Fiscal Monitoring

1. Fiscal Monitoring “How to Handle Fiscal Monitoring When You're Not an Accountant”

2. Fiscal Monitoring: A Guide for Consultants Agenda: • Background • Monitoring Process • Pre-Visit • During the site visit • After the site visit • Red flags • Tools of the trade • Questions / Discussion

3. Policy Driven • Cost Principles: • OMB Circular A-87- State, Local, and Indian Tribal Gov’ts • OMB Circular A-21- Educational Institutions • OMB Circular A-122-Non-Profit Organizations • Subrecipient Monitoring Plan – applicable to all NC DPH sections. Allows for flexibility. • Internal Branch • Site Visit Policy – Deputy Branch Head • Scope of Work(SOW) deliverables

4. Fiscal Monitoring addresses several key contract compliance areas.

5. The Balancing Act… Independent Auditor Grantee DHHS

6. Pre-Visit Planning During-Visit Verify Analyze Post-Visit Report Follow-up

7. P lanning rior erformance iss revents oor

8. Pre-Visit • Notify POC at the agency • Determine if another monitor will accompany you • Discuss objectives for visit w/ agency • Review Grant/SOW • Determine issues to discuss • Choose 2 CERs to review

9. Pre-Visit Review high-risk ltr. (if applicable) Review last site visit report Review last quarterly report Secure directions to agency Reserve hotel and car Process BDA (if required for travel) 2-3 days prior, confirm site visit by email Bring laptop, paper, pen/pencil, & calculator

10. OK, now you're ready for the Site Visit!!! Let's review some "Source Documentation!"

12. Site Visit Check List Salary / Fringe • Timesheets (signed by employee and supervisor) • Payroll ledgers • Allocation formula

13. Site Visit Check List Operating Expenses • Bills / Invoices / Receipts • Allocation formula • Payment verification • Check copies • General ledger • Bank statements / cancelled checks • Verification of internal account transfer

14. Site Visit Check List Equipment Expenses • Bills / Invoices / Receipts • Allocation formula • Payment verification • Check copies • General ledger • Bank statements / cancelled checks • Verification of internal account transfer

15. Site Visit Check List General Contracted Services • Review Contract • Bills / Invoices / Receipts • Payment verification • Check copies • General ledger • Bank statements / cancelled checks • Verification of internal account transfer

16. Rent / Utilities Is it a rational expense? Is an allocation formula used? How many other grants? Based on what? Who owns the building? Supplies / Ed. Exp. Is it reasonable / allowable? Is it consistent with the contract? Is it consistent with the program? Is the expense “Organizational” or “Program Specific”? Key Questions to Consider:

17. Telephone / Cell Phone Who is using the phone(s)? How are they involved with the grant? On the bill, when are calls being made? To whom? Other Unallowable Costs Sales tax should not be included Bank “Overdraft Charges” Key Questions to Consider:

18. “Red Flags” • Uncharacteristic behavior by employees • Offers of gifts, money, or other gratuities from grantees • Increase in claims for reimbursement • Appearance of conflict of interest by employees • Unaccountable funds

19. “Red Flags” • One person in control (e.g., no separation of duties) • Altered, inadequate or missing documentation • Non-serial numbered transactions • Grantees living beyond their means • Nepotism

20. Post-Site Visit Check List Post-Visit • Return Car (if applicable) • Complete Travel Reimbursement forms • Prepare a Draft Report • Give to Unit Manager for review • Mail approved report to agency within 3 weeks of site visit

21. Tools of the Trade ~ Site Visit Checklist ~ Site Visit Verification Checklist ~ Procecure for Monitoring Review ~ Financial Checklist ~ Programmatic Checklist ~ Site Visits Worksheet ~ Site Visit Report Format

22. Group Activity

23. Report Fiscal MonitoringPutting the Pieces Together Monitoring Tools Plan Policies Analyze Technical Assistance Review Verify Action ? Sanctions ?

24. Questions / Discussion

25. The End