FR Doc E7-20847
[Federal Register: October 23, 2007 (Volume 72, Number 204)]
[Notices]
[Page 60201-60219]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23oc07-79]
Download: 
-----------------------------------------------------------------------
[[Page 60201]]
-----------------------------------------------------------------------
Part VI
Department of Education
-----------------------------------------------------------------------
Compliance Agreement; Notice
[[Page 60202]]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Compliance Agreement
AGENCY: Department of Education.
ACTION: Notice of written findings, compliance agreement with the
Virgin Islands, and subsequent actions.
-----------------------------------------------------------------------
SUMMARY: This notice is being published in the Federal Register
consistent with sections 457(b)(2) and (d) of the General Education
Provisions Act (GEPA). Section 457 of GEPA authorizes the U.S.
Department of Education (the Department) to enter into a compliance
agreement with a recipient that is failing to comply substantially with
Federal program requirements and for whom the Department determines
that full compliance is not feasible until a future date. Section
457(b)(2) requires the Department to publish written findings leading
to a compliance agreement, with a copy of the compliance agreement, in
the Federal Register. If a recipient fails to comply with the terms and
conditions of a compliance agreement, the Secretary may take any action
authorized by law with respect to the recipient.
On September 23, 2002, the Department entered into a compliance
agreement (Agreement) with the U.S. Virgin Islands (VI) because the
Department determined from all available information that the VI would
not be able to come into full compliance with applicable Federal
regulations for the administration of Department programs until a
future date. Notwithstanding the Agreement, and intensive and frequent
technical assistance by the Department, when the term of the Agreement
ended on September 23, 2005, the VI was substantially in non-compliance
with Federal requirements. Therefore, the Department has imposed
special conditions and has taken a number of other important measures
in its continuing effort to bring the VI into full compliance with all
Federal requirements pertaining to the administration of Department
programs. Most notably, the special conditions currently in effect
require the VI to procure, and maintain, the services of a third-party
fiduciary agent to perform the financial management duties required
under Federal regulations for all Department grants, which the VI
accomplished beginning in August 2006.
FOR FURTHER INFORMATION CONTACT: Mr. Phil Maestri, U.S. Department of
Education, Office of the Secretary, 400 Maryland Avenue, SW., room
7E206, Washington, DC 20202-6132. Telephone: (202) 205-3511.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Relay Service (FRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: The VI is an insular area that is authorized
under 48 U.S.C. 1469a to consolidate formula grant funds allocated to
it under various Federal education programs and use those funds for the
purposes of one or more programs included in the consolidated grant.
See also 34 CFR 76.125-76.137. Under that authority, the Virgin Islands
Department of Education (VIDE) has historically consolidated formula
grant funds allocated to it under the Elementary and Secondary
Education Act of 1965, as amended (ESEA), the Carl D. Perkins Career
and Technical Education Act of 2006 (CTE) (formerly the Carl D. Perkins
Vocational and Technical Education Act), and the Adult Education and
Family Literacy Act (Adult Education) and used those funds to implement
three programs: Title V, Part A (formerly Title VI) of the ESEA, CTE,
and Adult Education. The VIDE also receives additional funding under
the authority of a number of other Department programs. Additionally,
VIDE and the Virgin Islands Department of Health (VIDH) carry out
programs under Parts B and C of the Individuals with Disabilities
Education Act (IDEA); IDEA funds are not subject to the consolidation
authority under 48 U.S.C. 1469a and 34 CFR 76.125-76.137. VIDH's IDEA
Part C grant funds for fiscal years 2002 through 2007 are subject to
special conditions to ensure fiscal accountability. Finally, the Virgin
Islands Department of Human Services (VIDHS) also receives Department
funds.
Because of longstanding and recurring findings of fiscal and
programmatic accountability deficiencies in the administration of
Department programs by the VI and several of its departments (as
discussed in detail in the following paragraphs), the Department has
imposed special conditions, on a Department-wide basis, on all
Department grants awarded to the VI. These Department-wide special
conditions are different from the fiscal special conditions imposed
separately on the IDEA Part C grant and from the programmatic special
conditions imposed separately by various Department program offices
upon individual grant awards. The need for these Department-wide
special conditions stems from the VI's failure to meet the terms of the
Agreement, which was executed on September 23, 2002, and expired on
September 23, 2005, with the VI still in substantial non-compliance.
The Department entered into the Agreement in 2002 because it had
found serious and recurring fiscal and programmatic accountability
deficiencies in the administration of Department programs by the VI,
VIDE, and other agencies of the government of the VI dating back
several years. Specifically, the Department had found deficiencies in
key aspects of the VI's procurement process; program planning and
implementation; and financial and property management, including, but
not limited to, the VI's lack of appropriate record keeping to account
for the use of Federal funds and its failure to obligate and draw down
funds and liquidate obligations on a timely basis. The VI also had
failed to submit timely and sufficient audits. As a result of these
major problems, in September 1999, the Department designated the VI as
a ``high-risk grantee'' under 34 CFR 80.12(a) and, consistent with that
designation, imposed special conditions on a number of grant awards to
the VI and its agencies. But, even after the imposition of these
special conditions, the VI continued to have significant problems in
administering Department grant programs, resulting in continued
noncompliance with various programmatic and fiscal requirements
applicable to those programs.
In May 2001, officials from the Department met with VI officials to
discuss the continuing deficiencies in the administration and
implementation by the VI of the Department's programs. The parties
reached an agreement on the wide-scale and significant corrective
actions that the VI would have to make in order for the Department to
continue to provide funds to VI agencies. It was at this time that the
Department suggested that the VI and the Department enter into a
compliance agreement, pursuant to section 454 of GEPA, to apply to all
Department grants awarded to the VI. The purpose of the compliance
agreement would be to bring the VI ``into full compliance with the
applicable requirements of the law as soon as feasible and not to
excuse or remedy past violations of such requirements.'' \1\ 20 U.S.C.
1234f(a). In
[[Page 60203]]
order to enter into a compliance agreement with the VI, the Department
had to determine, in written findings, that the VI would not be able to
comply until a future date with the applicable program requirements and
that a compliance agreement would be a viable means for bringing about
such compliance.
---------------------------------------------------------------------------
\1\ Section 454 of GEPA, 20 U.S.C. 1234c, sets out the remedies
available to the Department when it determines that a recipient ``is
failing to comply substantially with any requirement of law
applicable'' to the Federal program funds administered by this
agency. Specifically, the Department is authorized to--
(1) Withhold funds;
(2) Obtain compliance through a cease and desist order;
(3) Enter into a compliance agreement with the recipient; or
(4) Take any other action authorized by law.
---------------------------------------------------------------------------
In accordance with the requirements of section 457(b) of GEPA, 20
U.S.C 1234f(b), Department officials conducted public hearings in the
VI in February 2002. Witnesses representing VIDE, students and parents,
and other concerned organizations and individuals testified at these
hearings on the question of whether the Department should grant VIDE's
request to enter into a compliance agreement. The Department reviewed
this testimony and all other relevant materials and concluded that,
while the Department had been working closely with VIDE and with other
VI agencies to address the major issues that the VI had been facing in
administering Department grant programs, it was clear that the problems
could not be corrected by the VI immediately and that the VI would need
more than one year to correct them. Therefore, in order to remedy that
condition, the Department and the VI entered into the Agreement, a
comprehensive compliance agreement with a three-year term. The purpose
of the Agreement, which incorporated the Department's written findings,
was to allow the VI to develop integrated and systemic solutions to
problems in managing its Department funds and programs. Under the terms
of the Agreement, by the end of the three-year term, the VI was
supposed to be in full compliance with the requirements of all programs
funded by the Department. The Agreement became effective on September
23, 2002.
In November 2003, officials from the Department conducted a site
visit to provide intensive technical assistance and review the VI's
progress during the first year of the Agreement. While VIDE had made
significant progress in some issue areas identified in the Agreement,
the VI had not made progress in many key areas, particularly that of
financial management, which significantly affected its ability to
manage Department funds and administer Department programs. The
Department continued to monitor the VI's compliance with the terms of
the Agreement and provided frequent, intensive technical assistance to
the VI during the course of its three-year term. In March 2005, the
Department notified the VI of its concerns regarding the VI's limited
progress in meeting the goals of the Agreement. The Department required
the VI to demonstrate why the Department should not begin to take
immediate remedial action under the terms of the Agreement. After
considering the VI's response, the Department concluded that the VI had
failed to meet on a timely basis key terms and conditions of the
Agreement that are critical to successful compliance with applicable
requirements and that the VI would not be able to meet all of the terms
and conditions of the Agreement by its expiration on September 23,
2005. In particular, the Department noted that there was a significant
lack of progress on the part of the VI in developing and implementing a
credible central financial management system--the cornerstone of the
VI's financial management improvements that are critical to its ability
to manage Department funds consistent with applicable Federal
regulations concerning fiscal accountability and funds management.
Therefore, in accordance with section II.A. of the Agreement, and
section 457(d) of GEPA, the Department imposed special conditions on
grant awards to the VI, including a requirement that the VI procure,
and maintain, the services of a third-party fiduciary agent, acceptable
to the Department, to perform the financial management duties required
under Federal regulations for all Department grant awards made to the
VI. The VI subsequently published a Request for Proposal and selected a
third-party fiduciary agent acceptable to the Department. The
Department is currently monitoring the work of this third-party
fiduciary agent and the VI's compliance with these special conditions
and continues to provide technical assistance and oversight in a
continuing effort to bring the VI into full compliance with applicable
Federal regulations.
As required by section 457(b)(2) of GEPA, 20 U.S.C. 1234f(b)(2),
the Agreement (which incorporates the Department's written findings in
the section entitled ``Overview of Issues'', and in each ``Issue
Description'' section of the Agreement) is included as appendix A of
this notice.
Electronic Access to This Document
You may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister.
