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This report presents the results of an audit by the Office of the Inspector General to determine whether the Department of Education's Office of Elementary and Secondary Education (OESE) provided sufficient oversight of graduation and dropout rates submitted by states in their Consolidated State Performance Reports to ensure the rates were supported by reliable data. The review period covered July 1, 2003, through June 30, 2004. Audit findings indicate that more emphasis was needed on data reliability and comparability across states. Six recommendations are presented: (1) Stress to states the importance of using a longitudinal student tracking system; (2) Disapprove any future graduation rate formulas that do not use a true cohort except for states that are in the process of developing data systems that would enable them to calculate a cohort graduation rate; (3) Continue to impress upon states the importance of data quality and the need to provide regular guidance, training, and monitoring of their local educational agencies; (4) Publish a list of data definitions that states will be required to use in No Child Left Behind (NCLB) reports; (5) Continue to develop and implement written policies and procedures to monitor states that are in the process of developing data collection systems to ensure the systems will collect student data in accordance with the requirements in NCLB; and (6) Periodically review procedures to monitor the accuracy of the data used by the states and districts to compute graduation rates and make any necessary adjustments. In comments to the draft report, OESE generally agreed with the finding and most of the recommendations: the full text of OESE's comments on the draft report is included as an attachment. (Contains 3 footnotes.).
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