Grants Management Risk Assessment
The intent of the Risk Assessment report is to ensure that entities have an opportunity to annually review key data points related to their fiscal practices. The Arizona Department of Education’s (ADE) goal, in compliance with 2 CFR 200.332(b), is to provide meaningful information that assists entities to assess and reduce potential vulnerability. ADE will use these results to provide technical support and drive healthy conversations around fiscal processes and improvements.
Under CFR §200.332(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).
Risk Assessment Frequently Asked Questions
For additional guidance, please refer to:
- Frequently Asked Questions for further instruction on grant processes
- Training Resources for technical instructions on using the GME system
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.
Under CFR §200.332(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.
Five categories were determined to be significant indicators of risk that may adversely affect the ability of an entity 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 Risk Assessment training and materials in 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).
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.
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 each entity 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.
Each entity has the access to view only their own Risk Assessment results. For instructions to access Risk Assessment results, please see the Risk Assessment Frequently Asked Questions (FAQ) located in 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).
Please Note: Risk Assessments are not visible for public view.
In compliance with 2 CFR §200.332(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.
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.
