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.
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.
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:
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
Grantee attendees at the fiscal agent assessment meeting include staff leadership and board representation
Following the Meeting
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
How does the grant money flow in a fiscal agent relationship: