03.07 - Restorative Justice Grant Contract

Home Browse Search

Exhibit B, page 1 of 2 FEDERAL AUDIT REQUIREMENTS 1. For subrecipients that are state or local governments. non-profit organizations,or Indian tribes If the grantee expends total federal assistance of$500,000 or more per year, the grantee agrees to obtain either a single audit or a program-specific audit made for the fiscal year in accordance with the terms of the Single Audit Act Amendments of 1996. Audits shall be made annually unless the state or local government has, by January 1, 1987, a constitutional or statutory requirement for less frequent audits. For those governments, the federal cognizant agency shall permit biennial audits,covering both years,if the government so requests. It shall also honor requests for biennial audits by governments that have an administrative policy calling for audits less frequent than annual, but only audits prior to 1987 or administrative policies in place prior to January 1, 1987. • For subrecipients that are institutions of higher education or hospitals If the grantee expends total direct and indirect federal assistance of$500,000 or more per year, the grantee agrees to obtain a financial and compliance audit made in accordance with OMB Circular A-110 "Requirements for Grants and Agreements with Universities, Hospitals and Other Nonprofit Organizations"as applicable. The audit shall cover either the entire organization or all federal funds of the organization: The audit must determine whether the subrecipient spent federal assistance funds in accordance with applicable laws and regulations. 2. The audit shall be made by an independent auditor. An independent auditor is a state or local government auditor or a public accountant who meets the independence standards specified in the General Accounting Office's"Standards for Audit of Governmental Organizations,Programs,Activities, and Functions: 3. The audit report shall state that the audit was performed in accordance with the provisions of OMB Circular A-133 (or A-110 as applicable). The reporting requirements for audit reports shall be in accordance with the American Institute of - Certified Public Accounts'(AICPA)audit guide,"Audits of State and Local Governmental Units,"issued in 1986.. The federal government has approved the use of the audit guide. In addition to the audit report,the recipient shall provide comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and comments on the status of corrective action taken on prior findings. If corrective action is not necessary,a statement describing the reason it is not should accompany the audit report. 4. The grantee agrees that the grantor, the Legislative Auditor, the State Auditor, and any independent auditor designated by the grantor shall have such access to grantee's records and financial statements as may be necessary for the grantor to comply with the Single Audit Act Amendments of 1996 and OMB Circular A-133. 5. Grantees of federal financial assistance from subrecipients are also required to comply with the Single Audit Act and OMB Circular A-133. (10/0 5)