Under the Financial Management Oversight (FMO) Program FTA conducts several types of reviews:
Full Scope Financial Management System Review: The Full Scope Financial Management System Review requires FMO contractors to conduct a series of interviews, full transaction review, and appropriate substantive tests. The contractors determine that the grantee's financial management system meets the requirements of the Common Rule (49 CFR Part 18.20). The contractors then express an objective, external, independent professional opinion to FTA, in accordance with established public accounting standards, on the effectiveness of the grantee's internal control environment. The seven standards for financial management systems are: Financial Reporting, Accounting Records, Internal Control, Budget Control, Allowable Costs, Source Documentation and Cash Management. An average FMO review takes three to four weeks, conducted at the grantee's site.
Follow-up Reviews: Follow-up Reviews are performed primarily to ensure those recommendations resulting from Full Scope reviews are implemented and working properly. If performed, this review it will occur between 12-18 month after the Full Scope review.
Indirect Cost Allocation Plan Review: Indirect Cost Allocation Plan Reviews are performed on Cost Allocation Plans submitted to the FTA for approval as the cognizant agency. The purpose of this review is to determine whether the methodology for allocating indirect cost to a Federal grant is calculated in a manner consistent with the applicable OMB circular.
Special Assignment (Agreed Upon Procedures): Agreed Upon Procedures are performed primarily to carry out special assignments deemed necessary as part of the FMO program. As an example, FTA may require a review that involves the development of procedures with the contracting resource in order to meet FTA engagement objectives. While there can be varying engagements that may employ Agreed-Upon Procedures, in most cases, FTA is concerned about whether grants funds were spent according to the guidelines of the grant, and in accordance with the applicable cost principles. These reviews are conducted on a case-by-case basis and are directly related to grantee’s financial management issues.
FY13 Workshops Information: