
Federal requirements on Public School Choice through the following 
steps:
     Develop a fully functional Public School Choice Support 
and Administrative Structure.
     Implement Public School Choice for all schools in school 
improvement.
     Implement the administrative procedures to implement 
Public School Choice.
     Train school directors on Public School Choice 
requirements.

[[Page 30695]]

Task 7.0: Parental Involvement and Notification

    Goal: To develop and implement procedures that ensure the proper 
implementation of parental involvement and notification requirements 
under Title I.
    Completion Date: June 30, 2008.
    Responsible Offices/Persons: Norma Melendez, Lisandra Fradera, 
Rafael Cruz.
    PRDE will ensure compliance with requirements on parental 
involvement and notification, through the following steps:
     Train new school directors on new parental involvement 
policies.
     Verify that parental involvement meetings are held.
     Monitor PRDE to ensure that programs meet all parental 
involvement requirements.
     Send all required parental notifications to parents on a 
timely basis and in a manner consistent with statutory and regulatory 
requirements.

Task 8.0: Paraprofessional Qualifications

    Goal: To develop and implement procedures that ensure the proper 
implementation by PRDE of all Federal paraprofessional qualification 
requirements.
    Completion Date: June 30, 2008.
    Responsible Offices/Persons: Rafael Sifonte, Myrna Crespo, Norma 
Melendez.

Task 9.0: Even Start Family Literacy Program

    Goal: To develop and implement procedures that ensure that PRDE 
carries out required programs and activities under its Even Start 
Family Literacy Program grants, complies with fiscal requirements at 
the State and the local subgrant levels, and takes steps to prevent 
large amounts of Even Start grant funds from remaining unspent.
    Completion Date: December 31, 2008. (See interim completion dates 
following each of the steps below).
    Responsible Parties: Maria del Carmen Martinez, Myrna Rodriguez.
     PRDE will address the deficiencies in its Even Start 
program administration through the following steps:
     PRDE must provide a plan showing that an annual 
independent evaluation will be conducted of each local Even Start 
program, and include an analysis of data and recommendations for 
program improvement. [Interim completion date: June 2008.]
     PRDE must develop, submit to the Department, and implement 
a plan for Even Start projects to implement high-quality, intensive 
instructional programs, including evidence that it has provided 
training for Even Start staff to use high-quality instructional 
literacy materials for children and adults. [Interim completion date: 
December 2008.]
     PRDE must provide evidence that it has complied with the 
requirement in section 1233(a) of the ESEA for the 2006-2007 school 
year, which requires that it has not spent for administration more than 
50% of the Even Start funds it has reserved for State level activities. 
[Interim completion date: March 2008.]
     PRDE must provide evidence that all local Even Start 
projects are meeting the required matching requirement, and that 
indirect costs (unallowable) are not included as a matching 
contribution. [Interim completion date: March 2008.]
     PRDE must provide documentation demonstrating that it has 
notified local Even Start programs about maintenance of effort 
requirements in section 9521 of the ESEA, and that it includes Even 
Start projects in its implementation of the maintenance of effort 
requirements. [Interim completion date: March 2008.]
     PRDE must provide a plan for how it will spend its Even 
Start grant funds so that large amounts of past years' funds do not 
remain unspent. [Interim completion date: March 2008.]

Titles I & II, ESEA

Task 10.0: Highly Qualified Teachers (HQT)

