Department of Education; Compliance Agreement; Notice of written findings and compliance agreement with the Commonwealth of Puerto Rico and the Puerto Rico Department of Education [OS]

FR Doc E8-11852[Federal Register: May 28, 2008 (Volume 73, Number 103)]
[Notices]
[Page 30687-30709]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28my08-85]

Download:

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Part III

Department of Education

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Compliance Agreement; Notice

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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:
http://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:
http://www.gpoaccess.gov/nara/index.html.

[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

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 steps within one year of the date of this
Agreement:
Empowerment. Currently PRDE's IAO and the Audit Committee
are not ``empowered'' to carry out their duties and responsibilities as
provided for in their charter and in the PRDE legislation establishing
the IAO and the Audit Committee. PRDE and Puerto Rico must take
expeditious action to ensure that the Committee is fully empowered to
carry out its duties by the full implementation of the charter and the
enabling legislation.
Organizational Misalignment. The IAO appears to report
directly to the PRDE Secretary of Education rather than to the Audit
Committee, based on the organizational chart for the IAO provided to
the Department. This organization and reporting structure compromises
the independence and objectivity of the IAO, which are key elements of
the charter for the IAO. Moreover, the Government Auditing Standards
(the so-called ``Yellow Book'') in section 3.21, state that a
government audit organization's ability to perform its work and report
the results impartially can be affected by its place within the
government. Whether performing work to report externally to third
parties or internally to top management, audit organizations must be
free from organizational impairments to their independence. Section
3.22 further states that government auditors can be presumed to be free
from organizational impairments to independence when reporting
externally to third parties.
Absence of Sufficient Budgets. It appears that sufficient
funding is not being provided for the IAO and the Audit Committee to
function properly and to conduct investigations and studies as provided
for in the respective charters and in the enabling legislation. PRDE
and Puerto Rico must request and ensure that such necessary funding is
provided so that the IAO and the Audit Committee are able to perform
their duties.
Autonomy. As a result of organizational misalignment and
as confirmed by Audit Committee members, currently, neither the Audit
Committee nor the IAO appears to have the level of autonomy from PRDE
that is necessary to effectively carry out their duties and
responsibilities, as specified in their charters and in PRDE's enabling
legislation. Rather, the PRDE Secretary of Education has previously
signed off on their reports, which is in clear violation of proper
internal controls and internal audit principles and standards.
Staffing. Neither the IAO nor the Audit Committee is
adequately staffed in sufficient numbers, both at the professional and
the support staff levels, to permit them to effectively conduct their
duties and responsibilities, as specified in their charters and in the
enabling legislation, through specific action steps.
Under this Agreement and in accordance with the action steps to be
included in the Corrective Action Plans to be incorporated into this
Agreement, PRDE will take immediate steps, including the following, to
address these concerns:
Develop a work plan for the IAO that includes, at a
minimum, review and assessment of all key items in this Agreement
throughout the effective period of the Agreement. This work plan will
be provided to the Audit Committee and the Department for review and
comment and the approved version will be made available to the public
through the IAO Internet site.
Issue a Memorandum or Directive that states clearly that
all PRDE staff must cooperate with the staff of the IAO and the Audit
Committee and respond appropriately and expeditiously to any requests
submitted to them by the IAO or the Audit Committee.
Schedule a series of mandatory ``All Staff'' meetings for
all PRDE managers and supervisors to communicate directly about the
critical duties and responsibilities of the IAO and Audit Committee and
to convey to all PRDE managers and supervisors that they must fully
cooperate with the staff of IAO and the Audit Committee.
Realign the organizational relationships so that the IAO
reports directly to the Audit Committee and not to the PRDE Secretary
of Education, in order to ensure the IAO has full autonomy and
independence to perform its required duties.
Provide all reports to the Department's local Office of
Inspector General staff at the same time as the reports are provided to
the Audit Committee, and, upon request by Department staff or oversight
and monitoring staff of the Office of Inspector General, provide
translations from Spanish to English of such IAO reports, to which PRDE
has attested.
Make semiannual reports of all IAO activities available to
the public through the Internet site.
Prepare results and status of corrective actions and
provide these to the Audit Committee, the Department, and the public,
in part so that the Department's Office of Inspector General can
provide appropriate feedback and recommendations on submitted reports
to assist the IAO and the Audit Committee to come into compliance with
all applicable audit requirements and with proper accounting
principles.
Notify the Department in a timely manner of any actions
taken or considered that may have the effect of diminishing the
effectiveness of PRDE's IAO or Audit Committee, including the ability
of the IAO or Audit Committee to carry out duties and responsibilities
provided for in their respective charters.
The Department also recommends that PRDE and Puerto Rico consider
the following additional steps to help PRDE and Puerto Rico ensure that
there is a fully functioning IAO and Audit Committee, although the
Department recognizes that these steps may require more time and
effort, and may depend in part on the actions of others (such as the
Governor, legislature, and Unions) to execute fully:
Increase the salaries for IAO members in order to be more
competitive in recruiting and retaining the best possible candidates
for office positions.
Consider elevating the position of the IAO Director to a
position equal to that of other senior PRDE management, both with
regard to organizational placement and salary.
Include in the annual PRDE budget appropriate funding for
the projected work plan, materials, and staffing requirements for both
the IAO and Audit Committee.
The Parties to this Agreement, the U.S. Department of Education,
the Puerto Rico Department of Education, and the Commonwealth of Puerto
Rico, agree to faithfully carry out the terms of this Agreement, as set
forth above.
Effective Date and Modification of Agreement:
This Compliance Agreement will take effect upon execution by all
the Parties and may be modified or amended only

[[Page 30698]]

by mutual written agreement of all the Parties hereto.
For the Commonwealth of Puerto Rico:--------/s/--------

Honorable Anibal Acevedo-Vila,
Governor,

12-17-2007
Date

For the Puerto Rico Department of Education:--------/s/--------

Dr. Rafael Aragunde-Torres, Puerto Rico Secretary of Education.

