1. MONITORING OF SUBGRANTEES

2. MONITORING OF SUBGRANTEES

3. Session Objectives To understand key principles for
effective monitoring and financial systems
To understand how risk assessment
helps determine appropriate
monitoring strategy
To review process and details
of desk review and
site visit monitoring

4. Assessing Risk for Subgrantees
Complete risk assessment prior to awarding a new sub-grant
Continuously consider changes in risk throughout the award period
Address risk assessment FACTORS related to:
1. Grant Award
2. Organization
3. Financial and Compliance
4. Program Performance

5. Financial Factors Financial Factors Financial Condition Recent Audits
Experience
Compliance

6. Keys for Effective Monitoring
Key Principles
Develop clear subgrant agreements with expectations
Develop mutual understanding of staff, participant and sponsor needs
Keys for Effective Monitoring
___________________________________________________________________________
Invest time to train new sub-grantees
Develop consistent expected level of accountability and required reporting
Establish standards and requirements for reports , deadlines, and due dates

7. Key Principles (Continued)
Communicate via onsite or telephone meetings
Consistently and continually distribute & train on policy guidance, regulations
Keys for Effective Monitoring
___________________________________________________________________________
Communicate monitoring expectations and level
Encourage sharing best practices for effective management

8. Keys for Effective Financial Management
Written accounting practices, policies, procedures
Sufficient internal controls
Clear audit trail from Accounting System to financial reports (FSR)
Documented cost allocation plan
Clear source documentation and retention policies
Adequate time reporting dcontrols
___________________________________________________________________________

9. Keys for Effective Financial Management
2. Written Policies & Procedures
10. Internal Controls
1. Regulatory Requirements
3. Documentation of Expenses
EFFECTIVE
FINANCIAL
MANAGEMENT
9. Reporting
8. Matching Requirements & In-kind Contribution
4. Managing Cash
5. Efficient Accounting System
7. Time & Activity Documentation
6. Budget Controls

10. Risk Based Approach to Monitoring
Use a risk based approach to determine:
each new or existing subgrantee’s risk level
best methods to help mitigate risk for each subgrantee:
- training - technical assistance - monitoring strategies
most appropriate monitoring and oversight strategies for each subgrantee
Consider the most effective and efficient use of
your resources

11. Tools and Resources Financial management survey or questionnaire
Audited financial statements
Risk assessment results
Monitoring policy
Reports and Files
Desk review checklists
On-site monitoring tool or instrument
___________________________________________________________________________

12. Monitoring Feedback & Follow-Up
Essential elements when monitoring sub-grantees:
Identify and communicate issues, problems, deficiencies in writing
Require corrective action plan and time schedule
Ensure complete and thorough follow-up
Require sub-grantees to report on actions taken
Review sub-grantee documents, files, etc. to ensure required actions were taken
___________________________________________________________________________

13. Monitoring Strategies
Desk Review Monitoring
Site Visit Monitoring
___________________________________________________________________________

14. Desk Monitoring - In House Review of:
Financial Status Reports (FSRs) for sub-grantees
Documents to support reimbursement requests
PER (Periodic Expense Report for AmeriCorps State)
or grantee forms
Special information requests:
Policies & procedures, e.g. grievance procedures
Supporting documentation for specific expenses or match
Other Reports, s, Correspondence, Files
___________________________________________________________________________

15. Desk Monitoring – Document Review
Review Documents for:
Accuracy
Timeliness
Expected content and format and meeting requirements
Other relevant issues
Identification of follow-up monitoring needed
Use checklists or other ways to document
reviews
___________________________________________________________________________

16. Desk Monitoring – A-133 Audit Reports
Develop and track schedule of subgrantee audit due dates
Collect and review when completed
Assess subgrantee’s financial position
Review management letter
Identify findings and issues
Coordinate corrective action plan for CNCS programs and organizational findings (if applicable)
Ensure all relevant findings addressed
___________________________________________________________________________

17. Site Visit Monitoring On-Site Visit Review Post Visit Phase
Pre-Visit Preparation
On-Site Visit Review
Post Visit Phase
___________________________________________________________________________

18. Site Visit Monitoring Pre-Visit Preparation Visitation date(s)
Coordinate with both sub-grantee fiscal officer and program director and others as appropriate
Notify subgrantee in writing of:
Visitation date(s)
Purpose of review
Necessary information you will need
(include monitoring tool or instruments you will use)
___________________________________________________________________________

19. Site Visit Monitoring Pre-Visit Preparation (continued)
Review materials in grant file:
Sub-grantee program proposal
Progress and financial reports
Approved budgets
Examine documents and information from desk reviews: e.g. financial reports, payment requests, audits, etc.
Develop and distribute site visit agenda
___________________________________________________________________________

20. Site Visit Monitoring On-Site Review Conduct entrance meeting with
sub-grantee program director, fiscal officer, and other appropriate officials
Meet with administrative, fiscal and other staff.
Review appropriate documents, information and materials (use various monitoring tools and checklists)
Conduct exit meeting and discuss findings with program director, fiscal officer and other officials as appropriate
___________________________________________________________________________

21. Site Visit Review Items - Examples
Review management policies &
procedures in these areas:
Time and attendance records for staff & members/participants
Member/participant eligibility
Travel
Record Retention
Personnel and Staffing
Documentation, tracking of program match
Procurement
Financial accounting system
___________________________________________________________________________

22. Site Visit Review Items – Examples
On-Site Monitoring
Description of financial management system/software
Organization’s accounting manual
Chart of accounts
Samples of source documents and
expenditure transactions
Samples of cash and in-kind match
source documents
Other policies, procedures, documents, etc. as needed or appropriate
Completion of any Surveys, Self Assessment Tools, etc.
Organizational Charts
Financial Management Policies and Procedures
Latest audits, 990
Position descriptions of key staff
___________________________________________________________________________

23. Site Visit Review Items - Examples
On-Site Monitoring
Key Areas to Review on a Site Visit
Latest FSR and PER amounts (expenses and match) reconcile and track back to financial accounting system
Staff time sheets or after the fact time records are signed and comply with applicable OMB cost principles Circular
Source documents (sample 3-5 for expenses and for match) see how they are coded, entered, recorded and reported in the financial accounting system
___________________________________________________________________________

24. Site Visit Review Items - Examples
On-Site Monitoring
Key Areas to Review on a Site Visit – (continued)
Member Files (sample 3 or more) contain appropriate eligibility documentation, criminal background checks, etc.
Member time sheets (sample 3 or more) are signed by member and supervisor and these times are identical with those entered in WBRS
Internal controls appear adequate
___________________________________________________________________________

25. Site Visit Monitoring Post Visit Phase
Prepare report describing findings and recommendations
Distribute to sub-grantee program director and other officials as appropriate
Request corrective action plan, with due dates if needed
Review and approve corrective action plan and dates
Provide training and technical assistance, as requested or appropriate
___________________________________________________________________________

26. Site Visit Monitoring Post Visit Phase
Follow-up on items in corrective action plan ensuring organization has taken required action
Consider appropriate sanctions if the organization fails to implement corrective actions
Ensure that site visit documentation, findings and report are maintained in appropriate files
___________________________________________________________________________

27. “Vox audita perit¸ litteras scripta manet:
The spoken word vanishes¸ the written word remains”
- Latin Phrases