Home State and Local Local Government Single Audits - Local Agencies Audit Finding Relinquishment Policy

Audit Finding Relinquishment Policy

• Findings are documented as listed on the entity’s single audit report Schedule of Findings and Questioned Costs and Schedule of Expenditures of Federal Awards (SEFA).
• If a named pass through agency disputes the assignment of the audit finding resolution, the agency must contact the appropriate parties (i.e. Entity and/or independent auditors [CPA]) to request a revision.
• The revision should remove the agency’s name and add the correct responsible party’s name (if applicable) to the finding and SEFA.
• The revision must be submitted to the SCO for review and approval by the CPA or entity.
• Once approved, a letter relinquishing the disputing agency from the audit finding resolution responsibility will be sent to the disputing agency.
• If a new state agency is named in the revision as the pass through agency, a management decision letter will be sent to that agency.
• If a revision is not received the audit finding will continue to appear on the disputing agency’s Audit Finding Resolution Report issued by the SCO.