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Audit Finding Follow Up

Pass through entities are responsible for making a management decision for audit findings that relate to federal awards it makes 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 Federal Audit Clearing House (FAC) acceptance date.

The State Administrative Manual – 20070 designates the State Controller’s Office (SCO) as the oversight agency that coordinates single audit compliance with local governments.

Audit reports received by the SCO that have federal award findings will not be reviewed for compliance of  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 they are 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 them of their management decision due date. This due date is based on the date that the SCO receives a complete single audit reporting package, however the state agency will need to adjust the due date based on the FAC acceptance date. The FAC acceptance date can be obtained from the FAC’s website at: https://harvester.census.gov/facdissem/SearchA133.aspx .

When the SCO has completed the review and certified the audit report all pass through state agencies will receive either an email or Distribution Disc via mail containing the report copy or any revised reports if applicable and the certification letter.

Audit Finding Resolution Reports

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