1. Fiscal Monitoring Fiscal Monitoring

2. Agenda I. Fiscal Monitoring I. Fiscal Monitoring II. Follow-up II. Follow-up III. Correction Action Plan III. Correction Action Plan

3. OCJS Grants Monitoring and Fiscal Compliance Walter Brown, Director Walter Brown, Director (614) 728-5466 (614) 728-5466 wbrown@dps.state.oh.us

4. OCJS Compliance Monitors Tony Veljanoski, Compliance Monitor (Region 3) Tony Veljanoski, Compliance Monitor (Region 3)  (614) 728-4790  tveljanoski@dps.state.oh.us tveljanoski@dps.state.oh.us Shaun Campbell, Compliance Monitor (Region 4) Shaun Campbell, Compliance Monitor (Region 4)  (614) 466-5933  sdcampbell@dps.state.oh.us sdcampbell@dps.state.oh.us Phil Steffanni, Compliance Monitor (Region 1) Phil Steffanni, Compliance Monitor (Region 1)  (614) 466-4470  pmsteffanni@dps.state.oh.us pmsteffanni@dps.state.oh.us Laura McCall, Compliance Monitor (Region 2) Laura McCall, Compliance Monitor (Region 2)  (614) 466-2013  lamccall@dps.state.oh.us lamccall@dps.state.oh.us

5. I. Fiscal Monitorings The Monitors provide technical assistance to local and/or state agencies regarding financial grant-related issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. The Monitors provide technical assistance to local and/or state agencies regarding financial grant-related issues to ensure optimum productivity, efficiency and quality of agency operations and/or services. Analyze existing operations, systems and procedures for deficiencies and/or determine financial impact and feasibility of programs. Analyze existing operations, systems and procedures for deficiencies and/or determine financial impact and feasibility of programs. Evaluate financial impact of specified operations, system, service or procedure of assigned agency (e.g., claims processing; surveillance and utilization review audits). Evaluate financial impact of specified operations, system, service or procedure of assigned agency (e.g., claims processing; surveillance and utilization review audits). Identifies problems and prepares questions to pose during monitoring. Identifies problems and prepares questions to pose during monitoring.

6. Fiscal Monitorings  Documents reviewed include:  Bank Statements and Reconciliations  Receipts, Deposits, or Pay-Ins  Match Receipts  General Ledger Reports  Payroll Registers (Timesheets and Activity Reports)  Consultant Contracts  Evidence of Consultant Payments  Equipment/Supply receipts  Equipment Inventory Report  Evidence of Travel Costs  Cancelled Warrants, Checks, Invoices and Purchase Orders

7. Preliminary Planning Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring review. Compliance Monitors communicate with the agency leadership to plan a time for the fiscal monitoring review. Once the date has been set up, a Site Confirmation Letter is sent via fax and email to the subgrantee confirming the date and time of the fiscal monitoring. Once the date has been set up, a Site Confirmation Letter is sent via fax and email to the subgrantee confirming the date and time of the fiscal monitoring. The letter specifies the necessary detail that the Monitors will need to see at the time of the fiscal visit. The letter specifies the necessary detail that the 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 preparation by reviewing the General Ledger and the budget on file with OCJS and comparing the three documents for compliance. The focus is to ensure accuracy of the claim preparation by reviewing the General Ledger and the budget on file with OCJS and comparing the three documents for compliance.

8. Field Work The Compliance Monitors review and analyze records, operations, organization, systems and controls, and interviews employees involved in program being monitored as well as fiscal review of backup documentation submitted with the claims. The Compliance Monitors review and analyze records, operations, organization, systems and controls, and interviews employees involved in program being monitored as well as fiscal review of backup documentation submitted with the claims. Meet with and/or telephone appropriate representatives to be involved in monitoring to participate in outlining or outline scope of monitoring. Meet with and/or telephone appropriate representatives to be involved in monitoring to participate in outlining or outline scope of monitoring. Attend meetings to review/participate in discussion of findings with appropriate representatives of entity being monitored. Attend meetings to review/participate in discussion of findings with appropriate representatives of entity being monitored.

9. Field Work (Cont’d) Monitors complete the On-Site Monitoring Testing Form’s, which include: Receipts Testing Form, Expenditures Testing Form, Payroll Testing Form, and Equipment Testing Form. Monitors complete the On-Site Monitoring Testing Form’s, which include: Receipts Testing Form, Expenditures Testing Form, Payroll Testing Form, and Equipment Testing Form. Prepare final monitoring report summarizing work performed, findings and recommendations to improve/resolve deficiencies or non-compliance. Prepare final monitoring report summarizing work performed, findings and recommendations to improve/resolve deficiencies or non-compliance.

10. Field Work (Cont’d) Payroll Testing is a double check to verify accuracy of the payroll payments made to all employees that are listed on the grant. Payroll Testing is a double check to verify accuracy of the payroll payments made to all employees that are listed on the grant. –Verify the personnel, their hours worked, their pay rates, and ensure that the total payroll is paid accurately. This is verified by looking at the expense ledger (as provided by the subgrantee), the bank statements, and the pay stubs and timesheets of all employees stated in the grant. –Any discrepancies are noted and if further action is necessary, it is outlined in the Recommendations Letter.

