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(a) IN GENERAL- If the Secretary determines that a tribally controlled school is eligible for assistance under this part, the eligibility determination shall remain in effect until the determination is revoked by the Secretary, and the requirements of subsection (b) or (c) of section 5205, if applicable, shall be considered to have been met with respect to such school until the eligibility determination is revoked by the Secretary.

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(b) ANNUAL REPORTS-
(1) IN GENERAL- Each recipient of a grant provided under this part shall complete an annual report which shall be limited to —

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(A) an annual financial statement reporting revenue and expenditures as defined by the cost accounting established by the grantee;

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(B) an annual financial audit conducted pursuant to the standards of the Single Audit Act of 1984;

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(C) a biennial compliance audit of the procurement of personal property during the period for which the report is being prepared that shall be in compliance with written procurement standards that are developed by the local school board;

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(D) an annual submission to the Secretary of the number of students served and a brief description of programs offered under the grant; and

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(E) a program evaluation conducted by an impartial evaluation review team, to be based on the standards established for purposes of subsection (c)(1)(A)(ii).

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(2) EVALUATION REVIEW TEAMS- Where appropriate, other tribally controlled schools and representatives of tribally controlled community colleges shall make up members of the evaluation review teams.

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(3) EVALUATIONS- In the case of a school which is accredited, evaluations will be conducted at intervals under the terms of accreditation.

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(4) SUBMISSION OF REPORT-
(A) TO TRIBAL GOVERNING BODY- Upon completion of the report required under paragraph (1), the recipient of the grant shall send (via first class mail, return receipt requested) a copy of such annual report to the tribal governing body (as defined in section 1132(f) of the Education Amendments of 1978) of the tribally controlled school.

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(B) TO SECRETARY- Not later than 30 days after receiving written confirmation that the tribal governing body has received the report sent pursuant to subparagraph (A), the recipient of the grant shall send a copy of the report to the Secretary.

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(c) REVOCATION OF ELIGIBILITY-
(1) DETERMINATION OF ELIGIBILITY FOR ASSISTANCE- The Secretary shall not revoke a determination that a school is eligible for assistance under this part if —

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(A) the Indian tribe or tribal organization submits the reports required under subsection (b) with respect to the school; and

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(B) at least one of the following clauses applies with respect to the school:

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(i) The school is certified or accredited by a State or regional accrediting association or is a candidate in good standing for such accreditation under the rules of the State or regional accrediting association, showing that credits achieved by the students within the education programs are, or will be, accepted at grade level by a State certified or regionally accredited institution.

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(ii) The Secretary determines that there is a reasonable expectation that the certification or accreditation described in clause (i), or candidacy in good standing for such certification or accreditation, will be achieved by the school within 3 years. The school seeking accreditation shall remain under the standards of the Bureau in effect on the date of enactment of the Native American Education Improvement Act of 2001 until such time as the school is accredited, except that if the Bureau standards are in conflict with the standards of the accrediting agency, the standards of such agency shall apply in such case.

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(iii) The school is accredited by a tribal department of education if such accreditation is accepted by a generally recognized regional or State accreditation agency.

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(iv)(I) With respect to a school that lacks accreditation, or that is not a candidate for accreditation, based on circumstances that are not beyond the control of the school board, every 3 years an impartial evaluator agreed upon by the Secretary and the grant recipient conducts evaluations of the school, and the school receives a positive assessment under such evaluations. The evaluations are conducted under standards adopted by a contractor under a contract for the school entered into under the Indian Self-Determination and Education Assistance Act (or revisions of such standards agreed to by the Secretary and the grant recipient) prior to the date of enactment of the Native American Education Improvement Act of 2001.

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(II) If the Secretary and a grant recipient other than a tribal governing body fail to agree on such an evaluator, the tribal governing body shall choose the evaluator or perform the evaluation. If the Secretary and a grant recipient that is a tribal governing body fail to agree on such an evaluator, subclause (I) shall not apply.

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(III) A positive assessment by an impartial evaluator under this clause shall not affect the revocation of a determination of eligibility by the Secretary where such revocation is based on circumstances that were within the control of the school board.

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(2) NOTICE REQUIREMENTS FOR REVOCATION- The Secretary shall not revoke a determination that a school is eligible for assistance under this part, or reassume control of a school that was a Bureau school prior to approval of an application submitted under section 5206(b)(1)(A) until the Secretary —

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(A) provides notice to the tribally controlled school and the tribal governing body (within the meaning of section 1141 of the Education Amendments of 1978) of the tribally controlled school which states —

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(i) the specific deficiencies that led to the revocation or resumption determination; and
(ii) the actions that are needed to remedy such deficiencies; and

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(B) affords such authority an opportunity to effect the remedial actions.

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(3) TECHNICAL ASSISTANCE- The Secretary shall provide such technical assistance to enable the school and governing body to carry out such remedial actions.

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(4) HEARING AND APPEAL- In addition to notice and technical assistance under this subsection, the Secretary shall provide to the school and governing body —

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(A) at the request of the school or governing body, a hearing on the record regarding the revocation or reassumption determination, to be conducted under the rules and regulations described in section 5206(f)(1)(C); and

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(B) an opportunity to appeal the decision resulting from the hearing.

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(d) APPLICABILITY OF SECTION PURSUANT TO ELECTION UNDER SECTION 5208(b)- With respect to a tribally controlled school that receives assistance under this part pursuant to an election made under section 5208(b) —

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(1) subsection (b) of this section shall apply; and
(2) the Secretary may not revoke eligibility for assistance under this part except in conformance with subsection (c) of this section.