How to Prepare for a Federal Monitoring Visit

(SASA/OSEP)

Jennifer S. Mauskapf, Esq.jmauskapf@bruman.com

Brustein & Manasevit, PLLCwww.bruman.comSpring Forum 2013

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AGENDA

• Overview of the Monitoring Process– SASA – OSEP

• Preparing for a Monitoring Visit

• Common Findings

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OVERVIEW OF THE MONITORING PROCESS

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SASA Monitoring Covers…

• New to 2012-2013: ESEA Flexibility Monitoring• SASA Monitoring for Select Non-Flex States:

– Title I, Part A– Title I, Part D (Neglected, Delinquent, or At-Risk)– Title X, Part C (McKinney-Vento Act/Homeless

Program)– Title III, Part A

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Non-Flex Selection Factors2012-2013

• SEA has not been monitored since the 2006-2007 or 2007-2008 monitoring cycle

• Review of Audits and Previous Monitoring Findings

• Staff Leadership Turnover or New Staff

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Monitoring Strategies, 2012-2013

• Pre-site document reviews• SEA and LEA website reviews• Previous corrective actions• Combination of program specific—

– Desk– Teleconference / Videoconference– Web-based conference– On-site monitoring review of indicators

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OSEP ‘Monitoring’ Covers…

• Continuous Improvement Visits http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder_name=OSEP+Continuous+Improvement+Visits

– Results Component http://www2.ed.gov/about/offices/list/osers/osep/rda/index.html

– Stakeholder Input Process– Verification Component

http://therightidea.tadnet.org/assets/browse_by_folder?folder=61&folder_name=CrEAGs-+Part+B

• Determinations. State Performance Plan (SPP) / Annual Performance Report (APR) Review

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Prior to Visit

• Desk monitoring of each State– State contact gathers and analyzes data and

information– Information collected primarily through Web-

based searches and document analysis– Specific documentation requested from SEA

• Selection of LEAs• Receipt of Agenda and List of ED Participants

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The Visit Itself

– HOW LONG?• Typically one full week

– WHAT WILL ED BE DOING DURING THE VISIT?• Review documentation not available prior to the trip • Interview SEA and LEA staff, principals, teachers, parents,

and other stakeholders • Exit Conference

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Post-Visit – SASA-specific DRAFT comprehensive monitoring report issued

To be issued within 35 business days of the on-site visit SEA has 5 business days to review and provide technical edits

and corrections FINAL report issued SEA Response

SEA has 30 business days to respond to any required actions SASA sends a letter approving proposed

actions or requiring revision/further action May require close collaboration (e.g., CAPs)

and/or follow-up visits Significant compliance findings can lead

to special conditions

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TOP 10 WAYS TO PREPARE FOR A MONITORING VISIT

Preparation is the Key!

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1. Organizational Meeting

• Meet with Key Personnel

• All about Communication!– Discuss program and areas that will be

reviewed

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2. Select Main Visit Contact

• 1 Main Visit Contact– Schedule meetings– Ensure lead personnel schedules clear– Organize travel requests / information (as

requested by SASA)– Schedule visits to schools (as requested by SASA)

• Schedule conference calls with SASA prior to visit

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3. Select Main Interview Contacts• A representative should be appointed as lead

interviewer for each program (and topic) as appropriate– Title I, Part A– Title I, Part D – Neglected, Delinquent or At-Risk– Title X, C - McKinney-Vento– Title III, Part A– SIG– IDEA Results

• These representatives must know who should be present for each indicator and where all documentation is located!

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4. Select Meeting Place

• Want meeting place separate from main offices so that all parties can remain focused– Don’t completely isolate

• All personnel should have cleared scheduled and be ready to participate as necessary– Organized by the applicable lead contact

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5. Complete Monitoring Documents

• Complete the Actual Monitoring Document the Monitors will be using!

• Put your best foot forward• Narrative Form

– How?– Answer the Question Being Asked!– Respond to correct fiscal year!

• Include Specific Citations as appropriate.

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5. Complete Monitoring Documents (cont.)

