Shared Mission: Opportunities and Challenges Getting to the Future NAFEPA Conference Washington, DC

Transcription

1 Shared Mission: Opportunities and Challenges Getting to the Future 2017 NAFEPA Conference Washington, DC { Rich Rasa, Director, State and Local Advice and Assistance Keith Cummins, Assistant Director, State and Local Advice and Assistance U.S. Department of Education, Office of Inspector General

2 So-----What does the future look like? Hmmmmmm??????! { Does it look like this?

3 Is there a problem officer? JTKirk

4 I see clearer in the rear view mirror than I ever did lookin over the hood { Florida Georgia Line, Hell Raisin Heat of the Summer

5 Adopting a Shared Mission Approach { Why? How? What s in it for me?

6 IRS Alert 2/2/ Dangerous W-2 Phishing Scam Evolving; Targeting Schools, Restaurants, Hospitals, Tribal Groups and Others Here s how the scam works: Cybercriminals use various spoofing techniques to disguise an to make it appear as if it is from an organization executive. The is sent to an employee in the payroll or human resources departments, requesting a list of all employees and their Forms W-2. This scam is sometimes referred to as business compromise (BEC) or business spoofing (BES). The Why Behind Shared Mission--working together we can prevent and detect fraud/cyber crime

7 Audit Process Overview Audit Types Management Certifications CMOs/Charter Schools Single Audit Resolution Protecting PII in State Systems Calculating and Reporting Grad Rates Work Planning ED OIG Audits to Watch

8 Audit Process Overview Audit Notification Letter and Request for Management Representation* Initial Site Visit Entrance Conference Fieldwork (On-/Off-Site) Interim Briefings (Exception Reports) Exit Conference (Finding Point Sheets) Draft Report Issuance 30-Day Comment Period Final Report Issuance Public Posting

9 Audit Types Structure Nationwide Series + Capping Individual Subject General Oversight Data Reliability Fiscal Compliance

10 Management Certifications (2/2016) Assessed oversight of the reliability of the following data elements : Migrant Education Program Child Count Neglected or Delinquent Program Child Count Adjusted Cohort Grad Rate We recommended that the Deputy Secretary of Education: Ensure that certification language provides an assurance of the quality of data, clear accountability, and adequate disclosure of known data limitations. Follow up on known data errors where the SEA has signed a management certification. Revise the Compliance Supplement.

11 CMOs/Charter Schools (9/2016) Assessed risk to Department program objectives: 33 Charter Schools with CMOs in 6 States OIG Investigations State and Local Audits We recommended that the Deputy Secretary of Education: Consider actions appropriate to the Department s Federal role to assist SEAs, LEAs, and charter school authorizers to fulfill their obligations for oversight of Federal funding. Update the Compliance Supplement to determine whether SEAs and LEAs have internal controls to ensure that charter schools with relationships with CMOs have effective controls to mitigate financial risks, provide for accountability over Federal funds, and mitigate performance risks.

12 Single Audit Resolution Assessed oversight of LEA single audit resolution: Massachusetts (1/2016) North Carolina (8/2016) Illinois (9/2016) ED Capping Report* We made recommendations for each State, including: Design and implement written policies and procedures for overseeing the LEA single audit resolution process. Establish a tracking system for individual LEA audit findings. Ensure that management decision letters meet regulatory requirements for content. Implement routine internal management reviews and a periodic quality assurance process.

13 Protecting PII In State Systems Assessed oversight of Statewide Longitudinal Data System grants: Virginia (7/2016) Oregon (9/2016) Indiana ED Capping Report We made recommendations for each State, including: Implement system controls to meet State standards and comply with Federal grant requirements. Determine whether a breach occurred in the system, and if so, report and respond in accordance with State requirements.

14 Calculating and Reporting Grad Rates Assessing oversight of grad rate reliability: Alabama California To Be Determined Adjusted Cohort Grad Rate designed to: Provide uniform and more accurate measure to be comparable across States. Strengthen public school choice. Increase accountability and transparency. Be an academic indicator to measure student achievement and school performance.

