1. How to Prepare for a Federal Monitoring Visit (SASA/OSEP) Jennifer S. Mauskapf, Esq. jmauskapf@bruman.com Brustein & Manasevit, PLLC Fall Forum 2012

2. AGENDA Overview of the Monitoring Process SASA OSEP Preparing for a Monitoring Visit Common Findings Brustein & Manasevit, PLLC 2

3. OVERVIEW OF THE MONITORING PROCESS Brustein & Manasevit, PLLC 3

4. SASA Monitoring Covers… Title I, Part A Title I, Part D (Neglected, Delinquent, or At-Risk) Title X, Part C (McKinney-Vento Act/Homeless Program) Section 1003(g) School Improvement Grants (SIG) Title III, Part A Brustein & Manasevit, PLLC 4

5. OSEP ‘Monitoring’ Covers… Continuous Improvement Visits http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder_n ame=OSEP+Continuous+Improvement+Visits http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder_n ame=OSEP+Continuous+Improvement+Visits Results Component http://www2.ed.gov/about/offices/list/osers/osep/rda/index.html http://www2.ed.gov/about/offices/list/osers/osep/rda/index.html Stakeholder Input Process Verification Component http://therightidea.tadnet.org/assets/browse_by_folder?folder=61&folde r_name=CrEAGs-+Part+B http://therightidea.tadnet.org/assets/browse_by_folder?folder=61&folde r_name=CrEAGs-+Part+B Determinations. State Performance Plan (SPP) / Annual Performance Report (APR) Review Brustein & Manasevit, PLLC 5

6. Prior to Visit Desk monitoring of each State State contact gathers and analyzes data and information Information collected primarily through Web-based searches and document analysis Specific documentation requested from SEA Selection of LEAs Receipt of Agenda and List of ED Participants Brustein & Manasevit, PLLC 6

7. The Visit Itself HOW LONG? Typically one full week WHAT WILL ED BE DOING DURING THE VISIT? Review documentation not available prior to the trip Interview SEA and LEA staff, principals, teachers, parents, and other stakeholders Exit Conference Brustein & Manasevit, PLLC 7

8. Post-Visit – SASA-specific  DRAFT comprehensive monitoring report issued  To be issued within 35 business days of the on-site visit  SEA has 5 business days to review and provide technical edits and corrections  FINAL report issued  SEA Response  SEA has 30 business days to respond to any required actions  SASA sends a letter approving proposed actions or requiring revision/further action  May require close collaboration (e.g., CAPs) and/or follow-up visits  Significant compliance findings can lead to special conditions Brustein & Manasevit, PLLC 8

9. TOP 10 WAYS TO PREPARE FOR A MONITORING VISIT Preparation is the Key! Brustein & Manasevit, PLLC 9

10. 1. Organizational Meeting Meet with Key Personnel All about Communication! Discuss program and areas that will be reviewed Brustein & Manasevit, PLLC 10

11. 2. Select Main Visit Contact 1 Main Visit Contact Schedule meetings Ensure lead personnel schedules clear Organize travel requests / information (as requested by SASA) Schedule visits to schools (as requested by SASA) Schedule conference calls with SASA prior to visit Brustein & Manasevit, PLLC 11

12. 3. Select Main Interview Contacts A representative should be appointed as lead interviewer for each program (and topic) as appropriate Title I, Part A Title I, Part D – Neglected, Delinquent or At-Risk Title X, C - McKinney-Vento Title III, Part A SIG IDEA Results These representatives must know who should be present for each indicator and where all documentation is located! Brustein & Manasevit, PLLC 12

13. 4. Select Meeting Place Want meeting place separate from main offices so that all parties can remain focused Don’t completely isolate All personnel should have cleared scheduled and be ready to participate as necessary Organized by the applicable lead contact Brustein & Manasevit, PLLC 13

14. 5. Complete Monitoring Documents Complete the Actual Monitoring Document the Monitors will be using! Put your best foot forward Narrative Form How? Answer the Question Being Asked! Respond to correct fiscal year! Include Specific Citations as appropriate. Brustein & Manasevit, PLLC 14

