Yet Another Presentation on Risk

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Yet Another Presentation on Risk US Department of Education Phil Maestri 2012 AEFFA Annual Conference Nashville Tennessee

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Yet Another Presentation on Risk. US Department of Education Phil Maestri. 2012 AEFFA Annual Conference Nashville Tennessee. When Can You Get off High-risk?. Audits on time Clean opinions Minimal findings Working controls Subgrantee monitoring. Metro Nashville Public Schools. - PowerPoint PPT Presentation

Transcript of Yet Another Presentation on Risk

Page 1: Yet Another Presentation on Risk

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?