YES          NO          N/A

Federal Funds - General:

1.    Did your agency receive or manage any direct or indirect Federal financial assistance during
       the 20_____ - 20_____ year?

       a.     If yes, provide a 20_____ - 20_____ listing describing the source of the Federal aid, 
               description of the aid, CFDA number, special ID (if applicable), amount of the
               receipts, and any other related information you feel will be useful to us.

       b.     Did your agency expend or distribute any Federal assistance in 20____ - 20____?

               If yes, provide a 20____ - 20____ listing showing the amount spent or distributed, by
               program, special ID (if applicable), and any other related information on such 
               expenditures that you feel will be useful to us.

       Note - If you answered no to both questions 1a and 1b, you need not fill in the rest
       of this questionnaire.

       c.     Did you use any of the following Federal funding methods:
                                                                                                                       
               Advance funding by Feds?                                                             
               Fed receivables?                                                                           
               Letter of Credit?                                                                             
               Transfers from other State agencies?                                            

    Yes      No

2.     Financial Management Systems:
        Standards are prescribed for financial management systems used for Federal grant
        supported activities.

        a.     Does the agency have a designated unit (or individual) primarily responsible for
                monitoring the Federal program/grant accounting system and other related records
                and files?

        b.     Does the agency have a prescribed set of procedures relative to the Federal
                program/grant accounting system?

        c.     Do these procedures ensure that grant funds are acquired, expended and 
                monitored in accordance with grant agreement and other guidelines including,
                where applicable, OMB Circulars A-87, A-21 and the Common Rule?

        d.     Do these Department procedures/practices provide for the separate accounting of
                Federal cost activity by each Federal grant? (Federal grant accounting system)

        e.     Is this Federal grant accounting system used as the basis for the preparation of the
                various Federal financial reports?  

         f.     Is this Federal grant accounting system periodically reconciled to the Department's
                internal accounts?

        g.     Is this Federal grant accounting system reconciled to State Comptroller's monthly
                statements?

         h.    Do these Department procedures/practices provide for the coding and accounting
                of grant-related expenditures by appropriation numbers, expenditure object, 
                function, activity, etc.?

         i.     Do these Department procedures/practices provide for the coding/identification of
                grant-related receipts by source?

         j.     Do these Department procedures/practices require the maintenance of other files 
                and/or other accounts which can provide various information about the Federal 
                program/grant such as the grant agreement, authorization dates, related
                asset/liability identification, etc.?

 

     

     
     
     

     
     

        YES          NO          N/A

       k.     Do the Department procedures/practices provide for the identification and accounting
               of grant expenditures by the various cost categories/types needed for Federal
               reporting purposes?

       l.      Do the Department procedures/practices provide for the regular comparison of
               accumulated grant cost categories with the various grant budget line items to identify
               overrunning/nonbillable situations?

       m.    Are deviations reported to management?

       n.     Are the Department procedures/practices adequate to ensure minimizing the time
                elapsing between receipt and expenditure of advance funds/Letter-of-Credit
                (L-O-C) drawdowns?

                If no, please explain

       o.     Do the Department procedures/practices require the Federal program/grant manager
                to be one of the approving/sign-off authorities on expenditure payment documents
                to attest to the Federal applicability of the charge?

       p.     Are cash balances of Federal grant programs maintained at the minimum necessary
                for current operations?

        q.     Do the Department procedures/practices require that the Federal program/grant 
                manager be basically responsible for determining that each such payment expenditure
                that he/she has approved does meet all of the applicable Federal requirements 
                for eligibility?

        r.     Do the Department procedures/practices require that entries to the grant accounting 
               system be supported by validated source documents, including appraisals/fair market
               value determination in the case of right-of-way takings and construction field records
               in the case of construction contractor payments?

        s.     Do the Department procedures/practices require that payroll charges be supported by
                time distribution/time keeping documents that evidence supervisor-approved time
                charges to the Federal grants?

         t.     Do the Department procedures/practices provide a systematic method for assuring a
                 timely and appropriate resolution of various audit findings and/or recommendations?

        u.     Does the Department have any indirect costs that are incurred working on multiple
                Federal programs/grants and/or on a state program?            

        v.     Do the Department procedures/practices require that a formal indirect cost allocation
                plan be developed in support of any indirect cost charges to a Federal grant or 
                program?

        w.     1)     Has a department level allocation plan or an indirect cost rate been developed 
                         and approved by the grantor?

