ADM Audit Overview & Common Error Presentation Oldest Wooden School House 14 St. George St, St. Augustine, FL 32084 ADM Audit Overview & Common Error Presentation

ADM Audit Overview Table of Contents: ADM Audit Notification Foundational Documents Instructional Hour Computation Engagement Conference Sampling ADM Analysis Preliminary Fieldwork Fieldwork Exit Conference The Two Types of Audit Reports Draft Exit Conference Publication & Distribution Audit Appeal Audit Resolution

ADM Audit Notification Letter

And Bell Schedules

Calendars

Base-level SMS Data

Instructional Hours Calculation: Bell Schedule Day Count

Bell Schedule Input

Grade Articulated Annual Instructional Hour Calculation

FTE Determination Period Annual Hours 1 168.95 2 167.00 3 168.30 5 6 7 152.00 8 45.00 Aver 167.65 # of classes enrolled Hours Per Year Audited FTE 1 167.65 - 2 335.30 0.25 3 502.95 0.50 4 670.60 0.75 5 838.25 1.00 6 1,005.90 Performed for each school site within the LEA Period 8 lacks 123 annual instructional hours, therefore this time is not included toward the calculation of total grade articulated annual instructional hours nor FTE. FTE factor table applied to each audited student when evaluating FTE

Engagement Conference

ADMS to SMS Comparison

Sample List Provided

Student Attendance Profile

Student Attendance Profile

ADM Analysis 1 2 3

ADM Adjustment # of classes enrolled Hours Per Year Audited FTE 1 167.65 - 2 335.30 0.25 3 502.95 0.50 4 670.60 0.75 5 838.25 1.00 6 1,005.90 Student Funded for 100 membership days (1.0 ADM) Student generated 100 membership days at 0.50 FTE 100 membership days x 0.5 FTE = 50 memdays / 0.5 ADM 1.0 ADM funded - 0.5 ADM generated = 50 membership day or 0.5 ADM adjustment

EX-1 Revisions 02/26/09—Effective for FY09 onward 11/18/09—Effective for FY09-FY15 5/20/16—Effective for FY16 (Retroactive; Suspended Absences Only) 6/7/16—Effective for FY17 onward (Corrects to All Absences) 7/1/16—Effective for FY17 onward (Identifies Chronic Illness Exemptions) ASCUS 4/28/16; Suspensions only, cool reception

EX-1 Hold Harmless through 1 July 2017 ADE may revise Guideline in the interim

Preliminary Fieldwork Budget Reconstruction All three years’ budgets reconstructed Adjustments applied to reconstructed budget worksheets Results in financial adjustments

Preliminary Fieldwork Sent to LEA

Fieldwork Exit Conference Preliminary fieldwork results reviewed Identification of trends and findings Acceptance of supporting documentation and timeframe for supporting documentation provision

Two Types of Audit Reports Letter Report ADM Audit Report

Letter Report

ADM Audit Report

ADM Audit Report Contents Introduction and Background Scope and Methodology Findings Condition Cause Criteria Effect Recommendations ADM and Funding Adjustments

Draft Exit Conference Topics of Discussion: Discuss any pressing concerns from LEA Evaluate accuracy of narrative Confirm causation Discuss language use Discuss requests and misc. items

Publication and Distribution 2-3 Copies sent to LEA via Certified USPS State education stakeholders i.e. ASBE, OAG, etc. Audit Unit’s report webpage

Appeal Window Upon receipt of certified copies 30-day appeal window begins LEA may notify auditors of intent not to appeal Submit appeal to Audit Manager Informal Settlement Conference Formal Settlement Conference Allow 30-day window to lapse Request a Hardship Exception

Informal & Formal Appeal Informal Appeal Audit Manager Coordinates Runs in tandem with Formal Appeal process ADE Leadership meet with LEA leadership over point of contention Formal Appeal OAH notification LEA notification of Calendar date Scheduled to afford time for Informal process to occur Appearance before the ALJ Decision subject to the approval of the Superintendent of Public Instruction

Audit Resolution Audit Team submits adjustments to School Finance School Finance—Payments Team; performs transaction Appears on APOR/CHAR64 as ADM Audit Adjustment Routine Adjustment: Prorated, n/12 or initial “catch up” adjustment, then equal disbursement over fiscal year Hardship Adjustment: Prorated, n/24 or initial “catch up” adjustment, then equal disbursement over current and following fiscal years

The End Please contact us with any questions at: Audits@azed.gov Or: Arizona Department of Education The Audit Unit 1535 West Jefferson St Bin #19 Phoenix, Arizona 85007 http://www.azed.gov/audit/