NC Race to the Top (RttT)
FBS Conference
July 25, 2013
Overview
1. General RttT Requirements & Processes for
LEAs/Charters
 Office of State Budget & Management
(OSBM) Audit findings
2. Miscellaneous Reminders
3. RttT Monitoring Process
4. Year 4 Considerations
Key Take Away = Know the requirements and comply!
2
OSBM RttT Audits
Governor’s
Office
OSBM
State Board/
DPI
LEAs
3
Charters
OSBM RttT Audits
•
Audits determine compliance with:
RttT Grant
Requirements
NC Office of
Economic Recovery
& Investment (OERI)
Directives
4
State and
Federal Laws/
Regulations
OSBM RttT Audits
Common Findings:
1. Not following requirements for competition for
procurement and sole-source justifications
2. Not checking Federal and State Debarment Lists for
debarred vendors
3. Not including ARRA Contract Provisions in RttT
Contracts
4. Spending on items not included in DSWs
5. Not following Cash Management Requirement
5
OSBM RttT Audits
Finding 1
Requirements for:
• 1a. competition for
procurement
• 1b. sole-source justifications
were not followed.
6
Finding 1a: Competition
Competition is the
fundamental component
of procurement using
ARRA/RttT funds
Follow ARRA &
OERI bidding
requirements!
• Regular local board “competitive bidding” policies can
vary by LEA
• For RttT, NCDPI and all LEAs/Charter Schools must
follow ARRA competitive bidding guidelines (as modified
in the OERI directives)
7
Finding 1a: Competition
• OERI Directives 3, 3a, and 3b outline the
provisions and requirements for purchases
using RttT & other ARRA funds
List formal and
informal
solicitation
documents in IPS
Use“Recovery
Funds” in the
description
column of IPS
8
Finding 1a: Competition
> $5,000
< $5,000
• Must bid on IPS
• Advertise in local newsprint
outlet
• Must utilize less formal
“Request for Quote”
• Maintain documentation
proving competition and
that vendor was notified of
ARRA contract provisions
9
Finding 1a: Competition
Splitting Purchases to
avoid seeking proper
competition for a
contract purchase is
prohibited
10
Finding 1a: Competition
Key References
NC OERI Directives
www.ncrecovery.gov/compliance/OERI
Directives.html
Contracting Check-List to www.ncpublicschools.org/docs/fbs/arra
/allotments/contractingchecklist.pdf
ensure compliance
(under notes)
Sample Bid Templates
www.pandc.nc.gov/divforms.htm
11
Finding 1b: Sole-Source
Can We Sole-Source?
• Most defensible option is always to use
competition
• Some instances exist where sole-source
procurements are permitted
12
Finding 1b: Sole-Source
General Rule:
If…
the same service
provided previously by
the same vendor
Sole Source
anything about
service differs
Competitive
Bid Process
13
Finding 1b: Sole-Source
Before sole-sourcing the LEA/Charter must:
1. Determine if a sole source procurement is allowable
2. Document adequate justification for the sole source
3. Post an alert to the LEA’s website of the pending “Notice of Intent
to Award” a sole-source contract
4. Post for a minimum of 10 days a Notice of Intent to Award a solesource on the IPS, including:
a. Source (provider of service/product)
b. Basic description of services or
products to be purchased
14
Finding 1b: Sole-Source
“When in doubt, bid it out.”
Key References
Sole Sourcing
Guidance
http://it.ncwiseowl.org/UserFiles/Servers/S
erver_4500932/File/RttT/Solesourcing_RttT_Guidance.pdf
15
OSBM RttT Audits
Finding 2
Requirements for checking Federal and
State Debarment Lists for debarred
vendors were not followed.
16
Finding 2: Debarment Lists
Federal Law
Documentation
• Must check vendors
against State and
Federal debarment
lists
• Must maintain
documentation of
vendor’s eligibility
• Must check prior to
transactions taking
place
• Recommendation:
time-stamped print
screen from the
debarment websites
17
Finding 2: Debarment Lists
Key References
Federal Debarment List https://www.sam.gov/portal/public/SAM/
State Debarment List
www.pandc.nc.gov/actions.aspx
Key Contacts
DPI
Stephanie.English@dpi.nc.gov
Budget
Tina.Kelly@doa.nc.gov
18
OSBM RttT Audits
Finding 3
Requirements for including ARRA
Contract Provisions in RttT Contracts
were not followed.
