Step 2. Understand Grants Monitoring

Step 1. Know the Basics

Step 4. Follow the Rules and Regulations

Step 3. Properly Close Out the Grant

Step 5. Use Sample Forms

Email is Preferred (firstname.lastname@governor.state.tx.us)

Include Grant Number in all Correspondence

CJD Main Number (512) 463-1919

Notify CJD Immediately If You Get a Public Information Request

Appointed or authorized by the governing body.

Must be the chief financial officer for the grantee agency.

Responsible for the day-to-day operations of the project including programmatic reporting.

Failure to accept Failure to accept your award your award

within 45 days within 45 days could result in could result in forfeiture of forfeiture of

grant funding.grant funding.

All funds must be paid through direct deposit.

Texas Application for Payee Identification Number – http://www.window.state.tx.us/taxinfo/taxforms/ap-152.pdf

Vendor Direct Deposit Authorization Form – http://www.window.state.us/taxinfo/taxforms/74-176.pdf

Internal Revenue Service Form W-9 - http://www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3

Calendar Quarter Due Date

January 1 – March 31 April 22

April 1 – June 30 July 22

July 1 – September 30 October 22

October 1 – December 31 January 22

IMPORTANT CHANGE

All Financial Status Reports must be submitted through eGrants.

For a step by step guide to creating and submitting FSRs see the eGrants

Financial Management Guide.

• instructions for accessing the PPRI website http://cjd3.tamu.edu/

• user name/log-in and password

• number and types of reports required for the applicable fund source

Required by CJD Collected by Texas A&M Public Policy Research Institute (PPRI) Reporting packets include:

Must be submitted through eGrants and Certified by the Authorized Official

10% of Cumulative Expenditures can be moved without CJD’s Prior Approval (except within Equipment and Indirect Costs)

Time/Activity Reports Case Numbers for Grant-Funded Law Enforcement

and Prosecution Personnel Volunteer Activities Signed Timesheet Salaries Consistent with Local Policy Backfill of Existing Positions Overtime

Contracts in Writing Consistent with Texas Contract Law Contract Monitoring Documentation Compliance with Agency Procurement

Guidelines Invoices for Contract Deliverables CJD-Prescribed Procurement Questionnaire

Employee Travel and Training Only Comply with Agency Travel Policies or

State Travel Policies Maintain Travel Log and Travel Receipts Pre-Approval of Out-of-State Travel

NOTE: Expenses for Outside Trainers go under the Contractual Budget Category .

All purchases MUST be pre-approved by CJD Must maintain Inventory Procurement Questionnaire for purchases in Excess

of $100,000 Must have invoices to support purchases Must be used for the purpose for which it is

purchased All changes to Equipment Line Items (including the

number of items) MUST be approved by CJD

Related to the daily operation of the CJD grant

All costs MUST be Pro-Rated

Rent or Lease MUST include cost/sq. ft. and the number of square feet

Documentation (ex. receipts, invoices) MUST be maintained

Includes small equipment

When allowed, the standard rate is 2% of CJD-funded direct costs (NOTE: this is NOT the CJD Award Amount)

Cognizant agency approval letter required for requests in excess of 2%

ALL rates are negotiable

Cash or In-Kind

Held to Percentage in Approved Budget

Federal Funds CANNOT be used to meet match requirements

Grants Monitoring Overview

Reviewing & Testing

Recurring Findings

Technical Assistance

Questions & Answers

What is grants monitoring?

“The process of reviewing grant documentation to ensure that grant

funds are used for authorized purposes.”

Desk reviews

Site reviews

Grantee contact visits (informal)

1st year COG Checklist Analyses (site reviews and phone contact)

Perform a risk assessment of grantees. Develop a monitoring schedule for the year. Carry-out monitoring schedule (Plan our

work & work our plan.)

Monitoring schedules are subject to change.In most instances, we provide a 2 week advance

notice of the reviews to grantees and COG planners.

Funding: The more money awarded, the higher the risk of misspent funds ($10,000 vs. $1,000,000).

