HAGÅTÑA (The Guam Daily Post) — Whether the Guam Department of Education is removed from high-risk designation and the mandate of a third-party fiduciary agent is in the hands of a team of federal officials who were on island conducting an on-site inspection.
Steven Spillan and Tiffany Kesslar from The Bruman Group, PLLC, along with Christine Jackson, U.S. Department of Education senior risk consultant, spent five days on Guam meeting with elected officials, GDOE officials and stakeholders as a requirement under GDOE’s probationary status.
“GDOE has made tremendous progress in meeting the requirements set forth in the (Reconsideration Evaluation Plan) and complying with all federal regulations,” GDOE Superintendent Kenneth Erik Swanson said in a press release.
GDOE was designated as a high-risk grantee in 2003 and assigned a third-party fiduciary as a result of poor management and spending of federal funds.
“In 2018, GDOE requested reconsideration of its high-risk designation and specific conditions from ED. ED issued its Amended Federal Fiscal Year 2018 Specific Conditions letter and a final Reconsideration Evaluation Plan (REP),” GDOE said in a press release issued Friday.
In October 2022, the U.S. Department of Education, or ED, requested an extension to respond to GDOE’s request for lifting restrictions, according to Post files. This gave GDOE additional time to address the requirements set by the REP, which set forth the following:
- Provide clear guidance to GDOE on actions that it must take and complete during the reconsideration process.
- Inform ED as it determines the extent to which specific conditions may be removed and the extent to which financial management responsibilities may be returned to GDOE.
- Inform the ED as it determines whether GDOE has taken all necessary actions to be capable of performing the financial management responsibilities currently performed by the third-party fiduciary agent, or TPFA, resulting in the removal of the requirement for the TPFA.
GDOE said it has made “significant progress.”
“ED approved GDOE to commence a probationary period from April 2023 to September 2023 to demonstrate readiness to fully or partially transition fiscal management functions from the oversight of the TPFA back to GDOE. During the probationary period, the TPFA has taken on a hybrid advisory and oversight role,” GDOE said in the release.
With the visit, which spanned Sept. 11 through Sept. 15, concluded, it is now up to ED to make a final determination on whether GDOE has met the specific conditions for removal of the TPFA, whether the designation requires amendment or if updated conditions need to be imposed.
“We look forward to the conclusion of ED’s validation visit and stand ready to take over the management and fiscal responsibilities over federal grants,” said Swanson, who noted the visit went smoothly.
Post files indicate that a removal of the TPFA will save GDOE roughly $2 million a year on contract costs to Alvarez & Marsal, which has served as the TPFA since 2009.
From left, Steven Spillan and Tiffany W. Kesslar of The Bruman Group, PLLC; Christine Jackson, U.S. Department of Education senior risk consultant; and Guam Department of Education Superintendent K. Erik Swanson.
