Connecticut Administrative Code › Title 17a - Social and Human Services and Resources › 306 - Community Services Policy Manual for Title III Programs of the Older Americans Act › Manual of Fiscal Policies for Title III Programs of the Older Americans Act › Section 17a-306-38 - Audits

Current through July 10, 2024
Subsection (b) of Section
				  7-396a
				  of the General Statutes requires that any agreement for a State grant entered
				  into between a State agency and a public or private agency shall provide for an
				  audit of grant expenditures which is acceptable to such State agency. This
				  section presents the Connecticut Department on Aging's policy on what
				  constitutes an acceptable audit. That is, to ensure the quality of audits in
				  the Connecticut aging network, the Commissioner on Aging directs the
				  Connecticut aging network to implement the Single Audit Act of 1984 and OMB
				  Circular A-128, or OMB Circular A-133, Audits of Institutions of Higher
				  Education and Other Nonprofit Institutions, which ever is applicable.
(a)
Agency Wide Audit, Requirement
				for
Each area agency on aging receiving $100,000 or more of
				  funding from the Connecticut Department on Aging will have conducted an annual
				  audit in accordance with the Single Audit Act of 1984, P.L. 98-502, and OMB
				  Circular A-128, or OMB Circular A-133 which ever is applicable. Moreover,
				  independent public accountants conducting such audits will abide by the
				  American Institute of Certified Public Accountant's (AICPA) Audit and
				  Accounting
Guide, Audits of State and Local Government
				  Units
, as revised.
(b)
Area Agencies on Aging Retain Own
				Independent Public Accountants
(1)
				Area agencies on aging shall retain their own independent public accountant,
				sufficiently independent of those who authorize the expenditure of Federal
				funds, to produce unbiased opinions, conclusions or judgments. They shall meet
				the independence criteria described in the text of the U.S. Government
				Accounting Office publication, Government Auditing Standards,
Standards for Audit of Governmental Organizations, Programs,
				Activities, and Functions
.
(2) In arranging for audit services, area
				agencies on aging shall follow the procurement standards in Section
				17a-306-28
				of this manual. In particular, small audit firms and minority owned and
				controlled audit firms shall have the maximum practical opportunity to
				participate in audit contracts awarded under this section.
(3) In soliciting and retaining auditors to
				conduct the annual audit, area agencies on aging must make specific reference
				in their request for proposal and any resulting contract that the auditor would
				be required to conform its audit to the requirements in the Single Audit Act of
				1984, P.L. 98-502, and OMB Circular A-128, or OMB Circular A-133 Audits of
				Institutions of Higher Education and other Nonprofit Institutions, whichever is
				applicable. This would relate to the scope of the audit, standardized audit
				report, reportable events, monitoring by the Connecticut Department on Aging
				and quality assurance review, access to audit workpapers, plan for corrective
				action and resolution of audit findings.
(4) The audit solicitation and any resulting
				contract for audit services shall make specific reference that "if it is
				determined that the contractor's audit work was unacceptable as determined by
				the Connecticut Department of Aging or a Federal supervisory agency, either
				before or after a draft or final report was issued because it did not meet the
				Connecticut Department on Aging's standards, the AICPA Standards or those
				promulgated by the Comptroller General of the United States, the contractor
				may, at the area agency's written request, be required to reaudit at its own
				expense and resubmit a revised audit report which is acceptable."
(5) Area agencies on aging are encouraged to
				award multiyear audit contracts of not longer than a three year duration
				provided they conform to the requirements in Section
				17a-306-28(p).
				At the end of such a multiyear contract, area agencies on aging will observe
				competitive procedures in reprocuring audit services.