Internal Controls — Grant & Program Management


  • Terms and conditions of a grant are met.
  • Monies expended from the grant reach the appropriate recipients and are spent in accordance with applicable laws and regulations.
  • Recipients and subrecipients understand their rights, requirements and responsibilities under the grant.
  • Recipients and subrecipients are correctly discharging their responsibilities under the terms of the grant.
  • Purposes of the grant are being met.
  • Audit findings are promptly resolved.
  • Any reporting required is completed accurately and on a timely basis.
  • Compliance with state-/local-wide cost allocation plans.
  • Compliance with any federal, state or local laws (the Buy American Act, Civil Rights Act, Bacon-Davis Act, etc.)


  • Terms or conditions of a grant may be violated and grant funds may be suspended, recouped, etc.
  • Grant monies may be erroneously or fraudulently misdirected to ineligible payees.
  • Recipients or subrecipients may inappropriately or illegally use grant proceeds.
  • Recipients or subrecipients may not receive money to which they are entitled.
  • Lack of results monitoring and measurement may result in the grant proceeds not fulfilling their purpose.
  • Unresolved audit findings may lead to the cancellation of the grant.
  • Untimely or incorrect reporting may indicate ineffective or missing controls over financial reporting or an attempt to obfuscate financial or operational irregularities.
  • Failure to comply with federal, state or local laws may result in fines, penalties and suspension of funding.
  • Erroneous cost allocation computation of state or local cost allocation plans may result in the recoupment of grant monies.