How to Prepare for a Federal Monitoring Visit (SASA/OSEP)

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

3. Brustein & Manasevit, PLLC Overview of the Monitoring Process

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

5. OSEP ‘Monitoring’ Covers… • Continuous Improvement Visits http://therightidea.tadnet.org/assets/browse_by_folder?folder=36&folder_name=OSEP+Continuous+Improvement+Visits • Results Component 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&folder_name=CrEAGs-+Part+B • Determinations.State Performance Plan (SPP) / Annual Performance Report (APR) Review Brustein & Manasevit, PLLC

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

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

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

9. Preparation is the Key! Brustein & Manasevit, PLLC Top 10 Ways to Prepare for a Monitoring Visit

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

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

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

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

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

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

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

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

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

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

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

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

22. 10. Review Monitoring Findings In Other States • Title I & Title III Reports (2011-2012): http://www2.ed.gov/admins/lead/account/monitoring/reports12/index.html • SIG Reports: http://www2.ed.gov/programs/sif/monitoring/index.html • OSEP Continuous Improvement Letters: http://www2.ed.gov/fund/data/report/idea/partbvvltr/chrondate.html • Review reports to identify focus areas, trends in findings. Brustein & Manasevit, PLLC

23. Brustein & Manasevit, PLLC Common Findings Across the Board

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

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

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

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

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

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

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

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

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

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

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

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

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

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

38. RESOURCES • 2011-2012 SASA Monitoring Protocol 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 • SIG Reports: 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 • OSEP Continuous Improvement Letters: 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 Brustein & Manasevit, PLLC

39. Questions? Brustein & Manasevit, PLLC

40. Disclaimer 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