YES NO N/A Notes
Reference
Subgrants: (FEDERAL FUNDS)
1. Does the Department award grants or subgrants to other Departments of the State, to local governments or not-for-profit entities? If not, please mark no and proceed to Student Financial Assistance Programs Section. ______ ______ ______ ______
2. Does the Department award grants (or subgrants) to other governmental units and other organizations only on the basis of properly completed and approved grant applications filed in a timely manner? ______ ______ ______ ______
3. Do procedures exist to ensure that grant funds passed through the Department are distributed throughout the State in an equitable manner? ______ ______ ______ ______
4. Do written grant agreements include requirements that the subgrantees comply with grant conditions set by the initial grantor and the grantee Department? ______ ______ ______ ______
5. Have policies been developed and issued, which regulate the use and reporting of grant funds awarded to other governmental units and other organizations? ______ ______ ______ ______
6. Are adequate procedures in place to monitor subgrantees for compliance with the grant terms established by the Department? ______ ______ ______ ______
7. Where grant funds are being distributed to various recipients, do procedures exist to determine that recipients meet all eligibility requirements? ______ ______ ______ ______
8. Is the monitoring of subrecipients for all major Federal assistance programs under divisions separate from the internal audit function? ______ ______ ______ ______
9. Do the monitors periodically evaluate the performance of contractors and subrecipients in relation to:
a. Adherence to written agreements? ______ ______ ______ ______
b. Achievement of overall grant objectives? ______ ______ ______ ______
c. Program administration? ______ ______ ______ ______
d. Fiscal operations? ______ ______ ______ ______
e. Internal controls? ______ ______ ______ ______
f. Compliance with general compliance requirements? ______ ______ ______ ______
g. Compliance with specific program compliance requirements? ______ ______ ______ ______
10.
a. Is the monitoring of subgrantees sufficient to detect material problems and abuses prior to the final payment of grant funds? ______ ______ ______ ______
b. In recent years, has the Department ever had to withhold payment from subgrantees? ______ ______ ______ ______
11. Are the financial operations of subgrantees subjected to periodic and timely audits? ______ ______ ______ ______
12. Do procedures include the following:
a. An audit of subrecipients which complies with OMB Circular A-128, A-110 or A-133 and other compliance requirements? ______ ______ ______ ______
b. A review of independent audit reports of subrecipients for compliance with OMB Circular A-128, OMB Circular A-110 or OMB Circular A-133 and other compliance requirements? ______ ______ ______ ______
c. Follow-up procedures on findings and weaknesses identified in subrecipients' audit reports? ______ ______ ______ ______
d. Resolution of questioned costs identified in subrecipients' audit reports? ______ ______ ______ ______
13. Are subrecipients required to distribute management letters as well as audit reports? ______ ______ ______ ______
14. If independent audit firms are used are they selected to audit subrecipients by a request for proposal or bid procedures? ______ ______ ______ ______
15. Does the Department require all audits to be performed in accordance with the following standards:
a. GAAS? (Generally Accepted Auditing Standards) ______ ______ ______ ______
b. GAGAS? (Generally Accepted Government Auditing Standards) ______ ______ ______ ______
c. OMB Circular A-128? ______ ______ ______ ______
d. OMB Circular A-110 or A-133? ______ ______ ______ ______
e. AICPA Audit and Accounting Guide, Audits of State and Local Governmental Units? ______ ______ ______ ______
f. Other? ______ ______ ______ ______
Please identify
16. Are the audit requirements communicated in writing to the independent audit firms? ______ ______ ______ ______
17. Does the Department review the independent audit firm's compliance with the audit requirements? ______ ______ ______ ______
18. Does the Department monitor the subrecipient audits in progress? ______ ______ ______ ______
19. Are all subrecipients audited at least every two years? ______ ______ ______ ______
20. Are the audit report distribution requirements under OMB Circular A-128 communicated in writing to the subrecipients? (Distribution requirements include the Bureau of the Census, grantees and every Federal grantor from which the subrecipient receives Federal funds.) ______ ______ ______ ______
21.
a. Are disbursements to subgrantees approved by upper management? ______ ______ ______ ______
b. Are they based only on properly completed reports submitted in a timely manner? ______ ______ ______ ______
22. Is failure by subgrantees to meet reporting requirements investigated in a timely manner? ______ ______ ______ ______
23. Are subgrantees required to provide evidence that previously detected deficiencies have been corrected prior to approval of grant payments or grant renewals? ______ ______ ______ ______
24.
a. Are reports received from subgrantees reviewed on a timely basis? ______ ______ ______ ______
b. Are all unusual items fully investigated? ______ ______ ______ ______
25. Are refunds due from subgrantees billed and collected in a timely manner? ______ ______ ______ ______
26. Have procedures been established to govern how subgrantees are to account for program income? ______ ______ ______ ______
27. Do procedures exist to ensure that subgrantee matching requirements have been met? ______ ______ ______ ______
28. Are subgrantees required to maintain adequate internal accounting controls including proper books and records? ______ ______ ______ ______
29.
a. Have procedures been established to monitor property purchased by the subgrantees? ______ ______ ______ ______
b. Do the procedures require that property be properly accounted for? ______ ______ ______ ______
c. Do the procedures require that the property be used for grant related purposes? ______ ______ ______ ______
DO NOT WRITE IN THIS BOX --AUDITORS USE ONLY
Preliminary opinion on the above Internal Control matters:
Federal Grant Accounting
Good Fair Poor

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