![Page 1: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/1.jpg)
1
How to Lead, Support and Enhance Title IV & Grant Management
CompliancePresented by: Michelle Spriggs
Patricia Gallagher Susan Jenks Beard
![Page 2: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/2.jpg)
1 2
Presenters• Michelle Spriggs, CPA, MBA– Director, CBIZ Tofias & Mayer Hoffman McCann
P.C.
• Patricia Gallagher, CPA– Associate VP for Financial Affairs, Franklin W.
Olin College of Engineering
• Susan Jenks Beard– Director of Financial Aid, Wheaton College
![Page 3: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/3.jpg)
2 3
Agenda• Federal spending• The regulatory environment• Key risks with grants management and
Title IV compliance• Common A-133 findings• Preparing for a successful A-133 audit• Selecting an A-133 auditor• Best practices for detection and
remediation
![Page 4: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/4.jpg)
3 4
Prime Award FederalSpending FY 2012
$0$100$200$300$400
$344.5
$68 $3.8
Fede
ral S
pend
ing
(in
bill
ions
)
Source: USAspending.gov
![Page 5: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/5.jpg)
4 5
Federal Awards by State(in billions)
Source: USAspending.gov
$98.9
$64.3
$68.4$56.0
$35.8
$37.3
$22.7
$14.8
$7.2$6.1 $6.2 $6.2
New YorkPennsylvaniaVirginiaNew JerseyMassachusettsMarylandConnecticutDistrict of Co-lumbiaMaineRhode IslandNew HampshireDelaware
![Page 6: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/6.jpg)
5 6
Changing Regulatory Environment
“Transparency Promotes Accountability.”
H. Glenn Walker, Executive Director of the Recovery Accountability and Transparency Board, to the AICPA National Governmental Accounting and Auditing Update Conference – August 2010
![Page 7: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/7.jpg)
6 7
Changing Regulatory Environment (Cont.)
• Congressional interest – 2008 audit quality hearings– Focus on for-profit institutions is trickling
down to not-for-profit institutions– Senator Grassley initiating audits for
specific situations that he feels warrant attention
![Page 8: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/8.jpg)
7 8
Changing Regulatory Environment (Cont.)
• Presidential interest – 2009 Executive Order– 2011 Memorandum• Reduce payment errors• Eliminate fraud, abuse, waste• Improve effectiveness of single audits towards
identifying improper payments• Identify opportunities to reform grant policies
and streamline or eliminate single audit requirements where minimal value
![Page 9: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/9.jpg)
8 9
Changing Regulatory Environment (Cont.)• GAO evaluated the single audit concept – Congress should designate a federal entity to
evaluate and comprehensively monitor the single audit process
– Assess the efficiency and effectiveness of how agencies carry out their single audit responsibilities
– Consider simplified alternatives to small entities– Achieve a balance between risk and cost
effective accountability
![Page 10: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/10.jpg)
9 10
Changing Regulatory Environment (Cont.)
• More government oversight coming our way– OMB considering a Grants Governance Board– Each federal agency to appoint a Chief
Financial Assistance Officer and Single Audit Coordinator
– OMB to establish a senior position to coordinate federal agency efforts
– OMB is considering comments for potential changes to cost circulars
![Page 11: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/11.jpg)
10 11
Changing Regulatory Environment (Cont.)
• DOE announcement letter 1/17/12– Bolstering enforcement of due date
regulations for financial and compliance audits
– Late reporting is deemed indicative of a lack of financial responsibility and administrative capacity and may indicate mismanagement of Title IV funds
![Page 12: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/12.jpg)
11 12
Changing Regulatory Environment (Cont.)
• DOE announcement letter 1/17/12 (Cont.)– Institution may be sited for a past
performance violation – Will cause failure of financial responsibility
requirements– Continued participation in the Title IV
program will require:• Provisional certification• Posting of LOC at 10% of Title IV funds received• Use of heightened cash payment method
![Page 13: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/13.jpg)
12 13
Changing Regulatory Environment (Cont.)
• Revised incentive compensation rules in effect July 1, 2011 prohibiting incentive compensation to individuals or entities involved in recruiting students or making awards of student aid– compliance with these rules needs to be
monitored on a consistent basis
• OMB issued a Q&A on Federal Funding Accountability and Transparency Act (FFATA) compliance testing
![Page 14: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/14.jpg)
13 14
Changing Regulatory Environment (Cont.)
• US Court of Appeals for the District of Columbia upheld a lower court ruling that struck down part of the state authorization requirement in the Department of Education’s program integrity rules
• US District Court of Columbia recently vacated most of the gainful employment rules
![Page 15: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/15.jpg)
14 15
Changing Regulatory Environment (Cont.)
• Other areas of focus– Third party servicers• NSLDS reporting• Perkins loans administration
– Title IV refunds• Incorrect calculations • Late returns
– Travel and expense reporting– Documentation deficiencies – policies and
procedures not documented or up-to-date
![Page 16: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/16.jpg)
15 16
Changing Regulatory Environment (Cont.)
