ED to Form Risk Management Services

The U.S. Department of Education (ED) has announced it is restructuring to better fulfill its grants management responsibilities. ED is forming a new group in the Office of the Secretary to be named Risk Management Services (RMS). The RMS will have four primary responsibilities: (1) establishing policy for all grant funds ED administers, whether they are discretionary or formula grants; (2) work with grantees on risk mitigation strategies, beginning with those grantees perceived to be the highest risk (through the Management Improvement Team (MIT)); (3) work with states to develop risk based subrecipient monitoring systems; and (4) customer service and training. The RMS will begin work on October 1.

This restructuring will have a significant impact on grants management. First, one entity within ED will now be responsible for grants management issues in all programs, meaning there should be more consistency in ED’s policies across programs. Second, ED does not have an existing office responsible for grants management issues in formula programs (the Office of the Chief Financial Officer did work on discretionary programs), meaning ED may finally develop policies on important issues such as cash management, financial management, procurement and inventory. We will watch the RMS’s actions closely and report on any major developments.

Phil Maestri, the current director of the MIT, is expected to head the new RMS. Mr. Maestri is scheduled to speak at Brustein & Manasevit’s Fall Forum in Clark County November 29-30.

Author: SLK