    Goal: To develop and implement an approved plan for highly 
qualified teachers based on accurate and reliable school level data.
    Completion Date (unless otherwise specified below): June 30, 2008.
    Responsible Offices/Persons: Romanito Rod[racute]iguez, Richard 
Martinez, Clarimar Cruz.
    PRDE agrees to fully comply with all HQT requirements, through the 
following steps:
     Submit an approvable revised State HQT plan that meets all 
requirements in the ``Reviewing Revised State Plans'' rubric, which the 
Department provided to States to help them develop their plans and 
which the Department uses to evaluate State plans. The plan will be 
based on an analysis of complete, accurate classroom-level HQT data.
     Develop and submit procedures by which PRDE will meet the 
HQT requirements, and the requirements for public reporting, as 
required by the ESEA (Sec. Sec.  1111(h)(1)(C)(viii) and (h)(2)(B), and 
Sec.  1111(h)(6)(B)(ii)) of the ESEA, on all teachers who are not 
highly qualified and all classes not taught by highly qualified 
teachers.
     Include in the PRDE monitoring instruments, criteria for 
determining whether administrative districts and schools meet all of 
the requirements governing HQT, including paraprofessionals (Sec.  
1119(c)-(g) of the ESEA).
     Gather complete and accurate classroom level preliminary 
HQT data for the 2007-2008 school year by March 2008.
     By the date the Department establishes in December 2008, 
submit complete and accurate HQT data for the 2007-2008 year to the 
Department in Part 1 of PRDE's School Year 2007-2008 Consolidated State 
Performance Report (CSPR).
     On an annual basis, analyze classroom level HQT data to 
determine hiring and professional development needs.
     Implement an annual LEA-level needs assessment for 
professional development and hiring, as required in Sec.  2122(c) of 
the ESEA. The needs assessment will be completed annually as part of 
the process of planning the use of Title II, Part A funds, and before 
any Title II, Part A funds are obligated or expended.
     Develop an annual spending plan for the LEA Title II, Part 
A funds, to indicate how proposed spending addresses needs identified 
in the required needs assessment, as well as allowable uses of LEA 
funds described in Sec.  2123 of the ESEA.
     Develop an annual spending plan for SEA Title II, Part A 
funds that indicates how the proposed spending will be for allowable 
uses of SEA funds described in Sec.  2113 of the ESEA.
     As required in Sec.  9501 of the ESEA, consult, on an 
annual basis, with all eligible private schools that wish to 
participate in the Title II, Part A program and ensure that equitable 
services to private school staff are provided with Title II, Part A 
funds to address their professional development needs as identified by 
the private schools. Consultation should occur before the start of each 
school year and must be part of the process of planning the use of 
Title II, Part A funds, and before any Title II, Part A funds are 
obligated or expended.

Title IV, ESEA

Task 11.0: Safe and Drug Free Schools Discretionary and State Grants

    Goal: To develop and implement procedures for a Safe and Drug-Free 
Schools (SDFS) strategy that PRDE will administer effectively and that 
takes into account need and quality programming supported by

[[Page 30696]]

strengthened controls to ensure that Federal funds are spent in a 
timely manner and in full compliance with all applicable Federal 
requirements.
    Completion Date: June 1, 2008.
    Responsible Offices/Persons: Shirley Nunez, Anna Crespo, Regina 
Cibes.
    PRDE will implement the following steps that are designed to 
improve overall administration of the SDFS programs, including 
implementation of programs based on scientific research, and 
appropriate monitoring and internal controls to ensure that funds are 
used responsibly and in a manner consistent with all applicable 
statutory requirements and, among other things, ensure that large 
amounts of SDFS funds do not remain unspent:
     Fully implement the Principles of Effectiveness provided 
under Sec.  4115(a) of the ESEA.
     Target SDFS resources, based on a needs analysis, to 
activities specific to funding priorities and grant requirements.
     Develop and implement the Uniform Management Information 
and Reporting System (UMIRS) consistent with all statutory requirements 
based on framework developed by PRDE.
     Improve oversight and monitoring strategies for program 
requirements, as well as financial management and internal controls.

Task 12.0: Twenty-First Century Schools--After School Learning Centers 
(21st CCLC)

    Goal: To develop plans and procedures for spending, monitoring, and 
providing technical assistance.
    Completion Date: August 29, 2008 (unless an interim date is 
specified below).
    Responsible Offices/Persons: PRDE will develop and implement plans, 
procedures, and processes to ensure adherence to Federal requirements 
for the 21st CCLC program through the following steps:
     Develop, implement, and submit an annual spending plan 
that includes procedures on how funds will be drawn down and how State 
set-aside funds will be used to support the program. Interim date: 
February 15, 2008.
     Develop, implement, and submit an annual grant competition 
plan and schedule that outlines the activities that will be 
accomplished to ensure timely selection of providers.
     Design and implement a plan that describes the procedures 
and processes that will be used to evaluate and assess the quality of 
projects developed by providers.
     Create and implement a monitoring and technical assistance 
plan that includes strategies for improving oversight of, and 
monitoring for, program requirements, providing technical assistance to 
providers, and monitoring and administering financial management and 
internal controls.