19
Finding 3: ARRA Contract Provisions
Here ye, Here ye!
This Official Notice of Solicitation for Good or Services…
Section 1
Blah, blah, blah deliverables
Section 2
Blah, blah, blah timelines
Section 3
Blah, blah, blah, price or other requirements
Section 4
**ARRA Contract Provisions**
20
Must be included
Finding 3: ARRA Contract Provisions
Key References
Contracting Checklist
to ensure compliance
(under notes)
www.ncpublicschools.org/docs/fbs/arra/all
otments/contractingchecklist.pdf
OERI Directive #3
www.ncrecovery.gov/library/pdf/OERI_Dire
ctive3.pdf
21
OSBM RttT Audits
Finding 4
Funds were spent on items not
included in DSWs.
22
Finding 4: RttT Expenditures
Team
1. Plan & Amend
DSW
RttT
Coordinator
2. Prepare budgets
in BAAS
3. Prepare Requests
for bids
Finance
Officer
23
Allowable RttT Expenditures
• Allowable expenditures under RttT (ARRA) are
those approved in the LEAs DSW
 If the item is not pre-approved in DSW, don’t spend
 If it’s not obvious that an item is contained in the
DSW, you may need to amend the DSW (ask DPI)
• For further guidance on allowable uses review
OMB circular a-87, attachment B
24
Finding 4: RttT Expenditures
BAAS
Budget in BAAS must tie to the DSW for that FY
Cannot expend funds unless a budget has been
submitted & approved in BAAS
Review BAAS for budget approval and make
necessary adjustments (if needed)
Resubmit if lines are rejected
25
Finding 4: RttT Expenditures
• Budgeted funds in the DSW should include total cost
of the activity – including indirect costs and position
benefits where applicable
• Example:
Budget entered into DSW is $10,000
26
Finding 4: RttT Expenditures
• Budgeted funds in BAAS should tie to the DSW
• Example:
Budget entered into BAAS totals $10,000
Obj.
$
191
Curriculum stipend
$8,365.15
211
Employer Soc Sec
$639.93
221
Retirement Costs
$895.91
399
Indirect Costs
Total
27
Description
$99.01
$10,000.00
Finding 4: RttT Expenditures
If planned
activities
deviate from
approved DSW
You must
amend your
DSW
• Amended DSWs must be approved and
may require revisions to the budget
entered into BAAS (restarts DPI budget
review and approval process)
28
Finding 4: RttT Expenditures
Steps for Amending Your DSW (and accompanying budget)
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Download
approved
DSW from
RttT
website
Make the
text red
for any
changes
that are
made
Email
amended
DSW to
the
following
addresses
DPI posts
approved
DSW to
the
website
Submit
new
Budget in
BAAS that
aligns to
the
approved
amended
DSW
DPI reviews
your new
budget in
BAAS
(comparing
to new
approved
DSW)
Email:
• eric.thanos@dpi.nc.gov
• racetothetop@dpi.nc.gov
• chris.pond@dpi.nc.gov
29
Finding 4: RttT Expenditures
Key Contacts
DSW
Eric.thanos@dpi.nc.gov
Budget
Chris.pond@dpi.nc.gov
Key References
Approved DSWs www.ncpublicschools.org/rttt/lea-charter/
Budget FAQs
www.ncpublicschools.org/docs/rttt/district/fun
ding/district-faq.pdf
OMB Circular A- www.whitehouse.gov/omb/circulars_a087_20
87 attachment B 04#attb
30
OSBM RttT Audits
Finding 5
Cash Management requirements were not
followed.
