Compliance Issues Disclosed by TEA in Monitoring ARRA Funds PDF Print E-mail

11/8/10

On Monday, the Texas Education Agency posted a TO THE ADMINISTRATOR ADDRESSED letter describing certain compliance findings disclosed by the Division of Financial Audits in monitoring activities involving American Recovery and Reinvestment Act of 2009 (ARRA) Stimulus and Stabilization funds.  The letter explains some of the more significant compliance observations disclosed in onsite and desk monitoring activities conducted by the Special Monitoring Unit (SMU) in the Division of Financial Audits.  The major compliance-related areas referred to the letter include:

  • Internal controls over reporting accuracy;
  • Calculation methodologies for number of jobs created/retained;
  • Procurement, Davis Bacon Act and certification requirements for infrastructure uses of funds;
  • Time and effort records;
  • Job descriptions;
  • Payroll records;
  • Documentation of business and grant administrative procedures;
  • Finance systems;
  • Encumbrance accounting;
  • Source documentation;
  • Obligation of grant funds; and
  • Budgetary controls.

The letter is intended to give notice to school districts and charter schools in advance of future monitoring activities during the 2010-2011 fiscal year.  Compliance is essential to avoid potential refunds of ARRA funds. 

To access the TO THE ADMINISTRATOR ADDRESSED letter click on the link below.

http://ritter.tea.state.tx.us/taa/finaud110811.html