1. Brande Bass Director of Federal/Special Programs New Caney ISD
EDGAR
Brande Bass
Director of Federal/Special Programs
New Caney ISD

2. Communication Who do you communicate with in your district?
How important is it to know what goes on in other departments?
Do other district jobs impact your job?

4. Communication Keeping everyone informed about federal funds
WHY? So everyone knows and understands compliance with spending federal funds
When do your trainings occur?
Who attends?
How do you document trainings?
How do you know that procedures are taking place correctly?

5. Documentation What does this look like in your district?
What does TEA require?
Sign-in sheets – Name – Title – Signature
When do you keep sign-in sheets?
What meetings warrant documentation that you have with others in the district?
Agendas
Meeting Minutes (At what meetings are these kept)
Copy of handouts during trainings

6. Documentation and Compliance Reports
Review compliance reports and make a list of all areas that require documentation
How does this get done in your district?
Who follows up?
Where is it kept for validations?
Compliance Report
Additional Notes Section
Compliance Report Additional Notes section:

7. Documentation How to you document what your job entails?
If you left tomorrow and a new person came to take your place, could they start where you left off and continue going?
Written “local procedures” for job functions
TASBO article: Internal Control Tips: The Importance of Written Controls and Procedures
How do you know what you do matches your job description?
How do you document “other duties as assigned” procedures?

8. Policies and Procedures
How do you know that procedures are in your State/Federal Grant Manual match what actually occurs in the office?
Are you procedures up to date?
Does your team review them annually, semi-annually?
What personnel are cross trained to do jobs?
Why is this important?

9. Policies and Procedures
Best Practice

10. EDGAR Obligation Table in 34 CRR §76.707

11. Other Grants

13. Procurement Procedures
Have you updated your State/Federal grant manual to include the new Micro-purchase limit?
New Micro-Purchase limit is $10,000
Note: The threshold of $10,000 must be considered in the aggregate over the entire period of applicable federal grants. Therefore, the cost of items purchased using the micropurchase method is cumulative across the grant year and cannot exceed a total of $10,000.

14. Micro Purchase Example
You purchase $2000 worth of highlighters with federal funds planfor campuses at the beginning of school.
You purchase another $2000 worth of highlighter for campuses in November.
You purchase another $7000 worth of highlighters for campuses in February.
Aggregate over the year: $ $ $7000 = $11,000
You have exceeded the micro purchase for highlighters for the year.

15. Small Purchases
As of July 1, 2018, the simplified acquisition threshold increased from $150,000 to $250,000.
The $250,000 threshold should be considered as an aggregate amount within the grant period of the applicable grant.
However, Texas Education Code (TEC) requires competitive procurement methods be used for purchases valued at $50,000 or more.
If an item costs less than $50,000, state rules allow an LEA to utilize price quotations to stimulate competition and to attempt to receive the most favorable pricing.
Therefore, since TEC is more restrictive than the EDGAR procurement rules, the simplified acquisition threshold under EDGAR does not apply to purchases made with federal funds costing $50,000 or more.

16. Purchasing through Purchasing Cooperatives
Districts must have an agreement with the purchasing cooperative.
Once it has been verified that the purchasing cooperative has followed the most restrictive of the state or federal procurement rules, the LEA may enter into an agreement with the purchasing cooperative to purchase goods and services directly, without any additional procurement activities or documentation.
This verification is to be conducted annually, preferably at the beginning of the grant period.
EDGAR FAQ: 7.14, 7.21, , 7.41

17. Purchasing through Purchasing Cooperatives
Districts must ensure that the purchasing cooperative is in compliance with both state and federal procurement requirements.
The subrecipient must use its own documented procedures which reflect the most restrictive applicable federal, state, or local policy.
The subrecipient must maintain proper documentation of the general procurement standards identified in 2 CFR
Documentation of verifying the purchasing cooperative followed the appropriate rules could be a simple as maintaining a signed certification statement or an stating that the rules were followed.
EDGAR FAQ: 7.14, 7.21, , 7.41

18. Quotes
The small purchase procedures require price or rate quotations from an adequate number of qualified sources for purchases up to $49,999.
EDGAR does not define how many price quotations are considered an adequate number.
TEA recommends at least three price quotations.
Be sure to look at your local policy on how many quotes are needed.
Follow your district’s local policy.

19. Sole Source
Noncompetitive (sole source) procurements must meet the requirements in 2 CFR (f), which states that procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the four circumstances apply:
1. The item is available only from a single source.
2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation.
3. The federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-federal entity.
4. After solicitation of a number of sources, competition is determined inadequate.

20. Sole Source Justification Form Questions
Describe the proposal, and explain the rationale for making it noncompetitive.
Do you have a sole-source verification letter from the proposed vendor?
Does this make them a sole source?
NO: An affidavit or sole source letter is not sufficient documentation that the item or service is only available from a single source. Attorneys have indicated that under the new regulations, sole source must be proven and adequately documented, and will seldom be used in federal procurements.
Do not accept sole source letter to award noncompetitive procurement
How many vendors have been contacted for price quotes that led you to determine that there is only a sole source?
How many times did you request quotes? How do you document this?
Provide a reason that this procurement is a noncompetitive or sole-source procurement.
What is your “proven and adequate documentation”?