To use PDF you must have the Adobe Acrobat Reader Program with
Search, which is available free at this site. If you have questions
about using PDF, call the U.S. Government Printing Office (GPO), toll
free, at 1-888-293-6498; or in the Washington, DC area at (202) 512-
1530.
Note: The official version of a document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at:
http://www.gpoaccess.gov/nara/index.html.
Authority: 20 U.S.C. 1234c, 1234f.
Dated: October 18, 2007.
Hudson La Force III,
Senior Counselor to the Secretary of Education.
Appendix A--Compliance Agreement Between The U.S. Virgin Islands and
the U.S. Department of Education
September 23, 2002.
U.S. Virgin Islands Compliance Agreement
I. Overview of Issues
II. Consequences for Not Meeting the Terms and Conditions of the
Agreement
A. Mutual Agreements and Understandings Regarding the Terms,
Conditions and Enforcement of This Compliance Agreement
Severability
Additional Terms and Conditions Under 34 CFR Sec. 80.12
Judicial Enforcement
1. Cease and Desist Order Under 20 U.S.C. Sec. Sec. 1234c(a)(2)
and 1234e
2. Referral to Department of Justice for Appropriate
Enforcement--20 U.S.C. Sec. 1416
Withholding of Grant Funds--20 U.S.C. Sec. Sec. 1234c(a)(1),
1234d and Sec. 1416
Escrow Account to Fund Third-Party
Recovery of Funds--20 U.S.C. Sec. 1234a
B. Criteria for Determining Consequences
III. Reporting Requirements
IV. Updated Plans, Action Steps, and Timelines From December 2001
Meeting
V. Issues
Issue 1.0: Program Planning, Design, and Evaluation
Issue Description
Identification of Long-Term Goals
Assessment of Current Status of Programs in Terms of Goals
Identification of Educational Program Needs To Meet Goals
[[Page 60204]]
Development of Program Design and State Plans or Applications
That Address Identified Needs
Sub-Issue 1.1: Separation of State and Local Educational
Agencies
Sub-Issue Description
Performance Measures for Issue 1.0 and 1.1
Action Steps Required
Issue 2.0: Financial Management
Issue Description
Sub-Issue 2.1: Credible Financial Management System
Sub-Issue Description
Performance Measures for Issue 2.0 and 2.1
Action Steps Required
Sub-Issue 2.2: Indirect Costs
Sub-Issue Description
Performance Measures for Issue 2.2
Action Steps Required
Sub-Issue 2.3: Obligation of Funds/Disbursement of Obligation
Sub-Issue Description
Performance Measures for Issue 2.3
Action Steps Required
Issue 3.0: Human Capital
Issue Description
Sub-Issue 3.1: Recruiting and Hiring
Sub-Issue Description
Performance Measures for Issue 3.0 and 3.1
Action Steps Required
Sub-Issue 3.2: Inadequate Time Accounting and Supplanting
Sub-Issue Description
Performance Measures for Issue 3.2
Action Steps Required
Issue 4.0: Property Management and Procurement
Issue Description
Sub-Issue 4.1: Property Management
Sub-Issue Description
Performance Measures for Issue 4.0 and 4.1
Action Steps Required
Sub-Issue 4.2: Competitive Procurement (Improved Process)
Sub-Issue Description
Performance Measures for Issue 4.2
Action Steps Required
I. Overview of Issues
As a result of serious and recurring deficiencies in the
administration of various Federally funded programs by the government
of the U.S. Virgin Islands (VI), the U.S. Department of Education (the
Department) has designated VI a ``high-risk grantee'' under 34 CFR
Sec. 80.12. The Department has been working closely with the Virgin
Islands Department of Education (VIDE) and with other Virgin Islands
agencies in recent months to address these major issues, but it is
clear that the problems cannot be corrected by the Virgin Islands
immediately, and that the Virgin Islands will need more than one year
to correct them. Therefore, in order to remedy this condition, the
Department has consented to enter into this comprehensive, three-year
compliance agreement with VI.
Through this Compliance Agreement, the VI, with assistance from the
Department, agrees to develop integrated and systemic solutions to
problems in managing Federal education funds and programs. The issues
are being carefully examined and addressed from the perspective of
every VI agency and local entity with management responsibility for
resources or programs that have an impact on education. Solutions may
involve re-engineering systems and processes or implementing
technology. In addition, solutions must address communication and
cooperation among VI Departments, and developing a culture of ``getting
the work done right.'' Whatever the solutions the VI chooses to
implement, they must ensure the best educational systems possible for
the people of the Virgin Islands. It is also understood that by the end
of the term of this Agreement, VI must be in full compliance with the
requirements of all programs funded by the Department.
The Compliance Agreement is also intended to ensure an effective
planning and evaluation process throughout VI programs and initiatives.
Planning and evaluation processes are the basis for determining program
goals, current status, improvement needs, budgets, resources,
effectiveness of results, and other important aspects of effective
program management. Through this Agreement, the VI will improve its
program planning and evaluation for education programs and use the
plans and evaluation results to drive management and resource
decisions.
This Compliance Agreement addresses four areas of crosscutting
issues: (1) Program Planning, Design and Evaluation, (2) Financial
Management, (3) Human Capital, and (4) Property Management and
Procurement. The issues are presented as crosscutting because of the
impact of other VI agencies on VIDE. Thus, it is critical that these
issues be addressed not just in VIDE but across virtually the entire
Virgin Islands government. In addition, the issues cannot be addressed
in a piecemeal fashion and they must encompass an effective planning
and evaluation process.
The Compliance Agreement lists specific action items for each
crosscutting issue. However, the Department will not determine the VI's
progress in meeting the terms of the Agreement only by assessing
completion of listed action steps. Rather, the Department will judge
progress by the systemic approaches and degree of integration that the
VI brings in designing and implementing solutions to complex problems
in each of the crosscutting areas, and by the demonstrated
communication, cooperation, and organizational culture change toward
``getting the work done right.'' These approaches should include
effective planning and evaluation of resource and management decisions
that are designed to produce better educational results.
In making the critical systemic and organizational culture changes
required to meet the terms of the Compliance Agreement, it is important
to understand that the Agreement is not designed to benefit the
Department, VIDE, or the Virgin Islands government. All of the
requirements of the Compliance Agreement are directed toward one end:
improving education for the students of the Virgin Islands. In the end,
the Department and the VI will judge success by determining how well
the VI has improved educational programs and met the terms of the
Compliance Agreement.
II. Consequences for Not Meeting the Terms and Conditions of the
Agreement
A. Mutual Agreements and Understandings Regarding the Terms, Conditions
and Enforcement of This Compliance Agreement
Severability
The parties agree that this Compliance Agreement includes terms and
conditions that apply to the various Federal programs included in the
Agreement (hereafter ``covered Federal programs'') and also terms and
conditions that are program specific. To that end, the parties agree
that each such term and condition for each covered Federal program may
constitute a separate agreement between the Virgin Islands and the
Department. For purposes of 20 U.S.C. Sec. 1234f, each such term or
condition as to each covered Federal program shall be severable from
each other term or condition for each of the covered Federal programs.
Unless set out otherwise, a determination by the Department under 20
U.S.C. Sec. 1234f(d) that the Virgin Islands is not meeting the terms
and conditions may be specific to such term, condition or program
without impacting the continuing obligations under the Agreement. That
is, all other terms and conditions for all covered Federal programs or
the specific term or condition for other covered Federal programs would
remain in place for the duration of the Agreement or until such time as
the Department determines failure by the Virgin Islands to meet those
terms and conditions.
Alternatively, the parties understand and agree that a
determination by the Department under 20 U.S.C. Sec. 1234f(d) that the
Virgin Islands has failed to meet any of the terms and conditions
shall, at
[[Page 60205]]
the Department's discretion, be grounds for finding the Agreement, as
to such terms and conditions, no longer in effect and that the
Department may take any and all additional actions authorized by law.
Some examples of such actions are set out below.
Additional Terms and Conditions Under 34 CFR Sec. 80.12
Under this provision, the Department may apply additional
conditions to one or more of the Virgin Islands' grants, having
determined that the Virgin Islands is a ``high risk'' grantee (because
it has a history of unsatisfactory performance and has not conformed to
terms and conditions of previous awards).
Special conditions or restrictions may include, but are not limited
to: (1) Payment on a reimbursement basis; (2) withholding authority to
proceed to next phase until receipt of evidence of acceptable
performance within a given funding period; (3) requiring additional,
more detailed financial reports; (4) additional project monitoring; (5)
requiring the Territory to obtain technical or management assistance,
including the designation of a third-party fiduciary to administer all
or part of the Virgin Islands' grants from the Department; or (6)
establishing additional prior approvals. The use of a condition for one
covered Federal program does not require or preclude its use for a
different covered Federal program.
Under such circumstances the Department would notify the Virgin
Islands as early as possible, in writing, of the: (1) Nature of special
conditions/restrictions; (2) reason(s) for imposing them; (3)
corrective actions which must be taken before they will be removed and
time allowed for completing corrective actions; and (4) method of
requesting reconsideration of conditions/restrictions imposed.
Judicial Enforcement
1. Cease and Desist Order Under 20 U.S.C. Sec. Sec. 1234c(a)(2) and
1234e
The Department may seek injunctive relief to compel specific
actions or to stop specific actions. Under this process, the Department
issues a complaint to the Virgin Islands, describing the factual and
legal basis for the Department's belief that the Virgin Islands is
failing to comply substantially with a requirement of law including
this agreement, and containing a notice of hearing. A hearing before an
Administrative Law Judge (ALJ) must occur. The ALJ's report and order,
requiring the Virgin Islands to stop specific actions or compelling
specific actions, becomes the final agency decision. The Department may
enforce the final order by withholding any portion of the Virgin
Islands' grant award or certifying the facts to the Attorney General
who may bring an appropriate action for enforcement of the order.
