Fiscal MonitoringFiscal Monitoring

AgendaAgenda

I. I. Fiscal MonitoringFiscal Monitoring II. II. Follow-upFollow-up III. Correction Action PlanIII. Correction Action Plan

OCJS Grants OCJS Grants Monitoring and Fiscal Monitoring and Fiscal

ComplianceCompliance Walter Brown, DirectorWalter Brown, Director

(614) 728-5466(614) 728-5466

wbrownwbrown@dps.state.oh.us@dps.state.oh.us

OCJS Compliance OCJS Compliance MonitorsMonitors Tony Veljanoski, Compliance Monitor (Region 3)Tony Veljanoski, Compliance Monitor (Region 3)

(614) 728-4790(614) 728-4790 tveljanoski@dps.state.oh.ustveljanoski@dps.state.oh.us

Shaun Campbell, Compliance Monitor (Region 4)Shaun Campbell, Compliance Monitor (Region 4) (614) 466-5933(614) 466-5933 sdcampbell@dps.state.oh.ussdcampbell@dps.state.oh.us

Phil Steffanni, Compliance Monitor (Region 1)Phil Steffanni, Compliance Monitor (Region 1) (614) 466-4470(614) 466-4470 pmsteffanni@dps.state.oh.uspmsteffanni@dps.state.oh.us

Laura McCall, Compliance Monitor (Region 2)Laura McCall, Compliance Monitor (Region 2) (614) 466-2013(614) 466-2013 lamccall@dps.state.oh.uslamccall@dps.state.oh.us

I. Fiscal MonitoringsI. Fiscal Monitorings

The Monitors provide technical assistance to local The Monitors provide technical assistance to local and/or state agencies regarding financial grant-related and/or state agencies regarding financial grant-related issues to ensure optimum productivity, efficiency and issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. quality of agency operations and/or services.

Analyze existing operations, systems and procedures Analyze existing operations, systems and procedures for deficiencies and/or determine financial impact and for deficiencies and/or determine financial impact and feasibility of programs. feasibility of programs.

Evaluate financial impact of specified operations, Evaluate financial impact of specified operations, system, service or procedure of assigned agency (e.g., system, service or procedure of assigned agency (e.g., claims processing; surveillance and utilization review claims processing; surveillance and utilization review audits).audits).

Identifies problems and prepares questions to pose Identifies problems and prepares questions to pose during monitoring.during monitoring.

Fiscal MonitoringsFiscal Monitorings

Documents reviewed include:Documents reviewed include: Bank Statements and ReconciliationsBank Statements and Reconciliations Receipts, Deposits, or Pay-InsReceipts, Deposits, or Pay-Ins Match ReceiptsMatch Receipts General Ledger ReportsGeneral Ledger Reports Payroll Registers (Timesheets and Activity Payroll Registers (Timesheets and Activity

Reports)Reports) Consultant ContractsConsultant Contracts Evidence of Consultant PaymentsEvidence of Consultant Payments Equipment/Supply receiptsEquipment/Supply receipts Equipment Inventory ReportEquipment Inventory Report Evidence of Travel CostsEvidence of Travel Costs Cancelled Warrants, Checks, Invoices and Cancelled Warrants, Checks, Invoices and

Purchase OrdersPurchase Orders

Preliminary PlanningPreliminary Planning

Compliance Monitors communicate with the agency Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring leadership to plan a time for the fiscal monitoring review.review.

Once the date has been set up, a Site Confirmation Once the date has been set up, a Site Confirmation Letter is sent via fax and email to the subgrantee Letter is sent via fax and email to the subgrantee confirming the date and time of the fiscal monitoring. confirming the date and time of the fiscal monitoring.

The letter specifies the necessary detail that the The letter specifies the necessary detail that the Monitors will need to see at the time of the fiscal visit. Monitors will need to see at the time of the fiscal visit.

An Onsite Review Tips sheet is attached via email.An Onsite Review Tips sheet is attached via email. The focus is to ensure accuracy of the claim The focus is to ensure accuracy of the claim

preparation by reviewing the General Ledger and the preparation by reviewing the General Ledger and the budget on file with OCJS and comparing the three budget on file with OCJS and comparing the three documents for compliance.documents for compliance.

