Monthly Webinar | Creating a Risk-Based Monitoring System-Creating a Risk-Based Monitoring System

Video Transcription

Video Summary

In this NGMA webinar, Tiffany Kessler and Madeline Clackhorn from the Brooming Group present on creating risk-based monitoring systems in grants management. They emphasize the importance of both external and internal risk assessments for entities receiving federal funds, highlighting that such assessments help prioritize risks and improve compliance with federal regulations, including the Uniform Guidance. External assessments focus on evaluating subrecipients' financial stability, management systems, and past performance to determine needed oversight, while internal assessments involve a self-evaluation of an entity’s controls and compliance risks, which is often overlooked despite federal requirements.<br /><br />Using a real-life example from the Indiana Department of Education, they demonstrate a practical five-step internal risk assessment: gathering documentation, identifying risk categories (operational, financial management, allowability of costs, procurement, compliance), reviewing evidence, developing a scoring rubric, and scoring risks using a color-coded system. They stress the importance of regularly revisiting risk assessments (ideally annually), taking corrective actions, and tailoring risk mitigation strategies to agency resources. The webinar includes interactive polling, Q&A, and resources for grants managers, reinforcing that effective risk assessment and mitigation can reduce audit findings and improve overall grant management.

Keywords

risk-based monitoring

grants management

external risk assessments

internal risk assessments

federal compliance

Uniform Guidance

risk scoring rubric

Indiana Department of Education

risk mitigation strategies