How to Draft Compliant Procedures GCEL February 22-24, 2016 Savannah Riverfront Marriott Savannah, Georgia 11/11/2018

SCHOOL IMPROVEMENT & DISTRICT EFFECTIVENESS 11/11/2018

Presenters Jennifer L. Davenport, Ed.D. DRAFT Presenters Jennifer L. Davenport, Ed.D. Title I, Part A Program Manager Georgia Department of Education jedavenp@doe.k12.ga.us (404) 463-1955 Anthony Threat Title I, Part A Education Program Specialist Georgia Department of Education anthony.threat@doe.k12.ga.us (706) 615-0367 Tammie Smith ESOL Program Specialist tsmith@doe.k12.ga.us (678) 794-3667 Chris Horton Program Manager--Special Education Budgets and Grants Georgia Department of Education chorton@doe.k12.ga.us (404) 657-9968 Terri Still Title II, Part A Education Specialist tstill@doe.k12.ga.us (404) 561-3876 Supplemental Educational Services: Title I, Part A of the Elementary and Secondary Education Act of 1965 (ESEA), as reauthorized by the No Child Left Behind Act of 2001 (NCLB), called for parents of eligible students attending Title I schools that have not made adequate yearly progress (AYP) in increasing student academic achievement for three years to be provided with opportunities and choices to help ensure that their children achieve at high levels. SES provide extra academic assistance for eligible children. Students from low-income families who are attending Title I schools that are in their second year of school improvement (i.e., have not made AYP for three years), in corrective action, or in restructuring status are eligible to receive these services. State educational agencies (SEAs) were required to identify entities, both public and private, that qualify to provide these services. Parents of eligible students were then notified, by the LEA, that SES would be made available, and parents selected any approved provider in the geographic area served by the LEA or within a reasonable distance of that area that they feel would best meet their child’s needs. The LEA had to sign an agreement with the provider selected by the parent, and the provider and then provide services to the child and report on the child’s progress to the parents and to the LEA. The goal of SES was to increase eligible students’ academic achievement in a subject or subjects that the State includes in its ESEA assessments under Section 1111 of the ESEA, which had include reading/language arts, mathematics, and science.

Agenda Why policies and procedures are important Logistics Suggested Sections Rules and Requirements Best Practices What to do with completed policies and procedures

Why Policies and Procedures are Important Single Audits Auditors ask about policies and procedures Some tests specifically require written policies and procedures Monitoring Policies and procedures are evidence of compliance under all program monitoring tools Staff Changes and Transitions Training tool Maintain consistency

Why Policies and Procedures are Important Uniform Grant Guidance Emphasis on internal controls Written policies and procedures are required! Written Cash Management Procedure - §200.302(b)(6) and §200.305 Written Allowability Procedures - §200.302(b)(7) Written Conflicts of Interest Policy - §200.318(c) Written Procurement Procedures - §200.319(c) Written Method for Conducting Technical Evaluations of Proposals and Selecting Recipients - §200.320(d)(3) Written Travel Policy - §200.474(b)

The Road to Compliance 11/11/2018

Policies versus Procedures Policies are the goals for your organization Procedures are the steps to be taken to achieve your goals

Logistics What is the process for drafting/updating policies and procedures? Review existing policies and procedures Develop questions Schedule interviews with relevant staff Gather information on actual practices Draft policies and procedures Review internally with appropriate staff Revise Formally adopt and implement Train staff

How to Proceed? Determine goal Create a team – include both fiscal and programmatic personnel (very important) Create a table of contents Assign subjects Create timeline for completion

How to Proceed? Existing documentation Memos Emails Forms Job descriptions A list of the staff member(s) that perform the tasks related to the policies and procedures you are creating. Go to the program director to get this information.

Important Considerations Buy-in from those who will be using the policies and procedures Review for accuracy, completeness and compliance Adoption by board or other governing body

Resources Uniform Grant Guidance Education Department General Administrative Regulations (EDGAR) Authorizing statute Program regulations Program guidance State and agency rules, regulations, policies and procedures

Suggested Sections Organization, Structure and Function Grant Application Process Financial Management System Procurement Inventory/Property Management Time and Effort Record Keeping/Record Retention Monitoring

Suggested Sections Audit Resolution Programmatic Fiscal Requirements Programmatic Requirements Travel

Organization, Structure and Function Organization Chart Offices Sections Divisions Job descriptions and responsibilities Outside entities with grant administration responsibilities Memorandums of Understanding (MOU)/ Memorandums of Agreement (MOA)

Best Practices Include information about all offices, sections, divisions or employees that have responsibility for grant administration Procurement, inventory, cash management Describe any entities outside of the agency that have grant administration responsibilities Correctional facilities, secondary/postsecondary agencies, partner agencies MOU/MOA between the grantee and outside agencies

Grant Application Process State-administered grant versus direct grant Decisions regarding what grants to apply for Determining organizational capacity to run a compliant program Approvals and Authorizations After the grant is awarded