12-17-2007
Date

For the U.S. Department of Education:--------/s/--------

Raymond Simon, Deputy Secretary of Education.

12-17-2007
Date --------/s/--------

Sara Martinez Tucker, Under Secretary of Education.

12-17-2007
Date
Attachments A and B

Attachment A--Commonwealth of Puerto Rico Department of Education

Puerto Rico Department of Education Action Plan For Title I Assessment
Compliance Agreement

December 2007
P.O. Box 190759, San Juan, Puerto Rico 00919-0759
Tel.: (787) 759-2000 ext. 2749, 4749 Fax:
(787) 753-1804.
The Department of Education does not discriminate in its
activities, educational services or employment opportunities on the
basis of race, color, sex, age, birth, national origin, social
condition, political ideas, religious beliefs or any handicap.

----------------------------------------------------------------------------------------------------------------
Action steps Completion date Documentation Responsible office Estimated budget
----------------------------------------------------------------------------------------------------------------
REQUIREMENT 1.0--Content Standards
----------------------------------------------------------------------------------------------------------------
Development of rigorous academic October 31, 2007.. Agendas, Office of the Action steps that
content standards In English, attendee's lists, Assistant require budgeting
Spanish, Mathematics and Minutes, Training Secretary for have been
Science for each of the grades Power Points, Academic Services. completed.
3-8 and 11. Content Standards.
Involve education stakeholders November 10, 2007. Panel members,
in the development of the attendee's lists,
academic content standards. meeting minutes.
Approve academic content November 10, 2007. Circular Letter...
standards in English, Spanish,
Mathematics and Science for
each of the grades 3-8 and 11.
----------------------------------------------------------------------------------------------------------------
REQUIREMENT 2.0--Academic Achievement Standards
----------------------------------------------------------------------------------------------------------------
Develop with the help of February 2009..... Minutes, Panel Office of the 2007-2008
external consultant the members Assistant $10,000.
academic achievement standards attendee's lists, Secretary for
for English, Spanish, PLDs for English, Academic Services.
Mathematics and Science for Spanish,
each of the grades 3-8 and 11. Mathematics and
Science, cut
scores.
Develop with the help of February 2009..... Minutes, Panel Office of the 2008-2009
external consultant the members Associate $500,000
alternate academic achievement attendee's lists, Secretary for 2009-2010
standards for students with the PLDs for Special Education. $60,000.
most significant cognitive alternate
disabilities for English, achievement
Spanish, Mathematics and standards for
Science for each of the grades English, Spanish,
3-8 and 11. Mathematics and
Science, cut
scores.
Involve education stakeholders July 2009......... Panel members Contract External
in the development of the attendee's lists, Consultants and
academic achievement standards meeting minutes. Vendors.
and alternate achievement
standards.

[[Page 30699]]

Approval of academic achievement July 2009......... Memorandum stating
standards and alternate the policy that
academic achievement standards the State's
for students with the most academic
significant cognitive achievement
disabilities for English, standards apply
Spanish, Mathematics and to all students.
Science for each of the grades
3-8 and 11.
Revisit with the help of July 2010......... Minutes, Panel
external consultants the members
academic achievement standards attendee's lists,
and the alternate achievements and PLDs.
standards for English, Spanish,
Mathematics and Science for
each of the grades 3-8 and 11.
----------------------------------------------------------------------------------------------------------------
REQUIREMENT 4.0--Technical Quality
----------------------------------------------------------------------------------------------------------------
Convene a TAC composed of five January 2008...... List of TAC Office of the 2007-2010
national experts to advise on April 2008........ members, Undersecretary $350,000 per year
the technical quality of the July 2008......... attendee's list, for Academic 2007-2008
assessments. agenda, meeting Affairs $400,000.
minutes. Assessment
Division.
State assessment staff will January 2008...... Meeting minutes, Evaluation and 2008-2009
develop a validity argument Memorandum of Planning Unit. $600,000
stating the purposes of the state policy. 2009-2010
assessments and delineating the $600,000.
types of uses and decisions
most appropriate to each
assessment.
PRDE will consider contracting July 2008-2010.... TAC Contract External
to conduct a variety of studies recommendations Consultants and
as deemed appropriate and and planning Vendor.
identified by the TAC such as: schedules.
bias reviews, DIF analysis,
confirmatory factor analysis,
cognitive labs, Cronbach's
alpha, SEM, reliability at cut
points, generalizability to
evaluate inter-rater agreement
for scoring of CR items. Over
the course of the year 2008 we
will provide more details as to
the studies that will be done
as advised by the TAC.
Analysis of the efficacy and April 2008........ Review committee's
validity of accommodations for notes, findings
the PPAA including descriptions and
and guidelines for linguistic recommendations,
accommodations. Guidance
documents,
Memorandum,
Agenda, training
material and
attendee's list,
documentation of
on site visits
and follow ups to
training.
Analysis of the efficacy and December 2007..... Sampling plan and
validity of accommodation use student
and interpretation of data. selection, Final
Report and
recommendations.
Develop a technical manual that July 2008......... Recommendations
will document the technical from TAC on the
quality of the assessments. table of contents
required of the
2008 Technical
Manual, Technical
Manual 2008.
----------------------------------------------------------------------------------------------------------------

