XIX. Subrecipient Monitoring

Monitoring is the review process used to determine a subrecipient’s compliance with the requirements of a state and/or federal program, applicable laws and regulations, and stated results and outcomes.  Monitoring also includes the review of internal controls to determine if the financial management and the accounting system are adequate to account for program funds in accordance with state and/or federal requirements.  Monitoring should result in the identification of areas of non-compliance with the expectation that corrective action will be taken to ensure compliance.

Grant oversight continues to remain a key priority for distribution of federal funds.  Simply put, because the threshold for federal auditing requirements has increased OMB has built in the funds for contractual/agency monitoring including both the programmatic side of the grant as well as the fiscal components of the grant (the scope being less than that of a full audit).