RISK MANAGEMENT and RESULTS ORIENTATION

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RISK MANAGEMENTand RESULTS ORIENTATION
Region 10 HEAD START
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Interrelationship of Systems Operations

• Prior risk assessment focused on fiscal issues
  and governance in isolation
• Importance of risk management is the impact on
  quality programs for children and families
• Most risks are not isolated from impacting other
  elements of the program

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Goals of Risk Assessment

• Assist Grantees in meeting performance standards
• Build Grantee capacity
• Coordinate Technical Assistance
• Involve stakeholders in program improvement
• Manage risk

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What is risk?

• Uncertainty the inability to know in advance
  the exact likelihood or impact of future events.
• Event An incident or occurrence, from sources
  internal or external to a Grantee that affects
  achievement of objectives.
• Risk The possibility than an event, incident or
  occurrence will happen and adversely affect the
  achievement of Head Starts objectives.

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Risk Factors

• Health and Safety issues
• Under-enrollment
• Erroneous payments
• Excessive administration and executive
  compensation
• Payments for unallowable program activities
• Improper payments to contractors
• Unauthorized payments that require Regional
  Office
• prior approval
• Liability for negligence, accidents, and
  unallowable costs
• Failure to meet Performance Standards

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Consequences of Risk

• National examples from the past few years
• Bankruptcy
• Fraud
• Embezzlement
• Misuse of Federal funds
• Closure of centers
• Non-payment of staff and/or vendors
• Loss of key staff
• Negative media coverage
• Loss of reputation

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Risk Identification

• Events that may have a negative impact
• Events or occurrences that could affect
  achievement of objectives
• Conditions that, if not corrected, could put the
  Grantee at risk in the future
• Liabilities that, if not provided for, may
  jeopardize a Grantees viability

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Risk Assessment

• Allows a Grantee to understand the extent to
  which potential events or occurrences might
  impact objectives
• Assesses risks from two perspectives
• Likelihood
• Impact

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Minimizing Risk
1. Control Activities

• Policies and procedures
• Internal controls
• Self-assessment and monitoring
• Active and involved governance
• Assessment and preparation for potential
  unforeseen events

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Minimizing Risk
2. Information and Communication

• Provides governing board and Policy Council with
  program and financial status
• Keeps management informed
• Essential for monitoring
• Active and involved governance
• Assessment and preparation for potential
  unforeseen events

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Minimizing Risk
3. Monitoring

• Provides governing board and Policy Council
  oversight
• Involves staff in program assessment
• A integral part of the planning and program
  development process

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Minimizing Risk
4. Response

• Evaluation of risk potential
• Review of options
• Development of a plan to minimize risk or correct
  a deficiency
• Selection and execution of response

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Minimizing Risk
5. Follow-up on Response

• Prioritization and timelines for full compliance
  and corrective action based on the seriousness of
  the issues
• Program Specialist/FOS and Technical Assistance
  progress reports

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Data Sources

• PIR and Enrollment Data
• PRISM Strengths and Compliance issues
• TA Site Reports
• Program Specialist/FOS Updates
• NRS Data
• Grantee T/TA Plan Workplan
• Community Assessment
• Financial Dudit/and Financial Reports
• First Years Funding Application
• Self-Assessments

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Process Regional Office Staffing

• ACF Head Start staff and T/TA Network working
  together for the collective assessment of risks
  for an individual Grantee, and recommendation for
  mitigation of those risks by the Grantee.
• Follow-up with the recommendations and
  development of a risk management plan by the
  Grantee
• Re-assessment of progress on results

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Staffing Process and Procedures

• 1. Timing and Priorities
• 2. Role of Federal Staff Contractors
• 3. Instrument

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1. Timing and Priority Selection of Grantees

• Third Quarter programs
• 2005 PRISM Reviews
• On QIPs
• Scheduled for re-reviews
• Scheduled for future 2005 PRISM Reviews
• Highly needy programs from TA Needs Matrix based
  on Grantee T/TA Plans

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2. Role of Federal Staff, T/TA Staffand Grantee
Director/Board

• Lead TA (State) Specialist assigned to Grantee
• Program Specialist/FOS
• TA Coordinator/TA Manager
• TA Content Specialist as appropriate based on
  issues and risks identified
• Associate Regional Director

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3. Instrument for data collection

• An addendum to the Region 10 grant review
  checklist with a focus on
• Child Development Health Services
• Family Community Partnerships
• Program Design Management
• Interdisciplinary impact of systems, procedures,
  management and governance on programs

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Feedback to the Grantee and Follow-through In
Collaboration with the Grantee

• Minimize potential risks
• Immediate attention to potential high risk
  situations
• Recommendations for a technical assistance plan
  update to address risks
• Ongoing Regional Office application review for
  program refunding and provision of technical
  assistance