Fiscal Monitoring

About Us

FSO Mission Statement – “To promote good stewardship of public resources by helping grantees comply with their contracts and ensuring agency compliance with State and Federal requirements for fiscal monitoring of grantees.” 


Prior to 2016, the Independent Fiscal Support and Oversight Unit (formerly the Fiscal Monitoring Unit) was a part of the DSHS Contract Oversight and Support Section (COS). The FSO was formed to ensure legal compliance for recipient and sub-recipient grants through in-depth reviews, and to provide technical assistance to grantees on financial topics.  

In 2016, the Sunset Commission recommended that the 84th Legislature move some formerly DSHS programs to the Texas Health and Human Services Commission (HHSC). As a result, the FSO was split between HHSC and DSHS, according to the grants each agency administered. In 2018, a reorganization was approved to establish a branch to coordinate HIV grants. 

The DSHS FSO is currently staffed with 16 full time employees. DSHS FSO participates in the DSHS Internship Program and has had numerous successful interns working towards a bachelor's or master's degree. 

In future years, FSO is placing a heavy focus on expanding technical assistance (TA), through both group and individual trainings to increase cooperation with DSHS grantees. The TA Team within FSO is also responsible for follow up on Corrective Action Plans and Single Audit findings. 

FSO Review Process 

FSO completes an annual risk assessment of DSHS grantees to determine the monitoring schedule for the fiscal year. The risk assessment is based on five weighted components that determine the risk of a grantee: 

  • Single Audit results 

  • Prior fiscal review results 

  • Length of time since last monitoring 

  • Funding diversification 

  • Size of award(s) 

Normally, quarterly samples of transactions are used; however, the scope of the review may be expanded if systemic issues are identified. DSHS FSO reviews 50% of high-risk grantees and 20% of low and medium-risk grantees each fiscal year. 

These FSO reviews generally include the following items: 

  • Testing amounts charged to DSHS grants for payroll, expenditures, and equipment purchases. 

  • Other grant-specific requirements like matching, program income, and limitations on specific expenditure types. 

  • An assessment of the grantee's financial management system. 

FSO Leadership 

  • Ann H. Duncan - Independent Fiscal Support and Oversight Unit Director, DSHS (est. 2016) 

  • April Marek - Manager for FSO – HIV, STD and Ryan White grants 

  • David Lupercio - FSO Manager, all other DSHS grants. 

What We Do

Education & Training

Financial Reviews Completed

  • Fiscal Year 2021: 45
  • Fiscal Year 2020: 50
  • Fiscal Year 2019: 64
  • Fiscal Year 2018: 44

Follow Up Reviews Completed

  • Fiscal Year 2021: 23
  • Fiscal Year 2020: 23
  • Fiscal Year 2019: 23
  • Fiscal Year 2018: 21

Certifications Independent Fiscal Support and Oversight Unit staff have obtained

  • Certified Public Accountant (CPA)
  • Certified Fraud Examiner (CFE)
  • Certified Texas Contract Manager (CTCM)
  • Institute of Internal Auditors: Committee of Sponsoring Organizations Internal Control Certificate (COSO)
  • American Institute of Certified Public Accountants (AICPA) Not-for-Profit Certificate II


Trainings provided by FSO staff

  • Subrecipient and Service Provider Monitoring Practices in Texas at the 2020 National Ryan White Conference
  • Identifying, Tracking, and Reporting Program Income Generated Through the 340B Program and Other Sources at the 2020 National Ryan White Conference
  • Uniform Grant Guidance Training for the Contract Management Section
  • Ryan White Part B Program Income training
  • Subrecipient Monitoring Training for Dallas County HHS
  • DSHS Program Income 101 Prevention Grantee (PowerPoint)

Trainings attended by FSO staff

  • State Auditor’s Office
  • American Institute of Certified Public Accountants
  • Association of Certified Fraud Examiners
  • The Institute of Internal Auditors
  • Yellowbook CPE Courses
  • HealthCare Compliance Association Annual Compliance Institute
  • Texas Society of CPAs
  • Feldesman, Tucker, Leifer, & Fidell LLP
  • National Ryan White Conference on HIV Care and Treatment
  • Executive Women in Texas Government
  • Skillpath