                 2)     Has the plan or rate been developed in accordance with OMB Circulars A-87
                         or A-21, whichever is applicable?

                 3.     Identify the individual responsible for development of the department plan.

 Name

 Title

 Phone Number

        x.     Are indirect costs associated with each grant program, and a portion of the statewide
                central services cost allocation, billed to the grantor where allowable?

        y.     Other controls or comments: _____________________________________________
                ____________________________________________________________________

 

     

     
     

     

     
     
     

    YES         NO          N/A

3.     Federally Financed Property:

Standards are prescribed governing the use and disposition of Federally-financed property.

        a.     Does the Department have a designated unit (or individual) which is principally
                responsible for maintaining a nonexpendable property inventory system?

Identify:

        b.     Does the Department have a prescribed set of procedures relative to its property
                records and management system/requirements?

        c.     Do these Department procedures/practices for maintaining accurate property
                 records meet the related requirements for Federal accountability purposes?   

        d.     Do these Department procedures/practices require annual physical inventory 
                verification to validate these property records and their present use/location? 

        e.     Do these Department procedures/practices provide for a reasonable maintenance
                program to keep the property in good condition? (Federal grantor agencies may
                have specific requirements in this regard.)

         f.      Does the Department provide adequate security and safeguards over such
                 nonexpendable property to prevent loss, damage or theft?

        g.    Do these Department procedures/practices meet the Federal requirements when such
               property is being disposed of or sold, including coordination with the Federal grantor
               Department when required?

         h.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

4.     Civil Rights:
        (A FEDERAL "GENERAL REQUIREMENT")
        No person shall, on the grounds of race, color, national origin, age or handicap be
        excluded from participation in or be subjected to discrimination in any program or 
        activity funded, in whole or in part, by Federal funds.  Discrimination on the basis of sex
        or religion is also prohibited in some Federal programs.
        (Age -- 42 U.S.C. 6101 et seq.; Race -- 42 U.S.C. 2000d; Handicap -- 29 U.S.C. 794.)

        a.     Does the Department have a designated unit or person who is responsible for 
                overseeing civil rights compliance?

Identify:

        b.     Does the Department have a clear and announced formal policy of nondiscrimination?
                Please attach copies of such policy issuances.

         c.     Does the Department clearly communicate these civil rights requirements/policies to
                 all employees through prescribed procedures, various employee issuances, 
                 meetings, etc.?

         d.     Does the Department have a system to receive, review and act on discrimination
                 or civil rights complaints?

         e.     Does the Department file an annual report to the Equal Employment Opportunity
                 Commission or CHRO?

         f.     Does the Department file civil rights complaints with the State Commission on
                Human Rights and Opportunities?

         g.     Other controls or comments:

 

     

     
     

     

        YES          NO          N/A

5.     Cash Management:
        (A FEDERAL "GENERAL REQUIREMENT")
        Grantee financial management systems shall include procedures to minimize the time
        elapsed between the transfer of funds from the U.S. Treasury and the disbursement
        of funds by the grantee.

        Advances made by primary recipients to secondary recipients shall conform substantially 
        to the same standards of timing and amount as apply to advances by Federal agencies
        to primary recipient organizations.

       Federal Advances/Drawdowns

        a.     Does the Department have a designated unit and/or individual who has the principal
                responsibility for developing and controlling the cash advance/L-O-C drawdown 
                process from the Federal grantor?

