School Improvement Grant Fiscal Compliance Guidance

1. School Improvement Grant Fiscal Compliance Guidance

2. Compliance Monitoring Three Levels of Compliance Monitoring: • Federal – programmatic and fiscal • State – Arizona Office of the Auditor General • Arizona Department of Education – fiscal and compliance monitoring of subrecipients

3. ADE Compliance Monitoring • Compliance Monitoring Visits - It is anticipated that each LEA will receive one or more visits during the 3 year cycle. • Continuous and ongoing compliance monitoring: • ALEAT • Review of Monthly Cash Management Reports • SIG Monthly Progress Report • Required Quarterly Reports • Review of Completion Report

4. Components of Fiscal Compliance • SIG Budget and Budget Amendments • Cash Management • Record Keeping • Time & Effort • Fixed/Capital Assets • ARRA Reporting • ADE Online Professional Development Registration

5. SIG Budget and Budget Amendments(ADE Grants Management Handbook) • All SIG Expenditures must be included in your LEA’s SIG Budget. • Budget Amendments - periodic adjustments to your LEA’s Budget may be needed. • Before submitting a Budget Amendment, the LEA should consult with the School Improvement Office. • The deadline is 90 days prior to the project end date = April 2nd for SIG projects. • Budget Amendment should be completed using the appropriate format. • Amendment # • Date • Narrative that adequately describes What, Why, Where • Other Supporting Information

8. Cash Management Reports(ADE Business Rules & ADE Grants Management Handbook) • Cash Management Report must be submitted between the 1st and 18th of each month • LEA reports two pieces of data: • Project Cash Balance • Project encumbrances for the next 30 days • Potential Non-Compliance Issues: • Non-Submittal • Positive Cash on Hand • Irregular Payments

11. Record Keeping General Ledger • Should include the following information where applicable: • Account Code • Purchase Order Number and Purchase Date • Invoice number and Invoice Date • Purchase Amount • Vendor name Source Documents • The LEA must maintain source documentation that supports all subgrant expenditures such as: • Receipts/Invoices • Purchase Orders • Contracts • Payroll Documentation

13. Time and Effort Reporting(OMB Circular A-87 & A-122) • State, Local, and Indian Tribal Governments (OMB Circular A-87) • Semi-Annual Certification • Where employees are expected to work solely on a single Federal award or cost objective • Monthly Personnel Activity Report • Where employees work on multiple activities or cost objectives • Non-profit Organizations/Community Based Organizations (OMB Circular A-122) • Monthly Personnel Activity Report • All employees funded with federal funds regardless whether the employee is funded 100% or split effort.

16. Fixed/Capital Assets(USFR VI-E-2 or USFRCS VI-E-2) • LEA should prepare a detailed list of general fixed/capital assets including computers, printers, servers and other capital items with a cost greater than $1,000. • List should include: • Property identification tag • Description • Serial # • Funding source • Purchase date • Cost • Location • Items should also be tagged.

18. ARRA Reporting Requirements • LEA’s receiving ARRA funds must submit the ARRA assurances form annually • LEA’s must also submit quarterly reports • Visit Grants Management ARRA Recipient Reporting Requirements webpage for more info: https://www.ade.az.gov/gme/Additional_Information/ARRARecipientReportingRequirements.asp

19. ADE On-line Professional Development Registration (General Guidance) • Check with your business office • Send a copy of your purchase order to ADE • Register on-line for the conference in question

20. ADE On-line PD Registration(Continued) • Please inform your Business Office of your registration promptly. • A confirmation number is required on the day of the event and should also be included on your purchase order. • A registration fee is charged for all registrants, including those who do NOT SHOW and have not canceled in writing 7 days prior to event start date. • All cancellations must be received in writing 7 days prior to the first day of the workshop for a refund.

21. Replacements If staff member is not attending Cancelations • ADE needs to receive the request in writing prior to event cut-off date. • Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions. • ADE needs to receive the request in writing preferably prior to event cut-off date. • The new attendee needs to register for the training in question. • Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions.

22. Sources • ADE Business Rules School Districts: https://www.ade.az.gov/Guidelines/EX-22.pdf Charter Schools: https://www.ade.az.gov/Guidelines/EX-21.pdf • ADE Grants Management Handbook https://www.ade.az.gov/Guidelines/EX-15.pdf • ADE Grants Management Federal Fiscal Requirements https://www.ade.az.gov/gme/Additional_Information/FederalFiscalRequirement.asp • ADE Grants Management ARRA Recipient Reporting Requirements https://www.ade.az.gov/gme/Additional_Information/ARRARecipientReportingRequirements.asp

23. Sources(continued) • Uniform System for Financial Records for Arizona School Districts (USFR) http://www.auditorgen.state.az.us/manuals_schooldistrict.htm • Uniform System for Financial Records for Arizona Charter Schools (USFRCS) http://www.auditorgen.state.az.us/manuals_charter.htm • OMB Circular A-133 http://www.whitehouse.gov/omb/rewrite/circulars/a133/a133.html • OMB Circular A-87 http://www.whitehouse.gov/omb/rewrite/circulars/a087/a87_2004.html • OMB Circular A-122 http://www.whitehouse.gov/omb/circulars_a122_2004/

24. Budget &Fiscal Team Contact Info. Bruce J. Groll, Education Program Director - Finance bruce.groll@azed.gov (602) 364-2302 C.J. Beckstrom, Education Program Specialist - Budget & Compliance cj.beckstrom@azed.gov (602) 364-2656 Betty Helm, Education Program Specialist - Accounting betty.helm@azed.gov (602) 364-2308