ab ae a i Compliance Agreement Between i 4 The U.S. Virgin Islands And The U.S. Department of Education ; SEPTEMBER 23, 2002 a oe a mee os U.S. Virgin Islands Compliance Agreement U.S. Virgin Islands Compliance Agreement i, Overview of Issues 0... Het eiescstescncerrematyieesscecercsunuusenerecnaveratvetneaneeeersccd fl, Consequences for Ne ct t Meeting the Terms and C. “onditions. of the Agreement .. . cod A, Mutual Agreements and Understandings Regarding the Terms, C ‘onditions and En forcement. of this C ‘compliance Agree eement.....4 Severability ..., sese cd tnanseenenen aes ensnco seat esteepisseneenusponesiassemnestrststseiteesess cs Additional Terms and C ‘onditions ‘Under 34 CFR 880. 12. sete cteo ca whaneetrs cece censsaanueaanay coeect cauaw vant riapesuigenteviversvepttsitieeseveecesececee. Judicial Enforcement ..00.000ccc cece. eevee wtereneesanesusshacneneersenees ites itsncususenvi sci tessueusesistaemtateraaeseeeeese sc. lL. 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Updated Plans, Action Steps, and Timelines from D ecember tb I festes .. a baeees eres netcns venta nananon ence cs ceosnenanatnannt ss aineQenneesncdeanestcocrcransavagsnagacasaueesyipesvaussaavavacvavanaessvevecses issue 1.0: Program Planning. Design, and d Evaluation... CoS ereeneetsanddocossone nan esmuapeis DOD 1G will submit lewer wo the Legialanwe and Governor qutlinung the indirect cost find sharing issue. Develop cost policy staement regarding Indirect Coat Fund Shearing. OME sill suluait policy change recommendation and potential changes to the existing slation on the indirect cost fund, if aecesaary, ta the Legislature with copies to the 3. Department of Interior (DOU) and the Departne: indircet cost staff tangent cast policy ienplate tw VI OME. VIDE will provide cost pelicy statements w the Department and DOI by September 30, 2002 Cost policy statements will be amended as appropriate to account for the LEA/SEA relationdun. U.S. Virgin Islands Compliance Agreement « OMB val provide agencies with account codes for teceipt aed expenditure of indirect cost funds. Any shortfalls will be absorbed by VIDE, aor VIDE programs. * VIOP will propose accounting changes to implement new mdirect ealicy for review by the Department and DOL by September 36, 2002 The policy must address wiused leave for separating employees * Training needs will be identified. * ‘Training will be planned and scheduled. * Training will be implemented Phase IH: Rate Application Corrections 4 @& &@ F @ Delermune amd correct current rates, ac necessary. As needev|, correct the rate table and pply correct Taies tu current grant programs Review PY 2002 indirect cost rates on FMS versus current rates on indirect rate plan. Revew the prior year indirect costs applied 16 grants and prepare necessary adjustments. Develop a procedure te report indirect cost rate application errors te VIDE Phase lil: New Rate « Oliaim three-year tate proposal sith the following stems * issue RPP tor 2002-2004 * P& P issue invitations for bids. # P& P review bid packages. * Contract sent to Justice. 8 Justice reviews comract and forwards ti Governor's legal counse!, * Coetract execnted. ae Contract work performed. * Submit rate proposal to IG. * Subnut draft agreements te agencies for review and approval simmeture. ce iniplerment 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 19 U.S. Virgin Islands Compliance Agreement subsequent spending process that ensures that grant awards are based on specified program plans and spent on the programs in 4 timely manner. The grants svstems 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 the statutes, and (4) no funds are lost due te lapsing obligation periods. Performance Measures far 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 ot furnis will be minimized. 5 We lapses of fursis will occur after March 31. 260%. 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 periads. ¢, The grant application, planning, obligation, and disbursement functions will be fully integrated with the FMS by the conclusion of this Compliance Agreement. 8. Af 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. U. S. Virgin Islands Compliance Agreement Receipt of Grant Award ® a AIL 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 VIDE. 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 wriling 0 days pnor to the expiration date of the Brant to justify the reason for the extension. For all grants to the VI government, extensions apply ONLY to hquidation of expenses that were obligated dunng the Federal funding period specified in the oram 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 Commussioner, which include the percent of funds expended. Document the rules about obligation and extension dates, Year i Year 2 Year 3 Within one month after the Compliance Agreement 1 signed, | 1. The plan to re-engineer the grant . The grant application, planning, ihe VIDE will implement a policy statement i¢lineating the application, planning, obligation, and obligation, and disbursement procedure for reviewing and processing sub gramee awards i disbursement functions will be fully functions will be fully integrated expedite allocations and disbursement of Federal funds to implemented by March 31, 2004 with the FMS by the conclusion of eligible applicants within five days of receipt from the LEA this Compliance Agreement. program: office. Applications not approved for fanding will be retuned to the Program Office origmatiag the proposal within the five working day period. If the dreline requirement is not met, the Conmmissioner will submit a letter af explanation to the fueding- agency within BIS, with a upry w) ihe affected program. Within 45 days after the Compliance Agreement ix summed, the Vi-will put un place a system of saleguards tw assure that lapses of funds will be minimized. By Semember 20, 2002, che VI will provide the Department with (]) a list of Federal requirements for program placename, obligation, and disbursement of funds, and (2) an analysis of the VI's education grants for the past fiseal year that species where problems im meeting requirements occurred in progr planning, obligation and disbursement, and wiry the problems occurred. U.S. Virgin Islands Compliance Agreement Be 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. *. 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 al] 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 U.S. Virgin Islands Compliance Agreement long terms. In the immediate term, the VI will develop « policy for class coverage that ensures that adults are supervising every classroom! at all tirnes that students are present. In the short term, the V1 needs to determine how maany highly qualified teachers they currently have in the schools and how many they need, and develop a plan to hire or otherwise en gage the services of the teachers or other qualified personnel that they need aver cach of the next three schol years and beyond. In the longer term (although these aclions are not covered under this Compliance Agreement), the V1 will create initiatives to encourage young people fo take up teaching aa 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 inte the schools quickly, and receive their first paycheck on a reasonable time schedule. In December 2001, V1 staff members identified action sieps to address recruiting and hiring concerns. However, the V1 aceds ta consider a mack fuller range of options for getting qualified teachers and related personnel imo classrooms, and it must do se quickly. Students cannot easily regain educational opportunities Jost to them for each year that they do not have a qualified teacher Performance Measures for Issue 3.0 and 3.1 VIDE will immediately implement its expedited hiring authority and use the authority in hiring qualified teaching staff. Bad VI will develop hiring goals and priorities for five years by March 31, 2003. VI will meet its hiring goals for the 2003-2004 school year. Nabe 4. VI will meet its hiring goals for the 2004-2005 school year, 3. 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 lerris of the MOA shall apply. Action Steps Required Vear 1 Year 2 Year 3 1. By OCTOBER 31, 2002, the VI will develop policies and | |. VI will meet its hiring goals for the 2003- i. -—- VI will meet its hiring goals for the i nigeedures for class erage (ie. aj bstitute omit school year sddition to the vems 2004-2005 school year, In addition to 23 U. §. Virgin Islands Compliance Agreement be ‘bd procedures for class coverage (Le., by using substitute teachers, admunistrators, supervisors, principals, etc.}, in the event that a teacher is unable to be in the classroom when students are present. By DECEMBER 31, 2002, the VI will determine the percentage of classes conducted by highly qualified teachers as defined in The No Child Left Behind Act of 2001, By DECEMBER. 31, 2002, VIDE will establish a plan to increase recruitment of specialized personnel, such as speech pathologists, physical therapists, occupational therapists, etc, WIDE will prepare and work with VIDH to establish a memorandum of agreement between VIDH and VIDE ta 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. By DECEMBER 31, 2002, the VI will determine how many highly qualified teachers it needs per program te 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 programms are currently an immediate priority for filling vacancies. As another example, high school teachers are also an wnmediate priority so that the VI high schools can regain accreditation. 2004 school year. In addition to the items set forth in the “Reporting Requirements” section of this Agreement, quarterly reports will also include each person’s date of hire, date of entry into the personnel system, date of arrival on the job, and the date of receipt of first paycheck. The report should include contact information for each new hire so that the Department staff can confirm the personnel data reports with staff members. By the beginning of the 2003-2004 school year, the VI will have implemented a process to re-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. the items set forth in the “Reporting Requirements” section of this Agreement, quarterly reports will also include each person’s date of hire, date of entry inte the personnel system, date . of arrival on the job, and the date of receipt of first paycheck. The report should include contact information for each new hire so that the Department staff can confirm the personnel data reports with staff members. U.S. Virgin Islands Compliance Agreement de By MARCH 31, 2003, and based on the total aumber of qualified teachers needed aver five vears and de prienities lor types of vacancies to fill firet, the VI will set specific goals for eraploving qualitied teachers in specific clagsioams each year. The yearly goal sheadd equal 20% af the total number of qualified teachers needed within § years (Le., yearly goal = total # qualified teachers needed over 5 years/S) &. fy APRIL 36, 2003, VI wll develop an action plas w revise Bs necestary the action steps to improve the hiring. process, including the use af current legislative authonity for VIDE to byoass the personne! office, and expedite the hiring process. 