2 session objectives increase participant understanding of effective financial monitoring based upon...
TRANSCRIPT
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Session Objectives
Increase participant understanding of effective financial monitoring based upon risk assessments of sub-grantees
Increase participant knowledge of sub-grantees risk assessment using appropriate practices, procedures and controls
Discuss and review elements of implementing risk-assessed monitoring strategies
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Topics of Discussion
What is Risk Assessment?
Risk Factors
Risk Assessments
Tools & Resources
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Group Brainstorming Session
What types of factors should be considered in assessing grantee risks?
What are some tools and techniques that can be used to conduct a grantee risk assessment?
Who needs to conduct risk assessments and who should be assessed?
What are the consequences of failing to assess risk?
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What is Risk Assessment?
Risk assessment is the result of calculated efforts to ensure that those receiving federal and/or state grants are using the funds received in accordance with the applicable laws and regulations
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Risk Assessment
Establish policies and procedures Develop a risk assessment methodology
Perform and document risk assessment
Reassess the methodology in subsequent years
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Risk Assessment
Utilize a “wholistic” approach to incorporate programmatic and financial information.
Use objective data to assess a grantee. Use knowledge of all staff members to
gather information on a grantee. Review and compare grantees in a
comprehensive and consistent manner.
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Risk Assessment Methodology
Consider your capacity to address all issues identified
Capacity considerations include: Staff Size Number of Grantees to support Resources available Number of programs in Portfolio Distance between programs Multi-site programs
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Comprehensive Approach to Risk Assessment
Risk assessment should not only be performed on site. You may obtain information about a grantee from several sources, for instance: General Assessment Questionnaire Progress reports Program Budget Financial Reports (Periodic Expense Reports,
Reimbursement Requests and Financial Status Reports)
Telephone and email correspondence
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Strategy for Determining Risk Level
Define risk for each group based on consistent characteristics, possibly using a scoring method.
Develop assessment based on risk levels if plan should be for an entire project period.• High risk Grantees – Intensive reviews
and on-site presence.• Moderate risk – Some on-site interaction
and more intensive desk review• Low risk – Little on-site interaction and
desk review.
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Establish Policies and Procedures
What information will be used to measure risk?
Self-Assessment General questionnaires Sample documents Past Performance
Risk assessment process Worksheets Assessment forms Self-assessment
Reassessments and updates of methodology, policies and procedures
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Risk Factors
Areas to be assessed • Financial• Administration• Member Records• Type of grantee/awards• Prior audits/reports
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Financial Risk Factors
Type of accounting system Timeliness of financial reports Accuracy of reports submitted Experience level of staff managing federal funds Experience level of staff managing CNCS grants Dollar amount of award/total expenditures Historical Findings/Questioned Costs Viability of meeting match requirements
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Administration Risk Factors
Written policies and procedures Timeliness of progress reports Accuracy of progress reports Staff turnover Cooperation/response to
Correspondence History
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Administration Risk Factors
Size of grant compared to total host agency budget
Age of organization (Year of Incorporation) Part of a national/regional organization
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AmeriCorps Member Records Risk Factors
Member turnover Member recruitment History Full time vs. part time vs. fellows vs.
Education Award only
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Type of Grantee/Award Risk Factors
Type of sub-award (Senior Corps, AmeriCorps, Learn and Serve, Education award only)
Form of sub-award (cost-reimbursement, fixed price)
Size of award Complexity of award requirements New or continuing grantee Past history of performance
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Prior Audit Reports Risk Factors
A-133• Material weaknesses and reportable conditions• Questioned costs• Corrective actions plans
Prior Internal Reviews• Desk review findings• Financial capability assessments• On-site review findings• Corrective action plans
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Tools & Resources
How to document your assessment
Risk-Based Monitoring Summary
Types of Monitoring
Set monitor for each level
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How to document your assessment
Grantee worksheet• Create a Master document• Summarize risk assessment• Summarize the type of monitoring to be
performed and Timetable for Monitoring Individual grantee assessment
• Risk assessment in the various categories• Documentation of all risk areas
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Risk-Based Monitoring Summary
Develop Monitoring
Strategy
Determine Areasto Monitor
Develop Written Monitoring Plan
Educate Sub-grantees Fine-tune Process Conduct Monitoring
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Types of Monitoring
MODERATE RISKSUB GRANTEESRISK RATING: ADEQUATE
HIGH RISKSUB GRANTEES
RISK RATING: POOR
LOW RISKSUB GRANTEESRISK RATING: EXCELLENT
REPORT REVIEW PHONE INTERVIEW ON SITE VISIT
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Set monitor for each level
For Example: High risk– Annual on-site reviews, technical
assistance as necessary, specific follow-up based on individual needs.
Moderate risk – One required on-site review during grant period with annual desk reviews.
Low risk – At least one on-site review or desk review during grant period.
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Review of Various Tools
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Brainstorm of monitoring for each level
High risk
Moderate risk
Low risk
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