                Identify:  

        b.     Does the Department request cash advances/L-O-C drawdowns based on 
                specifically identified costs/proposed disbursements which are properly attributable
                to the Federal programs?

        c.     Does the Department request such cash advances/L-O-C drawdowns only after it has
                actually made the related payment itself and/or after the proposed disbursement has
                cleared the prepayment process? (awaiting the drawing of the check and its release,
                after receiving the related advance/L-O-C funds from the Federal agency)

        Federal Funds Passed Through to Subrecipients

        d.     Does the Department have a similar system for permitting its subrecipients to request
                cash advances under similar circumstances as noted above?

        e.     Has the Department clearly communicated the cash advance requirements to the
                various subrecipients through formalized written procedures, letters, meetings, etc.?

        f.     Does the Department have a system for monitoring such subrecipient advances to
               assure compliance with the agency/Federal requirements for minimizing the time
               elapsed from transfers of the funds to disbursements?

        Other

        g.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

6.     Relocation Assistance and Real Property Acquisition:
        (A FEDERAL "GENERAL REQUIREMENT")

        a.     Does the Department have a designated unit and/or individual who is principally 
                responsible for the acquisition of real property where required for Federal purposes?

                Identify:  

        b.     Does the Department have a formalized procedure for guiding its personnel in 
                meeting the Federal requirements under the Uniform Relocation Assistance and
                Real Property Acquisition Policies of 1970?  If there is no formalized procedure, are
                involved personnel familiar with this act, and do they in fact use the act as their
                principal guide?  Please attach copies of such procedures.

        c.     Do the Department procedures/practices require that at least two appraisals of the
                properties to be purchased be obtained?

 

     
     

     

     
     

        YES          NO          N/A

        d.     Do the Department procedures/practices require that the appraisals be subject to 
                review by a "reviewer approver" for their adequacy and that a Fair Market Value (FMV)
                be established for negotiation purposes?

        e.     Do the Department procedures/practices require that negotiations for the property be
                based on the FMV as representing the best and fair price for the needed property?

         f.     Do the procedures/practices require that any settlements, substantially in excess of
                FMV, be explained and supported by written documentation in the files?

Relocation Assistance

         g.     Does the Department have a formalized procedure for guiding its personnel in
                 meeting the Federal requirements for providing relocation assistance under the 
                 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970?
                 Attach copies of such issuances.

          h.     Do the Department procedures/practices require that relocation assistance be 
                  provided in the case of any displacements/relocations caused by real property
                  acquisitions and that the real actions are fully documented?

        Other

          i.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

7.     Federal Financial Reports:
        (A FEDERAL "GENERAL REQUIREMENT")
        Most Federal programs require the periodic submission of financial reports.

        a.     Does the Department have a designated unit and/or individual who is principally
                responsible for developing and submitting these various Federal financial reports
                as required?

                Identify:  

        b.     Does the Department have a formalized procedure for guiding its personnel in
                meeting the Federal requirements for the submission of these reports?

        c.     Does the Department develop these Federal financial reports directly from standard
                appropriation/expenditure records?

        d.     Does the Department develop these Federal financial reports from financial data
                accumulated in the Department's Federal grant accounting system?

        e.     Does the Department develop these Federal financial reports from worksheets or
                other analyzed data that can be traced/reconciled back to the Federal grant
                accounting system?

        f.     Does the Department reconcile its Federal grant accounting and/or the Federal system
               financial reports back to the State Comptroller's statements?

        g.     Does the Department have a similar system for developing and submitting the 
                financial reports/requirements for reimbursements to the various "pass-through"
                state agencies?

          h.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

 

     

     
     

        YES          NO          N/A

8.     Procurement Standards for Federal Accounts:

          a.     Does the Department have a designated unit (or individual) which has the primary
                  responsibility for contracts/procurement matters?

