Audit Finding Follow Up

Pass through entities are responsible for making a management decision for audit findings that relate to federal awards they make to a subrecipient and ensuring that the subrecipient takes appropriate and timely corrective action. The management decision must be made within six months of the State’s receipt of the audit report.

The State Administrative Manual – 20070 designates the State Controller’s Office (SCO) as the oversight agency that coordinates single audit compliance with local governments. The six-month time period for management decisions begins the date that the SCO receives the single audit report.

Audit reports received by the SCO that have federal award findings will not be reviewed for compliance with Government Auditing Standards prior to being forwarded to the state agency that is affected by the finding(s). This practice ensures that the state agency is given the majority of the six months it is allotted to resolve the findings. A copy of the un-reviewed audit report and a Management Decision Letter is sent to the affected state agency informing it of its management decision due date.

When the SCO has completed the review and certified the audit report, all pass-through state agencies will receive a Distribution Disc containing the report copy or any revised reports, if applicable, and the certification letter.

Audit Resolution Reports

Audit Resolution Reports are mailed out quarterly to all state agencies that must follow up on findings. State agencies will only receive an Audit Resolution Report if they have unresolved findings.