[[Page 30700]]

REQUIREMENT 5.0--Alignment
----------------------------------------------------------------------------------------------------------------
Develop blueprints that reflect October 2007...... PPAA Blueprints... Office of the 2007-2008
the standards in terms of Undersecretary $14.8M (Item
content and DOK. for Academic development
Affairs contract--5.5M.
Assessment
Division.
Collect panelists ratings for July 2008......... Minutes of Evaluation and (PPEA contract--3M
items in the item bank on Panelists reviews Planning Unit. PPAA contract--
content match and DOK. and ratings. 4.7M).
Analyze with an external July 2009......... Study findings.... Office of the
consultant the alignment on a Assistant
set of scorable items. Secretary for
Academic Services.
Convene a state assessment August 10, 2007... Committee member Office of the 2008-2009
advisory committee to oversee roster. Associate $11.6M
the new PPAA test development Secretary for (PPEA contract 3M
and provide recommendations, Special Education. PPAA contract 8M).
decision options, alternative
choices, best practices and
emerging technical knowledge
and outlining appropriate
technical documentation
required for assessment and
accountability practices.
Select contractor for the September 28, 2007 Signed contract or 2009-2010
development of test items that other signed $16.5M
will ensure appropriate procurement (PPEA contract 3M
categorical concurrence, document. PPAA contract 8M
balance of representation, Fall Field Test
range of representation and 5M).
depth of knowledge of our
revised standards.
Schedule quarterly state September 28, 2007 Meeting minutes Contract External
assessment advisory committee December 17, 2007. and Consultants and
meetings to address issues March 31, 2008.... recommendations. Vendors.
related to overall test June 20, 2008.....
development activities and
fulfilling compliance agreement
requirements.
Convene the state assessment October 17, 2007.. Assessment
advisory committee composed of committee member
the Undersecretary, Auxiliary roster, Meeting
Secretary for Academic minutes and
Services, Program Directors and documentation of
Assessment Staff to provide comments.
recommendations to the
Secretary for the approval of
the standards, grade level
expectations and test
blueprints.
Convene a technical advisory January, 2008..... Roster and
committee (TAC) to provide qualifications of
recommendations in the PPAA and TAC Members,
PPEA test development process. invitational
letters.
Approval of the standards, grade October 31, 2007.. Evidence of
level expectations and test approval by the
blueprints. Secretary of
Education.
----------------------------------------------------------------------------------------------------------------
Statewide notification of November 10, 2007. Memorandum........ Office of the
revised academic content Undersecretary
standards and grade level for Academic
expectations. Affairs
Assessment
Division.
PRDE staff training on new December 19, 2007. Meeting Evaluation and
standards and grade level invitations, Planning Unit.
expectations. Agendas, PPT
presentations,
training material
and attendee's
list.

[[Page 30701]]

Constitute school district December 19, 2007. Roster of school Office of the
training teams composed of district training Assistant
school district superintendent, teams. Secretary for
two auxiliary superintendents, Academic Services.
one elementary and one
secondary level school
director, Spanish, Math and
English content area
supervisors, special education
supervisor, Science facilitator
and a librarian.
Convene an item review committee January 2008...... Meeting minutes,
to review the existing PPAA attendee's list
item bank to consider the and
recoding of the current items recommendations.
to align with the new standards
and GLEs.
State assessment advisory July 2008......... TAC
committee review of the TAC recommendations,
suggestions to incorporate committee meeting
recommendations to the work minutes.
plan.
Convene a committee to study the January 2008...... Study results and
need to revise the standards recommendations.
for the adequate yearly
progress measures.
Occasional Focal Group meetings February 2008..... Meeting minutes,
for ongoing review of alignment June 2008......... attendee's list
issues to ensure content match September 2008.... and
and appropriate DOK levels and December 2008..... recommendations.
collecting evidence on ongoing May 2009..........
review and item development October 2009......
process.
Conduct PPAA item writing February-June 2008 Agenda, PPT
workshops with consultants to presentation,
develop passages, items and notes on work
scoring rubrics that will accomplished,
address the changes to the new evaluation sheets
content standards and grade and attendee's
level expectations. list.
Teacher and school personnel March 31, 2008.... Meeting
training on new standards and invitations,
grade level expectations. Agendas, PPT
presentations and
attendee's list.
PPEA standard validation process February 2008..... Agenda, PPT,
to review cut scores that will April 2008........ attendee's list,
adjust to rubric changes in PLDs and cut
2008 scoring and reporting scores and
based on the progress dimension. standard setting
technical report.
----------------------------------------------------------------------------------------------------------------
Convene a panel to review and April 30, 2008-- Panel roster, Office of the
revise the performance level December 2008. meeting minutes Undersecretary
descriptors based on the new February 2009..... and for Academic
standards and GLEs with the recommendations. Affairs
help of external consultants. Assessment
Division.
Collect and use samples of
portfolios for the new PLD
creation.
Complete the PLDs after standard July 2009......... PLDS.............. Office of the
setting. Assistant
Secretary for
Academic Services.
Revisit PLDs with the help of July 2010......... Panels
external consultants. recommendations.

[[Page 30702]]

Content and Sensitivity meeting June 2008......... Agenda, PPT Office of the
with teachers and consultants presentation, Associate
to revise new passages and attendee's list Secretary for
items. and Special Education.
recommendations.
Conduct Content Grade Alignment February 2008..... Agenda, PPT
with teachers and external presentation,
consultants for all subjects attendee's list
and grades to develop grade and
level instructional and recommendations.
assessment activities for each
of the grade level performance
standards for students who
participate in the PPEA
including a resource guide for
teachers.
Revise with the help of external July 2008......... PPEA teacher's
consultants the PPEA to align guide.
to the new academic content PPEA Technical
standards. Manual.
Technical assistance form NAAC June 2008......... NAAC TA notes.....
on the pro's and con's of
different PPEA testing
strategies to be considered in
the 2009 PPEA test design.
PPEA Stakeholder meetings July 2008......... Stakeholder
composed of representatives roster,
from special and regular attendee's list
educators, content experts, and suggestions.
administrators, university
staff and parents to review the
PPEA assessment requirements,
NAAC recommendations, timelines
and test materials development
including the content grade
alignment recommendations, the
grade level performance
standards and recommendations
for changes and improvements.
Develop with our vendor a new July 2008......... Revised Teacher's
teacher's guide and resource Guide and
manual for 2009 PPEA Resource Manual.
administration reflecting the
new grade level performance
standards and the requirements
of the PPEA.
Prepare teacher training July 2008......... Teacher Training
material for the PPEA 2008-2009 Materials.
administration.
----------------------------------------------------------------------------------------------------------------
Review and approval of the new July 2008......... Meeting minutes,
item bank. attendee's list
and
recommendations.
Conduct PPEA teacher trainings September 2008.... Agenda, TT
that will include an overview Material,
of the assessment process, attendee's lists.
participation guidelines,
requirements and new grade
level performance standards.
PPEA testing on new standards October 2008...... PPEA testing
begins. schedule.
PPAA Forms are built for the August-September Writing Test Forms
Spring 2009 tests that will 2008.
address the changes to the
content standards and
expectations.

[[Page 30703]]

PPAA Writing forms for Spanish September 2008.... Forms approval.... Office of the
and English test review and Undersecretary
approval. for Academic
Affairs
Assessment
Division.
PPEA Follow up Teacher Training October 2008...... Agenda, TT Evaluation and
emphasizing the required new Material, Planning Unit.
grade level performance attendee's lists.
standard to be assessed.
Final review and approval of all October 2008...... Forms approval.... Office of the
PPAA forms. Assistant
Secretary for
Academic Services.
PPAA Spring 2009 Census Test December 2008- Census Test.......
Production. January 2009.
Disseminate schedule for the January 2009...... Memorandum, Test Office of the
PPAA Spring 2009 test Administration Associate
administration. Schedule. Secretary for
Special Education.
PPAA Pretest Workshop........... January 2009...... Agenda, PPT,
training material
attendee's list.
Administer the PPAA Writing February 2009..... Program for test
Tests. administration.
Conduct PPAA Writing February 2009..... Agenda, PPT
Rangefinding. presentation,
attendee's list
and scoring rules.
Score the PPAA Writing Tests.... March 2009........ Scorer
information,
Scoring results.
Closing of PPEA administration March 2009........ Portfolios
aligned to new standards and developed based
GLEs. on new standards.
PPAA Census Test Administration March/April 2009.. Program for test
for all subjects. administration.
PPAA Rangefinding for all other March/April 2009.. Agenda, PPT
subjects. presentation,
attendee's list
and scoring rules.
----------------------------------------------------------------------------------------------------------------
PPEA Rangefinding for all March 2009........ Agenda, PPT Office of the
subjects. presentation, Undersecretary
attendee's list for Academic
and scoring rule. Affairs
Assessment
Division.
PPEA scoring on new standards... April 2009........ Scoring results
and reports.
PPAA Scoring of all other
subjects.
PPAA Census test item statistics May 2009.......... Statistical Evaluation and
review. analysis and Planning Unit.
reports.
PPAA Standard Setting for all May 2009.......... Agenda, PPT, Office of the
grades and subjects. attendee's list, Assistant
standard setting Secretary for
technical report. Academic Services.
PPEA Standard Setting........... May 2009.......... Agenda, PPT, Office of the
attendee's list, Associate
performance level Secretary for
descriptors and Special Education.
cut scores and
standard setting
technical report.
PPEA new score reporting and June 2009......... Reports...........
PPAA Reporting of test results.
PPEA Stakeholder meeting to July 2009......... Stakeholder
review the assessment roster,
activities for the 2008-2009 attendee's list
administration, timelines for and suggestions.
the next assessment year,
participation guidelines, grade
level performance standards
requirements and examples and
make recommendations for
changes and improvements.
PPAA Fall Field Test Production. June-July 2009.... Test Forms........
Convene a work group to review July 2009......... Test form approval
and approve PPAA fall field
test forms.

