|
Under the Financial Management Oversight (FMO) Program FTA conducts several types of reviews:
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 are primarily performed to ensure those recommendations resulting from full scope reviews are implemented and working properly. If this type of review is performed, it will occur between 12-18 month after the full scope review;
Financial Capacity Assessments (FCAs) are performed for selected grantees involved in major capital investment projects. This type of review assesses the financial capability of grantees to meet Full Funding Grant Agreement (FFGA) obligations and maintain their existing transit operation. In cases where projects have progressed into construction, the contractors evaluate the financial capacity of grantees to complete the undertaking according to the terms, conditions, budgets, schedules, and commitments in the FFGA or as proposed in a Recovery Plan. Financial Capacity Assessments analyze plans to mitigate the risks associated with:
the provision of the required local share,
the ability to complete the Project on schedule in the face of delayed or reduced Congressional appropriations, unanticipated conditions or budget overruns, and
the ability to operate and maintain the existing system, as well as the project; and,
On a case-by-case basis, we conduct Special Analyses or Special Reviews related to grantee's financial management issues.
To assist grantees in preparing for the various FMO reviews, FTA conducts seminars, provides training materials, and other supporting materials for those who cannot participate or are not currently participating in the seminars such as the Self Assessment Form available on this website. FTA recommends as a best management practice that all of its current grantees complete the form once a year to determine whether or not they are in compliance with FTA regulations related to internal control and financial management, but the form is voluntary and not shared with FTA. Another useful resource for grantees can be found in the 2007 Financial Management Oversight Seminar Workbook, which will be published on this website very soon. In addition, grantees interested in the FMO Seminars can access the related brochure and registration form below.
|
