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3.19 Audit Requirements

Audit Reporting Requirements

Independent auditors should follow the requirements prescribed in OMB Circular A-133 or 2 C.F.R. Subpart F, as applicable.

  • The recipient???s accounting records must support all amounts reported to the Department of Justice (DOJ).
  • The recipient???s financial activity reported to DOJ should reconcile to the amounts reported on the recipient???s audited financial statements.
  • If there are any differences between the recipient???s audited financial statements and the financial activity reported to DOJ, the recipient must be able to explain the differences.
  • If the auditor becomes aware of illegal acts or other irregularities, he or she must give prompt notice to the recipient's management officials above the level of involvement.
  • The recipient, in turn, must promptly notify the Federal cognizant agency and/or awarding agency of the illegal acts or irregularities and of proposed and actual actions, if any.
  • All awarding agency personnel are responsible for informing the following individuals and groups of any known violations of the law within their respective area of jurisdiction:
    • OJP Office of the Chief Financial Officer
    • OJP Office of the General Counsel
    • U.S. Department of Justice Office of the Inspector General (OIG)
    • State and local law enforcement agencies or prosecuting authorities, as appropriate (see Chapter 3.20: Grant Fraud, Waste, and Abuse).

information iconFinancial Management Tip

Costs for audits not required or not performed in accordance with 2 C.F.R. Part 200, Subpart F, ??are unallowable. If a non-Federal entity did not meet the applicable
expenditure threshold in 2 C.F.R 200.501 for Federal funds during the non-Federal entity???s ??fiscal year, but contracted with a certified public accountant to perform an audit, those costs may not be charged to the grant. See 2 C.F.R. ?? 200.425.

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Audit costs, if allowable by your award, should be prorated and charged to the grant based on the ratio of all Federal grants being audited. See 2 C.F.R. ?? 200.405.