[[Page 30704]]

Fall 2009 standalone PPAA Field September 2009.... Field Test Program
Test.
Scoring of PPAA Fall Field Test. October 2009...... Scoring results
and reports.
PPAA Field test item and October-Nov. 2009. Statistical
statistics review. analysis and
reports.
2010 PPAA Test Development and December 2009..... Test review notes
PRDE final review and approval. and final
approval.
2010 PPAA Test Production....... December 2009-- 2010 Tests
January 2010. Booklets.
2010 PPAA Pretest Workshop...... February 2010..... Agenda, PPT,
attendee's list.
----------------------------------------------------------------------------------------------------------------
PPAA Rangefinding Meeting....... March 2010........ Agenda, PPT Office of the
presentation, Undersecretary
attendee's list for Academic
and scoring rules. Affairs
Assessment
Division.
Test data and reporting reviews April 2010........ Review notes and
and data quality controls. findings
Processing,
Scoring and
Reporting Quality
Control Checklist.
Reporting of test results....... June 2010......... Agenda, PPT Evaluation and
presentation, Planning Unit.
attendee's list
and scoring rules.
Contract experience reviewers to February-June 2010 Alignment Study... Office of the
conduct an evaluation of the Assistant
quality of alignment on the new Secretary for
tests via an external alignment Academic Services.
study.
Conduct a PLD validity study.... June 2010......... Study findings.... Office of the
Associate
Secretary for
Special Education.
----------------------------------------------------------------------------------------------------------------
REQUIREMENT 6.0--Inclusion
----------------------------------------------------------------------------------------------------------------
Review assessment data to July 2008......... Reports that Evaluation and 2007-2008
document participation of all July 2009......... specify the Planning Unit. $335.000.
students in the assessments. July 2010......... participation
rates and methods
of calculation.
Review state guidelines for July 2008......... Guidelines and Office of the
inclusion of all students. policy documents. Assistant
Secretary for
Academic Services.
Qualitative review of the December 2007..... Review committee's Office of the 2008-2009
existing accommodations by type notes, findings Associate $150,000.
to address their efficacy and and Secretary for
use for LSP students. recommendations. Special Education.
Incorporate the expert panel and January 2008...... Guidance documents Title III Director 2009-2010
external consultant $100,000.
recommendations in the
development of guidance
documents and LSP participation
plans.
Revision of the accommodations January 2008...... Revised
manual to include Accommodations
accommodations for LSP students. Manual.
----------------------------------------------------------------------------------------------------------------
Incorporate the expert panel and February 2008..... Memorandum........ Evaluation and
external consultant Planning Unit.
recommendations in the state's Office of the
review of its policy on the use Assistant
of accommodations for Limited Secretary for
Spanish Proficient (LSP) Academic Services.
students. Office of the
Associate
Secretary for
Special Education.
Title III Director
Training for educators on July 2008......... Agenda, training
accommodations selection and material and
use. attendee's list.

[[Page 30705]]

Evaluation of the effectiveness April 2008........ Documentation of
of training and the provision on site visits
of technical assistance as and follow ups to
needed to support appropriate training.
accommodations selection and
use.
Convene a panel of experts to September 2007.... Roster of panel
review the linguistic members, meeting
accommodations recommended and minutes, work
best practices and plan and
accommodations for LSP students. recommendations.
Review the recent July 2007 September 2007.... Profile of LSP
results to the LAS LINKS students.
Espanol, Spanish language
proficiency test, to gain a
better understanding of our LSP
student population and identify
their linguistic background,
their experiences in formal
academic settings, and their
distribution across grade
levels.
Convene a panel of linguistic October 2007...... Roster of panel
experts to select the best members, meeting
accommodations after obtaining minutes, work
a comprehensive knowledge of plan and
the LSP student population's recommendations.
needs. Conditions that need to
be explored to gain a better
understanding of our LSP
student population, considering
the PRDE context, are the
following:
1. Student's academic
Spanish language
proficiency,
2. First ``academic''
language development,
3. Prior formal schooling,
and,
4. The length of time the
student has resided in
Puerto Rico.
----------------------------------------------------------------------------------------------------------------
Develop guidelines with the help February 2008..... Developed Evaluation and
of external consultant to guidelines. Planning Unit.
identify appropriate Office of the
accommodations based on the Assistant
student's performance and Secretary for
linguistic listening, speaking, Academic Services.
reading and writing skills. Office of the
Associate
Secretary for
Special Education.
Title III Director
Refine accommodation policy for February 2008..... Policy statements.
LSP students to ensure maximum
accessibility to the assessment.
Continue participating in the Ongoing........... Literature reviews
LEP partnership and follow up of best practices.
on upcoming recommendations and
best practices for LSP Students.
Disseminate revised policy and March 2008........ Memorandum........
responsibilities regarding the
LSP student participation and
expanded linguistic
accommodations use in large
scale and instructional
assessments.

[[Page 30706]]

Training on use of guidelines March 2008........ Agenda, training
for the selection of material and
accommodations, procedures for attendee's list.
providing testing
accommodations and
documentation requirements.
Monitor accommodations selection April 2008........ Monitoring
and use in state assessments. findings.
Stakeholder meeting to obtain June 2008......... Meeting minutes,
recommendations for additional recommendations
accommodations if needed to be and attendee's
used with the 2009 assessments. list.
----------------------------------------------------------------------------------------------------------------
REQUIREMENT 7.0--Assessment Reports
----------------------------------------------------------------------------------------------------------------
Produce an interpretive guide Yearly............ Interpretive Guide Evaluation and 2007-2008
that facilitates interpretation Planning Unit. PPAA scoring and
of assessment data. reporting $1.2M
PPEA scoring and
reporting $1.4M
2008-2009.
Produce individual student, Yearly............ Reports........... Office of the
school, region and island wide Undersecretary
reports. for Academic
Affairs
Assessment
Division.
Conduct post-test workshops for Yearly............ Training materials PPAA scoring and
training on interpretation and reporting $2.4M
use of assessment results. PPEA scoring and
reporting $1.4M
2009-2010
PPAA scoring and
reporting $2.4M
PPEA scoring and
reporting $1.4M
(Costs are
included in the
test vendor's
contracts).
----------------------------------------------------------------------------------------------------------------

* Budget Summary

The Puerto Rico Department of Education will be needing an
estimated budget of approximately $45.8 M to cover the expenses for the
tasks outlined in this three year action plan.

