Risk Management Plan

Risk Management Plan

1. OVERARCHING/PERFORMANCE

  • Are the programs under Recovery Act for my organization following the existing procedures or new procedures?   We are using existing procedures where they address the needs of the programs and adding procedures as needed to assure accountability of every use of the funds.
  • Are specific Recovery Act fund objectives and requirements incorporated into agency policies?  Yes. As each opportunity is discussed during the meetings of the President’s Cabinet, the objectives are defined and the requirements incorporated into the College’s policies, as appropriate.
  • Does my organization have staff adequately trained to effectively implement Recovery Act requirements?   Yes – we have assigned staff with significant grant management experience (Title III, NSF, Perkins, and others) to oversee the administration of these funds.
  • Has my organization provided new requirements, conditions, and guidance to the recipients regarding Recovery Act?  N/A – We don’t anticipate adding any sub-recipients.
  • Does my organization have reporting mechanisms in place to collect the required data from recipients to meet Recovery Act transparency requirements?  Yes – as this pertains to students and industry clients who might be receiving services we make available through these grants, we do have the processes in place to collect the data. This is a requirement of some of our existing grants.
  • Is there an agency-wide methodology for measuring performance?  Yes. The College has an annual planning and evaluation process that includes a college-wide review of performance indicators defined for all college administrative units and instructional programs. These measures include process evaluation as well as student learning outcomes. These measures are required by the College’s accrediting bodies and for good planning and effective operational management.
  • What are the key performance metrics?  Funds expended (within budget); funds expended (only for valid expenditures); number of students/clients served; number of students/clients having subsequent success because of the services rendered.
  • Are there any process metrics, or are the metrics primarily outcome-oriented?  Both process and outcome-oriented metrics are employed in the measurement of the institution’s programs and services. These measurements are required by our accrediting bodies.
  • Does my organization have a corrective action plan process in place to promptly resolve the audit findings identified that may impact the ability to successfully implement Recovery Act?  No audit findings have occurred in the past two years.
  • Has my organization established a governance body to oversee / manage the overall implementation of Recovery Act?  Our planning and oversight councils – the president’s cabinet and the administrative council – are currently reviewing these requirements and will have a governance body in place by September 30, 2009 to oversee/manage the overall implementation of Recovery Act funds.
  • Management Response and Action Plan:  (incorporated in responses to line items above)

2. REPORTING

  • Is the necessary reporting under Recovery Act in place?  The reporting process will be in place prior to September 30, 2009.
  • Has your organization implemented communication vehicles to ensure Recovery Act data is promptly reported on the agency's website?  The College has implemented a link in its Home Page to provide access to the institution’s Recovery Act reports and posted its initial report.
  • Are reports published under Recovery Act reviewed and approved?  Yes – these reports are reviewed by the president’s cabinet and approved by the president after careful review.
  • Are reports issued accurate and have the data fields required under Recovery Act?  Yes – the first report has been reviewed by the Alabama Department of Postsecondary Education. Future reports will also be reviewed by the Department of Postsecondary Education prior to posting to the federal reporting site.
  • Do reports tell agency management what is happening on a timely basis?  Yes – the reports are verified and posted on or before the required posting date.
  • Are issues identified through established reports addressed on a timely basis?  Yes - In addition to its internal review, the college’s reports are subject to review and approval/resolution of issues prior to release to the federal posting site.
  • Are reports issued on the effectiveness of risk management strategies and tactics timely?  Deadlines for reports on the effectiveness of risk management strategies and tactics are considered to be of the highest priority. Measures are in place to assure their timely issuance.
  • Are risk management strategies and tactics properly monitored?  In addition to weekly review by the president’s cabinet and monthly review by the administrative council, they are also reviewed monthly by the Alabama Department of Postsecondary Education.
  • Management Response and Action Plan:  (incorporated in responses to line items above)

