How grantee and subrecipient fiscal monitoring is conducted
Notification and preparation: The fiscal monitoring team notifies the grantee or subrecipient at least 30 days in advance about the scheduled monitoring. They provide instructions about the fiscal monitoring process, the required documentation, and any additional information. The grantee or subrecipient organization has 30 days to upload the documentation. During this time, a virtual pre-entrance meeting is held to review the monitoring agenda, documentation, and information needed, and to answer any questions.
Entrance meeting and initial review: The monitoring team hosts a virtual entrance check-in meeting at the start of the monitoring to review the documentation received and identify any additional documentation needed. The fiscal monitoring team uses the Uniform Federal Guidance 2 CFR 200, OMB Compliance Supplement, Generally Accepted Accounting Principles (GAAP), OAM, and OAR as the basis for compliance.
Fiscal review and reporting: The fiscal monitor conducts the review, which includes testing and sampling of grant expenditures. They typically complete the process within 60 days. A draft report is prepared and reviewed with the subrecipient to resolve any findings, and review recommendations and observations.
Ongoing support and guidance: The team is available to assist, support, and provide guidance to grantees and subrecipients, helping them meet federal and state fiscal compliance standards.
What is a Single Audit and is my organization subject to this?
A Single Audit, also known as a Uniform Guidance audit, is a thorough review of an organization's financial statements and compliance with federal award requirements. The fiscal monitoring team conducts Single Audits to ensure organizations using federal funding meet the necessary regulations and are accountable for the funds they receive.
Grantees and subrecipients are required to have an annual Single Audit if they receive federal funding (grants, pass-through grants and awards, cooperative agreements, etc.) and expend more than:
- $750,000 (for awards issued before Oct. 1, 2024) of federal dollars in a single fiscal year
- $1 million (for awards issued after Oct. 1, 2024) of federal dollars in a single fiscal year
The Single Audit Act Amendments of 1996 (Single Audit Act) streamlined and improved the effectiveness of audits of federal awards expended by states, local governments, and nonprofit entities (referred to as “non-federal entities”), while reducing audit burden. The Single Audit Act requires Single Audits to be conducted by an independent auditor.
The Single Audit Act gives the Director of the Office of Management and Budget (OMB) the authority to develop government-wide guidelines and policy statements for performing audits that comply with the Act. The most recent OMB regulation issued for this purpose is known as “Uniform Guidance.” It includes uniform cost principles and audit requirements for federal awards to non-federal entities, and administrative requirements for all federal grants and cooperative agreements.
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