Federal Fiscal Monitoring Division

The Federal Fiscal Monitoring Division (FFM) is responsible for the fiscal monitoring of the expenditures of federal grants awarded to subrecipients, including local educational agencies (LEAs), which include school districts and open-enrollment charter schools, and education service centers (ESCs), and, to a lesser degree, institutions of higher education (IHEs), and nonprofit organizations (NPOs). FFM is a division of the Department of Grant Compliance and Administration (GCA).

FFM Duties 

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. FFM’s monitoring activities include conducting reviews and providing technical assistance to subrecipients.

Monitoring Reviews Conducted by FFM

FFM conducts fiscal monitoring of selected subrecipients based on the annual subrecipient monitoring plan developed by GCA. 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 Title 2 and Title 34 of the Code of Federal Regulations (CFR). The reviews focus on the financial management systems and internal controls developed and implemented by the subrecipient 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 subrecipients to request the documentation required to complete the review. Staff will review, analyze, and evaluate financial records and the supporting documentation submitted, and may contact the subrecipient to ask specific questions about the documents.

Federal Subrecipient Fiscal Monitoring Protocol

This protocol includes the applicable indicators that may be included in a federal grant subrecipient fiscal monitoring review conducted by FFM. Included with each of the indicators are the legal citation for the requirement, a description of the requirement, compliance questions, and examples of supporting documentation a subrecipient would use to demonstrate compliance. While certain documentation may be required for an indicator, most indicators allow for locally defined documentation that meets their local policies and/or procedures.
 

Monitoring protocols reviewed for an organization will vary depending on the type of review (full fiscal or flash review described below), specific indicators selected, the grant program under review, risk level, and type of subrecipient. Traditional school districts, open-enrollment charter schools, nonprofit organizations, and other educational entities may operate under different statutory frameworks, governance structures, and federal program requirements. As a result, the scope, documentation expectations, validation procedures, and compliance monitoring activities may differ slightly to ensure alignment with the specific legal obligations and operational contexts of each entity type.

• 2026 Federal Subrecipient Fiscal Monitoring Protocol

FFM Subrecipient Monitoring Reviews

*Please refer to the links below for a full list of subrecipients monitored for the applicable fiscal year. Subrecipients are added after they have received a notification letter.

Resources

• Statutory Authority for Monitoring
• Information for Organizations Selected for a Review
• Minimum Required Elements for General Ledgers and Payroll Journals
• Financial Accountability System Resource Guide (FASRG)
• EDGAR Materials and Resources