Yet Another Presentation on Risk US Department of Education Phil Maestri 2012 AEFFA Annual Conference Nashville Tennessee
Feb 24, 2016
Yet Another Presentation on Risk
US Department of EducationPhil Maestri
2012 AEFFA Annual ConferenceNashville Tennessee
• Audits on time• Clean opinions• Minimal findings• Working controls• Subgrantee monitoring
When Can You Get off High-risk?
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
New Expectations
• Risk-based analysis• Data-driven decision making• Financial-focused monitoring
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
RMS’ new toolRisk Predictors
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
Why Financial Monitoring?
• Always been a requirement of program offices
• EDGAR Part 80 financial system requirements
• Assurances you signed• Increased attention on
accountability
Challenges at ED
• Lack of resources• Programs lack financial
expertise• Lack of standardized protocols
across programs
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
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
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
Next steps
• Not finalized yet• Solicit informal comments• Procedures within ED
Questions?