No. of grants: The greater the number of grants awarded, the higher the exposure to non-compliance of requirements. (1 grant vs. 7 grants)

Based on risk factors, grantees are assigned a risk rank: high risk, medium risk, or low risk.

A Monitoring Plan is developed from the risk assessment report.

Grantees in each level (high risk, medium risk, low risk) are reviewed.

Grantees are scheduled for review on a rotation basis.

Notify grantee of upcoming desk review.

Gather and analyze grant documents from the grantee.

Call grantee and conduct a phone interview regarding issues noted.

Complete examination and issue a report.

Follow-up with grantee on issues.

Site reviews are scheduled with the grantees. Dates, times, and locations are set.

A notification letter is sent to the grantee. It includes a list of documents to be examined.

Reviews are conducted at the grantee’s office. Reviews may last from 2 to 5 days, depending on the size and

complexity of the grant.

Monitors continue the analysis of support documentation and calculating of expenses, back at CJD.

Written reports of the review are prepared and submitted to grantees for response.

Entrance conference.

Examine documents, select samples, test transactions, discuss issues with

grantees. Make copies for analysis later. (Monitors time is very limited while on-site.)

Exit conference.

General Grant Administration: FSR, program income, Single Audit Personnel: payroll, personnel activity reports, timesheets Contractual Services: contracts, contract monitoring, procurement

questionnaire Travel: invoices, receipts, training certificates Equipment Inventory: inventory list, physical observation,

procurement questionnaire Construction: pre-approval, change orders Supplies: invoices, receipts Indirect Costs: 2% limit, cost allocation plan

In-Kind or Cash Match: what is used as match, how much has been provided, volunteer timesheets

Program Issues: specific to the unique program, program records

Monitors continue to examine and analyze documents back at the CJD office.

The further analysis of the grantee’s documents may result in additional findings. If this occurs, the grantee will be contacted to discuss the finding and may be able to clear the issue with supplemental documentation or information.

All findings will be presented in the report and the grantee will have an opportunity to respond.

Issue Draft report (includes requirements, findings, and recommendations). Grantee has 15 days to respond with corrective action.

Receive grantee responses & corrective action. Analyze responses. Issue Second draft report, if necessary.

Reports will include the grantee’s responses. Receive grantee responses & corrective action Analyze responses. Issue Final report. (If necessary) Receive grantee responses and corrective

action. Issue Closeout letter. Review is complete.

Single Audit issues

FSR/PPRI reports submitted late

Program Income not reported (from seizures, forfeitures, other)

Time sheets lack employee’s or supervisor’s (or both) signatures.

Actual activity not documented.

Volunteers’ time not documented same as grant-funded employees.

Overtime paid, without prior CJD approval, or not following approved Overtime Policy.

Procurement Questionnaire for contract exceeding $100,000 not completed and submitted to CJD.

No written contract(s) for Contractual expenses.

Grantee did not monitor (or have evidence of monitoring) the contract. No contract monitoring tool was used to document the grantee’s oversight of the contract.

Documentation of procurement not maintained.

Requisition or voucher documents not completed.

Support documents (receipts, invoices, etc.) not available.

Purchase of unallowable items (gifts, alcoholic beverages).

Procurement Questionnaire for purchases exceeding $100,000 not completed and submitted to CJD.

Incomplete/non-existent inventory list. Grant–purchased items not identified on the

inventory list. Equipment items not properly tagged. No procurement policy; competitive procurement

documents not maintained.

Not pre-approved. Using grant funds for construction must be pre-

approved by CJD.

Non-essential operating expenses (snacks/ coffee/creamer/paper towels/etc.) were purchased with grant funds.

Prohibited items (i.e. advertisements, gifts, fundraising expenses, admissions to sporting events /amusement parks/recreation) were purchased with grant funds.

Commingling of funds: Grant funds have been commingled with other funds. (Requirement: Each

grant award must be accounted for separately.) Irreconcilable accounts: CJD Financial Status Report

does not reconcile to general ledger expenditures. (Requirement: Grant expenditures need to reconcile to GL expenditures.)

Inability to trace expenditures: The source and application of funds can not be traced to the general ledgers. (Requirement: Expenditures need to be traceable to the GL.)

