Risk Level Assessment for 2023-24
Low scores don’t usually win, but low is the way to go when it comes to federal risk levels! 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. The risk level system has been totally revamped by TEA this year (the reason they are late being released), so there is a chance your level could change. Read on to learn about the new method of assigning risk levels and how to find yours!
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 Rating 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.
How Are Fiscal Risk Rating Levels Determined?
The previous system was weighted heavily (72%) on the external single audit, but the revamped system has a more evenly distributed point system. However, the system has increased from 9 to 16 indicators with no single indicator counting more than 8% of the total.
For the school year 2023-24 (fiscal year 2024), the risk assessment ratings were released later than the usual August timeframe (in late October), and this assessment model reflected the following criteria and point system:
| I-1: Number of Management Decision Letters with sustained finings (2 to 10 points) *low points is better |
| I-2: IDEA-B LEA MOE Non-Compliance (0 to 6 points) |
| I-3: Monitored by Federal Fiscal Monitoring (FFM) (0 to 10 points) |
| I-4: Monitored by Special Monitoring Division (SMD) (0 to 6 points) |
| I-5: Grants Administration referred LEA to Risk Assessment (2 to 10 pts.) |
| I-6: Post Award Compliance (PAC) team referred LEA to Risk Assessment (0 to 5 pts.) |
| I-7: Other TEA Division Risk Assessment Referrals (0 to 10 pts.) |
| I-8: Superintendent Turnover- changes in last 3 years (0 to 9 pts.)* |
| I-9: CFO/Business Manager Turnover (0 to 9 pts.)* |
| I-10: LEAs Single Audit Requirement, (5 pts. If not conducted) |
| I-11: FFM and SMD Disallowed Cost Percentages (1 to 10 pts.) |
| I-12: Federal Program Compliance referred LEA to Risk Assessment (0 to 10 pts.) |
| I-13: Referrals to the Federal Compliance Officer (0 to 10 pts.) |
| I-14: LEAs not Fiscally Monitored by Grants Compliance Admin. (within the past 5 years) (10 pts.) |
| I-15: LEA Risk Status designation above low for last 5 years (0 to 2 pts) |
| I-16: TEA High-Risk Designation, (no points, a special case designation) |
*Data from AskTED
The system will further be clarified by training and sample documents on the TEA Risk Assessment Website. For those that attended the fall 2023 ACET conference in Las Colinas, a slide presentation is part of the ACET materials.
How Can I Access My Charter’s Risk Level?
The reports used to be located in GFFC in TEAL, but now they are found in the Smartsheet Workapps system that is the same system used for ESSER reporting, Title IV reporting, and random validation submissions.
- Access the TEA Smartsheet WorkApp site.
- Select Risk Assessment WorkApp.
- Select LEA Name and CDN when the 2023-2024 GCA Risk Assessment page displays.
- Click on the Attachments link and click on the LEA RA Report.pdf title.
- The report will download to your computer’s download folder.
- Click on the downloaded report to view your 2023-2024 LEA Risk Assessment Status Designation Report.
- Each LEA report includes points assigned by indicator, total risk assessment score, and risk status designation for 2023-2024
Need help?
Please contact Charter School Success:
- Dr. Sheila K. Sherman ssherman@charterschoolsuccess.com
Have questions?
Ask questions, get answers, and discuss this topic on the Charter School Community Roundtable now.