2. Referral to Department of Justice for Appropriate Enforcement--20
U.S.C. Sec. 1416
If the Department finds, after reasonable notice and opportunity
for hearing to the Virgin Islands, that: (1) There has been a failure
by the Virgin Islands to comply substantially with any provision of
applicable Federal laws; or (2) there is a failure to comply with any
condition of a Local Educational Agency's or the Virgin Islands'
eligibility (including terms of Compliance Agreement within timelines
specified in Agreement), the Department may, after notifying the Virgin
Islands, refer the matter for an appropriate enforcement action, which
may include referral to the Department of Justice.
Withholding of Grant Funds--20 U.S.C. Sec. Sec. 1234c(a)(1), 1234d and
Sec. 1416
If the Department finds, after reasonable notice and opportunity
for hearing to the recipient, that there has been a failure to comply
substantially with a requirement of law, including with this Agreement,
the Department may withhold, in whole or in part, future payments to
the recipient.
If the Department finds, after reasonable notice and opportunity
for hearing to the Virgin Islands, that: (1) there has been a failure
by the Virgin Islands to comply substantially with any provision of
applicable Federal laws; or (2) there is a failure to comply with any
condition of a Local Educational Agency's or the Virgin Islands'
eligibility (including terms of Compliance Agreement within timelines
specified in Agreement), the Department may, after notifying the Virgin
Islands, withhold, in whole or in part, any further payments to the
Territory. Department may limit withholding to a particular Local
Educational Agency or State agency.
Escrow Account To Fund Third Party
If the Virgin Islands fails to meet a term deemed significant by
the Department in the Compliance Agreement, the Department may place an
appropriate amount of the Virgin Islands grants into an interest
bearing escrow account to fund the duties of a third party fiduciary
agent. VI may request a reconsideration of this action.
Recovery of Funds--20 U.S.C. Sec. 1234a
Any funds improperly expended or not properly accounted for are
subject to recovery by the Department according to 20 U.S.C. Sec.
1234a.
B. Criteria for Determining Consequences
The Virgin Islands will provide the Department with quarterly
progress reports for all of the action steps and performance measures
set forth in the Agreement. The Virgin Islands and the Department agree
that failure to (1) provide all required reports in a timely manner,
(2) show substantial progress in completing all action steps as
required, (3) complete critical action steps within the timeframe
designated in the Agreement, or (4) achieve critical performance
measures as specified in the Agreement, will be considered a failure to
meet the terms and conditions of the Agreement.
III. Reporting Requirements
This Compliance Agreement requires regular progress reporting for
all issues. VI must provide the Department (1) a description of
activities and progress for the issue and its related sub-issues during
the reporting period, (2) the status of each action step required to be
taken during the reporting period, (3) documentation of action step
completion for those steps required to be completed during the
reporting period (including explanation of delays for all steps not
completed that were scheduled to be completed, and expected completion
dates for all unimplemented steps), (4) documentation of measures of
performance and results, and (5) other data or documentation as
specified within the action steps for each issue or related sub-issue
in this Agreement. This information should be transmitted to the
Department by updating (at least quarterly) an internet web site
developed and maintained by the Virgin Islands Government. The Virgin
Islands Office of Management and Budget (VIOMB) will be responsible for
tracking, monitoring and reporting progress on all requirements and
milestones in this Agreement in a manner that is fully accessible to
the Department and the public. Information in the progress tracking web
site should be updated continuously, but in any event, no later than 30
days from the last day of each quarter. The first quarterly period will
encompass the time from which all parties sign this Agreement through
December 31, 2002.
The VI and the Department agree that the following performance
measures
[[Page 60206]]
apply for each issue and sub-issue, in addition to other performance
measures specified throughout this Agreement.
1. All plans, other documents, and reports are timely, complete,
accurate, and address the requirements set forth in this Agreement.
2. All action steps are implemented within the timeframes set forth
in this Agreement.
3. Implementation of action steps demonstrates progress towards
achieving the outcomes or performance measures set forth in this
Agreement.
IV. Updated Plans, Action Steps, and Timelines From December 2001
Meeting
Action steps and timelines that the VI developed in December 2001
are included in the issue descriptions throughout this document. The VI
will need to assess the action steps and timelines developed in
December and determine if (1) the action steps fully meet the
requirements of this Agreement, (2) the action steps will move the VI
toward achieving the required performance measures, and (3) the
timelines need to be modified within the time boundaries set forth in
this Agreement. Updating the December action steps and timelines into
plans for which the VI will be accountable is a critical action step
for each issue and sub-issue. Once the VI develops a plan for each
issue or sub-issue, as specified in this Agreement, and the Department
agrees to the plan, the action steps and timelines in the plan will
become additional requirements of this Agreement and be subject to the
reporting requirements and consequences for not meeting terms and
conditions as set forth in this Agreement. The Department will assist
by consulting with VI to develop reports or reporting formats that
shall satisfy the reporting requirements as set forth in this
Agreement. The Department will also assist, to the extent that
resources are available, the VI with the orientation and training of
personnel.
The remainder of this document provides issue descriptions, action
steps, and performance measures for (1) Program Planning, Design and
Evaluation, (2) Financial Management, (3) Human Capital, and (4)
Property Management and Procurement.
V. Issues
Issue 1.0: Program Planning, Design, and Evaluation
Issue Description
Because the stated purpose of this Agreement is to improve
education for the students of the VI, it is critical to successfully
meeting the terms of this Agreement that the VI use the first year of
the next three year period to develop long-term goals, assess the
current status of each program receiving Federal assistance, and design
coherent programs to bridge the gap between the current status of
education in the VI and its educational goals and applicable
requirements.
An issue of significant importance to program planning, design, and
evaluation is the legal and administrative impact of the organizational
structure and legal classification of the various educational agencies
in the Virgin Islands. This Compliance Agreement has been drafted in
reliance upon the mutual understanding that the Virgin Islands has
established and maintains a State educational agency (SEA) and two
local educational agencies (LEA), as defined under Federal law. Thus,
for purposes of administering its Federal grants, VIDE, as the SEA,
must make steady progress towards meeting all Federal requirements that
are related to that designation, including where specified, providing
LEAs, the St. Thomas/St. John school district and St. Croix school
district, the appropriate levels of Federal funding and autonomy
required under each Federal program's requirements. Therefore, by
entering into this Agreement, the VI acknowledges the Department's
reliance upon this designation, agrees to comply with the specific
Federal requirements that apply through this designation and agrees not
to change this designation during the period of this Agreement without
the prior approval of the Department.
Effective planning and design includes the following elements: (1)
program goals stated in measurable terms (outcome measures), (2)
baseline assessments of current status (baseline measures), (3)
comparison of current status to program goals (baseline measures to
outcome measures), (4) a report of areas where current programs do not
meet goals, (5) a plan to improve current programs to meet goals, (6) a
schedule for implementing the plan, (7) measures to determine if the
plan implementation is having the intended effect, and (8) options for
further modification if implementing the plan is not having the
intended effect. Any planning and design process will take into account
Federal and State requirements for each program, as well as other
applicable professional standards. In addition, the planning process
should include citizen and/or customer input and feedback; input is a
vital part of the process to set goals, and feedback is equally
significant in assessing results. A critically important aspect of the
planning and design process is that it is fully integrated as the
foundation for other program-related decisions about budgets, financial
management, personnel requirements, and other resource needs.
In order to fully implement this process, a comprehensive, school-
based, statewide plan will be developed. The Department will provide
model comprehensive plans, if appropriate, and referrals to successful
jurisdictions for guidance. VI will seek the assistance of expert
consultants and other grantees to provide hands-on guidance in
completing the comprehensive planning process. Reasonable and necessary
expenses for this assistance will be considered allowable costs
chargeable to a Department grant to be awarded by September 30, 2002,
provided an approvable application is received in a timely manner. The
expected outcomes identified in this plan, among other federally and
locally identified outcomes, will include:
Schools gain greater site-based authority to determine
needs and apply funding to those needs.
School site-based management will be enhanced through
greater school community involvement and increased awareness of
accountability.
Programs can be implemented that best fit the needs of the
individual school population rather than one district approach for all.
Activities conducted under this plan bring VI into
compliance with statutory and regulatory requirements for Department
programs.
In general, the comprehensive statewide plan should be based on
information derived from individual school plans. These school plans
should include, at a minimum, the components listed below.
A comprehensive needs assessment of the entire school,
based on information about student academic achievement.
Strategies that provide opportunities for all children to
meet proficient and advanced levels of academic achievement, use
effective methods of instruction that are based on scientific research
and address the needs of all children in the school.
Instruction by highly qualified teachers as defined by the
Elementary and Secondary Education Act.
High quality and ongoing professional development for
teachers, principals, and other staff.
Strategies to attract high-quality teachers in all
schools, but with special emphasis on high-need schools.
[[Page 60207]]
Strategies to increase parental involvement.
Plans for assisting preschool children in the transition
from early childhood programs to local elementary school programs.
Measures to include teachers in decisions about academic
assessment.
Assistance for children who experience difficulty
mastering the proficient or advanced levels of academic achievement
standards.
Coordination and integration of Federal, State and local
services and programs.
Annual report cards for the performance of each school as
defined by the Elementary and Secondary Education Act.
All expenditures are allowable under the requirements of
each grant and applicable program.
This comprehensive plan for reforming the total instructional
program in the school should be developed during the first year period,
with the involvement of staff, parents, administrators, and others. The
plan must:
Describe how the school will implement the components
summarized above.
Describe how the school will use resources to implement
the components.
Include a description of Federal, SEA, and LEA programs
that will be available in the individual school.
Describe how the school will provide parents with
individual student academic assessment results and other information
about the individual schools, including interpretation of the results,
in understandable language.
Identification of Long-Term Goals
For each Federal program it is important to identify the desired or
required outcomes, so VI can measure improvement for that program by
how close it is to achieving these goals as well as maintaining
improvement on a continuous basis. Examples of this are:
For the Title V, Part A program, the law requires states
to aim for increased student academic achievement or improved quality
of education for all students.
