1. Association of Government Accountants “Maximizing Government Efficiency Through Technology and Oversight” April 29, 2016 * 9:30 am 1

2. Office of Fiscal Accountability and Compliance (OFAC) Robert J. Cicchino Director 2 NJDOE

3. Agenda OFAC Mission OFAC Goals OFAC Responsibilities OFAC Team Consolidated Monitoring Process State Aid Audits Special Audits Unit Identifying Programs and Districts for Audit/Monitoring 3

4. OFAC MISSION Operates under N.J.S.A. 18A:4-23 Responsible for all investigative and auditing functions Criminal background review of applicants for school positions School Preparedness and Emergency Planning 4

5. OFAC Goals Ensuring tax dollars are spent efficiently and effectively Identifying “waste, fraud and abuse” Keeping New Jersey Schools Safe 5

6. Budget and Fiscal Audits o Public school districts o Charter schools o Private schools Performs all investigative functions for the NJDOE Oversees Consolidated Monitoring Performs Criminal Background Checks o All applicants for positions in New Jersey schools OFAC RESPONSIBILITES 6

7. OFAC Team 1.Office of School Preparedness and Emergency Planning 2.Criminal History Review Unit 3.Investigations Unit 4.Internal Audit Unit 5.Single/Grants Audit Unit 6.Special Audits Unit 7.Special Investigations Unit 8.State Aid Audit Unit 9.State Operated Districts Internal Audit Unit 7

8.  Reviews multiple Federal programs o Reduces the number of audits and reports districts receive  The programs we monitor o Title I, II, III o IDEA o Carl D. Perkins Grant o Special Education 8 CONSOLIDATED MONITORING PROCESS

9. Began in 2011 Over 300 Monitoring Reports have been issued Currently conducting approximately 30 monitoring visits Provides on-site technical assistance for program administration Corrective Action Plans (CAP) Follow-up visits for CAP 9 CONSOLIDATED MONITORING PROCESS (Continued)

10. STATE AID AUDITS Application for State School Aid (ASSA) District Report of Transported Residents Students (DRTRS) Extraordinary Special Education Aid (EXAID) Chapter 192-193 Non Public Educational Services Project Completion Report (PCR)

11. How does SAAU determine who to audit? 1.School Development Authority districts (former Abbott) funded by Office of School Finance 2.Districts with a state monitor 3.Educational Service Commissions serving public school districts 4. Districts “flagged” by the Office of School Finance

12. 12 Results of the SAAU Audits School Districts received overpayments of state aid based on inflated or unsupported data The SAAU identified $6.8 million in FY 2014-2015 for audit recovery o Funds subject to repayment to Treasurer, State of New Jersey. Millions of dollars in non-allowable services were reported o Resulted in Chapter 192-193 Audits being added as a standard audit application on the SAAU audit plans The NJDOE program guidance continues to change to improve compliance requirements statewide

13. Special Audits Unit Review Comprehensive Annual Financial Reports (CAFR) – 700+ CAFRs submitted by Public Schools, Charter Schools and Community Based Organizations – Recovery of unexpended federal and state funds – The FY2014 CAFR reviews recovered $1.9 million (federal) and $18K (state) funds 13

14. 14 Special Audits Unit (Continued) Works with KPMG to ensure the accuracy and thoroughness of audit reports selected for the Single Audit o No findings for the last three state fiscal years Technical assistance and guidance with internal/external partners

15. Fiscal Audits of Federal Awards - Title I Program Dollar amount of Federal award Historical analysis Recommendations from program offices Referrals from the consolidated monitoring process Findings in the CAFR, Single Audit Section Fiscal Monitorings – Private Schools for Students with Disabilities Historical analysis Other sources Recommendations from program offices Identifying Programs and Districts for Audit/Monitoring SGAU Audit Selection Criterion 15

16. OFFICE OF FISCAL ACCOUNTABILITY AND COMPLIANCE Summary 16

17. Criminal History Review Unit Phone: (609) 292-0507 Fax: (609) 777-4016 http://www.nj.gov/njded/educators/crimhist/ Internal Audit Unit Phone: (609) 292-1319 Fax: (609) 396-2032 Investigations Unit Phone: (609) 633-9615 Fax: (609) 396-2032 School Preparedness Unit Phone: (609) 584-4297 Fax: (609) 631-4926 http://www.state.nj.us/education/schools/security/ Single/Grants Audit Unit Phone: (609) 292-0512 Fax: (609) 341-4893 Special Audits Unit Phone: (609) 777-3544 Fax: (609) 396-2032 Special Investigations Unit Phone: (609) 984-7096 Fax: (609) 396-2032 State Aid Audit Unit Phone: (609) 984-4940 Fax: (609) 633-3661 State Op School Districts IA Unit Phone: (973) 621-2750 Fax: (973) 621-1678 Frequently Asked Questions are answered on our website at: http://www.nj.gov/njded/students/safety/ 17