4 N.C. Admin. Code 20B.0602

Current through Register Vol. 39, No. 9, November 1, 2024

Section 20B .0602 - AUDIT CONTRACTS

(a) The Division policy on JTPA audits is that each subrecipient shall have an annual single audit pursuant to Attachment "P" of the Office of Management and Budget, that is a financial and compliance audit of an entity on an organization-wide basis rather than an audit of JTPA subgrants or contracts only. Exceptions to this policy will be made only to the extent permitted by USDOL or the Division pursuant to Rule .0603 of this Section or otherwise excepted by the Division and acknowledged in writing by the Director.

(b) The service delivery grant recipient is responsible for assuring that its contractors and subcontractors have annual financial and compliance audits, and the delegation of that responsibility to the contractors and subcontractors shall not relieve the service delivery area grant recipient of that responsibility.

(c) The auditor should be selected and report to the governing board or commission of a subrecipient. The selection of an auditor should be made in accordance with procurement requirements. The audit contract should be in writing and shall contain all appropriate terms and conditions, including access of the Division to audit workpapers for use in audit resolution. Specific mention shall be made in the contract of the scope of the audit, completion date, financial statements to be provided, and assurance that the statements will be in a generally accepted format for such funds. Attachment "P" of the Office of Budget and Management Circular A-102 should be provided to the auditor.

(d) The costs of such audits shall be borne by the subrecipient and are allowable administrative expenses, provided the costs are reasonable and subject to applicable limitations on administrative expenses. The Division may determine to bear the costs of all or some of such audits, but shall not be required to do so.

04 N.C. Admin. Code 20B .0602

Authority G.S. Ex. O. 93, June 8, 1983; 20 C.F.R. 629.42; 143B-430(b); OMB Circular A-102, January, 1981;
Eff. November 17, 1976;
Transferred from T01: 18; Eff. September 15, 1981;
Amended Eff. October 1, 1984; August 1, 1982;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 27, 2019.