ACF monitors award performance through a combination of financial and programmatic requirements. Your program specialist and grants management specialist work together to monitor performance and provide technical assistance as necessary. Ongoing oversight is completed through the review of reports (e.g., program, financial, property), post-award requests, correspondences, audits, and participation in virtual meetings or site visits.
As a recipient of a federal award, you must ensure federal funds are properly expended and accounted for to achieve the programmatic goals approved in their applications and plans.
This section offers information on various topics related to the effective monitoring and oversight of federal awards.
Cash Management
Recipients that receive ACF Federal awards are responsible for maintaining written procedures and internal controls to effectively manage federal program funds. Cash management practices are designed to minimize the time elapsed between the transfer of federal funds and recipients in compliance with Treasury and OMB requirements. Recipients are responsible for ensuring that subrecipients are aware of cash management requirements. For more information, see 45 CFR §75.305 (effective on or after 10/1/2025: 2 CFR §200.305 ), 31 CFR Part 205 (for states), and the terms and conditions of the award.
Compliance With Cash Management Policies
Recipients must monitor their own cash drawdowns and those of their subrecipients to ensure the timing and amount of advance payments are as close as feasible to the actual disbursement of funds for direct program or project costs.
Use of Federal Funds
Federal funds must be used as specified in the Notice of Award, associated terms and conditions, and in accordance with the approved funding application or state plan. This includes allowable direct costs and any allocable portion of indirect costs, if previously authorized.
Payment of Federal Funds
ACF recipients must utilize the Payment Management System (PMS) when requesting payment of federal funds. If this is your first award through PMS, it is recommended that you review the information provided on their website under the Grant Recipient navigation bar. The Grant Recipient FAQs section provides basic information to frequently asked questions.
It is mandatory that all new recipients complete and send to PSC a Direct Deposit Sign-Up Form (SF 1199A) and a PMS Access Form. For more information, select Banking Information under the Grant Recipient drop-down of the PMS website.
Funds drawn down are electronically deposited into the designated bank account on the next business day. Funds may be drawn as a reimbursement or to accommodate your immediate needs and must not be held in excess of three (3) working days. The payment method for state agencies shall be consistent with the Treasury/State CMIA agreements or default procedures codified under 31 CFR Part 205 .
Internal Controls
Internal controls are processes used by an entity’s management or oversight body to help achieve its objectives. Effective internal controls are the basis for strong financial systems, programmatic oversight and processes that prevent fraud, waste, and abuse. Strong internal controls also help ensure proper stewardship of federal funds.
All ACF recipients must establish and maintain effective internal controls and provide reasonable assurance that it is managing federal funds in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Recipient are required to follow one of two approved internal control frameworks: the Government Accountability Office (GAO) Standards for Internal Control in the Federal Government (“Green Book”) (PDF) or the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control — Integrated Framework. Both GAO and COSO provide a framework for designing, implementing, and operating an effective internal control system to achieve objectives related to:
- Operations - Effectiveness and efficiency of operations
- Reporting - Reliability of reporting for internal and external use
- Compliance - Compliance with applicable laws and regulations
The single audit generally tests to see if there are adequate internal controls in place.
Audit Reports
Single Audits
Any recipient that expends $1,000,000 or more in federal awards during its fiscal year must have a single or program-specific audit conducted for that year, as required by Subpart F - Audit Requirements of the Uniform Guidance (45 CFR Part 75 , 2 CFR §200.501 ; effective on or after 10/1/2025: 2 CFR Part 200 ). A single audit is an independent review of an organization’s financial statements, internal controls, and its compliance with Federal statutes, regulations, and the terms and conditions of Federal awards that may have a direct and material effect on each of its major programs. A single audit is intended to provide assurance to the Federal Government that a recipient has adequate internal controls in place and is generally in compliance with program requirements.
ACF utilizes the single audit as one of several mechanisms to monitor a recipient’s compliance with the applicable regulations and program requirements. OGM’s audit resolution team is responsible for the review of a recipient’s single audit and corrective action plan, and the issuance of a management decision letter to the auditee as to what corrective action is necessary.
For audit confirmation, please contact the Payment Management System (PMS). The PMS allows grant recipients to provide auditors with confirmation on grant payments using their User Name and Password.
For recipients unable to access PMS, you can make payment confirmation requests to PMSOIGAUDIT@psc.hhs.gov.
Additional information can be found at: https://pms.psc.gov/grant-recipients/audit-confirmation-procedures.html .
Refer to the reporting section of this website for information about when and how to submit audits.
Program-Specific Single Audit Requirements
In many cases, program-specific audit guides are available to provide specific guidance to the auditor with respect to internal controls, compliance requirements, suggested audit procedures, and audit reporting requirements. A listing of current program-specific audit guides can be found in the Compliance Supplement (Supplement).
The Supplement is a document that identifies existing compliance requirements that the federal government expects to be considered as part of an audit required by the 1996 Amendments to the Single Audit Act. Without the Supplement, auditors would need to research many laws and regulations for each program under audit to determine which compliance requirements are important to the federal government and could have both a direct and material effect on a program. Providing the Supplement is a more efficient and cost-effective approach to performing this research. The Supplement provides information for auditors to understand Federal program’s objectives, procedures, and requirements subject to the audit. The Supplement is updated annually and is available on the OMB website at https://www.whitehouse.gov/omb/office-federal-financial-management/ (PDF).
When a current program-specific audit guide is not available, the auditee and auditor must have basically the same responsibilities for the Federal program as they would have for an audit of a major program in a single audit (45 CFR §75.507 ; effective on or after 10/1/2025: 2 CFR §200.507 ). For major programs not included in the Supplement, the Supplement provides guidance to auditors in Part 7 and use the types of compliance requirements in Part 3 to identify the applicable compliance requirements that could have both a direct and material effect on the program. Program specific information can be found within the terms and conditions associated with a recipient’s grant award.
Office of Inspector General (OIG) Audits
The Office of Inspector General , Office of Audit Services conducts independent audits of HHS programs and/or HHS recipients and contractors. These audits examine the performance of HHS programs and/or recipients in carrying out their responsibilities and provide independent assessments of HHS programs and operations. These audits help reduce waste, abuse, and mismanagement and promote economy and efficiency throughout HHS.