A
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IMPORTANT
INFORMATION
April 25, 2011
TO THE ADMINISTRATOR ADDRESSED:
SUBJECT: Desk Monitoring of Federal
Grant Expenditures – TEA Divisions of Formula Funding and Discretionary Grants
This letter is
intended to provide all grantees receiving federal formula and discretionary grants
from the Texas Education Agency (TEA) with a summary of desk monitoring
activities to be conducted in the coming months and years by the divisions of
Formula Funding and Discretionary Grants in the Office for Planning, Grants and
Evaluation (OPGE).
Background
Grantees are required to monitor the activities of local
educational agencies (LEAs) and other subgrantees to ensure that federal grant
awards are used for authorized purposes in compliance with laws, regulations,
and the provisions of contracts or grant agreements. The authority for these
activities is given by the Office of Management and Budget (OMB) Circular
A-133, Subpart D, §___.400(d)(3) and Title 34 of the Code of Federal
Regulations (CFR) §80.40(a). Similarly, 34 CFR §76.770 requires states to
perform administrative responsibilities necessary to ensure compliance with
applicable statutes and regulations.
To address these
requirements, various divisions in TEA, including the Division of Financial
Audits, NCLB Program Coordination, IDEA Coordination, Performance-Based
Monitoring, Program Monitoring and Interventions, the Fiscal Accountability and
Federal Reporting Unit in OPGE, and the divisions of Formula Funding and
Discretionary Grants currently conduct a variety of monitoring activities,
including desk monitoring, as part of TEA’s comprehensive monitoring process.
The monitoring
activities described in this letter expand upon the existing desk monitoring
activities in the divisions of Formula Funding and Discretionary Grants. Because several TEA divisions already conduct various audits,
investigations, reviews, general monitoring, and surveys, the agency is
coordinating efforts to avoid grantees being monitored by more than one division
where possible.
Exceptions to Monitoring by Discretionary Grants and Formula
Funding
Federal grants awarded under the American Recovery and
Reinvestment Act (ARRA) of 2009, including the ARRA Title XIV State Fiscal
Stabilization Fund (SFSF), will not be
included in this formula and discretionary grants desk monitoring process, as
they are already monitored under a separate process.
Aspects
of Grants to be Monitored
Grantees that
are selected for formula and discretionary grants desk monitoring can expect staff
to monitor the following:
1.
That
the grantee obligated, expended, and used grant funds in accordance with:
a.
The
approved application
b.
The
purpose authorized by law for those funds
c.
The
federal cost principles, including maintaining time and effort records in
accordance with the applicable federal cost principles
d.
The
period of availability (i.e., encumbrances/obligations and receipt of goods and
services occurred during the grant period and in time to substantially benefit
the grant period)
e.
The
fiscal requirements applicable to the funds, including cash management
requirements
2.
That
grant expenditures are properly supported by the grantee’s source documentation
and costs are allocable to the grant program
3.
That
expenditures reported in the automated Expenditure Reporting (ER) system correspond
to expenditures recorded in the general ledger and payroll journal and to the
budget in the approved grant application
4.
That
the grantee complied with the mandatory account code structure and accounting
requirements in the Financial Accounting and Reporting (FAR) module of the
Financial Accountability System Resource Guide (FASRG), if applicable. (School
districts, regional education service centers [ESCs], and open-enrollment
charter schools are required to comply with FAR. All other applicants are required
to comply with generally accepted accounting principles [GAAP] and fund
accounting in accordance with 34 CFR §74.21, Standards for Financial Management
Systems.)
No action is
currently required from grantees regarding this formula and discretionary grants
desk monitoring process, but administrators are asked to expect and be
responsive to communications from these divisions. Through a comprehensive
monitoring process, we can improve grant management efforts and assist Texas
grantees in avoiding audit exceptions and the return of valuable federal
dollars to the federal government.
Additional information
regarding this formula and discretionary grants desk monitoring process can be
found on the agency’s website at http://www.tea.state.tx.us/index4.aspx?id=2147499937. For more information, please contact Dr. Earin Martin,
Chief Grants Administrator, in the Office for Planning, Grants and Evaluation
at earin.martin@tea.state.tx.us.
Sincerely,
Nora Ibáñez Hancock, EdD |