CSBG ARRA Webinar Risk Assessment and Risk Mitigation

1. CSBG ARRA Webinar Risk Assessment and Risk Mitigation October 7, 2009 1:00 p.m. – 2:30 p.m.

2. Risk Assessment and Risk Mitigation Webinar The Big Picture: Federal and State overview CSD’s Risk Assessment Process Internal Risk indicators Overview of Information Memorandum 112 Objective of Risk Assessment Assessing Risk and Mitigating Potential Risk Agency Self Certification Review of Risk Assessment Template Critical due dates Questions and Answers

3. The Big Picture Risk Mitigation Activities Federal Level State Level

4. Recovery Act Accountability Framework and Objectives

5. CSD’s Risk Assessment Process CSD conducted a risk assessment of CSBG eligible entities Risk assessment indicators: Monitoring findings Equipment purchases Audit Late fiscal and programmatic reports Other (i.e. size of CSBG ARRA Allocation, number of subcontractors)

6. Information Memorandum 112 Information Memorandum 112 - Risk Assessment and Risk Mitigation Process for CSBG ARRA funds Ensure an assessment of potential risk and mitigation efforts are conducted Mandates all eligible entities will comply Available standard and guidelines for internal controls Role of eligible entity and tripartite board

7. Objective of Risk Assessment The goal of the risk assessment is to ensure an assessment has been conducted on audit and monitoring findings and corrective actions have been taken to resolve these issues Internal controls to ensure information is protected against fraud, waste, abuse, conflict of interest, and mismanagement of federal funds Fiscal and programmatic policies and procedures Equipment and property policies

8. Assessing Risk and Mitigating potential Risk Probability of occurrence Potential impact Financial Legal Program mission Organizational and program reputation

9. Agency Self Certification Certification Template Attached to IM 112 Available on CSD’s website (www.csd.ca.gov) Review Template Questions 1 - 6

10. Risk Assessment Template: Question 1 Have there been any material weaknesses and reportable conditions, questioned costs and other findings cited within the last three years in annual audits, State monitoring assessments, Inspector General Reviews, or other Government Agency reviews of entity finances and operations that have not been corrected?

11. Risk Assessment Template: Question 2 Does the entity have in place standard financial and operating controls to ensure assets and information are protected against fraud, waste and abuse, and mismanagement of Federal funds?

12. Risk Assessment Template: Question 3 Does the entity have in place clearly stated and current administrative, fiscal and programmatic policies and operating procedures in accordance with the CSBG statute? Does the entity assure that policies and procedures are distributed to staff accompanied by training? 

13. Risk Assessment Template: Question 4 Does the entity have in place a methodology for monitoring compliance with internal policies and procedures?  Have internal policies and procedures been reviewed for compliance with requirements of the CSBG Act, ARRA, CSBG Information Memoranda, OMB Circulars, ACF Grant Terms and Conditions and other contractual terms and conditions?  

14. Risk Assessment Template: Question 5 What procedures are in place to assure that any general purpose equipment purchased using CSBG ARRA funds is directly related to specific CSBG services under the ACF Grant Terms and Conditions applicable to ARRA?

15. Risk Assessment Template: Question 6 If any purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility, has a Federal waiver been requested and approved as required under the CSBG Statute? 

16. Risk Mitigation Activities A “yes” to question number one indicates a potential risk are for CSBG ARRA implementation. A “no: response to question 2 – 6 indicates a potential risk area. For any identified risk, please describe current risk mitigation plans or compensating controls established. Attach additional sheets if necessary

17. Certification Statement I certify that a risk assessment has been conducted to assure appropriate expenditures of Community Services Block Grant funds received through the American Recovery and Reinvestment Act of 2009.  This risk assessment addressed previous audit or monitoring findings within the last three years, a review of existing internal controls, a review of statutory and regulatory compliance, and a review of equipment and property procedures to assure a direct relationship to CSBG services. Where potential risks have been identified, appropriate risk mitigation measures and compensating controls have been identified.

18. Due Dates October 15, 2009 Certification due to CSD October 30, 2009 State provide risk assessments to OCS Submit certification CSD Attention: Community Services Division P. O. Box 1947 Sacramento, CA 95812-1947

19. Questions and Answers We will use the “raise your hand” feature Please state your name and agency