§ 600.410 - Audit reports.

(a) Audit reports must be prepared at the completion of the audit. Reports serve many needs of State and local governments as well as meeting the requirements of the Single Audit Act.

(b) The audit report shall state that the audit was made in accordance with the provisions of this subpart. The report shall be made up of at least:

(1) The auditor's report on financial statements and on a schedule of Federal assistance; the financial statements; and a schedule of Federal assistance, showing the total expenditures for each Federal assistance program as identified in the Catalog of Federal Domestic Assistance. Federal programs or grants that have not been assigned a catalog number shall be identified under the caption “other Federal assistance.”

(2) The auditor's report on the study and evaluation of internal control systems must identify the organization's significant internal accounting controls, and those controls designed to provide reasonable assurance that Federal programs are being managed in compliance with laws and regulations. It must also identify the controls that were evaluated, the controls that were not evaluated, and the material weaknesses identified as a result of the evaluation.

(3) The auditor's report on compliance containing:

(i) A statement of positive assurance with respect to those items tested for compliance, including compliance with law and regulations pertaining to financial reports and claims for advances and reimbursements;

(ii) Negative assurance on those items not tested;

(iii) A summary of all instances of noncompliance; and

(iv) An identification of total amounts questioned, if any, for each Federal assistance award, as a result of noncompliance.

(c) The three parts of the audit report may be bound into a single report, or presented at the same time as separate documents.

(d) All fraud, abuse, or illegal acts or indications of such acts, including all questioned costs found as the result of these acts, that auditors become aware of, should normally be covered in a separate written report submitted in accordance with paragraph 600.310(g).

(e) In addition to the audit report, the recipient shall provide comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and comments on the status of corrective action taken on prior findings. If corrective action is not necessary, a statement describing the reason it is not should accompany the audit report.

(f) The reports shall be made available by the State or local government for public inspection within 30 days after the completion of the audit.

(g) In accordance with generally accepted government audit standards, reports shall be submitted by the auditor to the organization audited and to those requiring or arranging for the audit. In addition, the recipient shall submit copies of the reports to each Federal department or agency that provided Federal assistance funds to the recipient. Copies of audit reports to be submitted to DOE shall be submitted to the appropriate DOE-OIG as indicated in appendix B of this part. Subrecipients shall submit copies to recipients that provided them Federal assistance funds. The reports shall be sent within 30 days after the completion of the audit, but no later than one year after the end of the audit period unless a longer period is agreed to with the cognizant agency.

(h) Recipients of more than $100,000 in Federal funds shall submit one copy of the audit report within 30 days after issuance to the Bureau of Census, Data Preparation Division, 1201 E. 10th Street, Jeffersonville, Indiana 47132, Attn: Single Audit Clearinghouse. The clearinghouse will keep completed audits on file and follow up with State and local governments that have not submitted required audit reports.

(i) Recipients shall keep audit reports on file for three years from their issuance.