Project Status - Maryland State Department of Education

Report
THE IMPORTANCE OF GRANT
MONITORING
Preston Alderman
MSDE, Director of Audit
RESPONSIBILITIES OF THE GRANT
RECIPIENT
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As recipients of federal and state
funds we are charged with ensuring
that the funds are adequately
accounted for and spend in
accordance with the grant
assurances.
Receipt of those funds also subjects
the recipient to being monitored and
audited regarding the use of the
funds.
MSDE HAS BEEN REVISING ITS MONITORING
TOOLS:
Monitoring tools must be consistent with the following;
 Grant assurances
 Federal (OMB) regulations/policies (including
testing of expenditures)
 State regulation/policies
 Agency policies
NEW FEDERAL REQUIREMENTS
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EDGAR (Education Department General Administrative
Regulations)has been updated.
Cost , administrative & auditing rules are located in 2
CFR Part 200
The effective date of the changes are;
 December 26, 2014 –Direct Grants from ED
 July 1, 2015 – State Administered Programs
 July 1, 2016 – Procurement Rules
CHANGES IN FEDERAL GRANT MANAGEMENT
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Focus on outcomes
Performance metrics
Risk assessments
Financial management
Audit thresholds
Major emphasis on strengthening accountability by
improving policies that protect against waste, fraud
and abuse
GRANT RECIPIENTS SHOULD:

Review the criteria for determining
allowable costs:
 Part 76 State Administered
Programs
 Governmental units assume
responsibility for administering
Federal funds in a manner
consistent with underlying
agreements, program objectives,
and the terms and conditions of
the Federal award.
 Reasonable costs

Review 2 CFR Part 200 Subpart D – Post
Award Requirements
 Purpose of financial and program
management
 Standards for financial management
systems
 Purpose of reports and records
 Monitoring and reporting program
performance

Review 2 CFR Part 200 Subpart D – Post
Award Requirements
 Termination
 If a recipient materially fails to comply
with the terms and conditions of the
award

Review 2 CFR Part 200 Subpart D – Post
Award Requirements
 Enforcement
 Temporarily withhold payment
pending correction of deficiency
 Disallow all or part of the cost of the
non compliant activity
 Wholly or partly suspend or terminate
the award
ALLOWABLE COSTS
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Review 2 CFR Part 200 Subpart E
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55 specific costs detailed
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Listed in alphabetical order
10
ALL COST MUST BE:
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Necessary, reasonable & allocable
Conform with federal law & grant terms
Consistent with state && local policies
Consistently treated
In accordance with GAAP
Not included as match
Adequately documented
FINANCIAL MANAGEMENT SYSTEM
2 CFR 200.302
12
FINANCIAL MANAGEMENT SYSTEM:
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COMMON PROBLEMS
 Controlling allowable costs
 Clear record trail
 Cash management
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FINANCIAL MANAGEMENT SYSTEM (FMS)
Identification of Awards (new)
 Financial Reporting
 Accounting Records
 Internal Control
 Budget Control
 Written Cash Management Procedures (new)
 Written Allowability Procedures (new)
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FINANCIAL REPORTING
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Accurate, current and complete disclosure of financial
information
 All financial reports required by ED, must be
submitted no less than annually, no more than
quarterly.
 Non federal entities must submit performance
reports at intervals by federal agency or pass
through.
 Performance metrics must be included.
15
ACCOUNTING RECORDS
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Must identify source and application of
funds (expenditure level detail):
 Award amount
 Authorizations
 Obligations
 Unobligated balances
 Assets
 Liabilities
 Expenditures
 Income
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INTERNAL CONTROLS
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Internal controls are tools to help
program and financial managers achieve
results and safeguard the integrity of
their programs
 Includes processes for planning,
organizing, directing, controlling, and
reporting on agency operations
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QUESTIONS ?

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