                  Identify:  

          b.     Does the Department have a prescribed set of procedures covering the various
                  aspects of the procurement requirements?

          c.     Do these Department procedures/practices comply with State Procurement
                  requirements?

          d.     Where possible and practical, do these Department procedures/practices require
                   some degree of price or rate quotation as support for small purchases?

          e.     Do these Department procedures/practices require that individual procurements
                  over $10,000:

                  (1)     Meet the appropriate competition requirements?

                  (2)     Are preapproved by the grantor agency when sole source/single bid?

                  (3)     Allow for sufficient advertising/bid time?

                  (4)     Provide adequate and reasonable RFP specifications that maximize
                           free and open competition?

          f.     Do these Department procedures/practices provide for a contract administration
                 system:

                  (1)     to monitor the contract programs?

                  (2)     to ensure that the contractors are performing in accordance with
                           the contract?

                  (3)    to validate the reasonableness of progress payments based on
                          work performed?

          g.     Do these procedures/practices require that extra work and/or contract modifications 
                  be approved only after some form of cost or price analysis?

          h.     Do these Department procedures/practices require audits of the final costs under
                  cost reimbursement type contracts and that fixed price/lump sum contracts be
                  subjected to pre-award cost or price analysis? 

          i.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

 

     

     

     
     
     

     
     

        YES          NO          N/A

9.     Federal Bonding and Insurance Requirements:
        As a general rule, larger construction contracts are administered directly by State Public
        Works (Section 4b-52).  Smaller projects might be administered by the agencies.  The 
        State's policies and procedures for bonding and insurance for State funded construction
        projects can also be used for Federally funded projects.  In either case, insurance for
        public liability and workers' compensation and bonds covering labor, material and
        performance are needed.

          a.     Did your Department directly administer any Federally funded construction projects
                  in this audit period?

          b.     Are copies of Public Works Department guidelines and procedures on file?

          c.     Does your Department have a unit or individual which has the principal responsibility
                  for meeting and monitoring bonding and insurance requirements on projects
                  administered by your agency?

                  Identify:  

10.     Federal Funds Records Retention:
          Grantees may follow their own practices as long as they provide for retention of records
          for 3 years, and allow access for audit and public examination.  If audit findings are not
          resolved, the records shall be retained beyond 3 years.

          a.     Does the Department have a unit (or individual) which has the principal responsibility
                  for meeting and monitoring this requirement?

                  Identify:  

          b.     Are these Federal requirements compatible with prescribed department/state
                  procedures/practices?
                  (e.g. State Records Management Manual)

                  If not compatible, how is compliance obtained? (summarize below)

          c.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

11.   Program Income:
        Income attributable to the grant should be used to (a) increase the scope of the project, 
        (b) be deducted from the total project cost for the purpose of determining the amount in
        which the Federal government will share or (c) be applied towards the matching share
        (with Federal department permission).

          a.     Does your Department and the program/grant managers recognize their obligation
                  to identify any such program income to the Federal funding department for
                  proper handling?

          b.     If your Department is generating any kind of income/receipts on account of Federal
                  program-funded activity -- such as service fees, sales of commodities, usage or
                  rental fees, royalties, interest, sales of equipment, etc. -- is credit being given
                  and/or the proceeds being handled in accordance with Federal requirements?

          c.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

 

     

     
     

     

     
     

     

        YES          NO          N/A

12.     Matching Share:
          Standards are established for determining the matching contribution.  It can consist of
          charges which are project costs including cash and "in-kind" contributions.

          a.     Does the Department have a designated unit or individual (program/grant manager)
                  who is principally responsible for identifying -- (into the financial reporting process, 
                  request for reimbursement, final status report, etc.) -- the matching share 
                  requirements and related support?