----------------------------------------------------------------------------------------------------------------
Critical element 2007-2008 2008-2009 2009-2010
----------------------------------------------------------------------------------------------------------------
2.0.......................................................... $10,000.00 $500,000.00 $60,000
4.0.......................................................... 400,000.00 600,000.00 600,000.00
5.0.......................................................... 12.2 M 8.0 M 12.9 M
6.0.......................................................... 335,000.00 150,000.00 100,000
7.0.......................................................... 2.6 M 3.6 M 3.6 M
--------------------------------------------------
Total.................................................... 15.6 M 12.9 M 17.3 M
----------------------------------------------------------------------------------------------------------------
The funding sources will be approximately 35% federal dollars and 65% state dollars.
* Puerto Rico and the U.S. Department of Education reserves the right to review the estimated budget submitted
according to the needs that may arise during the plan implementation process.

Attachment B--Puerto Rico Department of Education Audit Committee
Charter

Organization

This charter governs the operations of the Audit Committee (``the
Committee'') of the Department of Education of Puerto Rico, (PRDE). The
Committee shall review and reassess the charter at least every two
years. The Committee shall consist of five members organized as
described in the law. Members of the Committee shall be considered
independent as long as they do not accept any consulting, advisory, or
other compensatory fee from PRDE and are not affiliated persons of PRDE
or its subsidiaries. All Committee members shall be financially
literate, and at least one member shall have wide experiences in
auditing matters.

Purpose

The Audit Committee shall provide assistance to PRDE Management in
fulfilling its oversight responsibility to the State and Federal
Government and others relating to: the integrity of PRDE statements,
the financial reporting process, the systems of internal accounting and
financial controls, the performance of the PRDE internal audit function
independent auditors, the

[[Page 30707]]

independent auditors' qualifications and independence, and PRDE's
compliance with ethics policies and regulatory requirements. In so
doing, it is the responsibility of the Committee to maintain free and
open communication among the Committee, independent auditors, the
internal auditors, and Management of the PRDE.
In discharging its oversight role, the Committee is empowered to
investigate any matter brought to its attention with full access to all
books, records, facilities, and personnel of PRDE and the authority to
engage independent counsel and other advisers as it determines
necessary to carry out its duties.

Meetings

The Committee will hold at least four meetings annually and will
meet in separate executive sessions with PRDE management, independent
auditors, and internal audit department representatives to review and
resolve matters of concern presented to the Committee. The Committee
may meet as many additional times as the Committee deems necessary or
appropriate. Reports of all meetings shall be made to the Governor of
Puerto Rico and the Secretary of Education.

Duties and Responsibilities

The primary responsibility of the Audit Committee is to oversee
PRDE's financial reporting process and to report the results of its
activities to the Governor of Puerto Rico. While the Committee has the
responsibilities and powers set forth in this Charter, it is not the
duty of the Committee to plan or conduct audits or to determine that
PRDE operations are accurate and in accordance with Laws and
Regulations. Management is responsible for the preparation,
presentation and integrity of PRDE financial statements; for the use of
appropriate accounting principles and reporting policies by PRDE; and
for the application of the Laws and Regulations that govern their
operation. The Internal Audit Office as well as the independent
auditors are responsible for auditing PRDE operations and reports
regarding compliance with applicable laws and regulations.
The Committee, in carrying out its responsibilities, believes its
policies and procedures should remain flexible, so that it can better
respond to changing conditions and circumstances. The Committee should
take appropriate actions to set the overall tone for quality financial
reporting, effective risk management practices, and ethical behavior.
The following shall be the principal duties and responsibilities of the
Committee. These are set forth as a guide with the understanding that
the Committee may supplement them as appropriate.
The Committee will ratify the appointment, termination and
compensation of the Chief Auditing Executive, (CAE). The selection and
recommendation of the CAE is the responsibility of PRDE management.
The Committee will review and discuss with the CAE and
appropriate staff members of the internal auditing office:
[cir] The plans for, and scope of, their ongoing audit activities,
and
[cir] The annual report of the audit activities, examinations and
results thereof of the internal auditing department.
The Committee shall be directly responsible for the
appointment and termination (subject, if applicable, to PRDE
ratification), compensation, and oversight of the independent auditors,
including resolution of disagreements between Management and the
auditors regarding the operation reporting. The Committee shall
evaluate the independent auditors' qualifications, performance, and
independence (including that of the lead audit partner) and shall
periodically consider the rotation of the lead audit partner and the
independent audit firm. The Committee shall pre-approve all audit and
other related services such as agreed-upon procedures used by the
independent auditors and shall not engage the independent auditors to
perform non-audit services prescribed by law or regulation.
At least annually, the Committee shall obtain and review a
report by the independent auditors describing:
[cir] The independent auditors' internal quality control
procedures;
[cir] Any material issues raised by the most recent internal
quality control review of the independent auditors, or by any inquiry
or investigation by governmental or professional authorities within the
preceding five years, regarding one or more independent audits carried
out by the firm, and any steps taken to deal with any such issues; and
[cir] All relationships between the independent auditor and PRDE
(to assess the auditors' independence).
The Committee shall discuss with the independent auditors
the overall scope and plans for their respective audits, including the
adequacy of staffing and compensation. Also, the Committee shall
discuss with management, the internal auditors and financial controls
including PRDE policies and procedures to assess, monitor and manage
risk, and its legal and ethical compliance programs.
The Committee shall periodically meet separately with
Management, the internal auditors, and the independent auditors to
discuss issues and concerns warranting the Committee's attention. The
Committee shall provide sufficient opportunity for the internal
auditors and the independent auditors to meet privately with members of
the Committee. The Committee shall review with the independent auditors
any audit problems or difficulties and Management's response.
The Committee shall receive the reports from the
independent auditor on the critical policies and practices of PRDE and
all alternative treatments of financial information with accounting
principles that have been discussed with Management.
The Committee shall establish procedures for the receipt,
retention, and treatment of complaints received by PRDE regarding
accounting, internal accounting controls or auditing matters and the
confidential anonymous submission by employees of PRDE of concerns
regarding questionable accounting or auditing matters.

