SCHOOL IMPROVEMENT GRANT FISCAL COMPLIANCE GUIDANCE

COMPLIANCE MONITORING

Three Levels of Compliance Monitoring:

Federal – programmatic and fiscal

State – Arizona Office of the Auditor General

Arizona Department of Education – fiscal and compliance monitoring of subrecipients

ADE COMPLIANCE MONITORING

1. Compliance Monitoring Visits - It is anticipated that each LEA will receive one or more visits during the 3 year cycle.

2. Continuous and ongoing compliance monitoring:

ALEAT Review of Monthly Cash Management Reports SIG Monthly Progress Report Required Quarterly Reports Review of Completion Report

COMPONENTS OF FISCAL COMPLIANCE

SIG Budget and Budget Amendments Cash Management Record Keeping Time & Effort Fixed/Capital Assets ARRA Reporting ADE Online Professional Development

Registration

SIG BUDGET AND BUDGET AMENDMENTS(ADE GRANTS MANAGEMENT HANDBOOK)

All SIG Expenditures must be included in your LEA’s SIG Budget.

Budget Amendments - periodic adjustments to your LEA’s Budget may be needed. Before submitting a Budget Amendment, the LEA

should consult with the School Improvement Office. The deadline is 90 days prior to the project end date

= April 2nd for SIG projects. Budget Amendment should be completed using the

appropriate format. Amendment # Date Narrative that adequately describes What, Why,

Where Other Supporting Information

CASH MANAGEMENT REPORTS(ADE BUSINESS RULES & ADE GRANTS MANAGEMENT HANDBOOK)

Cash Management Report must be submitted between the 1st and 18th of each month

LEA reports two pieces of data: Project Cash Balance Project encumbrances for the next 30 days

Potential Non-Compliance Issues: Non-Submittal Positive Cash on Hand Irregular Payments

RECORD KEEPING

General Ledger Should include the following information where

applicable: Account Code Purchase Order Number and Purchase Date Invoice number and Invoice Date Purchase Amount Vendor name

Source Documents The LEA must maintain source documentation that

supports all subgrant expenditures such as: Receipts/Invoices Purchase Orders Contracts Payroll Documentation

TIME AND EFFORT REPORTING(OMB CIRCULAR A-87 & A-122)

State, Local, and Indian Tribal Governments (OMB Circular A-87) Semi-Annual Certification

Where employees are expected to work solely on a single Federal award or cost objective

Monthly Personnel Activity Report Where employees work on multiple activities or

cost objectives

Non-profit Organizations/Community Based Organizations (OMB Circular A-122) Monthly Personnel Activity Report

All employees funded with federal funds regardless whether the employee is funded 100% or split effort.

FIXED/CAPITAL ASSETS(USFR VI-E-2 OR USFRCS VI-E-2)

LEA should prepare a detailed list of general fixed/capital assets including computers, printers, servers and other capital items with a cost greater than $1,000.

List should include: Property identification tag Description Serial # Funding source Purchase date Cost Location

Items should also be tagged.

ARRA REPORTING REQUIREMENTS

LEA’s receiving ARRA funds must submit the ARRA assurances form annually

LEA’s must also submit quarterly reports

Visit Grants Management ARRA Recipient Reporting Requirements webpage for more info:

https://www.ade.az.gov/gme/Additional_Information/ARRARecipientReportingRequirements.asp

ADE ON-LINE PROFESSIONAL DEVELOPMENT REGISTRATION

(GENERAL GUIDANCE)

Check with your business office

Send a copy of your purchase order to ADE

Register on-line for the conference in question

ADE ON-LINE PD REGISTRATION(CONTINUED)

Please inform your Business Office of your registration promptly.

A confirmation number is required on the day of the event and should also be included on your purchase order.

A registration fee is charged for all registrants, including those who do NOT SHOW and have not canceled in writing 7 days prior to event start date.

All cancellations must be received in writing 7 days prior to the first day of the workshop for a refund.

IF STAFF MEMBER IS NOT ATTENDING

Cancelations Replacements

ADE needs to receive the request in writing prior to event cut-off date.

Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions.

ADE needs to receive the request in writing preferably prior to event cut-off date.

The new attendee needs to register for the training in question.

Without receipt in writing, the LEA is responsible for payment regardless of staff members attendance or intentions.

SOURCES

ADE Business Rules

School Districts: https://www.ade.az.gov/Guidelines/EX-22.pdf

Charter Schools: https://www.ade.az.gov/Guidelines/EX-21.pdf

ADE Grants Management Handbookhttps://www.ade.az.gov/Guidelines/EX-15.pdf

ADE Grants Management Federal Fiscal Requirements

https://www.ade.az.gov/gme/Additional_Information/FederalFiscalRequirement.asp

ADE Grants Management ARRA Recipient Reporting Requirementshttps://www.ade.az.gov/gme/Additional_Information/ARRARecipientReportingRequirements.asp

SOURCES(CONTINUED)

Uniform System for Financial Records for Arizona School Districts (USFR)http://www.auditorgen.state.az.us/manuals_schooldistrict.htm

Uniform System for Financial Records for Arizona Charter Schools (USFRCS)http://www.auditorgen.state.az.us/manuals_charter.htm

OMB Circular A-133 http://www.whitehouse.gov/omb/rewrite/circulars/a133/a133.html

OMB Circular A-87http://www.whitehouse.gov/omb/rewrite/circulars/a087/a87_2004.html

OMB Circular A-122http://www.whitehouse.gov/omb/circulars_a122_2004/

BUDGET &FISCAL TEAM CONTACT INFO.

Bruce J. Groll, Education Program Director - Finance

bruce.groll@azed.gov(602) 364-2302

C.J. Beckstrom, Education Program Specialist - Budget & Compliance

cj.beckstrom@azed.gov(602) 364-2656

Betty Helm, Education Program Specialist - Accounting

betty.helm@azed.gov(602) 364-2308