If you cannot find answers to your questions under any of the topics covered on this website, please call 602-542-3901 and use Option 3. One of our Fiscal Monitoring Auditors will be happy to answer your questions or help you find the guidance you need to meet compliance with Federal grants management requirements.
For additional guidance, please refer to:
- Frequently Asked Questions for further instruction on grant processes
- Training Resources for technical instructions on using the GME system
What is Fiscal Monitoring?
Within the Grants Management Division, the Fiscal Monitoring Unit is charged with performing periodic fiscal reviews for all education agencies within the State of Arizona that receive grant awards passed through ADE. The Unit goals are to ensure the education agencies use sound management practices as public stewards of federal funds, assist the agencies to meet compliance with Federal program requirements and federal grant guidelines and to provide assistance to the agencies as necessary.
What is Fiscal Monitoring Review?
The Federal Uniform Administrative Requirements mandate ADE monitor subrecipients. Monitoring includes:
- Review of financial reports provided by the subrecipient
- Follow-up to ensure timely and appropriate actions by subrecipients with deficiencies pertaining to the Federal award, as detected through audits, on-site reviews, and other means
- Issuing management decisions for audit findings pertaining to the Federal award
- Depending on ADE’s assessment of compliance and/or risk, providing subrecipients with training and technical assistance
What is Reviewed during Fiscal Monitoring?
- Grant Expenditures – Payroll & Non-Payroll
- Review of Expenditures and Cash Management — monitoring/audit ensures cash management/flow correlates with expenditure documentation and that all expenditures are accounted for
- Time and Effort
- Time & Effort Reporting — monitoring/audit ensures there is an adequate level of Time and Effort documentation for all salaries charged to the ESS Grant
- Fixed Assets
- Fixed Assets — monitoring/audit includes a physical review of assets purchased using ESS Grant funds (if applicable)
- Grants Management & Internal Control
- Administrative and Financial Recordkeeping — monitoring/audit ensures there is a solid internal control system in place for maintaining documentation
- Adherence to Reporting Guidelines — monitoring/audit reviews timeliness of financial reporting
How is an LEA selected for Fiscal Monitoring Review?
- Fiscal Monitoring Review findings within the previous 4 years
- LEA has not yet received a fiscal review
- Financial Audit and/or Single Audit findings
- Findings reported in the Uniform System of Financial Records for Districts or Charters (USFR or USFRCS) Compliance Questionnaire
- History of late grant applications, budgets or completion reports
- Outstanding unpaid balances
- Late submission of General Statement of Assurance
- Expired Federal Central Contractor Registration
How do I know if I’m selected for Fiscal Monitoring Review?
What is the Time Period for a Fiscal Review?
How Long does a Fiscal Monitoring Review Take?
To ensure the Review does not take longer than necessary, it is recommended to provide documentation by the deadline dates requested by the Monitoring Auditor.
What is Involved in a Fiscal Monitoring Review?
- Stage One – Desk Review:
- All LEAs selected for Review will experience a Stage One Desk Review
- This level of Review includes:
- Comparison of the Grant Accounting Expenditures report to the Grant Completion Report filed for the fiscal year under review
- Review of Grants Management History
- If the Accounting Expenditure Report(s) match the corresponding Grant Completion Report(s), and if the Monitoring Auditor does not identify any other issues of noncompliance or internal control weaknesses, the Stage One Desk Review is completed. A Preliminary Determination Letter is issued to the LEA, and the Review is closed.
- Stage Two – Expanded Desk Review:
- If the Grant Expenditure reports do not match the corresponding Grant Completion Report, the LEA is moved to a more comprehensive Stage Two Desk Review.
- This level of Review will require the LEA to provide:
- Policies and Procedures for accounting processes, cash management, procurement, asset and inventory management, payroll and employee certification management, and Time and Effort policies.
- Documents for audit samples selected from the Grant Accounting Expenditure report(s)
- Based on the LEA’s documentation, the Monitoring Auditor will determine if the LEA meets compliance standards for stewardship of IDEA grant funds. If documents show adequate compliance with Federal and grant requirements, the Stage Two Desk Review is completed, a Preliminary Determination Letter is issued to the LEA, and the Review is closed.
- However, if the Monitoring Auditor identifies noncompliance issues, findings may be reported in a Final Determination Letter and the LEA will be required to formulate a Corrective Action Plan to correct issues of noncompliance.
- In rare cases, it may be necessary to proceed to a Stage Three On-Site Review to gather additional information about the LEA’s level of compliance or provide Technical Assistance to the LEA’s business office staff.
- Stage Three – On-Site Fiscal Review:
- A Stage Three Review may result if a Stage Two Desk Review indicates an LEA would benefit from an on-site visit by a Monitoring Auditor to personally discuss compliance areas of concern, or for the Monitoring Auditor to provide technical assistance.
- However, if the risk factors for an LEA indicate significant compliance concerns, the Monitoring Auditor may proceed directly to a Stage Three On-Site Review.
- Like the Stage Two Review, a Stage Three Review will require the LEA to provide:
- Completed ESS Audit Questionnaire detailing internal control procedures
- Documents for audit samples selected from the grant accounting expenditure report(s).
- Based on the LEA’s documentation, the Monitoring Auditor will determine if the LEA meets compliance standards for stewardship of IDEA grant funds. If documents show adequate compliance with Federal and grant requirements, the Stage Three On-Site Review is completed, a Final Determination Letter is issued to the LEA indicating compliance, and the Review is closed.
- However, if the Monitoring Auditor identifies noncompliance issues, findings will be reported in the Final Determination Letter and the LEA will be required to formulate a Corrective Action Plan to correct issues of noncompliance.