Pre-Award Risk Assessment

(Internal Document)

Refer to the Minnesota Office of Grants Management Policies08-06, 08-10, 08-13 and 2 CFR, 200.331. This form can be used for pre-award risk assessments for outgoing grants.

Maintain a copy of the Pre-Award Risk Assessment with documentation in the grant file.

Applicant legal name:______

Title of grant project:______

Proposed grant amount: ______

Data Universal Numbering (DUNS) (9 or 13 characters):______(If applicable)

A. Debarment and Suspension

Check the debarment and suspension status for the proposed grantee. Check both federal and state debarment/suspension sites. Save a copy of the search resultsand attach to your Pre-Award Risk Assessment document for the grant file.

State Site

Suspended/Debarred Vendor Report. You don't conduct a search on this site, just review the list.

FederalSites

System for Award Managementor Federal Awardee Performance and Integrity Information System (FAPIIS) - Search by name of the organization or DUNS number.

Debarred or Suspended:YES/NO

If debarred or suspended, do not continue with the Pre-Award Risk Assessment. Please discuss next steps with the State Agency’s Authorized Representative and/or Supervisor.

B. Financial Review

Grants $25,000 and higher– Financial documentation must be reviewed prior to the grant award to determine if special conditions need to be added to the Grant Agreement, Official Grant Award Notification (OGAN) or other award document. Issues of concerns may beaddressed during the grant period, financial reconciliation and/or monitoring. Exceptions: Bonding and Capital Grants.

Types of documentation to review:

Nonprofit grant applicantswith annual income of under $50,000 or who have not been in existence long enough to have a completed IRS Form 990 or audit should be asked to submit their most recent board-reviewed financial statements.

Nonprofit grant applicants with total annual revenue of $50,000 or more but less than $750,000 should be asked to submit their most recent IRS Form 990.

Nonprofit grant applicants with total annual revenue of $750,000 and higher should be asked to submit their most recent financial statements audited by a certified public accountant (AKA Certified Financial Audit.) § Minn. Stat. §309.53, subdivision 3.

Non-federal entities (including nonprofit grant applicants and government entities) subject to the Single Audit Act for the year under review should submit that document. The Single Audit Act applies only to non-federal entities that expend $750K or more in federal awards in one year.

If the grantee is a newly formed organization, is not subject to an audit requirement, and is not subject to the IRS Tax Form 990 requirement (due to organization not meeting the annual revenue thresholds and/ or being in existence less than12 months)ask the applicant to submittheir most recent board minutes if financial decisions aremade during board meetings or applicants can completean Accounting System and Financial Capacity Questionnaire. Request the financials at a later time during monitoring or a continuation grant period.

Note: The Accounting System and Financial Capacity Questionnaire can be completed by a new organization (nongovernmental or otherwise) in existence less than 12-18 months. Financial statements should then be requested from them in the future for review. File the questionnaire with the pre-award risk assessment form in the grant file.

Note: For nongovernmental organizations, always request a copy of their 501(c)(3).

Financial Review Assessment:

Type of financial reviewed: ______

Date prepared: ______

Assessment of financial review:______

Example assessment outcomes:high risk grantee, low risk per single audit, or if organization has no financials and you want to follow up in the future. Attach a copy of the report or part of the report to this assessment form. If no financials are available, then state that and indicate if they completed the AFSQ.

C. Prior Performance History

In addition to review of financial statements, a state agency must consider the prior performancehistory. Assess the prior history findings below based on documented history.You must provide a response to each item below if they are a veteran organization. If a new organization with no prior history, respond to Number 7.

  1. Grantee's prior years of experience administeringgrants: ______
  2. Prior years of experience with this specific grant program:______
  3. Timeliness in submitting program and financial reports: consistent /inconsistent / never on time
  4. Satisfactorily metpast grant program goals and outcomes:consistent / inconsistent / never
  5. Compliance with other grant terms and conditions: no issues / some issues / many issues
  6. Concerns/issues identified during past monitoring orfinancial reconciliation results : none / some / significant
  7. (Optional) Prior performance not applicablebecause: ______
  8. Other items, if applicable: ______

D. Pre-Award Risk Assessment Outcome – Special Conditions or Other Action

Select one. Describe special conditions or timelines as necessary.

Based on my review of the financial documentation and prior performance, the following has been determined:

  1. There is no need to add special conditions to the Official Grant Award Notification (OGAN) orother award document based on the pre-award risk assessment.
  2. A special condition(s) will be added to the Official Grant Award Notification (OGAN) orother award document along with a time frame for the grantee to address the special condition.
  3. There are some concerns based on review of the financial documentation or lack of and/or priorperformance. These will be addressed during the grant period.
  4. There are nomajor concerns based on the pre-award risk assessment of both financials and prior performance.

Notes: ______

Special Conditions Examples

Some special condition options as outlined in CFR 200.207to consider adding to the grant contract agreement/grant award documentation (although not limited to these)are:

  • Requiring payments as reimbursements rather than advance payments
  • Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given performance period
  • Requiring additional, more detailed financial reports such as general ledgers, supporting documentationon an ongoing basis
  • Requiring additional program project reporting or program monitoring
  • Requiring non-federal entity to attend the list stage agencygrant management sponsored trainings or receive more one-on-one discussion with granting agency
  • Establishing additional prior approvals for more specific expenditures
  • Requiring financials at a later date if not available at pre-award phase

SIGNATURES CONFIRMING ASSESSMENT WAS CONDUCTED

The assessment was conducted and determined bylist state agency staff position(s)>. I understand that the Pre-Award Risk Assessment will be reviewed prior to financial reconciliations and monitoring (including program oversight) to address concerns outlined and/or to provide technical assistance.

I understand that if any special conditions were added to the grant contract agreementor other award document resulting from the assessment, theywill befollowed up on as specified in the grant contract agreementor other award document during the grant period.

______/______

Signature of State Agency Grant SpecialistDate

______/______

Signature of State Agency Authorized Program RepresentativeDate

Note: If the pre-award risk assessment results in not considering funding the proposed grantee, confer with the State Agency’s Authorized Representative and/or Supervisor.