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The federal government doesn’t give grades like in school. But in this case, it sure feels like they’re dishing out straight D’s.

So who’s the student who’s not making the grade but who authorities are afraid to fail?

Federal officials previously established a list of 43 criteria that the state agency in charge of protecting Hawaii’s historic and cultural resources had to improve on to avoid being decertified and defunded.

A new report from the National Park Service on Thursday found that the state agency had satisfied just nine of the criteria outlined in a two-year “corrective action plan” that was designed to put the State Historic Preservation Division on track.

But the National Park Service has given the agency another year to improve, a move that was anticipated by state officials, as Civil Beat reported last month.

It’s a bit like “social promotion” — when a teacher keeps letting unsatisfactory students advance to the next grade so they can stay with their peers.

The feds could still decertify the agency. But that might cause major delays in state projects worth billions of dollars and jeopardize the protection of historic sites — something federal officials seem reluctant to do.

The agency was placed on “high-risk” status in 2010 after a long history of dysfunction, including permit delays, high staff turnover and failing to protect historic sites.

Although “some improvement has been made, serious problems remain,” wrote National Park Service associate director Stephanie Toothman in a letter to William Aila, chair of Hawaii’s Department of Land and Natural Resources, which oversees the agency. The governor and Hawaii’s congressional delegation were also sent a copy.

The agency’s top administrator, Pua Aiu has come under fire from some federal and state officials for poor leadership.

Aiu told Civil Beat she hadn’t read the report yet. Asked if she felt the National Park Service’s assessments throughout the process had been fair, she said, “I’m sure that I’m not going to agree with everything.”

Asked by Civil Beat to elaborate, she declined, and said: “You tend to, in general, put everything negatively, so it doesn’t particularly matter what I say.”

While the agency satisfied just over one-fifth of the federal plan’s corrective requirements and recommendations, there have been partial improvements in some areas, according to the report.

The agency has successfully completed a state plan, hired more staff and made progress in clearing out a backlog of permits. But SHPD hasn’t fulfilled a litany of other tasks, according to the report, which highlighted a failure to create a statewide inventory of archaeological sites that is accessible to the staff and public. The agency also needs to take steps to ensure that historic properties are taken into account in planning and developing projects.

The National Park Service has taken a position that it is not its place to interfere in personnel decisions. Still, the report expressed concerns with Aiu’s leadership.

Park service officials only planned to provide the agency with oversight. Instead, this grew into “an almost full-time engagement” because Aiu wasn’t addressing increasingly complex issues in a timely manner, according to the report.

The report accuses Aiu of lacking strategic vision and planning. She also doesn’t understand administrative, operational and fiscal processes, the document states, adding that she struggles to recruit and retain staff, and has a “basic lack of communication, accountability and transparency to the public.”

Aiu declined to respond to Civil Beat’s questions regarding criticism of her leadership or whether she is committed to staying in her position.

“I think I’m not going to answer that question. I think it’s a rude question,” she said.

Despite the criticism, Toothman, who could not be reached for comment, praised the hard work of the agency’s staff and officials at the Department of Land and Natural Resources in her letter.

Members of Hawaii’s congressional delegation stressed that there had been progress.

“It’s a serious situation, but there have been improvements,” Sen. Brian Schatz told Civil Beat. “While the pace has been slower than many of us had hoped, the direction is the right one and improvements are being made. So we are not going to let our eye off the ball.”

Sen. Colleen Hanabusa said in a prepared statement that now was the time to redouble efforts.

“While I remain concerned that the Hawaii State Historic Preservation Division remains on ‘high-risk’ status, some progress has been made and NPS remains committed to working with the state to remedy the remaining issues,” she said.

Everyone wants to see the struggling student improve.

The National Park Service will review the agency’s progress in June 2014. Federal officials also expressed concerns about the financial management of the division and will be conducting an audit. While SHPD continues to receive federal funding, the park service says it will withdraw or divert funding if progress is not made.

Read the letter from the National Park Service and report below: