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

2. 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

3. ADM Audit Notification Letter

4. And Bell Schedules

5. Calendars

6. Base-level SMS Data

7. Instructional Hours Calculation: Bell Schedule Day Count

8. Bell Schedule Input

9. Grade Articulated Annual Instructional Hour Calculation

10. 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

11. Engagement Conference

12. ADMS to SMS Comparison

13. Sample List Provided

14. Student Attendance Profile

15. Student Attendance Profile

16. ADM Analysis 1 2 3

17. 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 ADM generated = 50 membership day or 0.5 ADM adjustment

18. 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

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

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

21. Preliminary Fieldwork Sent to LEA

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

23. Two Types of Audit Reports
Letter Report
ADM Audit Report

24. Letter Report

25. ADM Audit Report

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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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