1. How to Prepare for a Federal Monitoring Visit (SASA/OSEP) Jennifer S. Mauskapf, Esq. jmauskapf@bruman.com Brustein & Manasevit, PLLC www.bruman.com Spring Forum 2013 Brustein & Manasevit, PLLC 1

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… New to 2012-2013: ESEA Flexibility Monitoring SASA Monitoring for Select Non-Flex States: – Title I, Part A – Title I, Part D (Neglected, Delinquent, or At-Risk) – Title X, Part C (McKinney-Vento Act/Homeless Program) – Title III, Part A Brustein & Manasevit, PLLC 4

5. Non-Flex Selection Factors 2012-2013 SEA has not been monitored since the 2006- 2007 or 2007-2008 monitoring cycle Review of Audits and Previous Monitoring Findings Sta Leadership Turnover or New Sta Brustein & Manasevit, PLLC 5

6. Monitoring Strategies, 2012-2013 Pre-site document reviews SEA and LEA website reviews Previous corrective actions Combination of program specific – Desk – Teleconference / Videoconference – Web-based conference – On-site monitoring review of indicators Brustein & Manasevit, PLLC 6

7. 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&fold er_name=CrEAGs-+Part+B http://therightidea.tadnet.org/assets/browse_by_folder?folder=61&fold er_name=CrEAGs-+Part+B Determinations. State Performance Plan (SPP) / Annual Performance Report (APR) Review Brustein & Manasevit, PLLC 7

8. 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 8

9. 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 9

10. 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 10

11. TOP 10 WAYS TO PREPARE FOR A MONITORING VISIT Preparation is the Key! Brustein & Manasevit, PLLC 11

12. 1. Organizational Meeting Meet with Key Personnel All about Communication! – Discuss program and areas that will be reviewed Brustein & Manasevit, PLLC 12

13. 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 13

14. 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 14

15. 4. Select Meeting Place Want meeting place separate from main offices so that all parties can remain focused – Dont completely isolate All personnel should have cleared scheduled and be ready to participate as necessary – Organized by the applicable lead contact Brustein & Manasevit, PLLC 15

16. 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 16

17. 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 17

18. 5. Complete Monitoring Documents (cont.) OSEPs CrEAG Format Brustein & Manasevit, PLLC 18

19. 5. Complete Monitoring Documents (cont.) SIG Format Title I & Title III Team Format Brustein & Manasevit, PLLC 19

20. 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 20

21. 7. Mock 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 21

22. 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 SASAs arrival. Brustein & Manasevit, PLLC 22

23. 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 23

24. 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 24

25. COMMON FINDINGS ACROSS THE BOARD Brustein & Manasevit, PLLC 25

26. 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 26

27. 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 27

28. 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 28

29. 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 29

30. Fiduciary – High Dollar Areas of Concern Procurement Property / Inventory Management Time Distribution Brustein & Manasevit, PLLC 30

31. 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 31

32. Inventory Management: Common Problems Determining betweenequipment and supply Determining level of control over item Tracking non-equipment items Brustein & Manasevit, PLLC 32

33. 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 33

34. 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 34

35. 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 35

36. 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 36

37. 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 37

38. Equitable Services Timely and Meaningful Consultation LEA Maintaining Control – Program – Fundsno reimbursement! – Propertytags, inventory Evaluation of Services Identification of Eligible Students Administration Costs NOT Charged Against Equitable Services Set-Aside Brustein & Manasevit, PLLC 38

39. 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 39

40. RESOURCES - SASA ESEA Flexibility Monitoring http://www2.ed.gov/policy/elsec/guid/esea-flexibility/monitoring/index.html SASA Monitoring http://www2.ed.gov/admins/lead/account/monitoring/index.html http://www2.ed.gov/admins/lead/account/monitoring/index.html Indicators (2011-2012) 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 NASTID Presentation on SASA Monitoring for 2012-2013 http://www.nationaltitleiassociation.org/resource/resmgr/t12s/2012- 2013_overview_sasa_moni.pdf Office of School Turnaround – SIG Monitoring SIG Monitoring Plan http://www2.ed.gov/programs/sif/sigmonitoringplan2012-2013.pdf SIG Reports: http://www2.ed.gov/programs/sif/monitoring/index.html http://www2.ed.gov/programs/sif/monitoring/index.html Brustein & Manasevit, PLLC 40

41. RESOURCES - OSEP 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.ht ml http://www2.ed.gov/fund/data/report/idea/partbspap/allyears.ht ml Brustein & Manasevit, PLLC 41

42. Questions? Brustein & Manasevit, PLLC 42

43. 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 43 Disclaimer