If you believe your daughter has a learning disability in the area of reading that your school has failed to identify, you can request in Independent Educational Evaluation at the school's expense and they have to provide one unless they can prove their evaluation is adequate. Given your daughter's inability to read, it might be difficult for them to prove their evaluation is sufficient.

I've a post on this topic with details outlined at:
http://www.learningabledkids.com/forum/viewtopic.php?t=15

Hope this info, or some help along the way, can help you get what your daughter needs!