1. HUMAN CAPITAL

  • Has my organization identified qualified personnel to oversee the Recovery Act funds?  Yes – the primary responsibility is with the Business Manager, Ms. Pat Hughes, and the secondary responsibility is the Director of Accreditation, Dr. John Reutter. Both individuals report to the president and have extensive grant management experience.
  • Does my organization have sufficient level of personnel to manage the Recovery Act programs (for instance, Grant, Contracting, Financial Management, or IT personnel, etc.)?  Yes – the Business Office has two individuals supporting this requirement; the IT department has two individuals supporting this requirement, and the Accreditation Department has one individual supporting this requirement, with support available from other members of the president’s cabinet and administrative council, when required.
  • Are they empowered to make decisions and administer the Recovery Act programs?  Yes – these individuals are empowered to make appropriate decisions needed to administer the Recovery Act programs, subject to the administrative review process already in place at the institution.
  • Are program officials trained in the performance management requirements?  Both the primary and the secondary administers responsible for the Recovery Act programs have attended the mandatory workshop provided by the Alabama Department of Postsecondary Education.
  • Has my organization considered using alternative hiring methods allowed under the Recovery Act?  No. The College strictly adheres to the standard hiring methods defined by the State Board policies and guidelines developed by the State Department of Postsecondary Education.
  • Management Response and Action Plan:  (incorporated in responses to line items above)

2. ACQUISITION

  • Do new Requests for Proposals issued under Recovery Act initiatives contain the necessary language to satisfy the requirements of the Recovery Act?  Yes – The College review each proposal to assure that it responds to the requirements of the RFP associated with it and with any other requirements imposed by Recovery Act regulations.
  • Are Contracts awarded in a prompt, fair, and reasonable manner?  Contracts and purchases adhere to the requirements established by the State of Alabama, the Alabama State Board of Education, the Alabama Department of Postsecondary Education, and requirements imposed by the awarding bodies.
  • Do new contracts awarded using Recovery Act funds have the specific terms and clauses required?  Yes – The College review each proposal to assure that it responds to the requirements of the RFP associated with it and with any other requirements imposed by Recovery Act regulations.
  • Are contracts awarded using Recovery Act funds transparent to the public?  Yes
  • Are the public benefits of the funds used under these contracts reported clearly, accurately, and in a timely manner?  Yes – The College is not only committed to serving the public good in a responsible, accountable manner, but it assures that performance through the monthly internal and state reviews of its performance.
  • Are funds used for authorized purposes and the potential for fraud, waste, error, and abuse minimized and/or mitigated?  Yes – As stated in the previous response, the College is not only committed to serving the public good in a responsible, accountable manner, but it assures that performance through the monthly internal and state reviews of its performance. In addition, the College has a link on its website for individuals to report suspected abuse. The link takes the individual to the Alabama Stimulus information website address for reporting misuse of stimulus funds.
  • Do projects funded under Recovery Act avoid unnecessary delays and cost overruns?  The expenditure of funds are carefully planned and documented in budget forms and spreadsheets. The College is committed to the notion that in terms of the use of Recovery Act funds, time is of the essence. Expenditures are tracked in a timely manner to avoid cost overruns.
  • Are there any performance issues identified with regards to (potential) contractor?  No
  • Are there follow up actions to address the performance issues?  These processes are already in place due to the College’s fiscal responsibilities to funding agencies upon which the College is dependent and with whom the College has several years of continuous, resopnsible performance.
  • Management Response and Action Plan:  (incorporated in responses to line items above)

3. FINANCIAL

  • Has my organization established separate Treasury Account Fund Symbols to ensure Recovery Act funds are clearly distinguishable?  Yes, the Recovery Act funds are accounted for in a separate restricted fund self-balancing set of account numbers.
  • Are there controls in place to ensure that Recovery Act funds are not commingled with other agency funds?  Yes. Funds will be deposited into the restricted funds subfund for Recovery Act funds. Expenditures will be assigned to the same subfund numbers. The fund will be used exclusively for approved Recovery Act expenditures.
  • Are existing internal controls sufficient to mitigate the risks of fraud, waste, and abuse?  Yes. Independent audits through September 30, 2008 have found no significant deficiencies in internal control over reporting and assessing the risk of fraud, waste, and abuse.
  • Management Response and Action Plan:  (incorporated in responses to line items above)

4. SYSTEM

  • Are financial and operational systems configured to manage and control Recovery funds?  The College uses a computerized Management Information System that has been in place since 2000 and has consistently served these functions accurately, as substantiated by annual audits conducted by the Alabama State Examiners.
  • Can financial and operational systems support the increase in volume of contracts, grants and loans etc.?  Yes – The computerized Management Information System used by the College is scalable to accommodate any increase in volume that may be induced by the Recovery Act funds awarded to the College.
  • Are the appropriate data elements identified that must be captured, classified and aggregated for analysis and reporting to meet Recovery Act requirements?  All known required data items are captured and classified by the existing Management Information System. These data are readily aggregated into any required grouping and readily available for analysis and reporting to meet Recovery Act requirements.
  • Management Response and Corrective Action Plan:  (incorporated in responses to line items above)