Risk Level Assessment for 2024-25

Risk Level Assessment for 2024-25

July 25, 2024 | Grants Management

How low can you go? When it comes to risk levels, hopefully you go low and stay low. Federal regulations require TEA to annually evaluate each grant recipient’s risk of noncompliance with the federal statutes, rules, terms, and conditions of their award. To comply with this requirement, TEA conducts a risk assessment of each recipient, including charter schools, and assigns each entity a fiscal risk rating level of low, medium, or high. On July 18, 2024, the TEA Department of Grant Compliance and Administration released the 2024-25 risk assessment designations. How did you do? Read on to understand the point system that TEA started using last year.

At CSS, we work closely with our clients to ensure the most favorable rating is awarded, and that is just the beginning!  We do this by providing you with a series of 1-on-1 meetings, webinars, and ongoing guidance and expert support as you navigate the world of federal grant management.

How Does My Charter’s Fiscal Risk Designation Affect Us?

The implications that come with each rating do not have to do with whether or not your charter is actually in or out of compliance, but rather with the level of stringency your charter should expect in the application and negotiation processes for receiving federal grants and in determining the likeliness of your charter to be selected for closer fiscal monitoring.

An organization’s risk level will be used by TEA in the following ways:

  • Differentiated Grant Negotiation: TEA uses a differentiated grant negotiation process for federal grant applications. Organizations with a medium or high risk level are subject to a more stringent grant negotiation review than those with a low risk level.
  • Subrecipient Monitoring: Each year, TEA selects subrecipients for fiscal monitoring according to their risk levels. The higher your organization’s risk level, the more likely you are to be selected for monitoring; however, TEA monitors subgrantees from each risk level.
  • For High Risk designations: TEA will require more documentation such as general ledgers, payroll journals, and other documentation before approving draw down reimbursement payments.

How Are Fiscal Risk Rating Levels Determined?

The system was revamped in 2023-24 to allow for a more evenly distributed point system. However, the system has increased from 16 to 20 indicators for 2024-25 with no single indicator being weighted more than 6%.

For the school year 2024-25 (fiscal year 2025), the risk assessment model and point system can be viewed on slide 12 of the TEA training presentation: TEA Risk Assessment Presentation

Note: The data for superintendent and CFO turnover comes from contacts in AskTED. If no name is entered, it will incur the same negative points as having a turnover. See: CSS AskTED Tip

The TEA Risk Assessment system can be clarified further by reviewing training and sample documents on the TEA Risk Assessment Website.

How Can I Access My Charter’s Risk Designation Report?

The reports are found in the Smartsheet Workapps system that is the same system used for ESSER reporting, Title IV reporting, and random validation submissions.

  1. Access the TEA Smartsheet WorkApp site.
  2. Select Risk Assessment WorkApp.
  3. Select LEA Name and CDN when the 2024-2025 GCA Risk Assessment page displays.
  4. Click on the Attachments link and click on the LEA RA Report.pdf title.
  5. The report will download to your computer’s download folder.
  6. Click on the downloaded report to view your 2024-2025 LEA Risk Assessment Status Designation Report.
  7. Each LEA report includes points assigned by indicator, total risk assessment score, and risk status designation for 2024-2025.

CSS strongly recommends reviewing the presentation (below) looking forward to 2025-26 because several of the indicators that have been placed on hold due to stimulus funding (COVID) will be back in 2025-26 but will reflect 2024-25 practices.

TEA Risk Assessment Training June 3, 2024

  • High carryover of grant funds (see slide 33 for what is considered high)
  • Lapsed grant funds
  • Concerns regarding the timely drawdown of grant funds (not drawn down by 1/31/25)
  • Large amounts of federal expenditures compared to total operating costs (greater than 20%)

These problem areas should be avoided in 2024-25 to protect risk assessment designations in the upcoming year.

Need help?

Please contact Charter School Success:

Have questions?

Ask questions, get answers, and discuss this topic on the Charter School Community Roundtable now.