For the Vocational Education and Adult Education programs,
the desired outcomes are defined by the program statutes in terms of
the core indicators of performance or additional VI-identified
indicators that measure student performance.
Assessment of Current Status of Programs in Terms of Goals
This sub-issue involves an assessment at the VI-wide and school
level of each Federal program in terms of the goals identified. It also
requires VI to identify a measurement approach (a method for measuring)
for each goal or core indicator. Once the measurement approach is
identified, VI must establish a baseline that reflects the current
status for each goal or indicator. Examples of this include:
For the Title V, Part A program, VI must identify the
current academic levels for the students benefiting from the program,
which is the baseline, and establish incremental targets for
improvement to reach the goals identified in sub-issue 1.2.
For the Vocational Education and Adult Education programs,
the VI must establish a baseline and levels of performance (incremental
targets) for each required core indicator and any VI-identified
indicators for each of the subsequent years of this Agreement.
Identification of Educational Program Needs to Meet Goals
Once the VI has identified its baselines in comparison to its
goals, it must identify the needs that have to be met to bridge the gap
between the baseline (current status) and the goals. The needs must be
consistent with the purposes and allowable activities under each
program. In developing program activities, VIDE will have as a goal
that by the end of the three year period of this agreement, 95% of the
Federal education funds will be spent on instructional activities and
directly related expenditures.
Development of Program Design and State Plans or Applications That
Address Identified Needs
The VI must develop, prepare, and submit to the Department a State
application in conformance with the requirements of each program for
which funds are being expended and any other requirements set forth in
this Agreement. These applications should be based on information
gathered from the school-based comprehensive plans developed under this
section.
Sub-Issue 1.1: Separation of State and Local Educational Agencies
Sub-Issue Description
In a letter dated August 1, 2001, at the request of the Department
and VIDE, the Attorney General of the Virgin Islands provided the legal
opinion that under local law, the structure and functions of the
various educational agencies in the Virgin Islands were divided into,
VIDE, as the SEA, and the St. Thomas/St. John school district and the
St. Croix school district, as the two LEAs. This has significant
implications for the administration of Federal education programs. For
example, under Part B of the Individuals with Disabilities Education
Act, the SEA must ensure that eligible LEAs receive subgrants under the
formula specified at 34 CFR Sec. 300.712. Additionally, under Title V
of ESEA, an LEA is to have complete discretion in deciding how to
allocate funds among the allowable Title V program areas, and must
ensure that its Title V expenditures carry out the purposes of the
program and are used to meet the educational needs in schools within
the LEA. The specific terms of this Compliance Agreement contemplate
the administrative structure of one SEA and two LEAs.
Performance Measures for Issue 1.0 and 1.1
1. By the end of the three-year period of the Compliance Agreement,
VI will be in full compliance with the program requirements of all
Department grants for which VI expends funds and any other requirements
set forth in this Agreement.
2. VI's implementation of the action steps described below brings
it into full compliance with the standards and assessment requirements
of Title I, ESEA that all States were required to meet by the end of
the 2000-2001 school year, no later than the end of the three-year
period of the Compliance Agreement.
3. By the end of the three-year period of the Compliance Agreement,
VI must have developed a detailed plan for how it will comply with the
requirements of the Elementary and Secondary Education Act, including
Title I, Part A of the ESEA as reauthorized by the No Child Left Behind
Act. We expect that at the end of the three-year period, VIDE will
apply for most or all of the individual programs authorized under the
Elementary and Secondary Education Act, the Adult Education and Family
Literacy Act rather than consolidating them.
4. By the end of the three-year period of the Compliance Agreement,
VI's implementation of the action steps described below must bring its
programs into full compliance, with respect to Federal law and with the
obligations and responsibilities of a single SEA and two LEAs.
Action Steps Required
[[Page 60208]]
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. The VI must submit to the 1. In the second 1. In the third year
Department within 120 days year of the of the Compliance
from the date of the Compliance Agreement, the VI
compliance agreement, an Agreement, the VI will implement the
approvable action plan that will implement the comprehensive,
can demonstrate steady comprehensive, statewide plan and
progress toward developing statewide plan and demonstrate that it
a comprehensive statewide demonstrate that it is achieving the
plan and fiscal year 2003 is achieving the program goals that
consolidated grant program goals that are required.
application described in are required.
items two and three below.
2. Within the first year of 2. In the second 2. In the third year
the Compliance Agreement year of the of the Compliance
the VI must develop a Compliance Agreement, the VI
comprehensive, school- Agreement, the VI will meet all
based, statewide action will demonstrate Federal
plan for complying with the steady progress requirements
requirements of various towards meeting all related to the
programs funded by the Federal designation of a
Department including, but requirements single SEA and two
not limited to: Title I, related to the LEAs and is ready
Part A of ESEA standards designation of a to meet all
and assessment single SEA and two requirements.
requirements, Vocational LEAs and is ready
Education State Plan, to meet all
Occupational and Employment requirements.
continuation grant, Adult
Education, and Title V-A.
The plan must include, at a
minimum, the following
elements: (1) Goals stated
in measurable terms
(outcome measures) based on
program requirements; (2)
baseline assessments of the
VI's current status
(baseline measures); (3)
comparison of the VI's
current status to the goals
including an appropriate
needs assessment; (4) a
report of areas where
current programs do not
meet goals; (5) action
steps to improve current
programs to meet goals; (6)
a schedule with clear,
reasonable completion dates
for implementing the action
steps; (7) measures to
determine if the plan
implementation is having
the intended effect; (8)
options for further
modification if
implementing the plan is
not having the intended
effect; (9) demonstration
of citizen and customer
input and feedback; and
(10) demonstration of its
foundation for decisions
about budgets, personnel
requirements, and other
resource needs. Other
requirements of the plan
are included in section 1.0
above and applicable laws
and regulations.
3. Within the first year of 3. The VI will 3. By the end of the
the Compliance Agreement prepare and make three-year period
the VI must include in the public annual of the Compliance
development of a report cards for Agreement, VI will
comprehensive, school- the performance of have submitted a
based, statewide action each school as detailed plan for
plan such action steps that defined by the No how it will comply
will show steady progress Child Left Behind with the
in meeting the requirements Act. requirements of the
of Department grants with No Child Left
respect to separate SEA/LEA Behind Act,
issues described in sub- including Title I,
issue 1.1 above. Part A of the ESEA
as reauthorized by
the No Child Left
Behind Act.
4. Prepare and submit semi- 4. The VI will 4. The VI will
annual expenditure report prepare and submit prepare and make
that includes certification semi-annual public annual
that all expenditures are expenditure report report cards for
for allowable purposes (the that includes the performance of
reports will include the certification that each school as
detail required in the FY all expenditures defined by the No
2000 special conditions). are for allowable Child Left Behind
purposes (the Act.
reports will
include the detail
required in the FY
2000 special
conditions).
5. The VI will
prepare and submit
semi-annual
expenditure report
that includes
certification that
all expenditures
are for allowable
purposes (the
reports will
include the detail
required in the FY
2000 special
conditions).
------------------------------------------------------------------------
Issue 2.0: Financial Management
Issue Description
It is critical to successfully meeting the terms of this Agreement
that the VI use the next three years to develop a credible central
financial management system (FMS). In brief, such a system would
provide the correct amount of funds, in the correct accounts, in a
timely manner, all the time. Credible financial management includes
systems, policies, and procedures that (1) provide access to accurate
information when needed, (2) account appropriately for funds, (3)
ensure timely deposits or draw down of funds, (4) ensure timely and
accurate payments, and (5) otherwise enable and support generally
accepted government financial management and accounting standards and
requirements. In addition, VIDE, VIDF and other VI Departments must
demonstrate improved communication and cooperation to develop an FMS
that meets needs across the VI.
Through the terms of this Agreement, financial management systems
will be integrated with one another (i.e., across departments) and with
other management systems (including budget, human resource management,
property and procurement, and planning and
[[Page 60209]]
evaluation). One example of the integration required includes
connecting financial management policies and systems with time and
attendance systems to ensure appropriate payment and accounting for
staff time. It is especially important for the purposes of this
Agreement that the VI financial management system is effectively
integrated with all management systems and procedures in VIDE.
All of the action steps to address the financial management issue
are important, but it is a critical factor for success that the VI
improve its cash management function immediately. The cash management
function must be able to provide timely and accurate information about
each draw down of funds from the Department. Inability to track drawn
down funds will be considered a failure to meet the terms and
conditions of this Agreement.
In addition to the overall requirement to develop a credible
central FMS, this Compliance Agreement also addresses issues related to
(1) indirect costs, and (2) obligation of funds and disbursement of
obligations. Both issues are closely tied to a credible FMS and the
Department will assess progress in meeting the terms of this Agreement
by the systemic approaches and degree of integration that the VI brings
in designing and implementing solutions to all of its longstanding
problems in the financial management area.
Sub-Issue 2.1: Credible Financial Management System
Issue Description
This sub-issue involves many areas that must be systemically
addressed. In December 2001, VI staff identified a series of action
items related to addressing the FMS issues, including information flow,
adjustments, system improvements, training, payroll, reporting systems,
draw downs, and other areas. Department staff have further supplemented
VI's list. One example of the FMS issue was illustrated in the 2000
single audit findings: the auditors are still using different
Department (e.g., VIDE) accounting records to compare with Department
of Finance records. Invariably, the cash accounts show shortages in
terms of amounts drawn from Federal agencies as compared to VI
Departments' records.
To satisfy the requirements of this Agreement, the VI will develop
a credible central FMS in which records account for all draws and
expenditures of Federal education funds. VI agencies and single
auditors will be able to rely on the central FMS as an accurate system
of record. In the short term, any differences between the Department of
Finance and VIDE will be reconciled concurrently, but at the end of
three years, VI agencies should no longer need separate accounting
systems.
