New Mexico Department of Homeland Security and Emergency Management

1. New Mexico Department of Homeland Security and Emergency Management Erica Cummings Grant Coordinator

2. Introduction • The New Mexico Department of Homeland Security and Emergency Management (DHSEM) is responsible for: • Monitoring all grantees that receive Homeland Security/FEMA/DOT funding to ensure compliance with audit requirements, applicable laws, rules, and regulations • To assist DHSEM in fulfilling its obligations, the Fiscal Monitoring will be an integral element of the Grant Unit

3. Introduction • The Grant Unit is responsible for fiscal monitoring: • All grantees regardless of the federal funding source • with the single exception of Disaster Declarations • Fiscal monitoring is done through • documentation review, on-site visits, review of A-133 Single Audit reports and technical assistance  • All DHSEM grant recipients have been assigned a Grant Specialist • responsible for this fiscal monitoring function

4. Grant Unit Responsibilities • Provide on-going fiscal oversight and fiscal monitoring of Homeland Security/FEMA/DOT sub-grant agreements • Obtain a reasonable assurance that grantees are expending funds in accordance with State and Federal guidelines • Inform grantees of fiscal compliance requirements

5. Grant Unit Responsibilities • Provide technical advice and training to grantees as necessary and feasible • Help ensure timely expenditure of grant funds • Work with grantees to help detect and prevent fraud and abuse

6. Grant Unit Responsibilities • Continuously develop and administer a fiscal monitoring program • This will provide a reasonable assurance that grant funds are in compliance with Federal and State financial management requirements • Track Single Audit (A-133) findings and fiscal monitoring issues of grantees • To identify trends and address problem areas

7. Grant Unit Responsibilities • Identify and provide technical assistance to grantees • Ensure corrective action from previous fiscal monitoring reports, audits, or from any other sources that require such follow-up

8. Grant Unit Responsibilities • Identify innovative tools and techniques for the achievement of Grant Unit goals and objectives • Review the adequacy of internal controls and the reliability of the Grantee’s financial management system • as they relate to the sub-grant agreements

9. Grant Unit Responsibilities • Help to ensure that the Grantee meets the terms and conditions of the sub-grant agreement(s) • as they relate to fiscal goals or requirements

10. Grant Unit Responsibilities • Help to ensure that amounts reported are accurate, allocable, allowable, reasonable, necessary, and supported by documentation • Continuously develop Grant Unit staff • Attend/Participate in trainings and conferences to ensure professional competence and integrity of the Grant Unit

11. Monitoring Frequency and Type • Monitoring is an ongoing process • The Grant Unit will consider monitoring needs at various milestones • Initial Award: Monitoring may begin at the time a sub-grant agreement is executed • A new grantee may be unfamiliar with the financial reporting and management requirements of the grant • Technical assistance at the initial execution of the sub-grant agreement for new grantees may be beneficial

12. Monitoring Frequency and Type • Periodic Monitoring: On-going monitoring should be conducted for all grant recipients • The types and frequency of the monitoring will depend on the awarded grants and grantee performance

13. Monitoring Frequency and Type • Completion of sub-grant agreement: • When a grantee completes a sub-grant agreement • A final fiscal review may be conducted

14. Scheduling • Monitoring schedules will be completed on a routine basis and reviewed by the Grant Unit Manager • Staff will strive to maintain a six (6) month schedule • To include meetings, trainings, desk reviews, on-site reviews and follow-up visits

15. Scheduling • The scheduling of new monitoring efforts should be based on an assessment of risks in two broad areas: • Compliance • Performance

16. Scheduling • Compliance • the likelihood that the grantee may violate state regulations, fail to comply with grant or statutory requirements, or be open to fraud abuse • Performance • the likelihood that, even without actual compliance violations, the results of the activity may not result in desired outcome for the grant

17. Scheduling • This risk analysis should be an objective assessment based upon information from variety of sources, including: • Funding amounts awarded to a grantee • Recent Single Audit (A-133) Report reviews • Input from Federal Fiscal Unit, Sub-grant agreement Unit, or other staff

18. Scheduling • Time since last Grantee review • Information from other sources • Results of previous on-site/office based reviews and follow-up activities

19. Monitoring Types • Office Based Monitoring (Desk Audits) should be performed for grantees • Office based monitoring should include • A review of the sub-grant agreement (core) file • to ensure that all applicable documents are accounted for • Example: inventory control forms • financial and programmatic reports are current

20. Monitoring Types • It is the responsibility of the Grant Specialist to obtain a current copy of the NIMS compliance report for all sub-recipients

21. Monitoring Types • Field Based Monitoring • Will be performed at least twice per year • Depending on the risk of the sub-recipient

22. Monitoring Types • Office and field based monitoring will follow the same or similar processes both leading to a monitoring report being issued • Office based monitoring will not require the Grant Specialist to travel to the grantee site • Documentation will be obtained from the grantee through mail, emails, faxes, and phone calls

23. Monitoring Types • Equipment verification and documentation collection will be obtained through Field Based Monitoring • Both forms of monitoring must be documented by the Grant Specialist, and circulated through appropriate channels • A checklist has been developed for use during office based monitoring

26. ANY QUESTIONS?

27. Thank You! Erica Cummings Grant Coordinator 505-476-9603 Erica.Cummings@state.nm.us