7. The VE will work with the Board of Education te expedite ihe teacher certification process, melading alternative certification approaches. %. The VI will work with the Board of Vocational Education 1G expedite setting standards far teacher certifratians, including alternative certification approxches 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 empiovees spht their ime between Federal and other programs, or belween more than one Federal program. Supplanting is also an issue, which mvolves, aimply stated, using Federal funds to pay for personnel that the State should pay. The tme 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. tdt U.S. Virgin Islands Compliance Agreement 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 impiemented at a systemic ievel and integrated with other thanagement 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 far 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 im the plan to be developed under Action Step 1, Year I 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 & 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 (DOD) 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. ° 8 &@ & # &©§ © @ & @&@ @& «# | U.S. Virgin Islands Compliance Agreement Ed 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 nme and attendance within VIDE to identi fy incensistent applications af procedures. * Analyze result of review and recommend changes and/or mprovernents 1 current process lo ensure the proper retrieval of time and attendance * Activate system enhancement program to scan source document and payroll records to minimuze record bulk and to facilitate the location of lime and attendance documents and make reconunendations regarding svetern upgrade for V1 government. ® Implement conversion to enhance svetem that will quarantee adequate documentation over emplyvee ame and attendance. (VIDE — Pilot Prograrns) Supplanting * Meeting/trammge between OMB. VIDE, the Deparment and auditors on specrie program issues to identify maintenance of effort requirements and funding levels. identify which positions are paid from which fand. 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. L® _lmplement policy. Year | Year 2 Year 3 1. By March 30, 2003, the VI will submit a revised plan = i. The tirne and attendance accounting plan will |. Management reports showing all staff to address issues related to time and attendance be umplemented by March 30, 2004. members paid with Federal funds and the accounting and supplanting. The plan will distribution of their time by funding specifically state how the time and attendance 2, Management reports showing all staff source will be submitted to the accounting procedures will be integrated with members paid with Federal finds and the Department quarterly. program related budgeting, financial management, distribution of their time by funding source planning, and persennel processes. At a minimum, will be submitted to the Department quarterly the systern will (1) be computer-based and territory- for the duration of the Compliance wide, (2) allocate time and attendance to specific Agreement beginning for the quarter ending programs, (3) ensure that maintenance of effort and Jume 30, 2004. supplanting prohibitions in each statute are met and (4) personnel records are properly archived and readily accessible. As part of the plan, the V1 will U. S. Virgin Islands Compliance Agreement benchmark other States’ (such as Florida) systerns and develop a time and attendance system that can accurately reflect tire distribution across various programs Page By September 30, 2002, the VI will develop an accurate list of employees whose time is paid in any part with Federal education funds. The list will identify each employee and the percentage of his/her time that is paid for by each Federal program The list will be provided to the Department and to each supervisor of staff whose time is so paid. 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 metmiber will both sign a document that clearly states the time alloeation for the staff memiber. A cony of each document will be poowuled ta dhe Deparenest 29 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, fat all. Property cannot be effectively wacked and may remain in warehouses, be delivered to incorrect locations, or he stolen rather than benefiting students and teachers in classrooms. The V1 will develop and implement effective procurement and property management policies and systems that ensure (1) delivery of ordered inventory within specified timetrames for type af 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 davs of inventory receipt, and (4) security of property and supplies. U.S. Virgin Islands Compliance Agreement Sub-Issue 4.1: Property Management Sub-Issue Description The VI needs to improve its property inventory and repair/mainienance system. This is a major reasan that classrooms are under equipped. Also, hefter security measures are needed to prevent the theft of vehicles, supplies and equipment. Through this Compliance Agreement, VI's manner of managing ventory 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 tageing 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 tems 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 (incinding 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. Ata minimum, the inventory Management system will reflect when items are ordered, when ordered items arrive, when items are logged into the systern, 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 reninbursed when equipment darnage results from such use. Performance Measures for Issue 4.0 and 4.1 i. The VI will provide the Department with an inventory policy and implementation plan of the inventory management system by June 30, 2003. +. 