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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, ²ÝÝ®ÊÓƵ 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 and 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.

After staff have reviewed a subrecipient’s internal controls, financial records, and supporting documentation, a preliminary report is issued. The subrecipient reviews the preliminary report and responds, in writing, within fifteen business days. Once the response to the preliminary report has been received, staff will review the response and any additional information submitted and then issue the final report, including any findings. Findings that are not resolved when the final report is issued are referred to the Federal Compliance Officer (FCO) for non-compliance resolution. For complete details about the review process, refer to the information for organizations selected for a review.

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.