Grantee Requirement: Federal regulations, state administrative rules and statutes, or DCEO policy may require grantees to obtain an audit. Grantees are informed of their audit requirements in the Welcome Package and in the Grant Agreement. In addition, if a grantee is required to submit an audit report, a reminder notification letter is sent 60 days prior to the grantee’s fiscal year end.
Grantee Due Date: Grantees must submit the audit report and related deliverables to DCEO within the earlier of 30 days after receipt of the auditor’s report(s), or nine months after the end of the period for which the audit was performed.
Audit Submission: Grantees should submit their audit report requirements to the External Audit Unit to the following email address: [email protected].
Grantee Compliance: The EAU issues a final determination letter to the grantee if the review process does not identify any items requiring follow-up.
Grantee Non-compliance: If the audit report is not received by the due date, a reminder notification is sent to the grantee and the non-compliance process begins.
If the grantee fails to provide all deliverables, the EAU contacts the grantee to request the additional deliverables and to establish a submission plan.
If the EAU determines the deliverables were not in accordance with auditing standards, or the deliverables document questioned costs or other issues directly affecting the grant(s) being reviewed, the EAU prepares an initial determination letter requesting the grantee to provide a corrective action plan.
When the EAU receives the grantee’s corrective action plan, program staff evaluates the response, determines if there are disallowed costs, and issues a final findings and determination letter.
The grantee is required to respond fully to any requests by the EAU. If the grantee does not respond and/or does not respond in a timely manner the grantee's cash and future funding may be suspended and/or the grantee will be referred to Legal for further action.
Federal Audit Requirements: All federally funded DCEO grants are subject to audit requirements determined by the federal government. For federally funded grants, grantees must comply with the Single Audit Act, OMB Circular A-133, and other applicable requirements.
If subject to Single Audit Act requirements, grantees must provide the EAU with a copy of the following:
- Management Letter, if applicable
- SAS 114 Letter, if applicable
- Single Audit
- Standard Audit
Grantees must provide these items to DCEO annually for the life of the grant, in accordance with OMB Circular A-133.
Many grantees receiving federal funding must obtain and submit a Single Audit based on federal requirements; however, many other federally funded grantees do not expend sufficient funds to require a Single Audit. Those grantees not required to obtain a Single Audit must provide an annual letter to the EAU, stating a Single Audit was not required.
State Audit Requirements: Grantees receiving state funding may be required to obtain an audit because of state administrative rules, requirements by an entity other than DCEO, state funding of $500,000 or greater, results of the Monitoring Assessment Tool (MAT), or DCEO’s discretion.
The state-funded grant decision process indicates that grantees required to obtain an audit must submit the following to DCEO annually for the life of the grant:
- Management Letter, if applicable
- SAS 114 Letter, if applicable
- Single Audit, if applicable
- Standard Audit
A state funded grant agreement with audit requirements dependent on a MAT score can not be generated from the eGrants until the Office of Accountability completes the MAT.
Additional Audit Requirements: In addition to these federal and state audit requirements, any DCEO grantee receiving federal or state funds may be required, at DCEO’s discretion, to obtain a Grant-Specific Audit. If DCEO requests a Grant-Specific Audit, the grantee must also obtain and submit the audit firm’s External Peer Review Report and Letter of Comment, the Management Letter, and the SAS 114 Letter.