Fiscal Agent Role

Support Kansas City - Fiscal Agent Role

On behalf of the Health Forward Foundation

Background

in 2005, the Health Forward Foundation (HFF – formerly the Health Care Foundation of Greater Kansas City) engages SKC to act as fiscal agent of behalf of those nonprofits receiving awards who did not meet the audit requirements. SKC was asked to complete review of financial reports and obtain a current board roster and meet with board and staff of the grantees to discuss the grantee’s ability to track and monitor the use of restricted funds. After this review and discussion, SKC would then determine if they could serve as the fiscal agent on behalf of the grantee. In 2018, leadership at HFF increased the level of due diligence on the part of SKC. These activities will not replace an audit, but assist the grantee’s leadership in understanding their financial position and the level of internal controls and areas of strengthening controls in needed. The following table describes the activities and responsibilities.

Note

All communication and request for fiscal agent support is initiated by the Health Forward Foundation. Once SKC has been notified by HFF that their grantee requires a fiscal agent, SKC will coordinate a fiscal agent assessment meeting with the Grantee to determine if SKC is able to serve as a fiscal agent for the grantee.

Support KC

Grantee

Establishing the Fiscal Agent Relationship

Once grant application has been approved HFF will notify Grantee if they require a fiscal agent in order to receive the grant. HFF will initiate communication between Grantee and SKC

Grantee submits a grant application and is approved

Information Requests to Grantee

SKC requests the following be provided prior to the fiscal agent assessment meeting:

  • Statement of Financial Position (balance sheet)
  • Statement of Activity (profit and loss)
  • Statement of Cash Flows
  • A current board roster with contact information
  • Most current Form 990

Grantee provides information requested

Review of Information Required by SKC

SKC reviews the assessment results based on the financial information provided and schedule the fiscal agent assessment review meeting

Provides additional information requested and responds to internal controls assessment questions.

At the Initial Meeting

  • Introductions and roles are reviewed
  • The Assessment Dashboard is reviewed and any additional information needed is requested
  • The Internal Controls Assessment is reviewed

Grantee attendees at the fiscal agent assessment meeting include staff leadership and board representation

Following the Meeting

  • Determine the appropriateness for SKC to serve as a fiscal agent for the grantee. If the appropriateness is established, SKC will develop and sign fiscal agent agreement and send to grantee for signature and then return to HFF.
  • The Internal Control Assessment and recommendations is completed
  • SKC signs the grant agreement initiated by HFF and returns it to the foundation.
  • A copy of the assessments will be made available to HFF staff
  • SKC staff presents the assessment results/reports to the Grantee board

Signs fiscal agent agreement

Provide feedback and requests for any resources that might be needed to strengthen controls. (Some technical assistance could be requested from SKC staff and a request for covering the fees for that assistance would be submitted to HFF for approval for assistance and fees incurred.)

The documents are shared with appropriate board and staff members

Grantee identifies appropriate time for presentation to the board

SKC Role Clarifications

SKC does not review any of the grant reporting provided to the Foundation

SKC does not have any role in the decision-making process for grantmaking or grant renewals for the Foundation

SKC does not provide bookkeeping support as part of the fiscal agent role

The Prospective Grantee is responsible for all grant applications, proposals and grant reports required by HFF

Grant Funds

How does the grant money flow in a fiscal agent relationship:

  • The Foundation will issue checks to SKC as defined by the Disbursement Schedule in the Grant Award Agreement
  • SKC will deposit the Foundation checks and then re-issue a check for the same amount to the Grantee
  • SKC staff time serving as a fiscal agent is covered by HFF grant to SKC and not through grant funds provided to the grantee
  • SKC is audited each year and a copy of the audit report will be provided to the Foundation to satisfy the audit requirement