Fiscal Monitoring

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

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

Fiscal Monitoring: Fiscal Monitoring: A Guide for ConsultantsA Guide for Consultants

Fiscal Monitoring: Fiscal Monitoring: A Guide for ConsultantsA 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

Policy Driven Cost Principles:

OMB Circular A-87-OMB Circular A-87- State, Local, and Indian Tribal Gov’ts

OMB Circular A-21- OMB Circular A-21- Educational InstitutionsEducational Institutions OMB Circular A-122-OMB Circular A-122- Non-Profit Organizations Non-Profit Organizations Subrecipient Monitoring Plan –Subrecipient Monitoring Plan – applicable to all applicable to all

NC DPH sections. Allows for flexibility.NC DPH sections. Allows for flexibility.

Internal BranchInternal Branch Site Visit Policy – Site Visit Policy – Deputy Branch HeadDeputy Branch Head Scope of WorkScope of Work (SOW)(SOW) deliverables deliverables

Fiscal Monitoring Fiscal Monitoring addresses several key addresses several key contract compliance contract compliance

areas.areas.

Fiscal Monitoring Fiscal Monitoring addresses several key addresses several key contract compliance contract compliance

areas.areas.

The Balancing Act…

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

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

Site Visit Check List

Salary / Fringe

Timesheets (signed by employee and supervisor)

Payroll ledgers

Allocation formula

Site Visit Check List

Operating ExpensesBills / Invoices / Receipts

Allocation formula

Payment verificationCheck copies

General ledger

Bank statements / cancelled checks

Verification of internal account transfer

Site Visit Check List

Equipment ExpensesBills / Invoices / Receipts

Allocation formula

Payment verificationCheck copies

General ledger

Bank statements / cancelled checks

Verification of internal account transfer

Site Visit Check List

General Contracted Services

Review Contract

Bills / Invoices / Receipts

Payment verificationCheck copies

General ledger

Bank statements / cancelled checks

Verification of internal account transfer

Key Questions to Consider:

Rent / UtilitiesIs 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:

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”

“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

“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

Post-Site Visit Check List

Post-VisitReturn Car (if applicable)

Complete Travel Reimbursement forms

Prepare a Draft ReportGive to Unit Manager for review

Mail approved report to agency within 3 weeks of site visit

Fiscal MonitoringPutting the Pieces Together

TechnicalAssistance

Sanctions ?

AnalyzeReviewVerify

Action ?

Policies

Monitoring ToolsPlan

Report

Questions / Discussion