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

2. SCHOOL IMPROVEMENT & DISTRICT EFFECTIVENESS
11/11/2018

3. Presenters Jennifer L. Davenport, Ed.D.
DRAFT
Presenters
Jennifer L. Davenport, Ed.D.
Title I, Part A Program Manager
Georgia Department of Education
(404)
Anthony Threat
Title I, Part A Education Program Specialist Georgia Department of Education
(706)
Tammie Smith
ESOL Program Specialist
(678)
Chris Horton Program Manager--Special Education Budgets and Grants Georgia Department of Education (404) Terri Still Title II, Part A Education Specialist (404)
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.

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

5. 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

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

7. The Road to Compliance
11/11/2018

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

9. 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

10. 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

11. How to Proceed? Existing documentation
Memos s
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.

12. 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

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

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

15. Suggested Sections Audit Resolution Programmatic Fiscal Requirements
Programmatic Requirements
Travel

16. 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)

17. 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

18. 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

19. 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

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

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

22. 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

23. 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 § )
Adequately documented

24. 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 - §

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

26. 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

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

28. 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

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

30. 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

31. 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

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

33. 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….

34. 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.”
§ (b)(4)

35. Inventory/Property Management
Must have inventory management system
Property records § (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

36. 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

37. 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

38. 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

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

40. 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

41. 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 § (i)(2)
BUT, if “records” of grantee do not meet new standards, ED may require PARs § (i)(8)
PARs are not defined!!

42. 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

43. 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

44. 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.

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

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

47. 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 § )
Must submit “performance reports” at least annually

48. 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 § )

49. 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)

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

51. 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

52. 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

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

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

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

56. Best Practices Eligibility of participants Allowable items of cost
Notification requirements

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

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

59. Questions
Brustein & Manasevit, PLLC

60. Presenters Jennifer L. Davenport, Ed.D.
DRAFT
Presenters
Jennifer L. Davenport, Ed.D.
Title I, Part A Program Manager
Georgia Department of Education
(404)
Anthony Threat
Title I, Part A Education Program Specialist Georgia Department of Education
(706)
Tammie Smith
ESOL Program Specialist
(678)
Chris Horton Program Manager--Special Education Budgets and Grants Georgia Department of Education (404) Terri Still Title II, Part A Education Specialist (404)
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.

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