• OSEP: Critical Elements Analysis Guide (CrEAG) Part B– Gen. Supervision– Fiscal Systems

• SASA Monitoring Plan for Formula Grant Programs– SIG: Application Process, Implementation, Fiscal, Technical

Assistance, Monitoring, Data Collection– Title I Team

• Title I-A Fiduciary• Title I-D• McKinney-Vento

– Title III-A: Monitoring of Subgrantees; Standards, Assessments & Accountability, Instructional Support, Fiduciary

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5. Complete Monitoring Documents (cont.)

• OSEP’s CrEAG Format

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Critical Element General Supervision (GS)-1: Does the State have a general supervision system that is reasonably designed to identify noncompliance in a timely manner using its different components? Related Question Response A. Describe the components and data sources

of the State’s general supervision system and how they are used to identify noncompliance (e.g., database, self-assessments, desk audits, on-site monitoring, dispute resolution, etc.).

Notes:

Document Review

Notes:

State Monitoring Manual Monitoring Reports Training Calendar

Database Reports APR Indicator 15

Customer Service Info. Notes:

OGC Comments Notes:

Interview Info. Interview Summary Related Requirements 34 CFR §300.100 [Eligibility for assistance] 34 CFR §300.149(a)&(b)[SEA responsibility for general supervision] 34 CFR §300.149(a)&(b)[SEA responsibility for general supervision] 34 CFR §300.200 [Condition of assistance] 34 CFR §300.600 [State monitoring and enforcement] 34 CFR §300.601 [State performance plans and data collection] 34 CFR §300.602 [State use of targets and reporting] 20 U.S.C. 1232d(b)(3)(GEPA)

5. Complete Monitoring Documents (cont.)

• SIG Format

• Title I & Title III Team Format

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6. Organize Documentation

• Corresponding Binders– Tabbed!– Organized!– Complete Examples!– Connect-the-Dots!

• Copies for yourself • Include any additional

documents given to SASA during the visit

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7. Mock Visit

• Practice Makes Perfect! (sort of)• Take the monitoring instrument and review

the current system in place• Interview selected personnel (“test”)• CONDUCT PRIOR TO VISIT

– Chance to change systems as needed!– Chance to create corrective action plans and begin

implementation as needed!

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8. Be Prepared to Address Noncompliance

• Be prepared to address any corrective action plan already created or implemented.

• If no corrective action plan then attempt to create a plan prior to SASA’s arrival.

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9. Review Findings From Your State

• Review old monitoring reports• Special Conditions• State Plans

– Did you complete everything you said you would?

• Review audits– Including A-133 Single Audit

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10. Review Monitoring Findings In Other States

• Title I & Title III Reports (2011-2012): http://www2.ed.gov/admins/lead/account/monitoring/reports12/index.html

• SIG Reports: http://www2.ed.gov/programs/sif/monitoring/index.html

• OSEP Continuous Improvement Letters: http://www2.ed.gov/fund/data/report/idea/partbvvltr/chrondate.html

• Review reports to identify focus areas, trends in findings.

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COMMON FINDINGS ACROSS THE BOARD

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Written Policies and Procedures

• Conflicting policies• Out-of-date policies• Non-existent policies

If you have to explain how something is done without being able to point to a clear and current written policy or procedure, you probably have some work to do!!!

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Notification Requirements

• Timeliness• Required Items• Public Reporting• Examples:

– Title I-A: Annual LEA Report Card, HQT Status Letter, School Improvement Status, SES and Choice Notice

– Title III: Student Identification, AMAO Determination– IDEA: Procedural Safeguards, Stakeholder Input for

SPP/APR

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Fiduciary

• Timely review and approval of LEA applications • Timely allocation of subgrants• Period of availability of funds to LEAs• Process for Reallocating Funds• Timely Obligation and Liquidation

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Fiduciary

• Ensuring Funds are Used for Allowable Uses– Consistent with Federal Cost Principles? – Consistent with EDGAR?– Consistent with program-specific rules?– How does SEA/LEA ensure and document

allowability?• Program-specific Fiscal Rules

– MOE – Supplement not Supplant– Caps

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Fiduciary – High Dollar Areas of Concern

• Procurement• Property / Inventory Management• Time Distribution

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EDGAR Procurement Rules

• Section 80.36 of EDGAR• All procurement transactions must be

conducted with full and open competition• Conflict of Interest:

– Must have written code of conduct for all employees engaged in contract award and administration

• Must have protest procedures to handle disputes

• Follow Procurement Rules!!!