Federal Student Assistance

Task 13.0: Title IV of the Higher Education Act (HEA)

    Goal: To develop and implement procedures to ensure compliance with 
Federal Student Assistance regulations requiring accounting on an 
accrual, rather than cash, basis.
    Completion Date: March 31, 2009 (unless otherwise specified in the 
Corrective Action Plan).
    Responsible Office/Person: Felipe Rosa.
    PRDE will ensure compliance with Department regulations at 34 CFR 
668.23(d), implementing Title IV of the HEA, that require all schools 
receiving funds under the HEA to submit financial statements prepared 
on an accrual basis, in accordance with U.S. Generally Accepted 
Accounting Principles (GAAP).

Byrd Scholarship Program

Task 14.0: Establish Effective Communication System To Administer Grant 
Funds

    Goal: To develop and implement an effective, ongoing system by 
which PRDE can communicate with Department staff in a timely manner to 
facilitate proper administration of Byrd Scholarship funds.
    Completion Date: March 31, 2008.
    Responsible Offices/Persons: Anna Crespo, Elaine Rosario.
    PRDE will address the deficiencies in its administration of Byrd 
Scholarship Program funds through the following steps:
     Immediately establish an English speaking contact who 
would have the authority over the program to respond to Department 
officials directly, and in a timely manner, to discuss the 
administration of the Byrd Scholarship Program, and to whom Department 
officials can send information about the program.
     Within thirty days, provide to the Department the Annual 
Performance Report (APR) on the newly approved form by the Office of 
Management and Budget, OMB Form 1840-0598, for the reporting 
period 2006 through 2007.
     Ensure that information about the Byrd Scholarship Program 
is distributed to eligible recipients in a timely manner by 
resubmitting the Participation Agreement for review and approval by the 
Byrd Program manager.

Individuals With Disabilities Education Act (IDEA)

Task 15.0: Submit All Required Program Data

    Goal: Provide all data required by the Office of Special Education 
Programs' June 15, 2007 State Performance Plan/Annual Performance 
Report (SPP/APR) response letter, and that will be required 
subsequently to be issued in June 2008, June 2009, and June 2010.
    Interim Completion Dates: February 1, 2008; February 1, 2009.
    Completion Date: February 1, 2010.
    Responsible Offices/Persons: Miriam Merced, Ada Hernandez.
    PRDE will address the deficiencies in its administration of Parts B 
and C of the IDEA, and will submit data and otherwise demonstrate its 
compliance with requirements of the IDEA by demonstrating that:
     PRDE develops individualized education programs (IEPs) for 
all children transitioning from Part C to Part B of the IDEA, and 
provides special education and related services by each child's third 
birthday.
     PRDE completes all evaluations and reevaluations within 
required timelines and eliminates the backlogs of students with 
disabilities needing evaluations to determine eligibility for special 
education and related services.
     PRDE provides children served under the IDEA with needed 
assistive technology devices and services in a timely manner, and 
eliminates the backlog of students needing such devices and services.
     PRDE resolves complaints within the required 60-day 
timeline (34 CFR 300.152(a)), or within the timeframe of an extension 
obtained under 34 CFR 152(b).
     PRDE completes all due process hearings, as set forth 
under 34 CFR 300.515, within the required timelines.
     PRDE resolves financial management issues, including 
addressing and resolving the use-of-funds requirements related to 
transportation contracts.
     PRDE submits timely and accurate data required under 
sections 616 (SPP/APR) and 618 (State-reported data) of the IDEA.
     Increase staff in PRDE to provide proper oversight of the 
IDEA State plan and ensure compliance with IDEA requirements at the 
local school level, by working with the Department to specify the 
number of special education staff who will be hired in each year of the 
compliance agreement to increase the number of staff above the number 
of special education staff at the time of the signing of the Agreement.

[[Page 30697]]

Internal Audit

Task 16.0: Full Implementation of Internal Audit Office and Audit 
Committee

    Goal: To correct PRDE's current deficiencies in its internal audit 
practices.
    Completion Date: December 31, 2008.
    Responsible Offices/Persons: Lourdes Cruz, Myrna Crespo, IAO 
Director.
    Pursuant to discussions between the Department and PRDE, and in 
order for PRDE to address the Department's areas of concern regarding 
PRDE's Internal Audit Office (IAO) and the Audit Committee, PRDE will 
correct the current deficiencies in its internal audit practices 
through the following s