Performance Measures for Issue 2.0 and 2.1
1. Within one month of the inception of this Agreement, appropriate
VIDE, VIDH, VIOMB and VIDF staff members will be provided with access
to the Department's GAPS system to monitor draw downs.
2. By December 31, 2002, the VIDF will complete a vision document
for the implementation of a credible central FMS.
3. By March 31, 2003, the VIDF will complete a plan for developing
and implementing a credible central FMS.
4. From the inception of this Compliance Agreement, all
transactions for draws and disbursements, as well as any required
adjustments for Federal education programs' funds will be timely and
accurately recorded in the VIDF accounting system as they occur
according to generally accepted accounting standards. Inability to
track drawn down funds will be considered a failure to meet the terms
and conditions of this Agreement.
5. By the conclusion of the third year of the Compliance Agreement,
VI will conduct monthly reconciliation of draws and expenditures,
resolve any differences, and record appropriate adjustments.
6. By the conclusion of the second year of the Compliance
Agreement, the VI will institute an independent internal audit function
within VIDE that will abide by the standards for internal audit
prescribed by the Institute of Internal Auditors (IIA).
7. By the conclusion of the Compliance Agreement, VI agencies will
no longer need separate accounting systems.
8. By the conclusion of the Compliance Agreement, single auditors
will be able to rely on the FMS as the accurate system of record for
the financial statement audit.
Action Steps Required
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. Within one month of the 1. Twice during the 1. VI will conduct
inception of this 2003-2004 school quarterly
Agreement, appropriate VIDE year, the VI will reconciliation
and VIDF staff members will publicize the U.S. between GAPS, VIDE,
be provided access to the Department of and VIDF draws and
Department's GAPS system to Education Office of expenditures,
monitor draw downs. Inspector General resolve any
Hotline telephone differences, and
number 1-800- record appropriate
MISUSED and the adjustments within
Department of 30 days.
Interior OIG
Hotline (1-800-424-
5081) to all
schools, teachers,
parents of students
in schools,
participants in
adult education and
vocational
education programs,
VIDE employees, and
the public and
encourage anyone
with any knowledge
of misuse of
Federal education
program dollars to
call the Hotlines.
[[Page 60210]]
2. By December 31, 2002 the 2. By the conclusion 2. Twice during the
VIDF will create a vision of the second year 2004-2005 school
document of a credible of the Compliance year, the VI will
central FMS. The vision Agreement, the VI publicize the
document will specifically will institute an Federal Education
describe how the system independent Office of Inspector
would (1) provide access to internal audit General Hotline
accurate information when function within telephone number 1-
needed, (2) account VIDE that will 800-MISUSED and the
appropriately for funds, abide by the Department of
(3) ensure timely deposits standards for Interior OIG
or draw down of funds, (4) internal audit Hotline (1-800-424-
ensure timely and accurate prescribed by the 5081) to all
payments, (5) ensure, prior Institute of schools, teachers,
to archiving any financial Internal Auditors parents of students
data, the capacity to (IIA). In this in schools,
retrieve that data in the regard, VIDE will participants in
future, and (6) otherwise create an adult education and
enable and support independent Audit vocational
generally accepted Committee that will education programs,
government financial make all audit VIDE employees, and
management and accounting resolution the public and
standards and requirements. decisions for the encourage anyone
The vision document will VIDE and to whom with any knowledge
also describe how the the internal of misuse of
central FMS would serve as auditor will report. Federal education
an accurate system of program dollars to
record that would no longer call the Hotlines.
require separate accounting
systems in different
agencies. The document will
also provide a detailed
diagram of each function of
the system and how it would
integrate with other
related systems or
processes, (including, but
not limited to, program
planning, grant
administration, budget,
property and procurement
management, time and
attendance, human resource
management, and payroll).
The vision document and
plan (see 3 below)
will be based on an
independent party
performing a needs
assessment for the
financial management system.
3. By March 31, 2003, the 3. VI will conduct
VIDF will create a plan for quarterly
how it will develop and reconciliation
implement the credible between GAPS, VIDE,
central FMS described in and VIDF draws and
the vision document. The expenditures,
plan will also include resolve any
resource requirements for differences, and
implementing the plan, with record appropriate
action steps and timelines, adjustments within
and identify how the 30 days.
resources will be obtained.
The vision document (see
2 above) and plan
will be based on an
independent party
performing a needs
assessment for the
financial management system.
4. During the first year of
the compliance agreement,
VI will conduct semi-annual
reconciliation between
GAPS, VIDE, and VIDF draws
and expenditures, resolve
any differences, and record
appropriate adjustments
within 30 days. These
reconciliations will be
provided on a semi-annual
basis to the Department for
review with evidence that
all adjustments have been
made.
5. Twice during the 2002-
2003 school year, the VI
will publicize the Federal
education Office of
Inspector General (OIG)
Hotline telephone number 1-
800-MISUSED, and the
Department of Interior OIG
Hotline (1-800-424-5081) to
all schools, teachers,
parents of students in
schools, participants in
adult education and
vocational education
programs, VIDE employees,
and the public and
encourage anyone with any
knowledge of misuse of
Federal education program
dollars to call the Hotline.
------------------------------------------------------------------------
Sub-Issue 2.2: Indirect Costs
Sub-Issue Description
The indirect cost issue relates to the manner in which the indirect
costs associated with Federal funds are distributed within VI. OMB
Circular A-87 specifies indirect cost requirements. In December 2001,
officials from ED, VI and other Federal agencies developed and agreed
on a three-phase process to address the indirect cost issue. Phase I of
the process outlines steps for indirect cost determination and
distribution; Phase II outlines steps for making rate application
corrections, and Phase III outlines steps for preparing a new rate
proposal. The VI will implement the agreed upon steps of the process in
a timely manner and report progress to ED.
Performance Measures for Issue 2.2
1. As described below, steps to determine indirect costs and
distribute indirect cost reimbursement between the VIDE and the VI will
be fully
[[Page 60211]]
implemented by OCTOBER 1, 2002 in accordance with VIOMB's new policy.
The new OMB policy will provide for a pro rata allocation that
segregates central service indirect costs from agency level or
departmental indirect costs.
2. By the beginning of Fiscal Year (FY) 2003, the VI and the
Department must have agreed on an indirect cost rate to use for FY
2003.
3. Starting April 1, 2003, unused leave for separating employees
will not be charged directly to Federal programs, but allocated only as
indirect costs.
4. All of the underlying problems having to do with indirect costs
will be eliminated by FY 2004, so that audits and other monitoring
procedures will have minimal findings related to indirect rates in FY
2003, and no findings related to indirect rates in FY 2004 and 2005.
5. By the conclusion of the Compliance Agreement, there will be 100
percent application of the correct, current indirect cost rate in
education programs.
Action Steps Required
Officials from VI, the Department and other Federal agencies agreed
in December 2001 about three phases of action steps to address the
indirect cost issue. The phases, related steps, and agreed upon time
lines are listed in the table below. (Steps listed in bold were added
by the Department staff members after the December 2001 meeting.)
----------------------------------------------------------------------------------------------------------------
Year 1 Year 2 Year 3
----------------------------------------------------------------------------------------------------------------
1. If the steps or timelines listed in this table are
no longer valid, the VI will ask the Department to
consider a revised plan of action steps and timeline
by October 1, 2002.
2. In addition to other requirements set forth in the
Reporting Requirements section of this document, the
quarterly reports for this sub-issue will include a
copy of the products developed for each step of the
process.
Phase I: Indirect Cost Determination and Distribution
DOI IG will submit letter to the
Legislature and Governor outlining the indirect
cost fund sharing issue.
Develop cost policy statement regarding
Indirect Cost Fund Sharing.
OMB will submit policy change
recommendation and potential changes to the
existing legislation on the indirect cost fund,
if necessary, to the Legislature with copies to
the U.S. Department of Interior (DOI) and the
Department.
ED indirect cost staff transmit cost
policy template to VI OMB.
VIDE will provide cost policy statements
to the Department and DOI by September 30, 2002.
Cost policy statements will be amended
as appropriate to account for the LEA/SEA
relationship.
OMB will provide agencies with account
codes for receipt and expenditure of indirect
cost funds. Any shortfalls will be absorbed by
VIDE, not VIDE programs.
VIDF will propose accounting changes to
implement new indirect cost policy for review by
the Department and DOI by September 30, 2002.
The policy must address unused leave for
separating employees.
Training needs will be identified.......
Training will be planned and scheduled..
Training will be implemented............
Phase II: Rate Application Corrections
Determine and correct current rates, as
necessary.
As needed, correct the rate table and
apply correct rates to current grant programs.
Review FY 2002 indirect cost rates on
FMS versus current rates on indirect rate plan.
Review the prior year indirect costs
applied to grants and prepare necessary
adjustments.
Develop a procedure to report indirect
cost rate application errors to VIDF.
Phase III: New Rate
Obtain three-year rate proposal with the
following steps:.
Issue RFP for 2003-2005.................
P& P issue invitations for bids.........
P& P review bid packages................
Contract sent to Justice................
Justice reviews contract and forwards to
Governor's legal counsel.
Contract executed.......................
Contract work performed.................
Submit rate proposal to IG..............
Submit draft agreements to agencies for
review and approval/signature.
Agencies implement new rates............
----------------------------------------------------------------------------------------------------------------
Sub-Issue 2.3: Obligation of Funds/Disbursement of Obligation
Sub-Issue Description
Federal education funds in the VI must be obligated and disbursed
in a manner that ensures that programs are appropriately managed.
Specifically, application for funds should be based on program plans,
and funds disbursement should occur as the program plans dictate and be
tied to specific activities. In addition, funds should be spent in a
timely manner based on resource requirements for activities specified
in the program plans. Under the terms of this Agreement, the VI will
develop a grant application process and subsequent spending process
that ensures that grant awards are based on specified program plans and
spent on the programs in a timely manner. The grants systems will be
integrated with the central FMS.
