Yet Another Presentation on Risk
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Transcript of Yet Another Presentation on Risk
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Yet Another Presentation on Risk
US Department of EducationPhil Maestri
2012 AEFFA Annual ConferenceNashville Tennessee
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• Audits on time• Clean opinions• Minimal findings• Working controls• Subgrantee monitoring
When Can You Get off High-risk?
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Metro Nashville Public Schools
• April 28, 2008 – high risk designation
• Partnership with TDE• Re-establish financial and
procurement systems• New and strong internal controls• November 18, 2011
• MOA agreed to continuing actions• Removed HR designation
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New Expectations
• Risk-based analysis• Data-driven decision making• Financial-focused monitoring
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What’s the Point of Risk Assessment?
• Not to rank or rate for punishment
• Identify• What do we do next?• Who needs help?• Best use of scarce resources
• Remove obstacles to mission achievement
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RMS’ new toolRisk Predictors
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Grant Policy/Monito
ring Standards - Manage grant
portfolios using risk-based standards
Decision Support –
Appropriate tools and analytics are easily available
to program offices to
properly conduct risk analysis
Risk-based Grants Oversight
Align with strategic
plan
Financial Monitorin
g
Program Risk
Elements
Measure Success
Needs for T/A or
oversight
Gathers data
Decisions across
programs
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Why Financial Monitoring?
• Always been a requirement of program offices
• EDGAR Part 80 financial system requirements
• Assurances you signed• Increased attention on
accountability
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Challenges at ED
• Lack of resources• Programs lack financial
expertise• Lack of standardized protocols
across programs
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What’s Happening Now?
• Increased attention by program offices on financial monitoring
• Training within ED on financial monitoring skills
• Some offices use contractors• Whole new set of challenges
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Where We’re Headed
• Standard protocol for financial monitoring
• Potentially only one program looks at financial issues and shares findings across programs
• Reduce redundancy for you• Reduce burden for both
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Financial Monitoring Highlights
• Review of policies• Funds distribution• Indirect cost rates and
calculations• Cash management and interest
earned• Procurement and property
management• Time distribution• Internal controls
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Next steps
• Not finalized yet• Solicit informal comments• Procedures within ED
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Questions?