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Division of Federal Fiscal Monitoring

 

The Division of Federal Fiscal Monitoring is responsible for monitoring the expenditures of federal grant subrecipients to ensure that federal funds are used for authorized purposes in compliance with laws, regulations, and the provisions of contracts or grant agreements.

One way that 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.

The division also selects individual federal grant subrecipients for review. If selected for a review, your organization is notified by letter. The letter describes the details of the review process and provides a list of documents that you must submit to TEA.

The division conducts two kinds of reviews, described below. In any given fiscal year, organizations are usually selected for only one kind of review.

Monitoring Reviews 

The objective of a monitoring review is to determine if a subrecipient of federal grant funds obligated, expended, and used the grant funds in accordance with the approved grant application and applicable federal statutes and cost principles.

To begin the monitoring review, staff from the Division of 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 may describe any observations made during the review, with recommendations. Based upon the observations, the division may also refer the organization for further review.

The monitoring review is more limited in scope than a grant review and focuses on the allowability of selected expenditures.

Grant Reviews

The objective of a grant review is to determine whether a subrecipient of federal grant funds complied with applicable federal statutes and regulations and with grant requirements. The review focuses on the fiscal practices developed and implemented by the organization to demonstrate compliance with applicable requirements.

Division auditors review, analyze, and evaluate supporting documentation submitted by the organization and may contact the organization to ask specific questions about the documents. If a site visit is deemed necessary, auditors will notify the organization at a later date. When the review is complete, auditors issue a report that discusses their observations and findings.

The grant review is more comprehensive than a monitoring review and tests fiscal practices as well as the allowability of expenditures based on specific fiscal and program requirements.

Resources 

 Additional information for subrecipients selected for a review.

 Statutory authority for reviews.

Notice of Agency Policy

The Texas Education Agency 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, 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.

Contact Information 

Division of Federal Fiscal Monitoring

1701 North Congress Avenue

Austin, Texas 78701

Phone: (512) 463-9918

Email: ffm@tea.state.tx.us

Page last modified on 9/11/2014 11:26:59 AM.