this document, ensure its value as a compliance tool to drive program improvement, and support the Department’s efforts to communicate the importance of data collection and other controls. The Department continues to reach out to grant recipients to Outreach. enhance understanding of grant requirements, including the impact of the Uniform Guidance on grant administration. In the period covered by this report, presentations were made to the national conference of GEAR UP grantees and Charter School state grantees. The Department’s efforts to improve timely Audits Received timely. submission of single audits have led to a significant decline in the number of audits, from 170 for FY 2012 to 31 for FY 2016. “missing” The Department focused significant resources to Audits Resolved Timely. resolve the vast majority of audits within the required six months, ending the reporting period with only 10 percent of Single Audits overdue compared to 20 percent one year ago. This substantially exceeded the Department’s term targets Strategic Plan Goal 6.2, the Department’s program “Improve efficiency through comprehensive risk management and grant and contract monitoring.” This reflects a major accomplishment given the complex nature of and significant questioned costs associated with many audit findings. Although Single Audits comprise the bulk of audit volume, the Department similarly made a concerted effort to resolve and close timely external audits issued by the OIG. At the end of the reporting period, the Department maintained the overdue for resolution to as low as seven audits, the majority of which involve complex findings involving large sums of questioned costs. While resolution provides timely Percentage of audits that are closed. management decisions on audit findings, audit closure addresses the recovery of funds and the actions taken to avoid a recurrence of findings. The Department continues to reduce the number of resolved-not-closed audits, resulting in only nine ED-OIG audits open at the end of this reporting period, an 80 percent reduction since September 2014. In FY 2016, the Department completed all Electronic Recordkeeping. enhancements to its Audit Accountability and Resolution Tracking System to enable full electronic record-keeping. Beginning in the third quarter, the Office of Chief Financial Officer(OCFO), which resolves findings regarding all of the Department’s discretionary grants, issued almost all its decisions electronically. Training materials have been developed to assist other offices in adopting the same process in FY 2017. In the last quarter of FY 2016, the Department began the Audit Handbook. clearance process for a complete revision of its audit follow-up policies and
this document, ensure its value as a compliance tool to drive program improvement, and support the Department’s efforts to communicate the importance of data collection and other controls. Outreach. The Department continues to reach out to grant recipients to enhance understanding of grant requirements, including the impact of the Uniform Guidance on grant administration. In the period covered by this report, presentations were made to the national conference of GEAR UP grantees and Charter School state grantees. Audits Received timely. The Department’s efforts to improve timely submission of single audits have led to a significant decline in the number of “missing” audits, from 170 for FY 2012 to 31 for FY 2016. Audits Resolved Timely. The Department focused significant resources to resolve the vast majority of audits within the required six months, ending the reporting period with only 10 percent of Single Audits overdue compared to 20 percent one year ago. This substantially exceeded the Department’s targets Strategic Plan Goal 6.2, “Improve the Department’s program efficiency through comprehensive risk management and grant and contract monitoring.” This reflects a major accomplishment given the complex nature of and significant questioned costs associated with many audit findings. Although Single Audits comprise the bulk of audit volume, the Department similarly made a concerted effort to resolve and close timely external audits issued by the OIG. At the end of the reporting period, the Department maintained the overdue for resolution to as low as seven audits, the majority of which involve complex findings involving large sums of questioned costs. Percentage of audits that are closed. While resolution provides timely management decisions on audit findings, audit closure addresses the recovery of funds and the actions taken to avoid a recurrence of findings. The Department continues to reduce the number of resolved-not-closed audits, resulting in only nine ED-OIG audits open at the end of this reporting period, an 80 percent reduction since September 2014. Electronic Recordkeeping. In FY 2016, the Department completed all enhancements to its Audit Accountability and Resolution Tracking System to enable full electronic record-keeping. Beginning in the third quarter, the Office of Chief Financial Officer(OCFO), which resolves findings regarding all of the Department’s discretionary grants, issued almost all its decisions electronically. Training materials have been developed to assist other offices in adopting the same process in FY 2017. Audit Handbook. In the last quarter of FY 2016, the Department began the clearance process for a complete revision of its audit follow-up policies and term
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