GUAM DEPARTMENT OF EDUCATIONTHIRD PARTY FIDUCIARY AGENT

(TPFA)

ALVAREZ & MARSAL

June 7, 2012

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Project Team

Jim Pearson

Lia Beauvais

Jim Musselwhite

Tony Bobb

Robert Holm

Amber Castro

Roland Limjap

Thanks for Coming Today

Why did you Come?

• Someone said you had to come.

• To listen to Jim Pearson speak.

• It is better than finishing the report due this week.

• Free lunch!

Hopefully you didn’t come today because …

I HOPE YOU ARE HERE TO

Finalize the process of planning a program for submission to the U. S. Department of Education, that when funded and implemented will enhance the educational experience of the children of Guam who participate in the program.

• Because a program has been approved in previous years does not mean it will be approved this year.

• Your program description, justification, specified goals and objectives as well as the budget detail are to fully explain your program and what will happen as a result of its approval.

• Data is critical and helps to sell the program.

• Listen, take notes and implement the guidance you will receive today and tomorrow.

• Results are now more critical!!!

Important Things to Remember

REVIEW OF CRITICAL TOPICS

“High-risk” status

USDE SPECIAL CONDITIONSExcerpts from the USDE letter to the Superintendent attached to each grant award.

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The FFY 2011 Special Conditions are in continued response to GDOE’s failure to successfully address significant problems in fiscal accountability for Department grant funds. These problems led to the FY 2003 designation of GDOE as a “high-risk” grantee.

The Department determined that GDOE must have the assistance of a third-party fiduciary agent to oversee the financial management of Department funds, to assist GDOE in implementing its CCAP, and to assist GDOE in implementing the new FMIS.

GDOE must meet all specific program reporting requirements on a timely basis, including, but not limited to, submission of the Individual with Disabilities Education Act (IDEA) Parts B and C Annual Performance Reports and revised State Performance Plans and reports required for the Consolidated Grant under section 76.132 (a) (5) of EDGAR. GDOE must also work cooperatively with, and respond to request for information from, Department program offices responsible for administering the various grant programs under which GDOE receives funds. These requests for information are part of the technical assistance that the program offices provide to GDOE and are designed to assist GDOE in properly implementing programs, projects, and activities under the grant awards that it receives from the Department.

COMPREHENSIVE CORRECTIVE ACTION PLAN (CCAP)

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CCAP = GDOE’s plan for getting off of high-risk status (the Roadmap)

CCAP mandated by U.S. Department of Education

TPFA assisted GDOE in the creation of the CCAP

Approach to CCAP was to review:• Compliance agreement• Past single audit reports and audit findings• Previous CCAP• Evergreen study

COMPREHENSIVE CORRECTIVE ACTION PLAN (CCAP)

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Focus areas include:

• FMIS• Internal Controls• Procurement• Fixed Asset Management• Employee Time Tracking• Intra-Agency Procedures

CCAP QUARTERLY REPORT

Contents

Reports and Report Format …………………………………………… 3Procurement ……………………………………………………………... 4Property Management ………………………………………………….. 8Financial Management Information System ………………………... 16Employee Time Tracking ………………………………………………. 21Internal Controls and Procedures …………………………………… 23Intra-governmental Arrangements …………………………………… 33Recommended CCAP Additions, Deletions, Modifications ……… 34

Guam Department of Education March 9, 2012Comprehensive Corrective Action Plan Quarterly Progress Report

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PROCUREMENT

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• Competitive procurement process

• Consistency in procurement

• RFP/IFB templates

• Procurement training

• Additional Personnel

FIXED ASSET MANAGEMENT

Fixed Assets = tangible goods with unit cost of $500+

Fall 2012 - Physical Inventory & Asset Tagging at the schools including Non-Public/Private Schools

Inventory process will include the use of electronic scanning equipment and will be reconciled with procurement and accounting records as specified by EDGAR.

Ownership of assets - Assets purchased with federal funds belong to GDOE even if physically located elsewhere

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FIXED ASSET MANAGEMENT

Integration with schools and programs is important to maintain accurate records (reporting thefts, maintaining records of asset transfers vital).

Receipt of goods delivered directly to schools will have to be received by the schools property coordinator and tagged by A&M if purchased with US DOE grant funds.

If equipment shows up unexpectedly please call A&M and let us know. We will make arrangement to visit and tag the equipment.

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FINANCIAL MANAGEMENT INFORMATION SYSTEMS & INTERNAL CONTROLS

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• GDOE has begun the implementation of improved FMIS – Tyler MUNIS.

• Procurement & General Ledger went live April 1.

• Payroll & Human Relations go live July 13.

• New system = New Procedures.

TIME TRACKING & REPORTING

• The number one failure by school districts across the country.

• Be sure employees understand procedures and why the records are being kept.

• New automated procedures for payroll as implementation of FMIS.

• Time Distribution Reports are critical.

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AVAILABLE GRANTS

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• 2009 Consolidated Grant• 2010 Consolidated Grant • ARRA RLIS expires 9/30/12

• Timely obligation of federal funds

• Spending as soon as possible, no waiting until year-end

• All spending must be captured in MUNIS

UPCOMING VISIT BY US DOE RISK

MANAGEMENT IN AUGUST 2012

VISIT OBJECTIVES

• Monitor compliance with various grants.

• May visit schools on a unannounced basis.

• Will review compliance regarding ARRA grants.

• Evaluate progress in implementation of CCAP.

• Meet with appropriate organizations/leaders regarding issues relating to grants, TPFA and High Risk status.

• Identify level of success of Federal Grants.

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