The outcome measures for this issue are that (1) program plans are
the basis for application and disbursement, (2) disbursements are tied
to actions specified in program plans, (3) all funds are spent for
allowable purposes under
[[Page 60212]]
the statutes, and (4) no funds are lost due to lapsing obligation
periods.
Performance Measures for Issue 2.3
1. The VI will complete an analysis of past problems with program
planning, obligation, and disbursement by September 30, 2002.
2. The VI will develop a plan to re-engineer its grants
application, planning, and disbursement by March 31, 2003.
3. The VI will fully implement the plan to re-engineer its grants
application, planning, and disbursement by March 31, 2004.
4. Within one month after the Compliance Agreement is signed, the
VI will put in place a system of safeguards to assure that lapses of
funds will be minimized.
5. No lapses of funds will occur after March 31, 2003. Funds lapse
when the deadline allowed by law to obligate Federal grant awards has
passed and funds remain that have not been properly obligated. These
funds are no longer available to VI for use.
6. In the final year of the Compliance Agreement, (1) program plans
will be the basis for application and disbursement, (2) all
disbursements will be tied to actions specified on program plans, (3)
all funds are spent for allowable purposes under the statutes, and (4)
no funds will be lost due to lapsing obligations periods.
7. The grant application, planning, obligation, and disbursement
functions will be fully integrated with the FMS by the conclusion of
this Compliance Agreement.
8. At the end of the three-year period, VI will liquidate
obligations on a timely basis and not need extensions in the
liquidation period.
Action Steps Required
In December 2001, VI staff members developed the action items
listed below to address the obligation of funds/disbursement of funds
issue. Although the action items are an important first step, they do
not go far enough in ensuring a grant application, award, and spending
system that ensures that needed funds are received and fully spent to
support programs. The table below provides further required action
steps.
Receipt of Grant Award
All DOE grant awards and extension approvals should go to
the VIDE Commissioner with a copy to VIDE Federal Grants Office who
will distribute copies to the Board of Education, VIOMB and VIDF.
Access to GAPS system to review all grant awards as an
extra check on grants.
Grant Periods
Extensions should be requested by program managers in
writing 60 days prior to the expiration date of the grant to justify
the reason for the extension. For all grants to the VI government,
extensions apply ONLY to liquidation of expenses that were obligated
during the Federal funding period specified in the grant award.
Quarterly performance meetings to evaluate reported
expenditures against the spending plan.
Develop a grant tracking system.
Quarterly prepare lists of expiring grants to be provided
to the Commissioner, which include the percent of funds expended.
Document the rules about obligation and extension dates.
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. Within one month after 1. The plan to re- 1. The grant
the Compliance Agreement is engineer the grant application,
signed, the VIDE will application, planning,
implement a policy planning, obligation, and
statement delineating the obligation, and disbursement
procedure for reviewing and disbursement functions will be
processing sub grantee functions will be fully integrated
awards to expedite fully implemented with the FMS by the
allocations and by March 31, 2004. conclusion of this
disbursement of Federal Compliance
funds to eligible Agreement.
applicants within five days
of receipt from the LEA
program office.
Applications not approved
for funding will be
returned to the Program
Office originating the
proposal within the five
working day period. If the
timeline requirement is not
met, the Commissioner will
submit a letter of
explanation to the funding
agency within ED, with a
copy to the affected
program.
2. Within 45 days after the
Compliance Agreement is
signed, the VI will put in
place a system of
safeguards to assure that
lapses of funds will be
minimized.
3. By September 30, 2002,
the VI will provide the
Department with (1) a list
of Federal requirements for
program planning,
obligation, and
disbursement of funds, and
(2) an analysis of the VI's
education grants for the
past fiscal year that
specifies where problems in
meeting requirements
occurred in program
planning, obligation and
disbursement, and why the
problems occurred.
[[Page 60213]]
4. Based on the analysis of
requirements and past
problems, the VI will
develop and provide the
Department with a plan, by
March 31, 2003, to re-
engineer its grant
application, planning,
obligation, and
disbursement functions. The
plan will include policies,
procedures, and systems to
ensure that (1) program
plans are the basis for
application and
disbursement, (2)
disbursements are tied to
actions specified in
program plans, and (3) no
funds are lost due to
lapsing obligation periods.
5. By March 31, 2003, the VI
will create a common
template and timetable for
all program plans. Such a
template and timetable will
structure planning
information and provide a
structure for activity-
based disbursement plans
and decisions.
------------------------------------------------------------------------
Issue 3.0: Human Capital
Issue Description
The human capital issue area encompasses two significant sub-
issues: (1) Recruiting and hiring, and (2) time and attendance
accounting and supplanting. The recruiting and hiring issue involves
ensuring that qualified teachers and related service personnel are
available for students in every classroom. The time and attendance
accounting and supplanting issue deals with ensuring that personnel
paid by Federal education funds are in fact performing the appropriate
jobs in the programs they were funded to work in.
Timelines or action items under this Compliance Agreement do not
replace and/or exclude any requirements of previous Compliance
Agreements. For example, the VIDE IDEA--Part B Compliance Agreement
states: ``By 12/01 VIDE is to have hired qualified personnel to fill
85% of any vacancies (related to special education vacancies) that
occurred after 10/99.'' That requirement, and all others under the
previous Compliance Agreement will remain in force.
Sub-Issue 3.1: Recruiting and Hiring
Sub-Issue Description
Ensuring that there is a highly qualified teacher in every
classroom is critical to improving education in the VI and to complying
with Federal education requirements. Through this Agreement, the VI
will address the human capital issue in the immediate, short, and long
terms. In the immediate term, the VI will develop a policy for class
coverage that ensures that adults are supervising every classroom at
all times that students are present. In the short term, the VI needs to
determine how many highly qualified teachers they currently have in the
schools and how many they need, and develop a plan to hire or otherwise
engage the services of the teachers or other qualified personnel that
they need over each of the next three school years and beyond. In the
longer term (although these actions are not covered under this
Compliance Agreement), the VI will create initiatives to encourage
young people to take up teaching as a career and to prepare them for
such careers.
The VI will re-engineer its hiring process so that teachers and
related personnel can be moved into the schools quickly, and receive
their first paycheck on a reasonable time schedule.
In December 2001, VI staff members identified action steps to
address recruiting and hiring concerns. However, the VI needs to
consider a much fuller range of options for getting qualified teachers
and related personnel into classrooms, and it must do so quickly.
Students cannot easily regain educational opportunities lost to them
for each year that they do not have a qualified teacher.
Performance Measures for Issue 3.0 and 3.1
1. VIDE will immediately implement its expedited hiring authority
and use the authority in hiring qualified teaching staff.
2. VI will develop hiring goals and priorities for five years by
March 31, 2003.
3. VI will meet its hiring goals for the 2003-2004 school year.
4. VI will meet its hiring goals for the 2004-2005 school year.
5. In the 2002-2003 school year and beyond, there will be no
instances of classes or students without adult supervision.
6. By the beginning of the 2003-2004 school year, all newly
recruited staff will be deployed within one month of acceptance of an
employment offer and will receive their first paycheck within one month
of starting work (with respect to Special Education, the terms of the
MOA shall apply.)
Action Steps Required
[[Page 60214]]
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. By OCTOBER 31, 2002, the 1. VI will meet its 1. VI will meet its
VI will develop policies hiring goals for hiring goals for
and procedures for class the 2003-2004 the 2004-2005
coverage (i.e., by using school year. In school year. In
substitute teachers, addition to the addition to the
administrators, items set forth in items set forth in
supervisors, principals, the ``Reporting the ``Reporting
etc.), in the event that a Requirements'' Requirements''
teacher is unable to be in section of this section of this
the classroom when students Agreement, Agreement,
are present. quarterly reports quarterly reports
will also include will also include
each person's date each person's date
of hire, date of of hire, date of
entry into the entry into the
personnel system, personnel system,
date of arrival on date of arrival on
the job, and the the job, and the
date of receipt of date of receipt of
first paycheck. The first paycheck. The
report should report should
include contact include contact
information for information for
each new hire so each new hire so
that the Department that the Department
staff can confirm staff can confirm
the personnel data the personnel data
reports with staff reports with staff
members. members.
2. By DECEMBER 31, 2002, the 2. By the beginning
VI will determine the of the 2003-2004
percentage of classes school year, the VI
conducted by highly will have
qualified teachers as implemented a
defined in The No Child process to re-
Left Behind Act of 2001. engineer its
personnel system
and related payroll
process so that all
new staff hired for
education programs
can be deployed to
classrooms within
one month of being
hired and receive
their first
paycheck within one
month of starting
work.
3. By DECEMBER 31, 2002,
VIDE will establish a plan
to increase recruitment of
specialized personnel, such
as speech pathologists,
physical therapists,
occupational therapists,
etc. VIDE will prepare and
work with VIDH to establish
a memorandum of agreement
between VIDH and VIDE to
jointly recruit and share
needed specialized
personnel, such as speech
pathologists, physical
therapists, occupational
therapists, etc. The terms
of such agreement need not
require that either agency
share personnel during any
periods of time when either
of the agencies is fully
utilizing all of its
personnel in order to meet
the needs of the infants,
toddlers, or children with
disabilities as required
under Federal law and the
sharing of personnel would
cause one of the agencies
to be out of compliance.
4. By DECEMBER 31, 2002, the
VI will determine how many
highly qualified teachers
it needs per program to
employ to achieve the goal
of having a qualified
teacher in every classroom
within 5 school years. In
determining the number of
teachers it needs, the VI
will ensure ratios
comparable to similar sized
school districts for the
(1) average number of
students per teacher, (2)
average number of
administrators per student,
and (3) percentage of
Federal dollars spent
directly for classroom
instruction and related
expenses. In addition, the
VI will assign priorities
to the types of teachers
needed. For example, based
on the previous Compliance
Agreement, special
education programs are
currently an immediate
priority for filling
vacancies. As another
example, high school
teachers are also an
immediate priority so that
the VI high schools can
regain accreditation.
