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Grants Monitoring

Welcome to Grants Management – Monitoring Division

Required by federal and state mandates, Cal OES Grants Management Monitoring Division assesses Grant Subaward programs to verify that expenditures submitted for reimbursement are allowable, reasonable, benefit the Grant Subaward, and have been appropriately charged to the correct cost category. We also verify adequate policies, procedures, and systems are in place to manage Grant Subawards effectively.

Cal OES’ monitoring process assesses compliance with federal and state regulations and requirements and includes both office based and onsite activities. Monitoring focuses on providing technical assistance and guidance to validate or improve administrative and fiscal efficiencies in managing award funds. IF a misunderstanding of, or noncompliance with, federal or state regulations is discovered, assisting with a plan for corrective action to comply with the terms and conditions of the Grant Subaward is another function of the monitoring process.

Monitoring Process Overview

The Monitoring Division provides fiscal and administrative oversight of all Cal OES Grant Subawards through a review of an organization’s policies and procedures to ensure compliance with the rules, laws, and guidelines governing Grant Subawards. Cal OES accomplishes this oversight function through “monitoring.” The information below is provided to give you an idea of what monitoring is and how to prepare for a desk or onsite compliance assessment.

Desk Compliance Assessment

The desk compliance assessment focuses on all or part of a reimbursement request and involves a review of all related transactions and processes to verify that Grant Subaward funds were expended in compliance with federal and state regulations and the terms and conditions of the Subaward. The review is conducted via phone, mail, and/or email, although any equipment inspections that cannot be accomplished with photographic or other means of inspecting remotely, may require an abbreviated onsite visit. If a desk assessment identifies inaccurate expenditure reporting or misunderstanding of, or noncompliance with, federal or state requirements, the Program Monitor follows up with the Subrecipient to provide assistance in correcting any inefficiencies, errors, or policies/procedures. A Corrective Action Plan (CAP) is required for each finding. See below for more information on the CAP process. See below for more information on the CAP process.

Onsite Compliance Assessment

The onsite compliance assessment is the most comprehensive monitoring activity, focusing on one or more reimbursement requests, or expenditures across multiple reimbursement requests, in which Cal OES assesses the capability, performance, and compliance of subrecipients against applicable administrative and fiscal grant regulations and requirements. Onsite assessments are conducted by one or more Program Monitors and may be performed in conjunction with Cal OES Program staff. These assessments are not considered to be an audit. The goal of Cal OES’s onsite assessment process is to ensure the Subrecipient is aware of, and in compliance with, Grant Subaward requirements. Like desk compliance assessments, Cal OES works with Subrecipients to correct any inefficiencies, errors, or noncompliance with federal or state regulations. A Corrective Action Plan (CAP) is required for each finding. See below for more information on the CAP process.

Schedule (Questionnaire) Review

Periodically, a self-certification Schedule Review, consisting of a two-three page questionnaire, may be mailed out for Subrecipients to complete and return to Cal OES with requested supporting documentation. These questionnaire focus on a particular topic or topics related to policies, procedures and/or payments. If a response indicates a potential deficiency or noncompliance, the monitoring staff will follow-up with the Subrecipient to provide or request additional information, or to assist with any necessary corrections or changes. A Corrective Action Plan (CAP) may be required during this process.

Program Review

The Monitoring Division does not monitor Subrecipients’ programmatic activities, or meeting goals or objectives of the Grant Subaward. This oversight and technical assistance are provided by Cal OES’s program administrators. Please visit the appropriate Grants Management area of the Cal OES website for further information.

Audit Requirements and Review

The Monitoring Division routinely monitors Single Audit reports for Subrecipients expending $750,000 or more in federal award funds during an organization’s fiscal year. We also review audited Financial Statements and Grant-Specific Audit reports for Subrecipients receiving less than $750,000.

These reports cover an independent auditor’s assessment of a Subrecipient’s fiscal processes and compliance with federal grant guidelines. If the auditor suggests there are areas for improvement or noncompliance with grant requirements, the monitoring staff will follow up with the Subrecipient to ensure that corrective actions are being taken.

For Subrecipients expending $750,000 or more in federal funds annually, a Single Audit report must be prepared and submitted within nine months after the end of an organization’s fiscal year.

Nonprofit organizations should send their Single Audits or any audited Financial Statements or Grant-Specific Audit reports electronically to Cal OES at: GMD@caloes.ca.gov

Audits can also be mailed to the address shown below:

Grants Management – Monitoring Division
California Governor’s Office of Emergency Services
3650 Schriever Avenue
Mather, CA 95655

Local Government and Indian Tribes should submit their Single audits to:

State Controller’s Office
Division of Audits
Financial Audits Bureau/Single Audits Unit
PO Box 942850
Sacramento, CA 94250-5874

Audit requirements may be found in 2 CFR Part 200 – Subpart F Audit Requirements

Process Documents, Forms and Checklists

There are different types of reviews performed by Cal OES monitoring staff to validate compliance, using a training and technical assistance approach. The document links below for each review type listed provide additional information.

Common Compliance Assessment Findings

Internal Controls

Lack of segregation of duties for smaller nonprofit organizations
Inadequate policies for victim petty cash/financial assistance
Single audit findings, audit reports submitted late, lack of required audits
Inadequate monitoring of second tier subrecipients

Financial Management

Improper/inadequate tracking and recording of Subaward costs
Costs not allocated properly and/or Inadequate cost allocation plan
Overcharging of office facility rent or indirect costs
Inadequate/unsupported/unallowable required match
Match not recorded or not identified in accounting records as match
Match not claimed on reimbursement request as occurred
Reimbursement requests not submitted timely

Personnel

Functional timesheets not used for Subaward Personnel costs
Fringe benefit costs claimed in incorrect cost category
Unsupported/unallowable Personnel costs
Unsupported volunteer in-kind match claimed on reimbursement request

Operating

Unsupported/unallowable operating cost items
Lack of proof of payment of cost item(s)
Cost claimed on reimbursement request prior to expending money

Equipment

Equipment inventory records missing required information
Disposal data and information missing from records
Physical equipment inventory/record reconciliation not performed
Missing or unidentifiable equipment (onsite equipment inspections)

Procurements/Contracts

Lack of written procurement procedures
Lack of written code of conduct covering conflicts of interest in procurements
Improper procurement
Non-competitive procurement not justified/approved
Procurement documentation not maintained
Suspension/debarment not checked prior to awarding contract
Competition requirements not met (quotes, bids, proposals)
No cost/price analysis
Lack of negotiating profit/discount when required
Contracts/purchase orders do not contain all required provisions

Corrective Action Plans

As part of our monitoring activities, we may identify findings that require a Corrective Action Plan (CAP) to correct a deficiency in the way you are managing your Grant Subaward. A letter is sent detailing the finding(s) and asking for a CAP to be completed and implemented in a specific time frame. Subrecipients may elect to use Cal OES’ CAP form or a similar format of their own, provided that format includes the same information requested on the Cal OES form. You can download the CAP procedures and form below.

Corrective Action Plans

Monitoring Process