Internal Control Matters

The Committee shall discuss with Management policies with
respect to risk assessment and risk management. Although it is
Management's duty to assess and manage the PRDE's exposure to risk, the
Committee needs to discuss guidelines and policies to govern the
process by which risk assessment and management is handled and review
the steps Management has taken to monitor and control PRDE risk
exposure.
The Committee shall establish regular and separate systems
of reporting to the Committee by Management and by the independent
auditor, regarding any significant judgments made in Management's
preparation of the financial statements and the view of each as to the
appropriateness of such judgments.
The Committee shall review with an independent accountant and
Management the extent to which changes or improvements in financial or
accounting practices have been implemented. This review should be
conducted at an appropriate time subsequent to implementation of
changes or improvements, as decided by the Committee.
The Committee shall advise the Governor about PRDE
policies and procedures for compliance with applicable laws and
regulations and PRDE code(s) of conduct.

[[Page 30708]]

The Committee shall periodically discuss with the
Secretary of Education, the Under Secretary of Administration and other
Management officials as requested by the Committee (a) significant
deficiencies in the design or operation of the internal controls that
could adversely affect PRDE's ability to record, process, summarize,
and report financial data, and (b) any fraud that involves Management
or other employees who have a significant role in PRDE internal
controls.

Annual Evaluation Procedures

The Committee shall annually assess its performance to confirm that
it is meeting its responsibilities under this Charter. In the review,
the Committee shall consider, among other things, (a) the
appropriateness of the scope and content of this Charter, (b) the
appropriateness of matters presented for information and approval, (c)
the sufficiency of time for consideration of agenda items, (d)
frequency and length of meetings and (e) the quality of written
materials and presentations. The Committee may recommend to PRDE such
changes to this Charter as the Committee deems appropriate. The
Committee may also evaluate its objectivity, knowledge of PRDE
operations, and judgment, as well as members' attendance, preparation,
and participation in meetings.

Investigations and Studies

The Committee shall have the authority and sufficient funding to
retain special legal, accounting or other consultants (without seeking
PRDE approval) to advise the Committee. The Committee may conduct or
authorize investigations into or studies of matters within the
Committee's scope of responsibilities as described herein, and may
retain, at the expense of PRDE, independent counsel or other
consultants necessary to assist the Committee in any such
investigations or studies.

Miscellaneous

Nothing contained in the Charters is intended to expand applicable
standards of liability under statutory or regulatory requirements for
PRDE's Secretary or members of the Committee. The purposes and
responsibilities outlined in this Charter are meant to serve as
guidelines rather than as inflexible rules, and the Committee is
encouraged to adopt such additional procedures and standards as it
deems necessary from time to time to fulfill its responsibilities. This
Charter, and any amendments thereto, shall be displayed on the PRDE web
site and a printed copy of such shall be made available to any person
who requests it.
To the extent not prohibited by law, the President of the Committee
may represent the entire Committee for purposes of receiving reports,
performing reviews, and pre-approving the scope of other audit services
to be performed by the independent auditors and the fees relating
thereto, provided that a report on all such activities shall be
presented to the full Audit Committee at its next meeting.
Approved by:

Nilsa Clas, President, Audit Committee.
Rafael Aragunde Torres, Secretary, Department of Education.

Puerto Rico Department of Education Internal Audit Office--Internal
Audit Office Charter

Introduction

Internal auditing is an independent appraisal activity established
within the Department of Education of Puerto Rico (PRDE) to examine and
evaluate its activities and operations. The objectives of internal
auditing are to assist PRDE management in the effective discharge of
their responsibilities by furnishing them with analyses, appraisals,
recommendations, counsel, and information concerning the activities
reviewed and by promoting effective control at reasonable cost.

Mission Statement

The mission of the internal audit office is to provide independent,
objective assurance and consulting services designed to add value and
improve the organization's operations. It helps the organization
accomplish its objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.

Authority and Responsibilities

Authorization to the Internal Audit Office and its Staff is granted
for full and complete access to any of PRDE's records (either manual or
electronic), physical properties, and personnel relevant to a review.
Documents and information given to internal auditors during a periodic
review will be handled in the same prudent manner as by those employees
normally accountable for them.

