POLICY LETTER: February 4, 2009 to Minnesota Department of Education Supervisor of the Division of Program Finance Carol Hokenson

02/04/09Carol Hokenson, SupervisorDivision of Program FinanceMinnesota Department of Education 1500 Highway 36 WestRoseville, MN 55113-4266Dear Ms. Hokenson:This is in response to your letter to Perry Williams of the Office of Special Education Programs (OSEP) in the U.S. Department of Education (Department), Office of Special Education and Rehabilitative Services, dated June 19, 2008 and the follow-up telephone conversation you had with Dr. Williams and Dr. Deborah Morrow on July 17, 2008. I apologize for the delay in our response.You have raised several questions regarding the relationship between cooperatives (co-ops) and member districts in Minnesota as it relates to the allocation of funds under Part B of the Individuals with Disabilities Education Act (IDEA). Under IDEA, the State educational agency (SEA) is responsible for ensuring that a free appropriate public education (FAPE) is provided to all eligible children with disabilities. As part of its general supervisory responsibility, the SEA, through its laws, regulations, and policies, establishes which public agencies shall have the legal and fiscal responsibility to serve children with disabilities. In your letter, you indicate that the Minnesota Department of Education (MDE) allocates funds under Part B of IDEA to two entities: (1) special education co-ops, made up of member school districts,Is Minnesota's practice of cooperatives subgranting section 611 and 619 funds to member and participating districts consistent with the requirements of IDEA?OSEP's Response: No. Under the Education Department General Administrative Regulations (EDGAR), at 34 80.3, a grant is defined as an award of financial assistance in the form of money. or property in lieu of money, by the Federal government to an eligible grantee. Grantee is defined as the government to which a grant is awarded and which is accountable for the use of the funds provided. A subgrant is defined as an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee. A subgrantee is defined as the government or to other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided.The MDE, as the grantee receiving a Part B grant from the Federal government, may subgrant Part B funds to entities that meet the definition of LEA in 34 CFR 300.28; in Minnesota, either a co-op or a non-participating LEA. Under IDEA, the subgrantee is responsible for providing FAPE to children with disabilities within its jurisdiction and ensuring that Part B funds are expended in accordance with the applicable provisions of IDEA. 34 CFR 300.200 through 300.213. As we indicatedSincerely,/s/Patricia J. GuardActing DirectorOffice of Special Education Programscc: Ms. Barbara Troolin02/04/09Carol Hokenson, SupervisorDivision of Program FinanceMinnesota Department of Education 1500 Highway 36 WestRoseville, MN 55113-4266Dear Ms. Hokenson:This is in response to your letter to Perry Williams of the Office of Special Education Programs (OSEP) in the U.S. Department of Education (Department), Office of Special Education and Rehabilitative Services, dated June 19, 2008 and the follow-up telephone conversation you had with Dr. Williams and Dr. Deborah Morrow on July 17, 2008. I apologize for the delay in our response.You have raised several questions regarding the relationship between cooperatives (co-ops) and member districts in Minnesota as it relates to the allocation of funds under Part B of the Individuals with Disabilities Education Act (IDEA). Under IDEA, the State educational agency (SEA) is responsible for ensuring that a free appropriate public education (FAPE) is provided to all eligible children with disabilities. As part of its general supervisory responsibility, the SEA, through its laws, regulations, and policies, establishes which public agencies shall have the legal and fiscal responsibility to serve children with disabilities. In your letter, you indicate that the Minnesota Department of Education (MDE) allocates funds under Part B of IDEA to two entities: (1) special education co-ops, made up of member school districts,Is Minnesota's practice of cooperatives subgranting section 611 and 619 funds to member and participating districts consistent with the requirements of IDEA?OSEP's Response: No. Under the Education Department General Administrative Regulations (EDGAR), at 34 80.3, a grant is defined as an award of financial assistance in the form of money. or property in lieu of money, by the Federal government to an eligible grantee. Grantee is defined as the government to which a grant is awarded and which is accountable for the use of the funds provided. A subgrant is defined as an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee. A subgrantee is defined as the government or to other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided.The MDE, as the grantee receiving a Part B grant from the Federal government, may subgrant Part B funds to entities that meet the definition of LEA in 34 CFR 300.28; in Minnesota, either a co-op or a non-participating LEA. Under IDEA, the subgrantee is responsible for providing FAPE to children with disabilities within its jurisdiction and ensuring that Part B funds are expended in accordance with the applicable provisions of IDEA. 34 CFR 300.200 through 300.213. As we indicatedSincerely,/s/Patricia J. GuardActing DirectorOffice of Special Education Programscc: Ms. Barbara Troolin02/04/09Carol Hokenson, SupervisorDivision of Program FinanceMinnesota Department of Education 1500 Highway 36 WestRoseville, MN 55113-4266Dear Ms. Hokenson:This is in response to your letter to Perry Williams of the Office of Special Education Programs (OSEP) in the U.S. Department of Education (Department), Office of Special Education and Rehabilitative Services, dated June 19, 2008 and the follow-up telephone conversation you had with Dr. Williams and Dr. Deborah Morrow on July 17, 2008. I apologize for the delay in our response.You have raised several questions regarding the relationship between cooperatives (co-ops) and member districts in Minnesota as it relates to the allocation of funds under Part B of the Individuals with Disabilities Education Act (IDEA). Under IDEA, the State educational agency (SEA) is responsible for ensuring that a free appropriate public education (FAPE) is provided to all eligible children with disabilities. As part of its general supervisory responsibility, the SEA, through its laws, regulations, and policies, establishes which public agencies shall have the legal and fiscal responsibility to serve children with disabilities. In your letter, you indicate that the Minnesota Department of Education (MDE) allocates funds under Part B of IDEA to two entities: (1) special education co-ops, made up of member school districts,Is Minnesota's practice of cooperatives subgranting section 611 and 619 funds to member and participating districts consistent with the requirements of IDEA?OSEP's Response: No. Under the Education Department General Administrative Regulations (EDGAR), at 34 80.3, a grant is defined as an award of financial assistance in the form of money. or property in lieu of money, by the Federal government to an eligible grantee. Grantee is defined as the government to which a grant is awarded and which is accountable for the use of the funds provided. A subgrant is defined as an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee. A subgrantee is defined as the government or to other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided.The MDE, as the grantee receiving a Part B grant from the Federal government, may subgrant Part B funds to entities that meet the definition of LEA in 34 CFR 300.28; in Minnesota, either a co-op or a non-participating LEA. Under IDEA, the subgrantee is responsible for providing FAPE to children with disabilities within its jurisdiction and ensuring that Part B funds are expended in accordance with the applicable provisions of IDEA. 34 CFR 300.200 through 300.213. As we indicatedSincerely,/s/Patricia J. GuardActing DirectorOffice of Special Education Programscc: Ms. Barbara Troolin