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Inventory Management: Common Problems

• Determining between “equipment” and “supply”

• Determining level of control over item

• Tracking non-equipment items

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Equipment Rules

• Section 80.32 of EDGAR• Must have adequate controls in place to account for:

– Location of equipment– Custody of equipment– Security of equipment

• Property records– Description, serial number or other ID, title information, acquisition

date, cost, percent of federal participation, location, use and condition, and disposition (if applicable)

• Physical inventory– Must be performed at least every 2 years

• Control system to prevent loss, damage and theft– All incidents must be investigated

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Equipment Rules (cont.)

• Must protect against unauthorized use– May use for other projects as long as use is incidental and

does not interfere with authorized use

• When property is no longer needed, must follow disposition rules:– Transfer to another federal program– Over $5,000 – Keep or sell, but must pay a share based on

the percentage of federal ED participation at initial acquisition

– Under $5,000 – May keep, sell, or dispose of it with no obligation to ED

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Supplies• Section 80.33 of EDGAR• Supplies are everything else

– Do not cost much money– Used fairly quickly

• Examples: pens, paper, toner, laptops• EDGAR does not set out any specific tracking

requirements• As a practical matter, ED expects subgrantees to track all

property purchased with federal funds, in order to prove there has been an allocable benefit to the federal program

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Time Distribution

• Selected Items of Cost: Salaries and Wages– Allowable if proper time distribution records

• Time Distribution Records must be maintained for all employees whose salaries are: – Paid in whole or in part with federal funds– Used to meet a match/cost share requirement

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Time Distribution – Common Problems

• Proper Identification of “Cost Objective(s)”• Completion of Required Documentation

– PAR vs. Semi-annual Certification– Correct Signatory?– Correct Time Period?– Time reported add up to 100% time worked?– Signed after-the-fact?

• Quarterly Reconciliations

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Equitable Services

• Timely and Meaningful Consultation• LEA Maintaining Control

– Program – Funds—no reimbursement!– Property—tags, inventory

• Evaluation of Services• Identification of Eligible Students• Administration Costs NOT Charged Against

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Subrecipient Monitoring

• Comprehensive Monitoring Protocol• Follow-up procedures to ensure corrective

actions taken to address compliance issues• Linking Monitoring Findings with Technical

Assistance

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RESOURCES - SASA ESEA Flexibility Monitoring http://www2.ed.gov/policy/elsec/guid/esea-flexibility/monitoring/index.html SASA Monitoring

http://www2.ed.gov/admins/lead/account/monitoring/index.html Indicators (2011-2012) http://www2.ed.gov/admins/lead/account/monitoring/indicators1112.pdf Title I & Title III Reports (2011-2012):

http://www2.ed.gov/admins/lead/account/monitoring/reports12/index.html NASTID Presentation on SASA Monitoring for 2012-2013http://www.nationaltitleiassociation.org/resource/resmgr/t12s/2012-

2013_overview_sasa_moni.pdf Office of School Turnaround – SIG Monitoring

SIG Monitoring Plan http://www2.ed.gov/programs/sif/sigmonitoringplan2012-2013.pdf SIG Reports:

http://www2.ed.gov/programs/sif/monitoring/index.html

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RESOURCES - OSEP

Continuous Improvement Visit Page http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder_name=OSEP+Continuous+Improvement+Visits OSEP Continuous Improvement Letters:

http://www2.ed.gov/fund/data/report/idea/partbvvltr/chrondate.html

Part B SPP and APR Determination Letters: http://www2.ed.gov/fund/data/report/idea/partbspap/allyears.html

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Questions?

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This presentation is intended solely to provide general information and does not constitute legal advice.

Attendance at the presentation or later review of these printed materials does not create an attorney-client

relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this

presentation without first consulting legal counsel familiar with your particular circumstances.

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