                  Identify:  

          b.     Do the Department procedures/practices require that in-kind contributions be
                  supported in accordance with the requirements?

          c.     Do the Department procedures/practices recognize that other Federal grant costs
                  cannot be used as matching share and that valid matching monies can be used
                  only once?

          d.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

13.   Political Activity:
        (A FEDERAL "GENERAL REQUIREMENT")
        Federal funds cannot be used for partisan political activity of any kind by any person or
        organization involved in the administration of Federally assisted programs.

          a.     Does the Department have a unit or individual who has the principal responsibility
                  for promulgating and monitoring this requirement?

                  Identify:  

          b.     Does the Department have a clearly announced policy prohibiting the use of
                  Federal funds for any partisan political activity?

          c.     Does the Department clearly communicate these prohibitions or restrictions to
                  employees through distribution of procedures/policies, employee meetings,
                  postings, etc.?

          d.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

14.   Davis-Bacon Act:
        (A FEDERAL "GENERAL REQUIREMENT")
        When required by the Federal grant program legislation, all laborers and mechanics
        employees by contractors or subcontractors to work on construction projects financed by
        Federal assistance must be paid wages not less than those established for the locality
        of the project by the Secretary of Labor.

          a.     Does the Department have a unit or individual who has the principal responsibility
                  for monitoring Davis-Bacon compliance?

                  Identify:  

          b.     Do construction contracts/subcontracts contain the required provisions for the 
                  payment of "prevailing" wage rates?

          c.     Does the Department have a system/procedure for monitoring actual contractor/
                  subcontractor wage rates for compliance with the "prevailing" wage rates? (This 
                  system should involve more than just relying on contractor/subcontractor 
                  certifications.)

 

     
     

     
     

        YES          NO          N/A

          d.     Does this monitoring system include periodic receipt of actual payrolls from
                  contractors/subcontractors and then comparison of them with the required
                  "prevailing" wage rates?

          e.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

15.   Monitoring and Reporting Program Performance:
        (FEDERAL PROGRAMS)
        Recipients are held responsible for monitoring programs to assure that time schedules
        are met and that performance goals are being achieved.

          a.     Does the Department have procedures/practices in effect to be sure that program
                  performance oriented reports are being prepared by those program/grant managers
                  or other employees most directly involved with the grant programs?

          b.     Does the Department have procedures in effect that require such reports be
                  reviewed and approved by the next level of management before being submitted?

          c.     Does the Department have procedures/practices in effect to be sure that those
                  program performance reports are submitted to the Federal agencies on a 
                  timely basis?

          d.     Does the Department have a program and system to obtain and summarize
                  sufficient financial and programmatic data available to assess performance?

          e.     Does agency management have a system for monitoring performance activity and
                  eligibility of program recipients?

          f.     Is this system documented by formal reports and memoranda?

          g.    Have desired and anticipated results been defined so that achievement of goals
                 and objectives can be reviewed?

          h.    Has Department management established any performance ratios (such as
                 employee/patient, dollar/inmate, cost/output unit) which it uses in reviewing its
                 performance?

          i.     If grant objectives are measurable, does the Department compare results
                 accomplished with the grant objectives?

           j.    Has the monitoring system been designed to provide data on achievement of these
                 goals and objectives on a timely basis?

          k.    Has management ever been required to take administrative follow-up action based
                 on data supplied by the monitoring system?

          l.     Does the Department have a system for auditing grants it receives or grants it awards
                 for compliance with grant terms, requirements, laws, regulations and rules?

          m.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

 

     

     
     

     

     
     

        YES          NO          N/A

16.   Budget Revision Procedures:
        (FOR FEDERAL GRANTS)
        For non-construction grants, prior Federal approval for budget revision must be obtained 
        when:
        -     There is a change in the scope or objective or a need for additional Federal funding.
        -     The cumulative amount of transfers among direct cost categories exceed or are 
               expected to exceed 10% of current total approved budget, whenever the Federal
               agency's share is greater than $100,000.
        -      Recipients plan to transfer funds allocated for training to other categories of expenses.

        Construction grants need approval for revisions only in the first case above.

