Fiscal Monitoring: Ensuring Accountability of Your Sub-Grantees

1. Fiscal Monitoring: Ensuring Accountability of Your Sub-Grantees Kristina Tecce Walker & Company LLP Ktecce@walkerllp.com 877-363-9300

2. Purpose for Monitoring • Ensure Compliance & Program Quality • Provide Technical Assistance and Support • Share information • Ensure Accountability • Communicate Concerns • Gather Best Practices

3. Fiscal Site Visit Goals • Effective system of internal control and accountability • Accounting transactions are recorded properly and timely • General ledger is consistent with financial reporting • Source documentation to support recent FSR is available • Match is properly documented and recorded (including in-kind)

5. Selecting Projects for Onsite Monitoring • Use risk assessment tool to assess risk • Various risk factors • Grantee Funding levels • Staff Turnover (either Fiscal or Program) • Number of years as grantee • Prior issues • Audit findings • Time since last visit

6. Pre-Visit • Review materials in preparation for visit • FSR (269) and Reimbursement Requests • Egrants Budget • Review previous site visit and recent correspondance • Review A-133 Audits and/or available financial reports • Review Member enrollment and hours

7. Items to Review/Request • Accounting manual/written fiscal policies & procedures • Print out from Chart of Accounts where grant expenses are reported • Recent FSR • Supporting ledger for recent payment request • Most recent reconciled bank statement

8. Items to Review/Request • Staff time sheets • Cost allocation methodology memo • Segregation duties checklist • Budget to actual expenses variance analysis • Source document to support all expenses reported (federal & non-federal) on FSR for the period under review • Indirect Cost Agreement (if applicable) • Other items as applicable

9. Compliance Monitoring FSR Review • Based on information obtained in previous questions as well as general ledger print out are expenses • Reasonable • Allowable • Necessary • Make sure that General Ledger is consistent with approved budget and recent FSR

10. Compliance Monitoring Personnel/Staff Expenditures -Critical to ensure time and activity is appropriate -Salary charges to the grant should be based on actual time or a periodic (monthly/quarterly) reconciliation of budgeted time to actual time worked. Are there staff that work less that 100% on grant or work on two grants? Be sure to examine allocations.

11. Compliance Monitoring Match cash resources • How does the organization record donations for match? • How are these funds tracked? • Is program meeting 15% non-federal match for stipends? • Is program meeting operational match?

12. Compliance Monitoring • In-kind Documentation • Do forms or vouchers include • Name of donor • Date of donation • Description of item/service • Estimated value (should come from donor) • Donor signature • Is value appropriate?

13. Compliance Monitoring • Accounting records • Using chart of accounts, Are there different codes within the accounting system to separately track grant funds and match? • Segregation of duties • Who reconciles bank statement? • Who signs checks? • Ensure that more than one person is involved in processes.

14. Post Visit • Findings & Follow-up • Work with Grants Officer • Discuss issues • Determine appropriate corrective action • Follow-up in writing with Grantee • Set deadlines for follow-up items