• Future changes to the Single Audit regulations – Increase the audit threshold to $1 million– Create a new category of audit requirement
for expenditures between $1 million and $3 million
– No significant changes for expenditures over $3 million
– 9 month due date of A-133 audit likely to become 6 months
![Page 17: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/17.jpg)
16 17
What Keeps You Up at Night
How will a noncompliance matter impact the institution’s reputation and future funding?Is the system we are using providing me with the appropriate data to make informed decisions?- i.e. detailed monthly budget to actual reporting for accountability
![Page 18: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/18.jpg)
17 18
What Keeps You Up at Night
The amount of time it takes to administer the programs we have can be cumbersomeHow can we do a better job modeling the right behaviors to ensure compliance across all departments?Do program managers understand how to manage their budgets?
![Page 19: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/19.jpg)
18 19
What Keeps You Up at Night
What is going on in my decentralized institution that they aren’t telling me?How do I know those who are responsible for Title IV and grants compliance are fulfilling their responsibilities?- Especially when they do not report to me
![Page 20: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/20.jpg)
19 20
What Keeps You Up at Night
How are others being crossed trained to insure no interruption of service when changes in personnel occur?
How can those who are responsible keep up with the changing regulatory environment?
How do I know my auditors are competent and will be collaborative and work with me to solve problems – not make new ones?
![Page 21: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/21.jpg)
20 21
What Grants ComplianceManagement IS
• Collaborative effort among all departments within the institution that has an impact on grant compliance
• Don’t forget SFA department and their role
Grant Complia
nce Office
Finance Office
Human Resourc
es
Programmatic Staff
![Page 22: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/22.jpg)
21 22
What Grants Compliance Management IS NOT
• An effort placed solely on the shoulders of one individual or department– Grant compliance officer– Grants accountant– Program director– SFA department
• An “enigma” the institution perceives as having no relation to securing new funds
• Someone else’s responsibility
![Page 23: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/23.jpg)
22 23
Obstacles to Compliance• Inadequate resources
– Staff training, professional development
• Poorly defined roles and responsibilities• Nonexistent or outdated policies and procedures
related to federal grants management• Poor information systems• Poor conception of the importance of
compliance and internal controls
![Page 24: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/24.jpg)
23 24
Systems Management
EffectiveFinancial
Management
2WrittenPolicies &
Procedures
1RegulatoryRequirements
3Documentof
Expenses
4ManagingCash
5EfficientAccounting
System6BudgetControls
7Time &Activity
Documentation
8MatchingRequirements &
In-kind Contribution
9Reporting
10Internal
![Page 25: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/25.jpg)
24 25
Goals of the A-133Audit Process
• Remain in good standing with federal government and pass-through entities
• Minimize impact on your institution– Avoid repercussions from a bad audit–Minimize audit costs– Identify problematic areas
• Keep good reputation in the community
![Page 26: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/26.jpg)
25 26
A-133 Findings Summary
Year Total # of programs/
clusters reported
Percentage with findings
reported
Increase in programs/
clusters reported
Change in rate of
findings2010 730,953 16.39% 17.82% -1.78%
2009 620,416 18.17% 7.15% 1.43%
2008 578,997 16.74% 0.24% -1.99%
2007 577,628 18.73%
Summary of findings reported on Data Collection Forms during 2007-2010
*Information obtained from the Federal Audit Clearinghouse
![Page 27: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/27.jpg)
26 27
Top 5 A-133 FindingsSummary of findings reported on Data Collection Forms during 2007-2010
*Summarized using information obtained from the Federal Audit Clearinghouse
Allowable Costs/Cost PrinciplesReporting Other
Procurement/Suspension/Debarment
Equipment/Real Property Mgmt.0
2,0004,0006,0008,000
10,00012,00014,00016,00018,00020,000
0%2%4%6%8%10%12%14%16%18%
18,75715,573
13,313
9,5988,398
17%
14%
12%
9%8%
Average # of Annual Findings Reported Percentage
![Page 28: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/28.jpg)
27 28
Common A-133 Findings
• Time and effort reporting– Salaries are charged based on actual
time incurred and not budgeted time– Documentation exists based on level of
effort performed• Can be timesheet or other documentation
directly from the individual on a periodic basis verifying actual time spent and charged
![Page 29: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/29.jpg)
28 29
Common A-133 Findings (Cont.)
• Time and effort reporting (Cont.)– HHS and NSF OIGs expressed concern
and being aggressive in areas of noncompliance
– Several high-profile universities fined– Auditor work being reviewed
![Page 30: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/30.jpg)
29 30
Common A-133 Findings (Cont.)
• Subrecipient monitoring– Area of federal focus (i.e. FFATA reporting)– Comprehensive written policy needed• Consideration of for-profit and foreign subs• Procedures when A-133 reports are not
required by subs– Annual risk assessment – at a minimum– Quality of the A-133 audit review process– Quality of follow-up actions
![Page 31: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/31.jpg)
30 31
Common A-133 Findings (Cont.)
