Fiscal Monitoring Division is responsible for monitoring the expenditures of
federal grant subrecipients to ensure federal funds are used for authorized
purposes in compliance with federal statutes, regulations, and the terms and
conditions of federal awards.
One way the
division carries out its responsibilities is to monitor findings identified
during an organization’s single audit. More information about monitoring
single-audit findings, including
single-audit requirements and what you can expect if your organization’s single
audit contains findings, is available online.
also selects individual federal grant subrecipients for review. If
selected for a review, the Division will notify your organization in writing by
mail and email. The letter describes the details of the review process and provides
a list of documents that you must submit to TEA.
conducts two kinds of reviews, described below. In any given fiscal year,
organizations are usually selected for only one kind of review.
of a monitoring review is to determine if a subrecipient of federal grant funds
obligated and expended the grant funds in accordance with the approved grant
application and applicable federal statutes and regulations.
To begin the
monitoring review, staff from Federal Fiscal Monitoring request documentation
from the organization to support grant expenditures, including a general ledger
and payroll journal. After reviewing the submitted documents, staff select
specific expenditures for further review and request additional supporting
documentation, such as copies of invoices, receipts, travel vouchers, and time
and effort records. If necessary, staff inquire about specific aspects of a
transaction, such as the source documentation, the business purpose of the
transaction, the associated activities, and the participants. When all
requested documentation has been received and reviewed, and all inquiries
satisfactorily answered, staff conclude the monitoring review and notify the
organization by letter. The letter will describe any observations made during
the review and provide recommendations for strengthening internal controls and
financial management systems. Based upon the observations, the division may
also refer the organization for further review.
review is more limited in scope than a grant review and focuses on the
allowability of selected expenditures.
A grant review
is more comprehensive than a monitoring review. The objective of a grant 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 Title 2 of the Code of Federal Regulations (CFR), Part
200. The review focuses on the financial management systems developed and
implemented by the organization to demonstrate compliance with applicable
requirements, including policies and procedures, accounting software, and
record keeping systems. The grant review also tests the allowability of
expenses charged to your federal grant, as well as compliance with federal program
Division staff will
communicate with you through a series of letters, emails, or telephone calls,
as needed, to request policies and procedures, financial records, and
supporting documentation. Staff review, analyze, and evaluate financial records
and all supporting documentation submitted by the organization and may contact you
to ask specific questions about the documents. If a site visit is deemed
necessary, staff will notify you at a later date.
After staff have
reviewed your internal controls, financial records, and supporting
documentation, a preliminary report is issued. Your organization will review
the preliminary report and respond, in writing, within ten business days. You
may provide additional documentation in your response to the preliminary
report. Staff review your response and any additional information you submit
and then issue the final report of observations and findings. Division staff
will refer organizations to other TEA divisions or staff to address pending
issues, as needed.
subrecipients selected for a review.
authority for reviews.
Notice of Agency Policy
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, but
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.