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HISD

HISD E-Rate Policy Update

Gifts, Campaign Receipts, Business Relationships, and Internal Controls

May 6, 2010

Richard PattonE-Rate Compliance Officer

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HISD

Background

Gifts

Campaign Receipts

Business Relationships

Miscellaneous Controls

Agenda

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HISD Preliminary training covering gifts, campaign receipts, and business relationships was provided on March 25, 2010

Board approved E-Rate Policy on April 8, 2010

Cabinet approved detailed E-Rate Administrative Regulations on April 12, 2010

Trained approximately 220 E-Rate employees to date

History

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HISD E-Rate Program Employees and Board Members are prohibited from accepting:

Any gifts, meals, entertainment, or any other thing of value from any outside entity (or any consultant or other individual representing such an entity) that provides or seeks to provide goods or services pursuant to the E-Rate Program either directly or through a joint venture or resale arrangement

Exception - items of de minimus intrinsic value, such as a single greeting card, basic key chain, or basic pen

Appearance of a conflict is as important as a real conflict

Where unavoidable, return item to vendor or submit to Inspector General

Discuss summary of controls regarding logging and gifts that have been offered

Gifts

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HISD Proposed Revision - Board Members should not knowingly accept campaign funds from E-Rate Vendors & related officers/key employees

Consequence of non-compliance - Voting rights are prohibited on such contracts once $500 threshold is met, taken as a whole, over a calendar year

Summary of policy concerning communication, research, and monitoring process

Enforcement

Campaign Receipts

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HISD Business relationship is defined as the Board Member’s acceptance or receipt of amounts in excess of $2,000 in the course of any business dealings with an E-Rate vendor, consultant, or individual representing such an entity

Consequences of exceeding the limit - Voting rights are prohibited on such contracts when receipts over $2,000 are received, taken as a whole, over a calendar year basis

Summary of policy concerning communication, research, and monitoring process

Enforcement

Business Relationships

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HISD Inspector General will receive cumulative reports of Campaign Receipts and Business Relationships for consideration in periodic risk assessments and inclusion in audit plan

Disclosure of Interest Form – updated to include specific questions pertaining to E-Rate matters

Mandatory Quiet Period

o E-Rate Program Rules disallow communications with E-Rate Vendors, et al between the time a Request for Proposal (RFP) is issued through contract execution (except for limited conditions allowed to the Procurement Department).

o Proposed Revision - Extends existing quiet period for Board Members and District employees so that communications with E-Rate Vendors and related officers/key employees are not allowed for 30 calendar days prior to the RFP process, to the best of your knowledge

Internal Controls

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HISD Mandatory Quiet Period, con’t.

o The quiet period does not apply to communications regarding existing E-Rate contracts

o E-Rate Compliance Officer will communicate commencement of 30 day quiet period

Internal Controls

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HISD Request Board Member approval on May 13, 2010

Publicize on E-Rate web page no later than June 8, 2010

Next Steps