ARRA Requires Stringent Grant Monitoring Policies

Washington, March 26 – State agencies that have monitoring policies in place for traditional grant programs should realize that these policies simply aren’t compatible with American Recovery and Reinvestment Act programs, which require a more stringent level of scrutiny.

“Recovery Act funding is subject to the most stringent standards of accountability and transparency; therefore, heightened monitoring and oversight is required,” the Department of Education’s inspector general said in an audit of the Pennsylvania Department of Education’s internal controls over Recovery Act funds. Although PDE contended that its oversight of Recovery Act and traditional grant funds comply with federal guidance and that it constantly reviews fiscal information from local educational agencies, “the lack of fiscal and Recovery Act-related components in PDE’s monitoring processes and procedures makes it difficult to ensure that LEAs are expending federal funds in accordance with federal regulations.”