Mt. Olive Community Outreach Center, Inc. Corrective Action Plan Grant Budget Monitoring and Expenditure Control Finding Mt. Olive Community Outreach Center, Inc. (MOCOC) recognizes the need to strengthen its internal fiscal controls to ensure expenditures remain within approved grant budgets. As a small nonprofit administering multiple grant awards, the organization is implementing additional monitoring procedures to prevent overspending and ensure compliance with all grant requirements. Root Cause The organization did not have a formal written procedure outlining how grant expenditures would be monitored throughout the grant period. Although expenditures were reviewed on an ongoing basis, the review process was not consistently documented or supported by a standardized budget monitoring procedure. Corrective Action Effective immediately, MOCOC will implement the following procedures for all grant-funded programs: 1. Monthly Budget Monitoring The Program Director and (Accountant?) will review each active grant budget on a monthly basis. A Budget-to-Actual report will be reviewed to compare approved budgets with actual expenditures and remaining balances. 2. Pre-Expenditure Budget Verification Before any grant-funded purchase or financial commitment is made, the Program Director will verify that sufficient funds remain within the appropriate budget category. No expenditure will be approved if adequate funds are not available. 3. Grant Budget Tracking The Program Director/(Accountant) will maintain a budget tracking spreadsheet for each active grant showing: • Approved budget • Expenditures to date • Remaining balance • Percentage of budget utilized This tracking document will be updated regularly and reviewed during the monthly budget meetings. 4. Spending Threshold Monitoring When expenditures reach approximately 85% of the approved budget or any major budget category, the Program Director and (Accountant?) will review the remaining budget and determine whether spending adjustments or a budget revision request, if permitted by the funding agency, is necessary. 5. Financial Oversight The Program Director will review and approve all grant-related expenditures before payment. The Program will process payments, maintain accounting records, and reconcile expenditures to the accounting system, after they have been properly approved and signed off on to process. Monthly financial reports will be provided to management for review. Responsible Staff • Executive Director • Program Director • Program Assistants • Accountant (When Applicable) Implementation Date These procedures become effective immediately upon approval and will be incorporated into the organization's Fiscal Policies and Procedures Manual. Monitoring Compliance with these procedures will be monitored through: • Monthly budget review meetings between the Executive Director, Program Director and (Accountant?) • Documentation of budget reviews and any corrective actions taken. • Periodic review of financial reports by the Board of Directors if applicable. • Annual review of these procedures to determine whether revisions or additional controls are needed. Expected Outcome Implementation of these procedures will strengthen MOCOC's internal controls, improve budget oversight, reduce the risk of overspending, and ensure continued compliance with grant requirements and sound fiscal management practices. These measures will promote accountability while providing reasonable internal controls appropriate for the size and structure of the organization.