S CHOOL I MPROVEMENT G RANT F ISCAL C OMPLIANCE G UIDANCE

C OMPLIANCE M ONITORING Three Levels of Compliance Monitoring: Federal – programmatic and fiscal State – Arizona Office of the Auditor General Arizona Department of Education – fiscal and compliance monitoring of subrecipients

ADE C OMPLIANCE M ONITORING 1. Compliance Monitoring Visits - It is anticipated that each LEA will receive one or more visits during the 3 year cycle. 2. Continuous and ongoing compliance monitoring: ALEAT Review of Monthly Cash Management Reports SIG Monthly Progress Report Required Quarterly Reports Review of Completion Report

C OMPONENTS OF F ISCAL C OMPLIANCE SIG Budget and Budget Amendments Cash Management Record Keeping Time & Effort Fixed/Capital Assets ARRA Reporting ADE Online Professional Development Registration

SIG B UDGET AND B UDGET A MENDMENTS (ADE G RANTS M ANAGEMENT H ANDBOOK )ADE G RANTS M ANAGEMENT H ANDBOOK All SIG Expenditures must be included in your LEA’s SIG Budget. Budget Amendments - periodic adjustments to your LEA’s Budget may be needed. Before submitting a Budget Amendment, the LEA should consult with the School Improvement Office. The deadline is 90 days prior to the project end date = April 2 nd for SIG projects. Budget Amendment should be completed using the appropriate format. Amendment # Date Narrative that adequately describes What, Why, Where Other Supporting Information

C ASH M ANAGEMENT R EPORTS (ADE B USINESS R ULES & ADE G RANTS M ANAGEMENT H ANDBOOK )ADE B USINESS R ULESADE G RANTS M ANAGEMENT H ANDBOOK Cash Management Report must be submitted between the 1 st and 18 th of each month LEA reports two pieces of data: Project Cash Balance Project encumbrances for the next 30 days Potential Non-Compliance Issues: Non-Submittal Positive Cash on Hand Irregular Payments

R ECORD K EEPING General Ledger Should include the following information where applicable: Account Code Purchase Order Number and Purchase Date Invoice number and Invoice Date Purchase Amount Vendor name Source Documents The LEA must maintain source documentation that supports all subgrant expenditures such as: Receipts/Invoices Purchase Orders Contracts Payroll Documentation

T IME AND E FFORT R EPORTING (OMB C IRCULAR A-87 & A-122)A-87A-122 State, Local, and Indian Tribal Governments (OMB Circular A-87) Semi-Annual Certification Where employees are expected to work solely on a single Federal award or cost objective Monthly Personnel Activity Report Where employees work on multiple activities or cost objectives Non-profit Organizations/Community Based Organizations (OMB Circular A-122) Monthly Personnel Activity Report All employees funded with federal funds regardless whether the employee is funded 100% or split effort.

F IXED /C APITAL A SSETS (USFR VI-E-2 OR USFRCS VI-E-2)USFRUSFRCS LEA should prepare a detailed list of general fixed/capital assets including computers, printers, servers and other capital items with a cost greater than $1,000. List should include: Property identification tag Description Serial # Funding source Purchase date Cost Location Items should also be tagged.

ARRA R EPORTING R EQUIREMENTS LEA’s receiving ARRA funds must submit the ARRA assurances form annually LEA’s must also submit quarterly reports Visit Grants Management ARRA Recipient Reporting Requirements webpage for more info: on/ARRARecipientReportingRequirements.asp

ADE O N - LINE P ROFESSIONAL D EVELOPMENT R EGISTRATION (G ENERAL G UIDANCE ) Check with your business office Send a copy of your purchase order to ADE Register on-line for the conference in question

ADE O N - LINE PD R EGISTRATION (C ONTINUED ) Please inform your Business Office of your registration promptly. A confirmation number is required on the day of the event and should also be included on your purchase order. A registration fee is charged for all registrants, including those who do NOT SHOW and have not canceled in writing 7 days prior to event start date. All cancellations must be received in writing 7 days prior to the first day of the workshop for a refund.

I F STAFF MEMBER IS NOT ATTENDING CancelationsReplacements ADE needs to receive the request in writing prior to event cut-off date. Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions. ADE needs to receive the request in writing preferably prior to event cut-off date. The new attendee needs to register for the training in question. Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions.

S OURCES ADE Business Rules School Districts: Charter Schools: ADE Grants Management Handbook ADE Grants Management Federal Fiscal Requirements p ADE Grants Management ARRA Recipient Reporting Requirements uirements.asp

S OURCES ( CONTINUED ) Uniform System for Financial Records for Arizona School Districts (USFR) Uniform System for Financial Records for Arizona Charter Schools (USFRCS) OMB Circular A OMB Circular A-87 OMB Circular A-122

B UDGET &F ISCAL T EAM C ONTACT I NFO. Bruce J. Groll, Education Program Director - Finance (602) C.J. Beckstrom, Education Program Specialist - Budget & Compliance (602) Betty Helm, Education Program Specialist - Accounting (602)