Risk Analysis

Title 2 of the Code of Federal Regulations, Part 200 (2 CFR Part 200) requires that DESE as the state education agency:

• Assess risk of grant recipients. (§200.331(b))
• Monitor to ensure the awards are used appropriately and in compliance with the award and all associated regulations. The monitoring plan should be based on the results of the risk assessment. (§200.331(d))

Risk assessment and monitoring address financial and programmatic considerations.

ACLS has developed a risk management process to ensure that grants are used appropriately and in compliance with their awards and associated policies and regulations and continually assesses program risk using a rubric designed to identify fiscal and programmatic conditions that could put federal and state funds at risk.

The ACLS risk rubric incorporates a range of fiscal and data indicators including: single audit findings, DESE audit findings, unspent funds, grant to agency budget ratio, MSG, timeliness of data entry, data accuracy, and posttest rates. Depending upon the analysis, mitigation could involve training and technical assistance, additional site reviews including fiscal and data audits, stops on grant payments, and grant reduction or termination.

The Audit and Compliance Unit (A&C) manages and coordinates financial and compliance audit functions for the Department. A&C serves as liaison for the department with State, Federal and Independent auditors. The unit manages the master service agreement of independent audit functions within the Department and coordinates reviews for the Department's grant programs.

Each year, A&C reviews and scores grantee audits. ACLS incorporates these scores into the risk analysis.

At the start of the fiscal year, A&C selects grantees for fiscal reviews and/or data audits based on the results of ACLS' risk analysis.

Last Updated: November 10, 2020