Risk Assessment

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Risk Assessment:
Description:
The law requires the Arizona Department of Education (ADE) to monitor the activities of its subrecipients to ensure that the sub-award is used for: authorized purposes, in compliance with federal statutes, regulations, the terms and conditions of the sub-award and that sub-award performance goals are achieved.
Under CFR §200.331(b) the Uniform Grant Guidance describes the requirements of a pass-through entity (ADE) to complete a risk assessment on their sub-recipients. The guidance allows ADE the authority to develop a risk assessment to meet the state’s needs. In addition, it allows ADE the flexibility to develop grant specific risk assessments and address various grants requirements.
Risk Assessment Training:
Risk Assessment training materials and webinar recordings can be accessed through the public folder, Risk Assessment – General Information, in the Grants Management Resource Library’s GME User Resources and Training on the Grants Management Enterprise (GME).
Federal Fiscal Monitoring Training:
Federal Fiscal Monitoring training materials and webinar recordings can be accessed through the public folder, Fiscal Monitoring, in the Grants Management Resource Library’s GME User Resources and Training on the Grants Management Enterprise (GME). |
Risk Assessment Frequently Asked Questions
For additional guidance, please refer to:
What is the intent of the Risk Assessment?
The ultimate intent of this report is to ensure transparency and accountability which will reduce and mitigate potential vulnerabilities. Arizona Department of Education (ADE) will use these results to provide technical support and drive healthy conversation around performance improvement.
Why must Arizona Department of Education (ADE) conduct a Risk Assessment and who receives a Risk Assessment?
Under CFR §200.331(b) the Uniform Grant Guidance describes the requirements of a pass-through entity (ADE) to complete a Risk Assessment on their sub-recipients. The guidance allows ADE the authority to develop a Risk Assessment to meet the state’s needs. In
addition, it allows ADE the flexibility to develop grant specific risk assessments and address various grants requirements.
All entities that receive funds through ADE as a pass-through agency are subject to a Risk Assessment.
What are the Risk Indicators and Risk Factors?
Five categories were determined to be significant indicators of risk that may adversely affect the ability of an LEA to achieve its objectives. The categories include Audit Performance, Academic Achievement, Reporting Timeliness, Fiscal Performance and General Indicators. Each category included the analysis of several data sets. Scores for each data set were combined into a single score to provide an indicator of risk for each category.
Arizona Department of Education (ADE) created a catalog of required criteria (Risk Factors) for the Risk Assessment by using appropriate public metrics such as, but not limited to, graduation dates, dropout rates, and Single Audit findings. To view current fiscal year Risk Factors, please see the current fiscal year Risk Assessment Guide.
The current fiscal year Risk Assessment guide can be accessed through the public folder, Risk Assessment – General Information, in the Grants Management Resource Library on the Grants Management Enterprise (GME).
What is a Risk Score?
Risk Assessment uses Points that are a total accumulation based on the analysis of multiple data sets within specific Risk Indicators. Max Points represent the highest possible total points available from all Risk Indicators. A Risk Score is the Points divided into Max Points, which were individually calculated for each entity to ensure a more accurate depiction of potential risk. Higher Points represent greater risk.
What is a risk level and what does it mean for an LEA?
The risk level is the conversion of the risk score into Low, Medium, and High categories. The criteria for Low, Medium, and High levels will adjust each fiscal year based on the available factors and risk indicators. The Risk Level is individually calculated for your LEA to ensure an accurate depiction of potential risk. The ultimate intent is to ensure transparency and accountability which will reduce and mitigate potential vulnerabilities. Arizona Department of Education (ADE) will use these results to provide technical support and drive healthy conversation around performance improvement.
How does an LEA access their results of the Risk Assessment?
Each entity has the access to view only their own Risk Assessment results. For instructions to access Risk Assessment results, please see the current fiscal year Risk Assessment Fast Facts.
The current fiscal year Risk Assessment Fast Facts can be accessed through the public folder, Risk Assessment – General Information, in the Grants Management Resource Library on the Grants Management Enterprise (GME).
Please Note: Risk Assessments are not visible for public view.
When is the Risk Assessment available?
In compliance with 2 CFR §200.331(b), the Arizona Department of Education (ADE) prepares a comprehensive Risk Assessment annually. Grants Management’s goal is to prepare and disperse the Risk Assessment by March 1, prior to the opening of Funding Applications.
Why is Free/Reduced Lunch considered a Risk Factor under General Indicators?
The National School Lunch Program (NSLP) is a federally assisted meal program that provides nutritionally balanced, low cost or free lunches to children each school day. Higher program participation results in a higher level of federal funding which can be an indicator for elevated risk.