15 Work Planning Management Challenges Improper Payments Information Technology Security Oversight and Monitoring Data Quality and Reporting Information Technology System Development and Implementation Priority Areas Transitioning to and implementing new requirements under ESSA and the Uniform Grant Guidance Fiscal monitoring Reliability of program performance data Charter schools Use of Federal education funds for technology purchases Student privacy

16 Fraud in Education Programs { The Dark Side

17 Fallin and Flyin I was going where I shouldn t go, seein who I shouldn t see, doin what I shouldn t do, bein who I shouldn t be, a little voice tell me it s wrong, another voice tell me it s right, used to think I was strong, but lately lost the fight, if there is such a thing as too much fun, this must be the price you pay. You never see it comin till it s gone especially if it s wrong. Crazy Heart

18 Fallin and Flyin Crazy Heart

19 Louisiana Print Shop Owner Pleads Guilty to Conspiracy January 3, 2017 Using Phony Documents to Apply to Higher Education

20 Former State of New Mexico Director of Migrant Education and SES Administrator Sentenced December 6, 2016 Bribery, Sham Company, No Services Provided

21 Son of Former Title I Official Sentenced October 26, 2016 Contract Fraud, Fraudulent Invoices, No Services

22 Migrant Education Program Grantee Sentenced in Florida October 21, 2016 Obstructing a Federal Audit, Doctored Bank Records, $261,000 for Personal Items

23 Section Preventing Improper Use of Taxpayer Funds Section Accountability to Taxpayers Through Monitoring and Oversight Section Report on Department Actions to Address Office of Inspector General Reports ESSA Oversight and Monitoring Shared Mission Opportunities to Prevent Fraud and Improve Performance

24 Each recipient must post OIG Hotline contact information in public place Notify ED employees of responsibility to report fraud Require applicants/subgrantees to provide assurances to be truthful and accurate [during monitoring and oversight] Section Preventing Improper Use of Taxpayer Funds

25 To improve monitoring and oversight and to deter fraud, waste, and abuse: Each recipient is required to comply with all monitoring requirements Monitor properly any subgrantee under the program(s) Secretary required to review and analyze results of monitoring and compliance reviews: Understand trends/common issues Issue guidance to help grantees to avoid loss or misuse of taxpayer funds Publicly report Secretary s efforts to prevent fraud, waste, and abuse Work with the OIG to help ED employees understand how to adequately monitor and help grantees and subgrantees with the same Section Accountability to Taxpayers Through Monitoring and Oversight

26 1. 2. Secretary shall provide a report to Senate HELP and House Education Committee to update on ED s implementation of OIG reports Report shall contain what has been done to address findings in OIG reports on Charter Schools Section Report on Department Actions to Address Office of Inspector General Reports

27 AGA Intergovernmental Partnership Update 10 Years of Service { Shared Mission Products

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29 What comes next Go and make your movie nothing is stopping you JJ Abrams, Ted Talk, The Mystery Box { Get to the Future

30 Rich Rasa Keith Cummins { Thank You!

31 Resources ED OIG Semiannual Reports SES Dear Colleague Letter Charter Schools Dear Colleague Letter Management Certifications of Data Reliability Nationwide Assessment of Charter and Education Management Organizations Massachusetts Department of Elementary and Secondary Education s Oversight of Local Educational Agency Single Audit Resolution North Carolina Department of Public Instruction s Oversight of Local Educational Agency Single Audit Resolution Illinois State Board of Education s Oversight of Local Educational Agency Single Audit Resolution Protection of Personally Identifiable Information in the Commonwealth of Virginia s Longitudinal Data System Protection of Personally Identifiable Information in Oregon s Statewide Longitudinal Data System AGA Intergovernmental Partnership Link to Collaboration Series Products AGA Fraud Toolkit AGA CAROI Guide and Playbook AGA Making Better Decisions Collaboration Series AGA Blended and Braided Funding Guide OMB Grant Reform OMB Circular No. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control COSO Internal Control Standards Executive Summary GAO Standards for Internal Control in the Federal Government GAO Framework for Managing Fraud Risks in Federal Programs Temple University Beasley School of Law, Follow the Money: Charter Schools and Financial Accountability Roslyn School District State Comptroller Report Anatomy of a Scandal