Federal Fiscal Monitoring Division
As a pass-through entity, TEA is statutorily required 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. The Federal Fiscal Monitoring Division (FFM), housed under the Department of Grant Compliance and Administration (GCA), 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’s subrecipient monitoring activities include performing an annual risk assessment of subrecipients, reviewing single audit reports, conducting desk/onsite reviews of selected subrecipients, and providing technical assistance to subrecipients.
FFM staff performs an annual subrecipient risk assessment to assess individual risk for each subrecipient. The risk assessment includes high, medium, and low risk levels assigned to each subrecipient. LEAs can access their risk levels through TEAL under GFFC Reports and Data Collections.
FFM staff conducts reviews of Title 2 of the Code of Federal Regulations (2 CFR) 200, Subpart F, single-audit findings for federal grants directly administered by TEA for potential management decision letters. Based on their review, staff issues a management decision letter for any single audit finding related to the federal grant that is directly administered by TEA. The division director authorizes management decision letters. FFM staff follows up with any corrective actions resulting from the findings identified in single audits.
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.
Notice of Agency Policy
TEA conducts federal fiscal grant subrecipient monitoring and compliance reviews and implements related enforcement actions in accordance with its established policies and procedures. These policies and procedures incorporate best practices and standards that may be similar to common auditing standards. However, the agency does not apply a specific set of external standards, such as the US Government Accountability Office’s Generally Accepted Government Auditing Standards (Yellow Book), nor is it required to do so.
Federal Fiscal Monitoring Division
1701 North Congress Avenue
Austin, Texas 78701
Phone: (512) 463-9918