        When Federal funds are expected to exceed needs, the Federal department must be
        notified.

          a.     Does the Department have a designated unit or individual (grant manager) who has
                  principal responsibility for assuring compliance with these budget revision
                  requirements?

                  Identify:  

          b.     Do the Department procedures/practices provide for regular comparisons of
                  accumulated costs by cost categories with the grant budget to identify expected
                  overruns as early as possible and to trigger necessary budget revision requests?

          c.     Does the Department have procedures/practices that require the review and approval
                  of the next level of management before budget revisions are sent to the Federal 
                  grantor department?

          d.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

17.   Federal Grant Closeout Procedures:
        Federal agencies establish closeout procedures which provide for prompt payment by
        grantor or prompt refunds by grantee, reports within a limited number of days of
        completion, adjustment of the Federal share, accounting for government property and
        retaining the right of recovery until final audit.  Federal agencies also develop procedures
        to be followed when the grantee does not comply with the grant agreement and the
        grant is terminated.

          a.     Does the Department have a designated unit or individual who has the principal
                  responsibility for taking the lead in clearing up loose ends and effecting a timely
                  closing of completed grants with the Federal grantor agencies?

                  Identify:  

          b.     Does the Department have procedures/practices that require the submission of 
                  the Final Request for Reimbursement/Final Financial Status Report to the
                  appropriate Federal department within a reasonable time of the grant completion?

          c.     Does the Department monitor or track completed grants that have been physically
                  completed (no current expenditures) over an extended period of time but for which
                  no close out reports have been submitted to the Federal department?

          d.    Other controls or comments:
                ___________________________________________________________________
                ___________________________________________________________________

 
     
     
     
     
     
     
     
     
     
     

     

        YES          NO          N/A

18.     Please provide any additional explanation of grant activity, administration or accounting
          necessary to properly explain response:

19.     Please provide a listing of audits of Federal grant programs completed by IPA's or
          Fed reps in 200__ - 200__.  The list should include for each:
               Date of audit report
               Name and CFDA # of the programs audited
               Audit period
               Dollars of questioned costs
          If your agency has an Internal Auditor and he/she audited Federal programs, please
          provide a listing containing the information requested above.

20.     Provide name, title and phone number of agency employee who can provide our field
          staff with copies of the above audit reports.

          Name____________________________________________________

          Title_____________________________________________________

          Phone Number_____________________________________________

21.     Provide name, title and phone number of agency employees familiar with the disposition
          or resolution of any questioned costs noted in the above audit reports.

          Name____________________________________________________

          Title_____________________________________________________

          Phone Number_____________________________________________

22.   Drug-Free Workplace
        (A FEDERAL "GENERAL REQUIREMENT")
        State agencies that receive Federal funding must certify that they will maintain a drug-free
        workplace.  Among other things, a policy must be published regarding prohibitions on
        controlled substances in the workplace and certain actions must be taken if the policy is
        broken.  Connecticut provides and renews annually a Statewide drug-free workplace
        compliance certification.

          a.     Does the Department have a unit or individual who has the principal responsibility
                  for monitoring compliance with drug-free workplace laws/regulations?

                  Identify:  

          b.     Has the latest Drug-Free Workplace Policy Statement (from DAS-Personnel) been
                  distributed to all employees and copies posted in work locations?

          c.     With respect to employees engaged in the performance of a Federal grant, has the
                  Department received any notifications in the audit period concerning convictions
                  for violations of criminal drug statutes occurring in the workplace?

 

        YES          NO          N/A

          d.     If yes, has the Department notified Federal grantor officials?

          e.     If convictions were reported to the Department, did it take appropriate personnel
                  action against such employees or require participation in an appropriate drug
                  abuse assistance or rehabilitation program?

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Federal Funds - General

Good          Fair          Poor

 

        YES          NO          N/A

Federal Grant Administration:

1.     Have policies been developed to affix the responsibilities for acquiring, expending
        and monitoring grants?   

