Information for Organizations Selected for a Review

Based on the annual subrecipient monitoring plan, the Federal Fiscal Monitoring Division (FFM) conducts reviews of federal grants awarded to school systems, education service centers, and nonprofit entities. Most reviews are conducted as desk reviews. However, if deemed necessary, onsite visits are scheduled to complete the review. The objective of the review is to determine if you have complied with applicable state and federal statutes and regulations.

Review Process

If FFM selects your organization for review, staff will send you a notification letter by email. FFM’s review process is mainly divided into four stages, as noted below:

Notification

Notification will identify the grant selected for monitoring and describe the objective, scope, and methodology of the review process. Additionally, the notification letter will include a request for an initial set of documents that you must submit to ��, which may include:

Locally developed and approved policies and procedures in effect during the current school year
Chart of accounts, which lists all general ledger account codes, including all locally defined general ledger account codes, in effect during the current year
Name of the accounting software used as part of the financial management system
Copies of detailed general ledgers and payroll journals with minimum required elements in both PDF and Excel format
List of employees paid with grant funds

Request for Supporting Documentation

After completing an initial review of the documentation submitted in response to the notification letter, staff may select a sample of transactions from different budget categories reported in the general ledger and request supporting documentation for those transactions. Supporting documentation may include:

Applicable portion of the District Improvement or Campus Improvement Plan with a notation clearly identifying the specific need, goal, strategy, and activity that supports the payroll cost charged to the grant (for applicable ESSA programs)
Time and effort documentation
Payroll/salary authorization forms
Signed and dated job description(s) that includes the employee’s official job title (if required)
Copy of employee's current license or certification for their job assignment
Identification of the procurement method used for purchasing and related supporting documents
Copy of original internal accounting records (purchase requisition form, purchase order form, expense reimbursement voucher, etc.)
Copy of original and complete itemized third-party documents (invoices, receipts, billing statements, etc.)
Supporting documentation to demonstrate compliance with applicable state and federal (EDGAR) procurement requirements (for purchasing cooperatives)
Documentation to demonstrate compliance with suspension and debarment requirements
Documentation supporting professional and contracted services, travel, and training-related costs paid with grant funds

Preliminary Report

Based on their examination of records submitted, FFM staff will issue a Preliminary Report of Findings identifying findings resulting from the review. Specifically, the preliminary report will identify the criteria monitored, findings and associated questioned costs, and instructions to respond and provide additional documentation to resolve the findings.

Final Report

Based on additional documentation and response to the preliminary report, FFM staff will review and issue a Final Report that includes the status of the finding. If the finding is resolved, it will be noted as Closed in the final report, and related questioned costs will be revised.

Findings or questioned costs that are not resolved will remain in the final report and will be referred to the Federal Compliance Officer for non-compliance resolution.

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