Monitors provide technical assistance to the grantees while on site (or over the

phone, if it is a desk review). This includes explaining governing directives

and discussing possible recommended actions for compliance.

Monitors may also provide samples of documents to assist the grantee with compliance, such as sample personnel activity reports.

Informal stop-in visits with grantees in the same geographic area where we are doing site reviews

Carried out if the monitor has time to stop-in; if the schedule is too tight, the monitor will forgo the visit

Monitor asks for the project director, talks to him/her about the grant, and asks if there are any questions about the grant

If time allows, grantee may offer a brief tour of the facility

Visit usually lasts about 30 minutes or less

No documentation is requested; although grantees may provide a brochure or a business card

Allows for CJD to more efficiently use state travel funds and for CJD to make contact with more grantees out in the field.

Completed by COG planner during site visit (or if a JAG Recovery grant, then possibly phone contact form instead)

Also, referred to in our Notification Letters to grantees before reviews, for their use

Purpose: Identifies grantee’s compliance issues

Completed checklists are forwarded by planners through eGrants to CJD

Issues analyzed by CJD Grants Monitoring

CJD may follow-up with a monitoring review

(In-depth training sessions on the checklists & phone contact form, tomorrow)

Technical Assistance Checklist available at: https://cjdonline.governor.state.tx.usThen go to Updates, then Grants Monitoring Tools, then Checklist

(and Coversheet and Phone Contact Form for the COG planners.)

Examples of governing directives can be found on the link to Grants Resources on eGrants, including:– Guide to Grants– Texas Administrative Code (TAC)– Uniform Grant Management Standards (UGMS)– Office of Justice Programs Financial Guide– Financial Management Guide

Step 3. Step 3. Properly Close Properly Close Out the GrantOut the Grant

Step 4. Follow the Step 4. Follow the Rules and RegulationsRules and Regulations

• Office of Justice Programs (OJP) Financial Guide http://www.ojp.usdoj.gov/financialguide/

• Education Department General Administrative Regulations (EDGAR)http://www.ed.gov/policy/fund/reg/edgarReg/edgar.html

• Office of Management Budget (OMB) Circulars http://www.whitehouse.gov/omb/circulars_default/ – A-21: Cost Principles for Educational Institutions– A-87: Cost Principles for State, Local and Indian Tribal Governments – A-102: Grants and Cooperative Agreements With State and Local

Governments – A-122: Cost Principles for Non-Profit Organizations– A-133: Audits of States, Local Governments, and Non-Profit

Organizations

• Fund Specific Guidelines

• Uniform Grants Management Standards (UGMS) http://governor.state.tx.us/grants/what/

• Texas Administrative Code (TAC) https://cjdonline.governor.state.tx.us/updates.aspx

• CJD’s Guide to Grants https://cjdonline.governor.state.tx.us/updates.aspx

NOTE: CJD awards grants with both State and Federal funds. Use this Matrix to figure out if your grant is awarded with State or Federal funds. Sources highlighted in Yellow are prioritized by the COGs.

Fund Source Federal State CD-Coverdell Nat'l Forensic Sciences Improve Act X DJ-Edward Byrne Memorial Justice Assistance Grant Program X ED-Safe and Drug-Free Schools and Communities State Grants X JA-Juvenile Justice and Delinquency Prevention Act X JB-Juvenile Accountability Incentive Block Grants X JT-Title V Delinquency Prevention Program X RT-Residential Substance Abuse Treatment for State Prisoners X VA-Victims of Crime Act, Victim Assistance Program X WF-STOP Violence Against Women Formula Grants X BVP-Bulletproof Vest Partnership X SCAAP-State Criminal Alien Assistance Program X DNA-Post-conviction DNA Testing Assistance Program X CE-County Essentials Program X CG-Operator and Chauffeurs Funding-Gangs X CH-Operator and Chauffeurs Funding-Prosecution X CR-Crime Stoppers Assistance Fund X DC-Drug Court Program X SF-State Criminal Justice Planning (421) Fund X

STEP 5STEP 5Use Sample FormsUse Sample Forms