2.     Does the Department ensure that all Federal funds available to the State are
        requested and utilized?

3.     Grant Application (for other than formula grants):

        a.     Does the Department have a grant application for specific grants received during
                the audited period?  (A State agency's application for a grant from another
                State agency under a Federal program should contain a formal application
                or the grant agreement.)

        b.     Does the Department's grant application contain:

                (1)     an outline of the applicant's work program including objectives and
                         performance timetables?

                (2)     a description of the applicant's employees who will be working on the
                         grant program?

                (3)     a description of the method of funding?

                (4)     a description of statutory and regulatory requirements for the financial and
                         programmatic administration of the grant program?

                (5)     a detailed financial budget?

4.     Are grant applications reviewed and approved by upper management prior to
        submission to the grantor?

5.     Do grant applications include a current estimate of all allowable program costs?

6.     Does the Department assess the impact of matching requirements and personnel
        requirements for a proposed new Federal grant project or the continuation of an
        existing grant project before the grant is applied for?  (In most cases, this should be
        done in conjunction with the overall budgeting processing.)

7.     Are appropriations to cover State matching funds obtained (or budgeted) prior to 
        applying for any grants which require State matching funds?

8.     Does the Department have a copy of a properly executed grant agreement for
        each grant?

9.     Does the grant agreement contain requirements covering the:

        a.     use of grant funds solely for grant purposes?

        b.     satisfactory and timely completion of the designated work projects?

        c.     safeguarding funds and property?

        d.     timely closeout of the grant at its completion or termination and refund of
                any unused funds?

        e.     timely compliance with grant audit requirements?

 

        YES          NO          N/A

        f.     effective accounting controls?

       g.     effective administrative control of subgrantees, contractors or delegated
               programs?

        h.    timely submission of financial and progress reports?

10.   Does the Department maintain grant files with adequate documentation (proposal, 
        grant approval, guidelines, monthly reports, etc.) in an orderly manner?

11.   Are grants between State departments fully documented in written agreements
        which specify the duties and responsibilities of each department?

12.   Has the grantee Department received all funding to which it is entitled under
        the grant agreement?

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Federal Grant Administration

Good          Fair          Poor

 

        YES          NO          N/A

Federal Grant Accounting:

1.     When grant funds are to be received on a reimbursement basis, are requests for
        reimbursement made in a timely manner and as often as allowable? 

2.    Are the State's indirect costs reimbursements deposited into the fund from which the
       expenditures were originally paid?

3.    Are expenditures to be reported under a grant agreement reviewed by an
       independent person for allowability?

4.    a.     Are expenditures requiring advance grantor approval properly approved?

        b.     Is documentation of grantor approval maintained?

5.     a.     Is grantor approval obtained prior to the incurring of expenses in excess of
                budgeted amounts?

        b.     Are budget revisions approved by upper management before being submitted
                 to the grantor?

6.     Where necessary is the allocation of direct or indirect costs among grant programs
        done in an equitable manner and in accordance with the grant agreement and 
        other guidelines?

7.    a.     Are payroll costs allocated to various grant programs supported by timekeeping
               records which document the allocation of an employee's time?

       b.     Has the Department developed timekeeping procedures for allocation of payroll
               costs between Federal and State funding sources or between two or more 
               Federally funded programs?

8.     Is the treatment of costs as either direct or indirect consistent for all grants?

9.     Are there procedures to ensure that the same matching funds are not being used to 
        meet the matching requirements of various grant agreements?

10.   Are all programmatic reports required to be submitted to the grantor prepared by
        employees directly involved with the grant program?

11.   Are the programmatic reports approved by upper management in advance of
        being submitted?

12.   Do procedures exist to ensure that all financial and programmatic reports required
        to be filed with the grantor are filed in a timely manner?

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

Federal Grant Accounting

Good          Fair          Poor

 

        YES          NO          N/A

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 original 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?

 

     

        YES          NO          N/A

        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 subrecipent 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?

