We had the same situation with my son a couple years ago. They will give dc the dra word analysis again and the dra2. They won't allow you dc to read past level 16, regardless of ability. It's "policy."
Without giving the dra2, they are not allowed to give a 5 on the reading section of the K report card.
They're just silly formalities and really serve no purpose for kids in K who can really read.