Section R. 400.20504 - AuditsRule 504. A financial audit of grantee records shall be made not less than biennially. Audits are to be conducted in accordance with standards established by the American institute of certified public accountants and requirements issued by the director of the state agency. Audit requirements shall include, but not be limited to, all of the following:
(a) Audits shall be made on an agency-wide basis to test the integrity of financial transactions and compliance with grant or contract terms.(b) The office shall ensure that timely and appropriate resolution of negative audit findings and recommendations for reconciliation occur promptly.(c) Grantees may audit contractors that have provided services if the audit conforms to minimum audit standards approved by the director.(d) The expense of an independent audit which does not meet the standards cited in this rule shall not be authorized.Mich. Admin. Code R. 400.20504