 

        YES          NO          N/A

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 Funds - Subgrants

Good          Fair          Poor

 

        YES          NO          N/A

H.       FEDERAL STUDENT FINANCIAL ASSISTANCE PROGRAMS

THE REMAINING QUESTIONS RELATE SOLELY TO STUDENT FINANCIAL ASSISTANCE
PROGRAMS AT THE STATE'S COLLEGES AND UNIVERSITIES.  IF YOU ARE NOT 
INCLUDED IN THIS ABOVE MENTIONED GROUP, YOU ARE FINISHED WITH THE
QUESTIONNAIRE.

          Were your Fed. student FAP's audited by IPA's?
          If yes, provide copies of latest audit reports when our field audit starts.

1.     General Requirements:

          a.     Does the system for drawing Student Financial Assistance Program funds keep
                  requests for such funds to an amount limited to immediate needs and within the
                  amounts authorized for each program?

          b.     Are there procedures to provide for an exchange of information among all
                   appropriate offices so that assistance is not awarded in excess of student
                   financial needs?

          c.      Are SFA funds disbursements kept separate from other expenditures?

          d.      Do program and fiscal records show cost of attendance, student resources, 
                   student eligibility and payment?

          e.      Are records maintained for five years after the Fiscal Operations Report and Pell
                   Progress Report are filed?

          f.       Do procedures exist for determining eligibility and financial need?

          g.      If the recipient previously attended another institution, is a financial aid
                   transcript maintained?

          h.      Are controls in place to ensure that total aid disbursed to students did not exceed
                   their financial need?

          i.       Are at least two equal payments made each academic year for Pell, SEOG and
                   MDSL programs?

          j.       Is a prorated portion of SFA funds returned to the programs upon refund or a 
                   discovery of overpayment?

          k.      Are prescribed matching and cost sharing requirements adhered to?

2.     Specific Compliance Requirements - Pell Grants:

          a.     Are awards calculated based on the cost of attendance, Student Aid Index and
                  enrollment status?

          b.     Is Pell Grant applicant data verified on those SARs selected for validation by the
                  Department of Education prior to disbursement to the recipient?

          c.     Are there procedures for disbursing the grants within the prescribed timeframe?

 

        YES          NO          N/A

3.     Specific Compliance Requirements - College Work Study:

          a.     Are awards calculated based on the cost of attendance, expected family
                  contribution and other resources available to the student?

          b.     Are payments supported by time sheets and certified by a responsible official?

          c.     Does the recipient sign a form acknowledging prohibition of political influence?

4.     Specific Compliance Requirements - Perkins Loans:

          a.     Is an approved promissory note in use?

          b.     Are loans granted to students with a past record of default?

          c.     Is due care and diligence used in collecting loans?

          d.     Are complete repayment records maintained for each borrower?

          e.     Is interest earned on Perkins cash credited to Perkins funds?

          f.     Is the Federal Capital Contribution requested only when needed?

          g.     Is excess Perkins cash returned to the Department of Education?

          h.     Is the student's financial need based on the cost of attendance, expected family
                  contribution and other resources available to the student?

5.     Specific Compliance Requirements - GSL/Higer Education Act Insured Loans:

          a.     Does the institution complete portions of the GSL application regarding student
                  eligibility, estimated cost of attendance, estimated financial assistance and 
                  expected family contribution?

          b.     Does it determine eligibility based on those criteria?

          c.     Does the institution follow established Federal procedures for handling GSL
                  loan checks?

          d.     Does the institution submit Student Confirmation Reports (SCR) periodically to the
                   Department of Education or other guarantee agency as required?

          e.     Does the institution immediately report withdrawals and changes in enrollment 
                  status directly to the lender for those recipients who received PLUS loans?

DO NOT WRITE IN THIS BOX - AUDITORS USE ONLY

Preliminary opinion on the above Internal Control Matters:

              Federal Student Financial Assistance Programs

Good          Fair          Poor