15. 5. Complete Monitoring Documents (cont.) OSEP: Critical Elements Analysis Guide (CrEAG) Part B Gen. Supervision Fiscal Systems SASA Monitoring Plan for Formula Grant Programs SIG: Application Process, Implementation, Fiscal, Technical Assistance, Monitoring, Data Collection Title I Team Title I-A Fiduciary Title I-D McKinney-Vento Title III-A: Monitoring of Subgrantees; Standards, Assessments & Accountability, Instructional Support, Fiduciary Brustein & Manasevit, PLLC 15

16. 5. Complete Monitoring Documents (cont.) OSEP’s CrEAG Format Brustein & Manasevit, PLLC 16

17. 5. Complete Monitoring Documents (cont.) SIG Format Title I & Title III Team Format Brustein & Manasevit, PLLC 17

18. 6. Organize Documentation Corresponding Binders Tabbed! Organized! Complete Examples! Connect-the-Dots! Copies for yourself Include any additional documents given to SASA during the visit Brustein & Manasevit, PLLC 18

19. 7. Mock SASA Visit Practice Makes Perfect! (sort of) Take the monitoring instrument and review the current system in place Interview selected personnel (“test”) CONDUCT PRIOR TO VISIT Chance to change systems as needed! Chance to create corrective action plans and begin implementation as needed! Brustein & Manasevit, PLLC 19

20. 8. Be Prepared to Address Noncompliance Be prepared to address any corrective action plan already created or implemented. If no corrective action plan then attempt to create a plan prior to SASA’s arrival. Brustein & Manasevit, PLLC 20

21. 9. Review Findings From Your State Review old monitoring reports Special Conditions State Plans Did you complete everything you said you would? Review audits Including A-133 Single Audit Brustein & Manasevit, PLLC 21

22. 10. Review Monitoring Findings In Other States Title I & Title III Reports (2011-2012): http://www2.ed.gov/admins/lead/account/monitoring/report s12/index.html http://www2.ed.gov/admins/lead/account/monitoring/report s12/index.html SIG Reports: http://www2.ed.gov/programs/sif/monitoring/index.html http://www2.ed.gov/programs/sif/monitoring/index.html OSEP Continuous Improvement Letters: http://www2.ed.gov/fund/data/report/idea/partbvvltr/chron date.html http://www2.ed.gov/fund/data/report/idea/partbvvltr/chron date.html Review reports to identify focus areas, trends in findings. Brustein & Manasevit, PLLC 22

23. COMMON FINDINGS ACROSS THE BOARD Brustein & Manasevit, PLLC 23

24. Written Policies and Procedures Conflicting policies Out-of-date policies Non-existent policies  If you have to explain how something is done without being able to point to a clear and current written policy or procedure, you probably have some work to do!!! Brustein & Manasevit, PLLC 24

25. Notification Requirements Timeliness Required Items Public Reporting Examples: Title I-A: Annual LEA Report Card, HQT Status Letter, School Improvement Status, SES and Choice Notice Title III: Student Identification, AMAO Determination IDEA: Procedural Safeguards, Stakeholder Input for SPP/APR Brustein & Manasevit, PLLC 25

26. Fiduciary Timely review and approval of LEA applications Timely allocation of subgrants Period of availability of funds to LEAs Process for Reallocating Funds Timely Obligation and Liquidation Brustein & Manasevit, PLLC 26

27. Fiduciary Ensuring Funds are Used for Allowable Uses Consistent with Federal Cost Principles? Consistent with EDGAR? Consistent with program-specific rules? How does SEA/LEA ensure and document allowability? Program-specific Fiscal Rules MOE Supplement not Supplant Caps Brustein & Manasevit, PLLC 27

28. Fiduciary – High Dollar Areas of Concern Procurement Property / Inventory Management Time Distribution Brustein & Manasevit, PLLC 28

29. EDGAR Procurement Rules Section 80.36 of EDGAR All procurement transactions must be conducted with full and open competition Conflict of Interest: Must have written code of conduct for all employees engaged in contract award and administration Must have protest procedures to handle disputes Follow Procurement Rules!!! Brustein & Manasevit, PLLC 29

30. Inventory Management: Common Problems Determining between “equipment” and “supply” Determining level of control over item Tracking non-equipment items Brustein & Manasevit, PLLC 30

31. Equipment Rules Section 80.32 of EDGAR Must have adequate controls in place to account for: Location of equipment Custody of equipment Security of equipment Property records Description, serial number or other ID, title information, acquisition date, cost, percent of federal participation, location, use and condition, and disposition (if applicable) Physical inventory Must be performed at least every 2 years Control system to prevent loss, damage and theft All incidents must be investigated Brustein & Manasevit, PLLC 31

32. Equipment Rules (cont.) Must protect against unauthorized use May use for other projects as long as use is incidental and does not interfere with authorized use When property is no longer needed, must follow disposition rules: Transfer to another federal program Over $5,000 – Keep or sell, but must pay a share based on the percentage of federal ED participation at initial acquisition Under $5,000 – May keep, sell, or dispose of it with no obligation to ED Brustein & Manasevit, PLLC 32

33. Supplies Section 80.33 of EDGAR Supplies are everything else Do not cost much money Used fairly quickly Examples: pens, paper, toner, laptops EDGAR does not set out any specific tracking requirements As a practical matter, ED expects subgrantees to track all property purchased with federal funds, in order to prove there has been an allocable benefit to the federal program Brustein & Manasevit, PLLC 33

34. Time Distribution Selected Items of Cost: Salaries and Wages Allowable if proper time distribution records Time Distribution Records must be maintained for all employees whose salaries are: Paid in whole or in part with federal funds Used to meet a match/cost share requirement Brustein & Manasevit, PLLC 34

35. Time Distribution – Common Problems Proper Identification of “Cost Objective(s)” Completion of Required Documentation PAR vs. Semi-annual Certification Correct Signatory? Correct Time Period? Time reported add up to 100% time worked? Signed after-the-fact? Quarterly Reconciliations Brustein & Manasevit, PLLC 35

36. Equitable Services Timely and Meaningful Consultation LEA Maintaining Control Program Funds—no reimbursement! Property—tags, inventory Evaluation of Services Identification of Eligible Students Administration Costs NOT Charged Against Equitable Services Set-Aside Brustein & Manasevit, PLLC 36

37. Subrecipient Monitoring Comprehensive Monitoring Protocol Follow-up procedures to ensure corrective actions taken to address compliance issues Linking Monitoring Findings with Technical Assistance Brustein & Manasevit, PLLC 37

38. RESOURCES  2011-2012 SASA Monitoring Protocol http://www2.ed.gov/admins/lead/account/monitoring/indicators1112.pdf http://www2.ed.gov/admins/lead/account/monitoring/indicators1112.pdf  Title I & Title III Reports (2011-2012): http://www2.ed.gov/admins/lead/account/monitoring/reports12/index.html http://www2.ed.gov/admins/lead/account/monitoring/reports12/index.html  SIG Reports: http://www2.ed.gov/programs/sif/monitoring/index.html http://www2.ed.gov/programs/sif/monitoring/index.html  Continuous Improvement Visit Page http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder _name=OSEP+Continuous+Improvement+Visits http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder _name=OSEP+Continuous+Improvement+Visits  OSEP Continuous Improvement Letters: http://www2.ed.gov/fund/data/report/idea/partbvvltr/chrondate.html http://www2.ed.gov/fund/data/report/idea/partbvvltr/chrondate.html  Part B SPP and APR Determination Letters: http://www2.ed.gov/fund/data/report/idea/partbspap/allyears.html http://www2.ed.gov/fund/data/report/idea/partbspap/allyears.html Brustein & Manasevit, PLLC 38

39. Questions? Brustein & Manasevit, PLLC 39

40. This presentation is intended solely to provide general information and does not constitute legal advice. Attendance at the presentation or later review of these printed materials does not create an attorney-client relationship with Brustein & Manasevit, PLLC. You should not take any action based upon any information in this presentation without first consulting legal counsel familiar with your particular circumstances. Brustein & Manasevit, PLLC 40 Disclaimer