11. Field Work (Cont’d) Expenditures Testing is used when there is travel, supplies, contractual services, and other direct costs on the grant budget. Expenditures Testing is used when there is travel, supplies, contractual services, and other direct costs on the grant budget. –Verify various expense “testing” to ensure accuracy of expenses being reported on the grant, as well as to ensure that allowable costs are being reported within the guidelines of the budget. Again, any discrepancies are noted and if further action is necessary, it is outlined in the Recommendations Letter.

12. Field Work (Cont’d) Equipment Testing is used when there is equipment that is included in the grant, or if the grant is ‘equipment only’. When equipment is included within the budget of the grant, the Equipment Inventory Report is usually completed. Equipment Testing is used when there is equipment that is included in the grant, or if the grant is ‘equipment only’. When equipment is included within the budget of the grant, the Equipment Inventory Report is usually completed. –This form ensures accurate tracking of all equipment that was purchased with the grant dollars and also provides an inventory document to verify where all the purchased equipment can be tracked and/or found when an audit of the inventories is necessary. The Equipment Inventory Report is usually prepared at the end of the year.

13. II. Follow-Up

14. Recommendations After field work is complete a Recommendations Letter is compiled and sent to the agency. The letter is sent within 5 business days of the Onsite Monitoring. After field work is complete a Recommendations Letter is compiled and sent to the agency. The letter is sent within 5 business days of the Onsite Monitoring. Letter identifies problems and prepares recommendations as a result of the fiscal monitoring. Letter identifies problems and prepares recommendations as a result of the fiscal monitoring. –It states the personnel met with at the Onsite Monitoring –Items reviewed during the monitoring –What observations were made during a review of the financial documents and all other related financial information to each grant being monitored –Recommendations section stating what corrective action needs to be taken and if a 30 day follow-up will be required. Letter is designed to improve/resolve deficiencies or non- compliance of the grant fiscal monitoring. Letter is designed to improve/resolve deficiencies or non- compliance of the grant fiscal monitoring.

15. Follow-Up If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide correction action in regards to the recommendations stated within the monitoring letter. If a follow-up is necessary, the agency is given 30 days from receipt of the letter to provide correction action in regards to the recommendations stated within the monitoring letter. –The Monitor will contact the subgrantee and communicate with the agency leadership to plan a time for the follow-up fiscal monitoring review. Any agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring recommendations. Any agency comments are analyzed carefully, and are used, when appropriate, to modify any monitoring recommendations. After the initial fiscal monitoring, a follow-up courtesy call/email is necessary to answer any open items and/or questions regarding the recommendations letter. After the initial fiscal monitoring, a follow-up courtesy call/email is necessary to answer any open items and/or questions regarding the recommendations letter.

16. III. Corrective Action Plan

17. Why Corrective Action Plan? The corrective action plan is outlined in the recommendations letter when a 30 day follow-up is necessary. The corrective action plan is outlined in the recommendations letter when a 30 day follow-up is necessary. The corrective action plan is designed to improve/resolve deficiencies or non-compliance issues related to the grant monitoring(s). The corrective action plan is designed to improve/resolve deficiencies or non-compliance issues related to the grant monitoring(s). Assists the agency from having non-compliance action taken against them. Assists the agency from having non-compliance action taken against them.

18. Timeline and Corrective Action The agency is given 30 days from receipt of the recommendations letter to provide a corrective action plan in regards to the recommendations stated within the recommendations letter. The agency is given 30 days from receipt of the recommendations letter to provide a corrective action plan in regards to the recommendations stated within the recommendations letter. The agency must demonstrate at the 30 day follow- up monitoring that corrective action has been taken and that the recommendations outlined in the monitoring letter have been satisfactorily met. The agency must demonstrate at the 30 day follow- up monitoring that corrective action has been taken and that the recommendations outlined in the monitoring letter have been satisfactorily met.

19. Corrective Action Plan Examples Continue to use proper care when filing paperwork in the grant binder. Continue to use proper care when filing paperwork in the grant binder. Continue to provide detailed backup for the amounts reported on the claim, and referencing where the supporting documentation is located. Continue to provide detailed backup for the amounts reported on the claim, and referencing where the supporting documentation is located. An Expense Ledger should be available to detail out all expenses year-to-date. An Expense Ledger should be available to detail out all expenses year-to-date. With your grant coordinator, ensure that the most accurate and updated budget information is on file with OCJS. With your grant coordinator, ensure that the most accurate and updated budget information is on file with OCJS.

20. Non-compliance – Actions Suspend payments Suspend payments Cancel award Cancel award Suspend or cancel other OCJS funds Suspend or cancel other OCJS funds  Administrative 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.

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

22. OCJS Contact Information Ohio Office of Criminal Justice Services Ohio Office of Criminal Justice Services 1970 West Broad Street 1970 West Broad Street P.O. Box 182632 Columbus, Ohio 43218-2632 Columbus, Ohio 43218-2632 614-466-7782 (telephone) 614-466-7782 (telephone) 614-466-0308 (fax) 614-466-0308 (fax)