Federal Fiscal Monitoring Division

The Federal Fiscal Monitoring Division (FFM)is responsible for fiscal monitoring of the expenditures of federal grants awarded to subrecipients including school districts, charter schools, education service centers and nonprofit institutions. FFM is a division of theDepartment of Grant Compliance and Administration (GCA).

COVID-19 and Federal Grant Funds

Visit the Department of Grant Compliance and Administration for information on the federal grants authorized in response to COVID-19.

FFM Duties

As a pass-through entity, ջ isstatutorilyrequired to monitor the activities of subrecipients as necessary to ensure that subawards are used for authorized purposes, in compliance with federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved.

FFM’s subrecipient monitoring activities include conducting desk/onsite reviews of selected subrecipients and providing technical assistance to subrecipients.

Monitoring Reviews Conducted by FFM

Based on the risk assessment, FFM develops and conducts the annual subrecipient monitoring plan. The objective of a subrecipient monitoring review is to determine whether a subrecipient of federal grant funds is complying with applicable federal statutes and regulations and with grant requirements, including the uniform administrative requirements and cost principles for federal awards given in 2 CFR 200. The reviews focus on the financial management systems’ internal controls developed and implemented by the organization to demonstrate compliance with applicable requirements, including policies and procedures, accounting software, and record-keeping systems. The review also tests the allowability of expenditures charged to the federal grant, as well as compliance with federal program requirements.

During the review process FFM staff will communicate with LEA staff through a series of letters, emails, or telephone calls, as needed, to request documentation required to complete the review. Staff will review, analyze, and evaluate financial records and the supporting documentation submitted and may contact the LEA to ask specific questions about the documents. If a site visit is deemed necessary, staff will notify the LEA.

After staff have reviewed an LEA’s internal controls, financial records, and supporting documentation, a preliminary report is issued. The LEA reviews the preliminary report and responds, in writing, within ten business days. Once the LEA’s response to the preliminary report has been received, staff will review the response and any additional information submitted and then issue the final report of findings and observations. Any issues that are not resolved by the time the final report is issued are referred to the enforcement officer to ensure that corrective actions are implemented to resolve them. For complete details about the review process refer to the information for organizations selected for a review.