• Procurement– Documentation of bid or sole source decision
• Material and services• Subrecipient selection
– Name of a vendor or subrecipient in an award application or proposal is not indicative of federal approval of such
– Review of debarment of vendors or subrecipients
![Page 32: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/32.jpg)
31 32
Preparing for a Successful A-133 Audit
• Proper scheduling of fieldwork– Coordination with multiple departments
• Timeline for deliverables for all • Explicit PBC listing– Ask questions to know what your auditor
is looking for
![Page 33: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/33.jpg)
32 33
Preparing for a Successful A-133 Audit (Cont.)
• Actively manage the workflow– Assign a point person
• Manage the process– Have regular progress meetings– Discuss emerging concerns
• No surprises!– Push back when appropriate– Use everything learned for improvements for
next year
![Page 34: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/34.jpg)
33 34
Preparing for a Successful A-133 Audit (Cont.)
• Responding to findings– Campus “tone at the top” – commitment
to get things right– Identify the real problem• Fix the disease not the symptom
– Obtain buy-in from all involved– Create training opportunities– Start action plans ASAP
![Page 35: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/35.jpg)
34 35
Preparing for a Successful A-133 Audit (Cont.)
• Complete and accurate Schedule of Expenditures of Federal Awards (SEFA)– Pass through entities and identifying numbers– ARRA funds– Clusters
• Programs/clusters > $300k may be audited• Programs/clusters with ARRA $ may be
audited
![Page 36: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/36.jpg)
35 36
Preparing for a Successful A-133 Audit (Cont.)
• Identification of research and development programs– National Science Foundation– Check data collection forms for how
CFDA numbers reported by other institutions
http://harvester.census.gov/sac/
![Page 37: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/37.jpg)
36 37
Preparing for a Successful A-133 Audit (Cont.)
• Understanding and identifying applicable compliance requirements
• Read and understand the grant agreements
• Obtain and review the latest version of A-133 Compliance Supplementhttp://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2012
![Page 38: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/38.jpg)
37 38
Preparing for a Successful A-133 Audit (Cont.)
• Be familiar with applicable cost circulars– A-21 Cost Principles for Educational
Institutionshttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a021/a21_2004.pdf
– A-122 Cost Principles for NFP Organizationshttp://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a122/a122_2004.pdf
![Page 39: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/39.jpg)
38 39
Preparing for a Successful A-133 Audit (Cont.)
• Organized files• Supporting documentation for expenses,
eligibility, procurement, subrecipient monitoring
• Appropriate approvalsIf it’s not documented…….it didn’t happen!
![Page 40: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/40.jpg)
39 40
Selecting an A-133 Auditor
• Demonstration of qualifications– Number of A-133 clients
• Both the firm and the individuals assigned– Types of programs and agencies auditing– Are A-133 auditors local – How often is the partner/senior manager in the field– Participation in improvement programs like GAQC
• Look up some of their audits (Mass AG and DCF sites)
![Page 41: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/41.jpg)
40 41
Selecting an A-133 Auditor (Cont.)
• Talk to references– How practical are they to work with– How knowledgeable is the team
• Review results of external peer review• Members of SFA and Grants Management
departments involved in the interview process
![Page 42: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/42.jpg)
41 42
Best Practices for Detection and Remediation
• Create a grants and/or Title IV administration program that incorporates the A-133 compliance requirements and internal controls framework– Ensure all expenditures approved by program
manager– Documentation sufficient to determine nature
of expenditure and allowability kept
![Page 43: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/43.jpg)
42 43
Best Practices for Detection and Remediation (Cont.)
• Expect personnel responsible for these areas to manage awards considering A-133 compliance requirements
• Ensure responsible personnel are keeping abreast of changes in policies or requirements– Attending key conferences and seminars– Members of relevant associations and list
serves
![Page 44: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/44.jpg)
43 44
Best Practices for Detection and Remediation (Cont.)
• Collaborating among departments– Regular budget to actual reviews and
discussions of variances– Promote an environment of open
communication so decisions are not made without considering impact on other areas
• Establish a system of budget control and monitoring
![Page 45: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/45.jpg)
44 45
Best Practices for Detection and Remediation (Cont.)
• Use a strong accounting and performance reporting system– Each grant has its own accounting
record/cost center– Accounting record/cost center tracks
expenditures to approved budget
• Consider an internal audit process
![Page 46: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/46.jpg)
45 46
Education of Governance
![Page 47: How to Lead, Support and Enhance Title IV & Grant Management Compliance](https://reader035.vdocument.in/reader035/viewer/2022062323/56815c3d550346895dca3ad1/html5/thumbnails/47.jpg)
46 47
Questions?
•[email protected]•(774) 206-8336
Michelle Spriggs
•[email protected]•(781) 292-2416
Patty Gallagher
•[email protected]•(508) 286-8232
Susan Jenks Beard