5. By MARCH 31, 2003, and
based on the total number
of qualified teachers
needed over five years and
the priorities for types of
vacancies to fill first,
the VI will set specific
goals for employing
qualified teachers in
specific classrooms each
year. The yearly goal
should equal 20% of the
total number of qualified
teachers needed within 5
years (i.e., yearly goal =
total qualified
teachers needed over 5
years/5).
[[Page 60215]]
6. By APRIL 30, 2003, VI
will develop an action plan
to revise as necessary the
action steps to improve the
hiring process, including
the use of current
legislative authority for
VIDE to bypass the
personnel office, and
expedite the hiring process.
7. The VI will work with the
Board of Education to
expedite the teacher
certification process,
including alternative
certification approaches.
8. The VI will work with the
Board of Vocational
Education to expedite
setting standards for
teacher certifications,
including alternative
certification approaches.
------------------------------------------------------------------------
Sub-Issue 3.2: Inadequate Time Accounting and Supplanting
Sub-Issue Description
VIDE currently cannot adequately demonstrate that employees paid
out of Federal education funds are performing work in the programs they
are paid to support. This is especially an issue where employees split
their time between Federal and other programs, or between more than one
Federal program. Supplanting is also an issue, which involves, simply
stated, using Federal funds to pay for personnel that the State should
pay. The time and attendance accounting issue is one that will be
integrated across all management systems. Planning will determine which
employees will work in which programs and for how much time. Budgeting
will ensure that funds are appropriately available, and financial
management and accounting systems will ensure that funds are
appropriately spent and accounted for. Human resource information
systems will be able to accurately reflect and report how employees
spent their time. Although this issue is covered here, with other human
capital issues, it is important that plans and actions to address the
problem be developed and implemented at a systemic level and integrated
with other management systems.
The objectives of addressing this issue are to ensure that (1) the
salaries of employees who work under more than one Federal program are
properly allocated among those programs, in accordance with accurate
time distribution records, and (2) that Federal funds are not paying
for personnel that the State should pay.
Performance Measures for Issue 3.2
1. By March 30, 2003, all payroll registers will reflect the
appropriate percentage split of time for staff funded by Federal
programs.
2. By the final year of the Compliance Agreement, all time and
attendance records will be computer-based and accurate.
3. By the final year of the Compliance Agreement, audits will find
no instances of supplanting.
Action Steps Required
The following items were developed by VI staff at the December 2001
planning session and are presented here as action steps for inclusion
in the plan to be developed under Action Step 1, Year 1 below.
Time Distribution
Develop a policy & procedure in the assignment of time
distribution percentage utilizing OMB Circular A-87. Make systematic
adjustments as required.
Establish process to manage Quarterly Fluctuations to
ensure adequate allocation of time distribution and employee
certifications.
Conduct Job Analysis to determine allocations.
Policy and procedures created.
Policy approved and distributed.
Pre-audit test to determine compliance and adjustments
needed.
Training and implementation of time distribution policy
and procedure.
Ensure that the Department and Department of Interior
(DOI) approve the system and all related forms.
Accounting system will be changed to permit quarterly
adjustment between budgeted and actual effort.
The Department and DOI will approve PAR and semi-annual
certification forms.
Target an area selected for a pilot.
Train employees and supervisors in the target area.
Implement the program in the pilot area piloted and
evaluate it.
Revise training and forms and accounting program based on
the pilot evaluation.
Phase in other areas.
Time and Attendance
Review and record current procedures relative to the
documentation of time and attendance within VIDE to identify
inconsistent applications of procedures.
Analyze result of review and recommend changes and/or
improvements to current process to ensure the proper retrieval of time
and attendance documents.
Activate system enhancement program to scan source
document and payroll records to minimize record bulk and to facilitate
the location of time and attendance documents and make recommendations
regarding system upgrade for VI government.
Implement conversion to enhance system that will guarantee
adequate documentation over employee time and attendance. (VIDE--Pilot
Programs)
Supplanting
Meeting/training between OMB, VIDE, the Department and
auditors on specific program issues to identify maintenance of effort
requirements and funding levels. Identify which positions are paid from
which fund. Define basic service levels and optional programs in order
to prevent supplanting issues.
Develop policy and procedures in accordance with OMB
Circulars that would ensure that positions paid out of Federal funds
would not reveal instances of supplanting.
Provide training regarding the implementation of
procedures.
Implement policy.
[[Page 60216]]
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. By March 30, 2003, the VI 1. The time and 1. Management
will submit a revised plan attendance reports showing all
to address issues related accounting plan staff members paid
to time and attendance will be implemented with Federal funds
accounting and supplanting. by March 30, 2004. and the
The plan will specifically distribution of
state how the time and their time by
attendance accounting funding source will
procedures will be be submitted to the
integrated with program Department
related budgeting, quarterly.
financial management,
planning, and personnel
processes. At a minimum,
the system will (1) be
computer-based and
territory-wide, (2)
allocate time and
attendance to specific
programs, (3) ensure that
maintenance of effort and
supplanting prohibitions in
each statute are met and
(4) personnel records are
properly archived and
readily accessible. As part
of the plan, the VI will
benchmark other States'
(such as Florida) systems
and develop a time and
attendance system that can
accurately reflect time
distribution across various
programs.
2. By September 30, 2002, 2. Management
the VI will develop an reports showing all
accurate list of employees staff members paid
whose time is paid in any with Federal funds
part with Federal education and the
funds. The list will distribution of
identify each employee and their time by
the percentage of his/her funding source will
time that is paid for by be submitted to the
each Federal program. The Department
list will be provided to quarterly for the
the Department and to each duration of the
supervisor of staff whose Compliance
time is so paid. Agreement beginning
for the quarter
ending June 30,
2004.
3. By September 30, 2002,
each supervisor of staff
whose time is paid with
Federal funds will inform
the staff member about how
his/her time is to be
allocated and accounted
for. The supervisor and the
staff member will both sign
a document that clearly
states the time allocation
for the staff member. A
copy of each document will
be provided to the
Department as part of the
first Compliance Agreement
quarterly report.
------------------------------------------------------------------------
Issue 4.0: Property Management and Procurement
Issue Description
Procurement and property management are related issues that result
in students, and teachers not having the supplies and equipment that
they need. Procurement is a problem because the process takes
significant time and vendors have not been paid in a timely manner. As
a result, vendors have been unwilling to do business with the VI,
resulting in an inability to obtain needed supplies and equipment for
students and teachers. Property management is a concern because
purchased items do not get to classrooms in a timely manner, if at all.
Property cannot be effectively tracked and may remain in warehouses, be
delivered to incorrect locations, or be stolen rather than benefiting
students and teachers in classrooms. The VI will develop and implement
effective procurement and property management policies and systems that
ensure (1) delivery of ordered inventory within specified timeframes
for type of supply and location of vendor, (2) payment to vendors
within 30 days of invoice receipt, (3) delivery of supplies and
equipment, that have been tagged and entered into a tracking system, to
classrooms within 3 days of inventory receipt, and (4) security of
property and supplies.
Sub-Issue 4.1: Property Management
Sub-Issue Description
The VI needs to improve its property inventory and repair/
maintenance system. This is a major reason that classrooms are under
equipped. Also, better security measures are needed to prevent the
theft of vehicles, supplies and equipment. Through this Compliance
Agreement, VI's manner of managing inventory will be such that items
purchased with Federal program funds can be tracked, are distributed
timely, and are used for the benefit of students. This system will
comply with Federal regulations, to include tagging and tracking of
inventory and prompt delivery of property purchased with Federal funds
to the appropriate location, so that items may be used for the purposes
of the program under which they were purchased. The inventory policy
will include an established procedure for replacement or payback of any
items in the inventory that cannot be located, consistent with Federal
regulations. In addition, the inventory policy and system will ensure
that the Property and Procurement, Finance, and Education Departments
act as an integrated team on procurement issues. They will delineate
between responsibilities of individual Departments (including at the
local and State levels), ensure efficiency and eliminate duplication of
effort, and make provisions for emergency needs to ensure students'
health and safety. At a minimum, the inventory management system will
reflect when items are ordered, when ordered items arrive, when items
are logged into the system, and when they are delivered to the intended
location. In addition, the VI will ensure that inappropriate use of
equipment (for example, vehicles or computers) is penalized and that
the Department is reimbursed when equipment damage results from such
use.
[[Page 60217]]
Performance Measures for Issue 4.0 and 4.1
1. The VI will provide the Department with an inventory policy and
implementation plan of the inventory management system by June 30,
2003.
2. The VI will take immediate action to the extent possible to
secure all property, in warehouses, schools, and other locations from
larcenous behavior or inappropriate or unauthorized use. By June 30,
2003, the VI will complete all reasonable steps to secure all property,
in warehouses, schools, and other locations from larcenous behavior or
inappropriate or unauthorized use.
3. An inventory policy and system will be fully implemented by
December 30, 2004. The policy and system will include that all property
purchased with Federal program funds will be tagged, entered into a
tracking system, and delivered to the appropriate location within 3
calendar days of receipt.
4. By March 31, 2005, all unaccounted-for items will either be
returned to their intended locations, or their full value will be
reimbursed to the Department.
5. By the end of the second year of the Compliance Agreement, the
inventory management system will reflect minimal losses due to theft.
6. By the end of the Compliance Agreement, audits will show minimal
unaccounted-for property.
Action Steps Required
In December 2001, VI staff members identified the action steps and
timelines listed below to address inventory management issues. The
table below provides further required action steps.
Issue memorandum from the Governor setting deadline and
priority for all Departments to comply with WIN ASSETS Personal
Property Inventory System.
VIDPP to issue supplemental guidance memorandum setting
default values.
VIDPP to provide technical support for WIN ASSET SYSTEM.
Determine and seek funding for human and other resources
needed to establish, maintain, inspect, test and reconcile data in WIN
ASSETS System.