31
Finding 5: Cash Management
• LEAs and Charter Schools must pay
vendor within 3 days of draw down
LEAs/Charters should sign up for the
Cash Management Monitoring System
(CMMS)
As of July 1, twelve LEAs had not
registered
32
Finding 5: Cash Management
NOTE: You must have a valid NCID (North Carolina Identity Management Service)
and password in order to subscribe to the Cash Management Monitoring System
33
Finding 5: Cash Management
Key References & Contact
Draw Down
Regulation
http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=313d1851ad9e0385a995a0ce571
74f69&rgn=div8&view=text&node=31:2.1.1.1.5.1.1
.10&idno=31
CMMS Link
https://schools.nc.gov/cmms
NCID Link
www.ncid.its.state.nc.us/LEAListing.asp
DPI Contacts
Leighann.Kerr@dpi.nc.gov; 919-807-3553
Karen.Frazier@dpi.nc.gov; 919-807-3738
34
Miscellaneous Reminders
35
Whistle Blower
OERI directives 5 and 6 provide guidance for
reporting Allegations of Fraud, Waste and
Abuse of ARRA funds
– Requires Posting of Whistle Blower rights
and Remedies
Recommendation:
Post a link on the
LEA/Charters Website
that leads to the state or
the Federal Whistle
Blower websites
Physical posters are to
be posted in a visible
place in LEA/Charter
school buildings
36
Whistle Blower Links
Key References & Contacts
DPI Link
www.dpi.state.nc.us/internalaudit/fraud/
State Link
www.ncrecovery.gov/compliance/reportFraud.ht
ml
Federal
Contact
US Education Department Office of Inspector
General Hotline 1-800-MIS-USED
37
CFDA Numbers
• Race to the Top CFDA number is 84.395
• Federal Award Number is S395A100069
Key References
Chart on DPI website www.ncpublicschools.org/fbs/arra/allotments/
(includes CFDA #,
PRC #, and Federal
Award #)
38
Budget Submission Process
To spend in July of FY 2013-14 RttT funds, you
should have entered budgets into the BAAS system
by June 30, 2013
• When submitting a Budget to BAAS:
Email:
Include whether BAAS
ties to original or
amended DSW (if
amended, attach
amended DSW)
• racetothetop@dpi.nc.gov
• debby.jackson@dpi.nc.gov
• chris.pond@dpi.nc.gov
39
Monitoring Process
40
RttT Program Monitoring
1. Required by RttT – plan approved by USED
2. LEAs/Charters must submit “Progress Reports” for
2012-13 school year to NCDPI by September 30,
2013 (can begin entering on August 15)
3. Bottom line: “Did you do what you said you were
going to do in your state-approved DSW?”
4. Results determine which LEAs/Charters will receive
follow up (technical assistance or on-site
monitoring visits by DPI team)
41
RttT Sanctions
• January 2012- The NC State Board of Education
approved sanctions for LEAs/charter schools not
complying with Race to the Top grant requirements
• Levels 1-4
Key References
RttT Sanctions
http://www.ncpublicschools.org/docs/sbe
-archives/meetings/2012/01/tcs/01tcs.pdf
42
Year 4 Considerations
43
Year 4 Considerations
• LEAs / Charter Schools may use 2013-14 Race to
the Top funds to apply toward the $4 per student
expenditure required to opt-in to Home Base
optional resources for the following (2014-15) school
year
44
Year 4 Considerations
Close- Out Process:
 LEAs and Charter Schools should plan to expend
all RttT funds by, June 30, 2014
 Encumbrance Account should match the account
code for the expense
 No zero-out after December; RttT funds must be
requested prior to December 31, 2014
45
Year 4 Considerations
 Travel cannot be encumbered until it has occurred
 LEAs/Charters should keep good records during
the encumbrance period; expenditures during this
period will be heavily scrutinized
46
Year 4 Considerations
No-Cost Extension:
RttT states have until January 2014 to
request a no-cost extension
USED will not approve “blanket” extension
requests
No additional funds will be allocated; just
adds time to complete projects
47
Summary
1. General RttT Requirements & Processes for
LEAs/Charters
 Office of State Budget & Management
(OSBM) Audit findings
2. Miscellaneous Reminders
3. RttT Monitoring Process
4. Year 4 Considerations
Key Take Away = Know the requirements and comply!
48