Best Practices Standardize how the agency determines which grants to apply for and the application process itself Whether or not formal acceptance is required, meet with appropriate parties to be certain you want to accept the grant Make acceptance a conscious act. Circumstances may have changed between submission of application and notice of award Grant team meetings

Financial Management System 2 CFR § 200.302(b) Identification of Awards (NEW) Financial Reporting Accounting Records (Source Documents) Internal Control Budget Control **Written Cash Management Procedures (NEW) **Written Allowability Procedures (NEW)

Written Cash Management Procedures NEW: Written Cash Management Procedures to implement requirements of §200.305 Payment

Written Allowability Procedures NEW: Written procedures for determining allowability In accordance with Subpart E – Cost Principles and terms and conditions of federal award Not a restatement of Subpart E But a navigation guide through grant development and budget process Training tool for employees

Cost Principles Factors Affecting Allowability of Costs--§200.403 All Costs Must Be: Necessary, Reasonable and Allocable Conform with federal law and grant terms Consistent with state and local policies Consistently treated In accordance with generally approved accounting procedures Not included as match Net of applicable credits (moved to §200.406) Adequately documented

Financial Management System Can include Selected Items of Cost section for frequently asked about expenses The Uniform Grant Guidance has 55 specific items of cost - §200.420

Travel Costs Uniform Grant Guidance §200.474 State Rules Agency Rules Documentation required to be maintained

Best Practices Include information on: Your accounting system(s) How budgets are loaded onto the system Process for comparing budgets to expenditures Process and authorizations for budget revisions Period of performance and when obligations are made Process for carryover Incorporate state/agency requirements

Procurement NEW: Uniform Grant Guidance -- All non-federal entities must have documented procurement procedures which reflect applicable Federal, State, and local laws and regulations. §200.318(a). Open competition Conflict of Interest Solicitation Cost/Price Analysis Vendor Selection Required Contract Provisions Contract Administration Protest Procedures

Conflict of Interest Policy Include: Definition Chain for reporting potential conflicts Alternate if reporting to employee involved in potential conflict Definitions and examples of nominal items Recusal Sanctions Signed certification that employee received and understands conflicts policy Training on policy

Vendor Selection Process §200.320 Methods of procurement: NEW: Micro-purchase Small purchase procedures Competitive sealed bids Competitive proposals Noncompetitive proposals

Contract Administration §200.318 (Changed) Non-federal entities must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of the contract

Best Practices Review breadth of conflict of interest policy Separation of duties Service contracts versus contracts for goods Contract thresholds and process for entering into contracts within each threshold amount State/agency requirements are often more restrictive then federal rules Describe process to ensure that the terms of the contract are met

Inventory/Property Management Uniform Grant Guidance §200.313 Property Classifications Shared Use of Equipment Inventory Procedure Loss, Damage or Theft Disposition

Equipment and Supplies Equipment – No change in definition §200.33 Anything that is not equipment is considered supplies §200.94 NEW: Computing devices Machines used to acquire, store, analyze, process, public data and other information electronically Includes accessories for printing, transmitting and receiving or storing electronic information Computing devices are supplies if less than $5,000 BUT….

Equipment and Supplies Regardless of the cost, the grantee must maintain effective control and “safeguard all assets and assure that they are used solely for authorized purposes.” §200.302(b)(4)

Inventory/Property Management Must have inventory management system Property records §200.313(d)(1) Description of the property Serial number or other identification number Source of funding for the property (including the FAIN), Who holds title Acquisition date Cost of the property Percentage of federal participation in the project costs for the federal award under which the property was acquired Location, use and condition of the property Any ultimate disposition data including the date of disposal and sale price of the property

Inventory/Property Management Must have inventory management system Physical inventory At least every two years Control system to prevent loss, damage, theft All incidents must be investigated

Disposition-Equipment §200.313 When property no longer needed, must follow disposition rules: Transfer to another federal program Over $5,000 – pay federal share Under $5,000 – no accountability NEW: Non-federal entity must request disposition instructions from the federal awarding agency if required by the terms of the grant

Best Practices Define property classification and internals controls for each classification Review inventory records to ensure all required categories are maintained Policy regarding lost, stolen or damaged items Clear disposition procedures

Time and Effort Uniform Grant Guidance OMB Circular A-87 Reconciliations

Documentation--Personnel Expenses §200.430 NEW: Charges for salaries must be based on records that accurately reflect the work performed Must be supported by a system of internal controls which provides reasonable assurance charges are accurate, allowable and properly allocated Be incorporated into official records Must reasonably reflect total activity for which employee is compensated Not to exceed 100% Encompass all activities (federal and non-federal) Comply with established accounting polices and practices Support distribution among specific activities or cost objectives

Documentation--Personnel Expenses §200.430 NEW: If records meet the standards: the non-federal entity will NOT be required to provide additional support or documentation for the work performed § 200.430(i)(2) BUT, if “records” of grantee do not meet new standards, ED may require PARs §200.430(i)(8) PARs are not defined!!

