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

Want to Help?

• Contact: • Jeanette Lim: Jeanette.lim@ed.gov• Iyauta Moore:

Iyauta.moore@ed.gov• Phil.maestri@ed.gov

Questions?