Through its Administrative Services Division, the College exercises fiscal control over all externally funded programs (1). The College maintains a separate account for each externally funded program in its institutional funds to monitor each program. These funds are audited and reviewed as part of the annual financial audit (2, 3, 4, & 5). These audits have routinely reported that SCC is in compliance with no material weaknesses in internal controls and no instances of noncompliance.

Once notification of an external award has been received, a fund authority is prepared (6). Each fund is assigned a fund account with detailed line item account numbers to track all expenses and revenue related to the grant. Grant-related expenditures must be in accordance with the specific grant requirements; however, they are still subject to the state’s purchasing policies.

Through the Sponsored Programs compliance coordinator (7) and associate comptroller (8), Southwestern exercises financial control over externally funded programs. The primary purpose of the compliance coordinator is to assist the College in grant management and compliance activities for its sponsored programs. Each project grant director is provided a Grant Management Handbook, detailing program regulations and state guidelines (9). All expenditures must be approved by the appropriate program director and the compliance coordinator. Program directors are required to use a grant requisition form for procurement (10) which is then submitted to the compliance coordinator for approval. Directors are provided monthly expenditure reports for review and reconciliation. The associate controller works closely with the compliance coordinator to ensure accuracy of externally funded program expenditures. Revenues and expenditures are monitored and analyzed by the associate comptroller. This position is responsible for the preparation and filing of periodic program financial reports and financial closeout of grant programs.

As an example of the U.S. Department of Education’s confidence in the College’s ability to effectively manage a sponsored program, the Gaining Early Awareness and Readiness for Undergraduate Programs grant (GEAR UP) was recently renewed for six years. This $6 million grant is the largest in the College’s history (11 & 12).