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. ted oo U.S. Virgin Islands Compliance Agreement abe By March 31, 2005, all unaccounted-for iterss will etther be returned to their intended locations, or their full value will be reimbursed to the Department. By the end of the second year of the Compliance Agreement, the inventory management system will reflect minimal losses due to theft. By the end of the Compliance Agreement, audits will show minimal unaccounted-for property. Action Steps Required In December 2004, V1 stalf members identitied the action steps and timelines listed below to address inventory management issues. The table below provides further required action steps. De * & & 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. Determune and seek funding for human and other resources needed to establish, Taaintans, inspect, test and reconcile data in WIN ASSETS System. Determine individual departmental comphance with WIN ASSETS Personal Property Inventory System implementation deadline. By Convert mdrvidual Department inventories to WIN ASSETS format (where necessary) and upload departmental data to VIDPP system. By VIDPP to conduct meetings with mdividual 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 inventones to departmental purchase orders.) Ougoing. Department of Finance to provide quarterly record of 25600 capital outlay expendinae reports, VEOPP 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. U.S. Virgin Islands Compliance Agreement Year | Year 2 Year 3 ed The VI will revise the steps and timelines of the plan above as they deem necessary and provide the ’ Department with an inventory policy and implementation plan of the inventory management system by June 30, 2003. The VI will benchmark other States’ inventory management policies and systems, or engage a consultant, to ensure that their planned policy and system will deliver intended results and. that their implementation time lines are reasonable. By June 30, 2003, the VI will secure all property, in warehouses, schools, and other locations from larcenous behavior or inappropriate or unauthorized use. Such steps will include controlling access to school buildings, property supply houses, and official vehicle parking lots, and controlling and tracking access to specific equipment. The VI may wish to benchmark inventory security procedures with other States, or to engage a contractor to supply or consult on security issues. ia x By December 31, 2003, the VI will begin collecting data on items purchased with Federal funds from ED. On March 30, 2004 and every six months thereafter until the conclusion of the Compliance Agreement, the VI will provide the Department with management reports that show, at a minim, all items ordered, when the items were ordered, when ordered items arrive, when the iterns 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, tacking data, and signed receipts showing delivery to schools, will accompany the managerment reports until the Department deems that such verification data are no longer necessary. Within three months after full deployment of the new inventory managernent system (and no later than December 31, 2004), the VI will provide the Department with a list of items paid for with Federal funds that are not in service in classrooms (i.¢., lost, stolen, or insproperly deployed items). Within 6 months after full deployment of the new miventory 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. The inventory management system will be fully implemented by December 30, 2004. had U.S. Virgin Islands Compliance Agreement 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 iterns < 2 months 2 £2 © & # 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 |. 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. Scant 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. U.S. Virgin Islands Compliance Agreement 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. & 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 abave. * © & es ££ &£ &@ «@ © &© & & BP &@ & & 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 cormmunication and cormmitment. 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. end U.S. Virgin Islands Compliance Agreement Year 1 Year 2 Year 3 rs The VI will revise the steps and timelines of the December 200i plan as they deer necessary and provide the Department with a procurement policy and implementation plan of the procurement management process by September 30, 2003. At the start of the Compliance Agreement, the VI will begin collecting data on, iteris procured for education programs to develop baseline measures of the procurement process. gat The procurement management process will be fully implemented by September 30, 2004, By June 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 tune lines noted above. By Tune 30, 2003, the VI will develop and maintain a short-term emergency by-pass authority/option for items that cost less than $10,000. VI's procurement policy and process will mest the time lines for procurement, vendor payments, and delivery of supplies or equipment to end users by the conclusion of the Compliance Agreement. U.S. Virgin Islands Compliance Agreement The parties agree to faithfully carry out the terms of this compliance agreement as set forth above Far the U, ie? Islan Me “te Date Sept g: Noreen Michael Fat D, Commissioner, Department of Education eet sss saree i ae “Ww, Gree tng Bon! ee) Date UW LEZ Mavi is L. ithew, » MPH Com issioner, Deparment g Fealth durti. M Bernice A. Turnbull pate 7/6 fo 2- Commissioner, Department of Finance Cyr. CS, fra Mills Date: J/ ¢ [or Director, Office of Management and Budget a A Date eli for a A, \caqnendssioner, Departament of “Property and Procurenent sre 2 we i ot — fy ey | fiir, Date 3 / oo jo e U, Barry fo a AY Personne ry Oveee. 2/1. P- Che at, 64, 2. Virgin isl Bears ra Sonnet net tS Tage, Date liar i Trgin slands Board of Vocational Education be tA Ny Date ba Chark les W. Tumbull Governor of the Virgin Islands Approved © legal uffic ici micy a at the V.L. Department of Justice: Le £ cartier sani anata Date. Oe er a S iron Attorney General aan U.S. Virgin Islands Compliance Agreement For the U.S. Department of Education Office of the Chief Financial Officer Office of Elementary and Secondary Education \ Le phar. Ve Weed Jagk Martire. an B. Neuman, Ed.D Chief Financial Officer Assistant Secretary and Rehabilitative Services Office of English Language Acquisition, Language _- ‘of § ial ay tig Enhancement, and Academic Achievement for Limited English L Ei nun Proficient Students ie al: H. Pasternack, Ph.D. oy Assistant Secretary ee ae ae a ALeee ee ae Ma is! Hernandez Ferrier, Ed.D. Direttor fe Office of Vocational and Adult Education oe i oh - as 6, o ? e ra a ie ro é on BE, tml SEP 23 20 # i FA Carol D’ Amico Assistant Secretary 36