Field WorkField Work

The Compliance Monitors review and analyze records, The Compliance Monitors review and analyze records, operations, organization, systems and controls, and operations, organization, systems and controls, and interviews employees involved in program being interviews employees involved in program being monitored as well as fiscal review of backup monitored as well as fiscal review of backup documentation submitted with the claims. documentation submitted with the claims.

Meet with and/or telephone appropriate Meet with and/or telephone appropriate representatives to be involved in monitoring to representatives to be involved in monitoring to participate in outlining or outline scope of monitoring. participate in outlining or outline scope of monitoring.

Attend meetings to review/participate in discussion of Attend meetings to review/participate in discussion of findings with appropriate representatives of entity findings with appropriate representatives of entity being monitored.being monitored.

Field Work (Cont’d)Field Work (Cont’d)

Monitors complete the On-Site Monitoring Testing Monitors complete the On-Site Monitoring Testing Form’s, which include: Receipts Testing Form, Form’s, which include: Receipts Testing Form, Expenditures Testing Form, Payroll Testing Form, and Expenditures Testing Form, Payroll Testing Form, and Equipment Testing Form. Equipment Testing Form.

Prepare final monitoring report summarizing work Prepare final monitoring report summarizing work performed, findings and recommendations to performed, findings and recommendations to improve/resolve deficiencies or non-compliance.improve/resolve deficiencies or non-compliance.

Field Work (Cont’d)Field Work (Cont’d)

Payroll Testing is a double check to verify Payroll Testing is a double check to verify accuracy of the payroll payments made to all accuracy of the payroll payments made to all employees that are listed on the grant. employees that are listed on the grant. – Verify the personnel, their hours worked, their pay Verify the personnel, their hours worked, their pay

rates, and ensure that the total payroll is paid rates, and ensure that the total payroll is paid accurately. This is verified by looking at the accurately. This is verified by looking at the expense ledger (as provided by the subgrantee), expense ledger (as provided by the subgrantee), the bank statements, and the pay stubs and the bank statements, and the pay stubs and timesheets of all employees stated in the grant. timesheets of all employees stated in the grant.

– Any discrepancies are noted and if further action is Any discrepancies are noted and if further action is necessary, it is outlined in the Recommendations necessary, it is outlined in the Recommendations Letter. Letter.

Field Work (Cont’d)Field Work (Cont’d)

Expenditures Testing is used when there is Expenditures Testing is used when there is travel, supplies, contractual services, and travel, supplies, contractual services, and other direct costs on the grant budget. other direct costs on the grant budget. – Verify various expense “testing” to ensure Verify various expense “testing” to ensure

accuracy of expenses being reported on the grant, accuracy of expenses being reported on the grant, as well as to ensure that allowable costs are being as well as to ensure that allowable costs are being reported within the guidelines of the budget. reported within the guidelines of the budget. Again, any discrepancies are noted and if further Again, any discrepancies are noted and if further action is necessary, it is outlined in the action is necessary, it is outlined in the Recommendations Letter. Recommendations Letter.

Field Work (Cont’d)Field Work (Cont’d)

Equipment Testing is used when there is Equipment Testing is used when there is equipment that is included in the grant, or if the equipment that is included in the grant, or if the grant is ‘equipment only’. When equipment is grant is ‘equipment only’. When equipment is included within the budget of the grant, the included within the budget of the grant, the Equipment Inventory Report is usually Equipment Inventory Report is usually completed. completed. – This form ensures accurate tracking of all equipment This form ensures accurate tracking of all equipment

that was purchased with the grant dollars and also that was purchased with the grant dollars and also provides an inventory document to verify where all the provides an inventory document to verify where all the purchased equipment can be tracked and/or found purchased equipment can be tracked and/or found when an audit of the inventories is necessary. The when an audit of the inventories is necessary. The Equipment Inventory Report is usually prepared at the Equipment Inventory Report is usually prepared at the end of the year.end of the year.

II. Follow-UpII. Follow-Up

RecommendationsRecommendations

After field work is complete a Recommendations Letter After field work is complete a Recommendations Letter is compiled and sent to the agency. The letter is sent is compiled and sent to the agency. The letter is sent within 5 business days of the Onsite Monitoring. within 5 business days of the Onsite Monitoring.

