[nfbmi-talk] Fw: remember this?

[joe harcz Comcast]

----- Original Message ----- 
From: joe harcz Comcast 
To: Craig McManus RSA 
Sent: Wednesday, August 21, 2013 7:45 PM
Subject: remember this?


Shoot how much do I have to show about ongoing conflicts of inters Mr. McManus?

The area super is on New Horizons board and funnels clients in to its programs!

Joe Harcz

>From your own monitoring report:

Finding 6:  MCB has entered into many agreements, known as “cash match agreements,” with local school districts in MI for the purpose of providing non-Federal match funds for the VR program.  One of these “cash match” agreements is with the Macomb ISD.  The Macomb ISD receives $9,000 in funds earmarked as match funds for the VR program from New Horizons, a local private CRP.  New Horizons provides job placement services to MCB’s eligible consumers as a fee-for-service vendor.  Thus, New Horizons gives the Macomb ISD $9,000 to give to MCB for non-Federal match purposes; MCB, in turn, pays New Horizons to provide VR services.

  

Federal regulations governing the VR program permit private entities, such as New Horizons, to contribute funds to a State VR agency to assist it in satisfying its non-Federal share requirements so long as the donor does not benefit from the expenditure of those funds (34 CFR 361.60(b)(3)).  In this case, New Horizons benefits directly from the expenditures of its donated funds because MCB, in turn, pays New Horizons to provide VR services on a fee-for-service basis rather than under a contract awarded under the State’s regular competitive process.  Accordingly, MCB has failed to comply with the requirements of 34 CFR 361.60(b)(3) for the use of contributions from private entities for matching purposes.  

 

Corrective Action:  MCB must:

6.1       cease using Title I funds, including the match funds it receives from New Horizons for match purposes, in a manner that inappropriately benefits New Horizons as required by 34 CFR 361.60(b)(3);

6.2       submit a written assurance to RSA within 10 days of receipt of the final monitoring report that it will no longer use Title I VR funds and its matching funds to benefit private donors of those matching funds;

6.3       develop and implement policies and procedures to prohibit reversion of funds to benefit private donors; and

6.4       complete and submit the following source of match spreadsheet entitled, “Macomb ISD Cash Match/New Horizons,” that provides summary information on the total amount of funds Macomb ISD received from New Horizons for match, and the total amount used by MCB for State VR Services Program match in FYs 2005 through 2009:

 

      Macomb ISD Cash Match/New Horizons

       (FYs 2005 through 2009)
     
       
     FY 2005
     FY 2006
     FY 2007
     FY 2008
     FY 2009
     
      Total funds Macomb ISD received from New Horizons for match
      
      
      
      
      
     
      Total funds from this program MCB used for match  in specified FY
      
      
      
      
      
     

 

Agency Response:  Based on the review of 34 CFR 361.60(b)(3), MCB has ceased a possible “reversion to donor” practice in regards to the Macomb Cash Match Agreement. MCB understands that the CRP must not receive a benefit from their contributions; although, the vendor provides the funds to the ISD to be used in ways that could assist all transition students.  Therefore, any and all transition students could benefit.  MCB also maintains that there was no substantial harm to the Federal interest with the Macomb Cash Match agreement.

 

With regard to completion of the chart as required by corrective action 6.2 above, MCB has limited staff and resources and cannot work on issues which go back to October 1, 2004 (beginning of FY 2005).  The agency’s highest priority is working on current issues.  The documentation is available onsite for RSA reviewers.

 

RSA Response:  RSA appreciates the fact that MCB has ceased the “reversion to donor” practice described above.  Given that MCB does not refute the Finding, MCB must complete the corrective actions 6.2 through 6.4 outlined above.

 

Technical Assistance:  None requested at this time.