Scope of Audits

The Internal Auditor shall have the authority to conduct audits in
all of PRDE's departments, programs, activities, and areas. The
Internal Auditor's activities shall generally consist of:
A. Reviewing activities and programs to ensure compliance with
applicable policies, procedures, laws and regulations;
B. Reviewing activities and programs to ensure that they are being
conducted in a manner to efficiently and effectively accomplish the
objectives intended by PRDE;
C. Reviewing the reliability and integrity of financial and
operating information and the means used to identify, measure,
classify, and report such information;
D. Verifying that funds are being expended in compliance with
applicable laws and in an efficient and effective manner;
E. Verifying that revenues are properly collected, deposited, and
accounted for;
F. Verifying that resources, including funds, property, and
personnel, are adequately safeguarded, controlled, and used in an
effective and efficient manner;
G. Confirming that there are adequate operating and administrative
procedures and practices, accounting internal control systems, and that
internal management controls have been established by management;
H. Reviewing whether risks are adequately identified and managed;
I. Determining whether programs, plans and objectives have been
meet.
With the exception of special audits and those audits requiring the
element of surprise, auditees will receive advance notice of planned
audits, and the Internal Auditor will make an effort to schedule audits
at mutually convenient times. Notification of special audits will be
given as appropriate.

Standards of Practices and Code of Ethics

The Internal Audit Office will meet or exceed the Generally
Accepted Governmental Auditing Standards, the Standards for the
Professional Practice of Internal Auditing and the Code of Ethics of
The Institute of Internal Auditors. These documents are included as
supplements to this charter.

Organization

The Internal Audit Office will report administratively to the
Secretary of Education and functionally directly to the Audit
Committee. The administrative reporting will not, in any manner,
impinge on the independence of the audit function as more fully
described in the following sections. The Office of the Comptrollers and
Ethics Affairs will respond to the Internal

[[Page 30709]]

Audit Office and will be in charge of all matters related to prevention
and ethics.

Independence

Internal Audit Office activities must be free from outside
influence, including with regard to scope, procedures, frequency, time
or the content of the reports, in order to ensure the independence
necessary to develop an objective report.
The internal auditor cannot have any direct operational
responsibility or authority over any activity that could be subject to
audit. Auditors cannot develop or install systems or procedures,
prepare registries, or supervise any activity they will audit.

Objectivity

Objectivity is an independent mental attitude which internal
auditors should maintain in performing audits. Internal auditors are
not to subordinate their judgment on audit matters to that of others.
Objectivity requires that internal auditors perform audits in such
a manner that they have an honest belief in their work product and that
no significant quality compromises are made. Internal auditors are not
to be placed in situations in which they feel unable to make objective
professional judgments.

Audit Annual Work Plan

Annually, the Chief Auditing Executive will submit to the Audit
Committee and the Secretary of Education an itinerary of the Internal
Audit Office's scope of work for the next year. This itinerary will be
based on the priorities of the audit universe using relevant risk
factors. Any deviation to the work plan must be approved by the Audit
Committee and communicated to the Secretary of Education. The Committee
will be responsible for the approval of the annual audit work plan. The
Secretary of Education can recommend the inclusion of additional
aspects to be considered in this audit plan. The Committee will review
the recommendation and will make the decision whether or not to include
the areas recommended.

Audit Reports

A written audit report will be prepared and issued by the Chief
Auditing Executive following the conclusion of each audit. Once
finalized, the report will be distributed as appropriate. The manager
of the activity or department receiving the report will respond to any
recommendations within thirty days. The response will indicate what
actions were taken regarding specific report findings and
recommendations. If a response is not received within thirty days, the
Chief Internal Auditor will contact the Deputy Secretary of
Administration for assistance in resolving the matter.

Audit Reports to the Audit Committee

A. Each audit will result in a written final report.
B. The Internal Audit Office shall submit copies of each audit
report to the Audit Committee and shall retain a copy as a permanent
record.
C. The Internal Audit Office shall include in the audit reports,
where applicable:
1. A precise statement of scope encompassed by the audit;
2. A statement that the audit was performed in accordance with
generally accepted auditing standards;
3. A statement of the time frame covered by the audit;
4. A statement of significant audit findings including a statement
of the underlying causes, evaluation criteria used, and the current and
prospective significance of the findings;
5. Statements of response submitted by the auditees relevant to the
audit findings;
6. Recommendations for additional necessary or desirable action.

Continued Education

All Auditors shall take 40 credit hours of continued education at
least every two years. Of those 40 hours, at least 24 must be directly
related to audit themes. The Internal Audit Office will be responsible
for accounting for these hours and coordinating the different courses
and workshops to assure compliance.

Confidentiality

All information related to an audit will be managed with the
strictest confidentiality. This information cannot be use for purposes
other than to express an opinion over the operation that has been
audited. No auditor is authorized to solicit any information that is
unrelated to an aspect being evaluated in the normal course of an audit
being performed. The disclosure of confidential information constitutes
a violation of the Code of Ethics, the Standards for the Audit
Profession, and the Internal Rules of the Internal Audit Office.

Due Professional Care

All work performed by the Internal Audit Office will be performed
with due professional care following practice standards.

Effective Date

This charter will be effective from the date of approval by the
Secretary of Education and the Audit Committee. This charter will
replace the one approved by the Secretary of Education on July 2, 2001.

Dated: May 18, 2007.

Presented by:

Eda L. Vel[aacute]zquez-Caraballo,
Chief Audit Executive.
Nilsa Clas,
President, Audit Committee.
Approved By:

Rafael Aragunde Torres,
Secretary of Education.
[FR Doc. E8-11852 Filed 5-27-08; 8:45 am]

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