| Authority/Reference(s) | |
|---|---|
| Revision Date | September 1, 2021 |
Policy
DFPS, in collaboration with HHS-PCS, is required to apply single audit requirements to subrecipients and recipients that have state or federal cumulative expenditures of $750,000 or more. A subrecipient/recipient that does not meet this threshold is not required to undergo a single audit, but must still complete a Single Audit Determination (SAD) Form, submit financial information, and abide by Uniform Grant Guidance (UGG) and/or Uniform Grant Management Standards (UGMS) cost principles and administration requirements.
Entities classified as a vendor (contractor) are not required to undergo the single audit process.
Single Audit Determination
The following steps are involved to determine if an entity is required to have a single audit:
- Verification of relationship determination as documented on Form 438.
- HHS-PCS distributes letters to all subrecipients and recipients prompting the entity to complete the online SAD Form that will confirm if a single audit is required, and submit financial records.
- DFPS Contract Oversight and Support (COS) distributes an annual notification to all DFPS subrecipients and recipients informing entities of how to request expenditure information from Accounting.
- HHS-PCS distributes letters of delinquency to all subrecipients and recipients who fail to complete the online SAD Form, submit financial records, and submit the Single Audit.
Post Single Audit Completion
If a single audit is required, the steps below must be followed post completion of the single audit:
- Subrecipient/Recipient forwards an electronic copy of the single audit and financial records to HHS-PCS and to their DFPS Contract Manager.
- HHS-PCS conducts a desk review of the single audit and forwards the notice of compliance/noncompliance letter to the subrecipient/recipient (coping DFPS COS). DFPS COS serves as a liaison between HHS-PCS and DFPS contract staff to address and respond to notices of compliance/noncompliance/delinquency.
- HHS-PCS will upload single audit documentation into SCOR under the relevant subrecipient/recipient’s file.
Noncompliance & Sanctions
If a subrecipient or recipient is found to be non-compliant, subrecipient/recipient shall be subject to the DFPS sanctions outlined below:
| Types of Noncompliance | Number of Follow-ups Prior to Imposing Sanctions | Possible Sanctions |
|---|---|---|
Failure to complete the online Single Audit Determination (SAD) Form |
1st Notification: Contract staff will send an email to the subrecipient/recipient reminding them that they are not in compliance with one of the single audit requirements and give them a deadline by which they are to comply. In addition, the subrecipient/recipient will be required to submit documentation to contract staff that demonstrates acknowledgement of receipt from HHS-PCS (e.g. screen shot of completed online SAD form, email from HHS-PCS validating receipt of Single Audit). 2nd Notification: Contract staff will send the subrecipient/recipient a warning letter that identifies potential sanctions that may be imposed if noncompliance is not corrected. 3rd Notification: Contract management staff will send the subrecipient/recipient a letter notifying them that a sanction will be imposed within a given date. |
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Failure to submit Single Audit Report to HHS-PCS and DFPS (reports due no later than 9 months from FYE date) |
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Failure to submit a corrected Single Audit Report after receiving a “Rejected” Single Audit notice |
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Failure to submit an acceptable corrective action plan after receiving “Notice of Single Audit Findings” |