Best Practices Describe how effort is documented for: Employees that work on one cost objective Employees that work on multiple cost objectives Describe process for: Filling out the forms (include authorizations) Turning in the forms Reconciliations

Record Keeping Uniform Grant Guidance §§200.333, 200.335 Statute of Limitations EDGAR - 3 years BUT GEPA - 5 years statute of limitations State Policy Agency Policy

Methods for Collection, Transmission and Storage of Information §200 NEW: When original records are electronic and cannot be altered, there is no need to create and retain paper copies. When original records are paper, electronic versions may be substituted through the use of duplication or other forms of electronic media provided they: Are subject to periodic quality control reviews; Provide reasonable safeguards against alteration; and Remain readable.

Best Practices Describe method for: Collection of records Storage of records Disposition of records

Monitoring Monitoring of Agency Monitoring of Subrecipients Risk-Based Factors Onsite Reviews Remote Monitorings Desk Reviews Self-Assessments Follow-Up

Monitoring and Reporting Program Performance §200.328 NEW: Monitoring by the “Pass Through” (the state) Monitor to assure compliance with applicable federal requirements and performance expectations are achieved Must cover each program, function or activity (see also §200.331) Must submit “performance reports” at least annually

Requirements for Pass-Through Entities §200.331 NEW: Depending on assessment of risk, the following monitoring tools may be useful for the pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: Training + technical assistance on program-related matters On-site reviews Arranging for “agreed-upon-procedures” engagements (described in § 200.425)

Best Practices Risk-based monitoring system Common factors: Amount of grant Timeliness of reports Transition in staff History with grants Recent audit findings Process for monitoring subrecipients From notification to issuing report and timeline Site visits, desk reviews, self-assessments Fiscal and Programmatic reviews Ensure findings are resolved Corrective action plan, closeout letter, future monitoring)

Audit Resolution Single Audit Uniform Grant Guidance – Subpart F Resolution of Findings Review of Subrecipients’ Single Audits

Best Practices Assign responsibilities for managing audit requests Assign main contact Create process for resolution of findings Corrective Action Plan, Timeline Process for reviewing subrecipients’ single audits

Best Practices Assign responsibilities for managing audit requests Assign main contact Create process for resolution of findings Corrective Action Plan, Timeline Process for reviewing subrecipients’ single audits

Programmatic Fiscal Requirements Supplement Not Supplant Maintenance of Effort Matching and Cost Sharing Hold Harmless

Best Practices Describe requirement and how the agency complies with the requirement

Programmatic Requirements Programmatic Compliance Application process Allocations to subrecipients Allowable costs under the grant program Other

Best Practices Eligibility of participants Allowable items of cost Notification requirements

After your policies and procedures are done . . . What are the next steps?

Next Steps Training Review and Revise Where are policies and procedures located?

Questions Brustein & Manasevit, PLLC

Presenters Jennifer L. Davenport, Ed.D. DRAFT Presenters Jennifer L. Davenport, Ed.D. Title I, Part A Program Manager Georgia Department of Education jedavenp@doe.k12.ga.us (404) 463-1955 Anthony Threat Title I, Part A Education Program Specialist Georgia Department of Education anthony.threat@doe.k12.ga.us (706) 615-0367 Tammie Smith ESOL Program Specialist tsmith@doe.k12.ga.us (678) 794-3667 Chris Horton Program Manager--Special Education Budgets and Grants Georgia Department of Education chorton@doe.k12.ga.us (404) 657-9968 Terri Still Title II, Part A Education Specialist tstill@doe.k12.ga.us (404) 561-3876 Supplemental Educational Services: Title I, Part A of the Elementary and Secondary Education Act of 1965 (ESEA), as reauthorized by the No Child Left Behind Act of 2001 (NCLB), called for parents of eligible students attending Title I schools that have not made adequate yearly progress (AYP) in increasing student academic achievement for three years to be provided with opportunities and choices to help ensure that their children achieve at high levels. SES provide extra academic assistance for eligible children. Students from low-income families who are attending Title I schools that are in their second year of school improvement (i.e., have not made AYP for three years), in corrective action, or in restructuring status are eligible to receive these services. State educational agencies (SEAs) were required to identify entities, both public and private, that qualify to provide these services. Parents of eligible students were then notified, by the LEA, that SES would be made available, and parents selected any approved provider in the geographic area served by the LEA or within a reasonable distance of that area that they feel would best meet their child’s needs. The LEA had to sign an agreement with the provider selected by the parent, and the provider and then provide services to the child and report on the child’s progress to the parents and to the LEA. The goal of SES was to increase eligible students’ academic achievement in a subject or subjects that the State includes in its ESEA assessments under Section 1111 of the ESEA, which had include reading/language arts, mathematics, and science.

How to Draft Compliant Procedures GCEL February 22-24, 2016 Savannah Riverfront Marriott Savannah, Georgia 11/11/2018