Each state in the US is divided into school districts. They are also divided into counties. A county may have more than one school district, depending on the population. They are reviewing the school districts rather than the individual schools. They want to know if the school districts are administering their schools according to certain standards.

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Note added at 28 mins (2008-03-23 23:29:17 GMT)
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Yes, your seond sentence says the district, not the individual schools, will notify the parents.

School district
Public education in many communities in the USA has been made the function of a school district serving one or more towns. A school district is a unique body corporate and politic, usually with districts being coequal to that of a city or a county, and has similar powers including taxation and eminent domain.
The functioning of a school district can be a key influence and concern in local politics. A well run district with safe and clean schools, graduating enough students to good universities, can enhance the value of housing in its area, and thus increase the amount of tax revenue available to carry out its operations. Conversely, a poorly-run district may cause growth in the area to be far less than surrounding areas, or even a decline in population.

http://en.wikipedia.org/wiki/School_district