21. EDGAR and Compliance
Cost price analysis must be performed for all purchases exceeding $250,000 ( )
Cost or Price Analysis is basically what it says - analyzing the cost or price of the purchase based on what the district had anticipated the cost of the procurement to be, and what the price or prices are as submitted by the vendors.
This is only required if the contract purchase will be at or above $250,000 and requires the district to provide the required federal documentation to support the award.
TEA FAQ:
What are your procedures?
A district's CH(LEGAL) policy requires that purchases made over $50,000 in aggregate for a one year period must use best value criteria in making an award. This policy covers the bidding requirement, however, if the purchase will be equal to or exceed $250,000, a cost or price analysis must be performed. The requirement, if included within a district's policy, will be found in CH(LOCAL).
EDGAR Rules Associated with Cost or Price Analysis Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part § Contract cost and price.
The non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold1 including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. (b) The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.
(c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E—Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles.
(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

22. Monitoring – Supervising activities in progress to ensure they are on-course and on-schedule in meeting the objectives and performance targets.

23. Monitoring Preparing for a Federal Program Monitoring (Audit)
What to expect
District and Campus Plans
Needs assessment and documentation of occurrence (sign-in sheets, agendas, etc.)
Fund sources documented in plans
Who checks to make sure they are there and accurate?
State/Federal Grant Manual – Proof of approval
“Working” budget papers – How you prepared funds for your grant application
Suspension and Debarment
Who is checking them?
Where are the documents kept so auditors can review them?
Print off page to show date it was checked
Things learned through a Title I internal audit.
Auditors use EDGAR to review your expenditures
What are your procedures?
A district's CH(LEGAL) policy requires that purchases made over $50,000 in aggregate for a one year period must use best value criteria in making an award. This policy covers the bidding requirement, however, if the purchase will be equal to or exceed $250,000, a cost or price analysis must be performed. The requirement, if included within a district's policy, will be found in CH(LOCAL).
EDGAR Rules Associated with Cost or Price Analysis Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part § Contract cost and price.
The non-Federal entity must perform a cost or price analysis in connection with every procurement action in excess of the Simplified Acquisition Threshold1 including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, the non-Federal entity must make independent estimates before receiving bids or proposals. (b) The non-Federal entity must negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.
(c) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the non-Federal entity under Subpart E—Cost Principles of this part. The non-Federal entity may reference its own cost principles that comply with the Federal cost principles.
(d) The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used.

24. Monitoring – Procurement – Control Environment
Does a written policy exist that identifies procurement (purchasing) processes related to federal programs?
Provide a copy of your State/Federal Grant Manual
Do expenditures on contracts over a certain threshold require approval by the board or governing body?
If yes, what is the threshold amount?
If no, what is the procedure?
Do other approval thresholds exist based on the amount of the purchase?
If yes, what are those threshold amounts?
     

25. Monitoring – Procurement – Risk Assessment
Have you identified any risk factors concerning procurement or suspension and debarment requirements?
Describe the process
Are conflict of interest statements obtained from members of the governing body?
How often? Where are the kept?
Are conflict of interest statements obtained from employees who are involved in the procurement (purchasing) process?
Who? How often? Where are the kept?
Wait! There’s more!

26. Monitoring – Procurement – Control Activities
Who is responsible for procurement (purchasing) - e.g. purchasing director?
Is the procurement (purchasing) function separate from the accounts payable function?
If no, can you identify if any mitigating controls exist to ensure the risk of misappropriation of funds does not occur due to a lack of segregation of duties?
If yes, please identify mitigating controls.
What is the procurement process when obtaining a Request for Proposal (RFP), Request for Qualifications (RFQ), Competitive Sealed Bidding, Construction Manager-at-Risk?

27. Monitoring – Procurement – Control Activities
What source documents are maintained with the Request for Proposal (RFP), Request for Qualifications (RFQ)?
Does an official written policy exist that prohibits awarding or contracting with vendors or contractors that are suspended or debarred from receiving funds that are derived from federal sources?
Provide a copy of the policy
Does the district require staff to use the Excluded Parties List System (EPLS), obtain a certificate, or insert a contract clause in contracts to determine if vendors or contractors are excluded from suspension / debarment?
If yes specify which method is used
Why stop here!

28. Monitoring – Procurement – Information and Communication
Does the entity have a retention policy for procurement contracts and bidding documentation?
What time period(s) are documents retained?
Or how long does the district normally keep bidding documents?
Does a channel of communication exist for individuals (internally or externally) to report suspected procurement and contracting improprieties? (Fraud, waste or abuse)
Please describe
When do you train staff on Fraud, waste or abuse?

29. Monitoring – Segregation of Duties
Know what processes should be segregated
No one person should control the entire financial process from beginning to end
Train those who assist
What risk to be aware of
Rotate staff over time (Cross train)
Identify irregularities
Look for unusual or unexpected activity
Remember you want your district to only makes the headlines for outstanding student achievement in the news.

30. Time and Effort Policies and Procedures
District should have specific policies and procedures on reporting time and effort.
Start writing them now!
TEA will require them in the future
Might be a validation area???????
Where are you signed and dated job descriptions kept for audit review?
Where to you keep your Personal Activity Reports for audit review?
Are they turned in monthly?
Percentages correct to time worked in funding source?

31. EDGAR - FAQ When was the last time you looked over the EDGAR FAQ?
Are you sure your reviewing the latest version from TEA? Version 7
New version coming soon so be on the look out!
Most of your EDGAR and Procurement (purchasing) questions can be answered in the FAQ
EDGAR questions can be address to TEA at:
he_Department_of_Contracts,_Grants_and_Financial_Administration/

32. Accountability Goals in ESSA Application
ESSA goals:
Districts spend federal funds to accomplish the goal
How do you evaluate federal funds used to accomplish the goal?
ESSA Goals = Federal Funds = EDGAR

33. Federal Program Director
Brande Bass
Federal Program Director
New Caney ISD
ext.2050