Letter identifies problems and prepares Letter identifies problems and prepares recommendations as a result of the fiscal monitoring. recommendations as a result of the fiscal monitoring. – It states the personnel met with at the Onsite MonitoringIt states the personnel met with at the Onsite Monitoring– Items reviewed during the monitoringItems reviewed during the monitoring– What observations were made during a review of the financial What observations were made during a review of the financial

documents and all other related financial information to each documents and all other related financial information to each grant being monitoredgrant being monitored

– Recommendations section stating what corrective action needs to Recommendations section stating what corrective action needs to be taken and if a 30 day follow-up will be required. be taken and if a 30 day follow-up will be required.

Letter is designed to improve/resolve deficiencies or Letter is designed to improve/resolve deficiencies or non-compliance of the grant fiscal monitoring. non-compliance of the grant fiscal monitoring.

Follow-UpFollow-Up

If a follow-up is necessary, the agency is given 30 If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide days from receipt of the letter to provide correction action in regards to the correction action in regards to the recommendations stated within the monitoring recommendations stated within the monitoring letter. letter. – The Monitor will contact the subgrantee and communicate The Monitor will contact the subgrantee and communicate

with the agency leadership to plan a time for the follow-up with the agency leadership to plan a time for the follow-up fiscal monitoring review. fiscal monitoring review.

Any agency comments are analyzed carefully, and are Any agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring used, when appropriate, to modify any monitoring recommendations.recommendations.

After the initial fiscal monitoring, a follow-up courtesy After the initial fiscal monitoring, a follow-up courtesy call/email is necessary to answer any open items and/or call/email is necessary to answer any open items and/or questions regarding the recommendations letter. questions regarding the recommendations letter.

III. Corrective Action PlanIII. Corrective Action Plan

Why Corrective Action Why Corrective Action Plan?Plan?

The corrective action plan is outlined in the The corrective action plan is outlined in the recommendations letter when a 30 day recommendations letter when a 30 day follow-up is necessary.follow-up is necessary.

The corrective action plan is designed to The corrective action plan is designed to improve/resolve deficiencies or non-improve/resolve deficiencies or non-compliance issues related to the grant compliance issues related to the grant monitoring(s).monitoring(s).

Assists the agency from having non-Assists the agency from having non-compliance action taken against them.compliance action taken against them.

Timeline and Corrective Timeline and Corrective ActionAction

The agency is given 30 days from receipt of The agency is given 30 days from receipt of the recommendations letter to provide a the recommendations letter to provide a corrective action plan in regards to the corrective action plan in regards to the recommendations stated within the recommendations stated within the recommendations letter.recommendations letter.

The agency must demonstrate at the 30 day The agency must demonstrate at the 30 day follow-up monitoring that corrective action follow-up monitoring that corrective action has been taken and that the has been taken and that the recommendations outlined in the monitoring recommendations outlined in the monitoring letter have been satisfactorily met.letter have been satisfactorily met.

Corrective Action PlanCorrective Action PlanExamplesExamples

Continue to use proper care when filing paperwork in Continue to use proper care when filing paperwork in the grant binder.the grant binder.

Continue to provide detailed backup for the amounts Continue to provide detailed backup for the amounts reported on the claim, and referencing where the reported on the claim, and referencing where the supporting documentation is located.supporting documentation is located.

An Expense Ledger should be available to detail out all An Expense Ledger should be available to detail out all expenses year-to-date.expenses year-to-date.

With your grant coordinator, ensure that the most With your grant coordinator, ensure that the most accurate and updated budget information is on file accurate and updated budget information is on file with OCJS.with OCJS.

Non-compliance – Non-compliance – ActionsActions

Suspend paymentsSuspend payments Cancel awardCancel award Suspend or cancel other OCJS funds Suspend or cancel other OCJS funds

Administrative hold letterAdministrative hold letter

S.F.S.C. Page 12

Each project is an investment made by OCJS to assist Ohio in meeting federal

program goals. OCJS is required to make good investments in our role as the State

Administrative Agency.

Barb Miller(614) 644-7733BAMiller@dps.state.oh.us

OCJS Contact OCJS Contact InformationInformation Ohio Office of Criminal Justice Ohio Office of Criminal Justice

ServicesServices 1970 West Broad Street1970 West Broad Street

P.O. Box 182632P.O. Box 182632 Columbus, Ohio 43218-2632Columbus, Ohio 43218-2632 614-466-7782 (telephone)614-466-7782 (telephone) 614-466-0308 (fax)614-466-0308 (fax)