Determine individual departmental compliance with WIN
ASSETS Personal Property Inventory System implementation deadline. By
Convert individual Department inventories to WIN ASSETS
format (where necessary) and upload departmental data to VIDPP system.
By
VIDPP to conduct meetings with individual Departments
about the process for maintaining government-wide inventories on the
WIN ASSETS system.
VIDPP to issue Inventory Management Procedures Manual.
(Establishes ongoing procedures and timing for reporting acquisitions
and dispositions--point at which assets are added to inventory,
mandatory minimum fields for data entry, tagging and tracking assets,
reconciling physical inventories to departmental purchase orders.)
Ongoing.
Department of Finance to provide quarterly record of 25600
capital outlay expenditure reports.
VIDPP to reconcile FMS expenditures to WIN ASSETS
inventory acquisitions quarterly.
VIDPP to conduct on site tests and tagging of personal
property inventories submitted by individual Departments. Ongoing.
VIDPP MIS to periodically upload departmental inventories,
analytically review data base for various governmental purposes and to
test accuracy, modify program for departmental and program needs,
maintain codes and data classification for changes in legislation and
governmental reorganizations. Ongoing and quarterly.
VIDPP to conduct training on WIN ASSETS and inventory
procedures for designated individuals from all Departments.
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. The VI will revise the 1. By December 31,
steps and timelines of the 2003, the VI will
plan above as they deem begin collecting
necessary and provide the data on items
Department with an purchased with
inventory policy and Federal funds from
implementation plan of the ED. On March 30,
inventory management system 2004 and every six
by June 30, 2003. The VI months thereafter
will benchmark other until the
States' inventory conclusion of the
management policies and Compliance
systems, or engage a Agreement, the VI
consultant, to ensure that will provide the
their planned policy and Department with
system will deliver management reports
intended results and that that show, at a
their implementation time minimum, all items
lines are reasonable. ordered, when the
items were ordered,
when ordered items
arrive, when the
items were logged
into the system,
and when the items
were delivered to
the intended
locations.
Documents to verify
the management
reports, including
copies of equipment
and supply orders,
vendor delivery
statements,
tracking data, and
signed receipts
showing delivery to
schools, will
accompany the
management reports
until the
Department deems
that such
verification data
are no longer
necessary..
2. By June 30, 2003, the VI 2. Within three
will secure all property, months after full
in warehouses, schools, and deployment of the
other locations from new inventory
larcenous behavior or management system
inappropriate or (and no later than
unauthorized use. Such December 31, 2004),
steps will include the VI will provide
controlling access to the Department with
school buildings, property a list of items
supply houses, and official paid for with
vehicle parking lots, and Federal funds that
controlling and tracking are not in service
access to specific in classrooms
equipment. The VI may wish (i.e., lost,
to benchmark inventory stolen, or
security procedures with improperly deployed
other States, or to engage items).
a contractor to supply or
consult on security issues.
[[Page 60218]]
3. Within 6 months
after full
deployment of the
new inventory
management system
(and no later than
March 31, 2005),
the VI will (1)
return improperly
deployed, lost, or
stolen items to
their intended
locations as
possible, (2)
provide the
Department with a
report of items and
their values that
are still not
properly in service
in intended
locations, and (3)
reimburse the
Department for the
items that have not
been returned
properly to
service. The VI may
wish to post a lost
property notice in
media outlets, and/
or offer rewards
for information
leading to return
of property.
4. The inventory
management system
will be fully
implemented by
December 30, 2004.
------------------------------------------------------------------------
Sub-Issue 4.2: Competitive Procurement (Improved Process)
Sub-Issue Description
The current competitive procurement and contract process takes too
long and does not ensure that vendors (contractors) for school services
are hired and are paid on time. The VI will develop a new competitive
procurement policy and process that ensures that school services,
supplies, equipment and other necessary resources are provided and in
classrooms when they are needed. The policy and process will also
ensure that vendors are paid within 30 days of invoice receipt. In
addition to the items noted above, the procurement management process
will include procedures for flexible, timely contractual arrangements,
sole source contracts, contract closeout activity, including receipt of
goods certification, contracts release, and review of final payment.
In December 2001, VI staff developed the time lines listed in the
table below for procurement, vendor payments, and delivery of supplies
or equipment to end users. The procurement policy and process will
ensure that the time lines are met in all instances by the conclusion
of the Compliance Agreement
Procurements
Department of Education from central supply sources in 2
days--1 week.
On island purchases < $5,000 in 2 weeks.
On island purchases > $5,000 in 3 weeks after receipt by
the Department of Property and Procurement.
Off island purchases < 3-4 weeks after receipt by the
Department of Property and Procurement.
Off island delivery of purchased items < 2 months.
Payment of Invoices
Payment of invoices after receipt of acceptable goods or
services in 20--30 days.
Delivery of Supplies or Equipment
Delivery of received items to school, activity center, or
school district in 3 days from receipt.
Performance Measures for Issue 4.2
1. The VI will provide the Department with a procurement policy and
implementation plan of the procurement management process by June 30,
2003.
2. A procurement policy and process will be fully implemented by
September 30, 2004.
3. By September 30, 2003, the VI will revise the system of
requiring 3 bids for each and every item submitted on a requisition to
reduce the time needed to obtain required items to meet the procurement
time lines noted above.
4. By September 30, 2003, the VI will develop and maintain a short-
term emergency by-pass authority/option for items that cost less than
$10,000.
5. By the conclusion of the Compliance Agreement, the VI will
receive all procurements purchased with Federal education program funds
within the timeframes listed in the table above.
6. By the conclusion of the Compliance Agreement, the VI will pay
vendors for all procurements related to education program within 30
days of receipt of the vendor's invoice.
Action Steps Required
In December 2001, VI staff members identified the following action
steps and timelines to address competitive procurement issues and to
meet the timelines listed in the table above.
Flow chart new process.
List key players and produce directory.
Convene working committee meetings (all stakeholders).
Monthly and ongoing.
Develop effective document transmittal process,
standardized forms, system changes specified, record retention policy,
competition requirements, vendor certification and representations
including eligibility, responsibilities redefined, personnel analysis,
and reallocation recommendation.
Prepare new government policies, procedures, and
regulations.
Review and approval of new policies, procedures and
regulations.
Distribute and provide orientation to stakeholders on new
policies, procedures, and regulations.
Establish improved interagency communication and
commitment.
Hire needed personnel.
Train all stakeholders and responsible personnel.
Build accountability and timelines into personnel system.
Pilot implementation of new policies, procedures, &
regulations.
Full implementation of new policies, procedures &
regulations.
Fully automate requisition, purchase order, and contract
writing process.
Conduct periodic process review, identifying deficiencies
and implementing continuous improvement actions. Ongoing.
Full and effective implementation of new process. Ongoing.
Establish review protocol for contracts such that VIOG and
VIDJ review only selected contracts.
[[Page 60219]]
------------------------------------------------------------------------
Year 1 Year 2 Year 3
------------------------------------------------------------------------
1. The VI will revise the 1. The procurement 1. VI's procurement
steps and timelines of the management process policy and process
December 2001 plan as they will be fully will meet the time
deem necessary and provide implemented by lines for
the Department with a September 30, 2004. procurement, vendor
procurement policy and payments, and
implementation plan of the delivery of
procurement management supplies or
process by September 30, equipment to end
2003. users by the
conclusion of the
Compliance
Agreement.
2. At the start of the 2. By June 30, 2003,
Compliance Agreement, the the VI will revise
VI will begin collecting the system of
data on items procured for requiring 3 bids
education programs to for each and every
develop baseline measures item submitted on a
of the procurement process. requisition to
reduce the time
needed to obtain
required items to
meet the
procurement time
lines noted above.
3. By June 30, 2003,
the VI will develop
and maintain a
short-term
emergency by-pass
authority/option
for items that cost
less than $10,000.
------------------------------------------------------------------------
The parties agree to faithfully carry out the terms of this
compliance agreement as set forth above.
For the U.S. Virgin Islands:
Dated: September 5, 2002.
--------------/s/--------------
Noreen Michael, PhD
Commissioner, Department of Education
Dated: September 6, 2002.
--------------/s/--------------
Mavis L. Matthew, MD, MPH
Commissioner, Department of Health
Dated: September 5, 2002.
--------------/s/--------------
Bernice A. Turnbull
Commissioner, Department of Finance
Dated: September 4, 2002.
--------------/s/--------------
Ira Mills
Director, Office of Management and Budget
Dated: September 6, 2002.
--------------/s/--------------
Marc A. Biggs
Commissioner, Department of Property and Procurement
Dated: September 4, 2002.
--------------/s/--------------
Joanne U. Barry
Director, Division of Personnel
Dated: September 6, 2002.
--------------/s/--------------
Jorge A. Galiber, M.D.
Virgin Islands Board of Education
Dated: September 6, 2002.
--------------/s/--------------
Eddie Williams
Virgin Islands Board of Vocational Education
Dated: September 6, 2002.
--------------/s/--------------
Charles W. Turnbull
Governor of the Virgin Islands
Approved as to legal sufficiency at the V.I. Department of Justice:
Dated: September 3, 2002.
--------------/s/--------------
Iver A. Stridiron
Attorney General
For the U.S. Department of Education:
Dated: September 23, 2002.
Office of the Chief Financial Officer
--------------/s/--------------
Jack Martin,
Chief Financial Officer
Office of Special Education and Rehabilitative Services
--------------/s/--------------
Robert H. Pasternack, PhD
Assistant Secretary
Office of Vocational and Adult Education
--------------/s/--------------
Carol D'Amico,
Assistant Secretary
Office of Elementary and Secondary Education
--------------/s/--------------
Susan B. Neuman, EdD
Assistant Secretary
Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students
--------------/s/--------------
Maria Hernandez Ferrier, EdD
Director
[FR Doc. E7-20847 Filed 10-22-07; 8:45 am]
BILLING CODE 4000-01-P
Billing code 3195-01-P
Billing code 4810-25-C