Mississippi Administrative Code › Title 7 - Education K-12 › Part 3 - Board Policies › Chapter 10 - Subrecipient Single Audit Resolution › Rule 7-3-10.1 - Subrecipient Single Audit Resolution

Current through June 25, 2024
Oversight of Subrecipient Single Audit
				  Resolution
The Subrecipient Single Audit Resolution procedure applies to
				  audits of subrecipients of federal funds from the Mississippi Department of
				  Education (MDE). For this policy, subrecipients are public school districts,
				  charter schools, community colleges, Institutions of Higher Learning (IHLs),
				  and other public/non-public entities. Each subrecipient shall obtain an audit
				  that meets the requirements of the Education Department General Administrative
				  Regulations, Cost Principles and Audit Requirements for Federal Awards. The
				  Subrecipient Single Audit Resolution process is designed to ensure that federal
				  grants are used for authorized purposes, in compliance with federal statutes,
				  regulations, and the terms and conditions of federal awards, a requirement
				  given to the MDE in 2 C.F.R.
				  §
										200.332.
Single Audit Report Collection
The Bureau of Internal Audit receives and reviews Single
				  Audit Reports from entities that receive grants from the MDE. Subrecipient
				  entities that receive federal funds directly from MDE shall submit a Single
				  Audit Report if the entity expends federal award funds, during its fiscal year,
				  that meet or exceed the established expenditure threshold as prescribed by
				  2 C.F.R. §
										200.501.
Entities that receive federal funds directly from MDE are
				  notified of the Single Audit requirements by the appropriate federal program
				  offices that administer the grants. The federal programs offices instruct the
				  entities to submit a copy of the annual audit report to the Federal Audit
				  Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the
				  auditor's report or nine months after the end of the audit period, unless the
				  Office of Management and Budget (OMB) authorizes an extension. The federal
				  programs offices shall provide a listing of entities meeting the threshold to
				  the Bureau of Internal Audit by January 15.
Resolution and Corrective Action Plan
Upon receipt of the Single Audit Report, the Bureau of
				  Internal Audit shall determine if there are audit findings related to federal
				  programs for which funds were disbursed by MDE. The Bureau of Internal Audit
				  shall work collaboratively with the appropriate federal programs office(s) and
				  the Office of Grants Management to determine if findings are valid. The
				  Corrective Action Plan (CAP) that is included in the audit report, shall
				  include the name(s) of the contact person(s) responsible for the CAP, an
				  anticipated completion date for the corrective action(s), the corrective action
				  steps necessary to resolve the audit finding(s) and specific reasons that
				  support the entity's disagreement with the audit finding(s), if applicable.
				  When the audit report is received, the Bureau of Internal Audit shall forward
				  the related federal findings and CAP along with supporting documentation to the
				  Office of Grants Management and/or the appropriate federal programs offices for
				  review and written approval for the Bureau of Internal Audit to issue a
				  Management Decision letter.
If an entity receiving U.S. Department of Education funds has
				  been notified by the Bureau of Internal Audit of the need for further
				  information on a finding and/or a corrective action plan in the audit report,
				  and the entity does not respond within 60 days, the Bureau of Internal Audit
				  will consult with the Office of Grants Management and may request the State
				  Superintendent place in escrow, up to 60 days, all or a portion of federal
				  funds payable to the entity until an appropriate response is received. The
				  entity shall initiate and proceed with corrective action as soon as possible,
				  and corrective action shall begin no later than upon receipt of the audit
				  report.
For subrecipients whose audit is not received timely, or
				  subrecipients unwilling or unable to correct a finding, the Bureau of Internal
				  Audit shall notify the Office of Grants Management and/or the appropriate
				  federal programs offices and the respective program offices will take the
				  appropriate action which may include initiating the Seriously Deficient
				  Process.
See
2 C.F.R §
										200.339 "Remedies
				  for Noncompliance."
If an audit finding results in questioned cost(s), the Bureau
				  of Internal Audit shall work collaboratively with the Office of Grants
				  Management and/or other federal programs offices to determine if return of the
				  funds is warranted. If so, the Bureau shall initiate a collection process as
				  instructed by the Office of Grants Management and/or other federal programs
				  offices. The entity shall submit the repayment of funds from State/Local funds
				  to the Office of Grants Management and/or the appropriate federal programs
				  offices. The offices shall follow the procedures for cash receipts in
				  compliance with the MDE Employee Policies and Procedures Manual (MEPPM). The
				  repayment shall be receipted into the appropriate fund and all supporting
				  documentation related to receipt and deposit of funds will be forwarded to the
				  Bureau of Internal Audit to file in the subrecipient's audit report
				  folder.
Management Decision Letter
The Bureau of Internal Audit shall issue timely Management
				  Decision Letters no more than six months from the date the audit report is
				  received by the FAC. When the Management Decision Letter is issued it shall
				  include whether the MDE concurred with (sustained) the auditor's findings and
				  whether the MDE agrees that the entity's CAP is sufficient to resolve the
				  issues that resulted in the findings.
A copy of the issued Management Decision Letter shall be
				  saved in the subrecipient's audit report folder. The Bureau of Internal Audit
				  will work with the Office of Grants Management and/or the appropriate federal
				  programs offices as directed to ensure there is appropriate follow-up on the
				  status of CAP implementation for repeated audit findings in subsequent audit
				  reports.
The entity has the right to request a hearing on the decision
				  of the MDE concerning the findings of the audit. A written request for a
				  hearing shall be submitted to the State Superintendent within 30 calendar days
				  of notification that the MDE has sustained the audit finding and seeks to
				  recover questioned costs. If the appeal request provides evidence that suggests
				  the decision was contrary to Federal law, or the rules, regulations, and
				  guidelines governing the applicable program, a hearing officer shall be
				  appointed, and a hearing shall be scheduled within 30 calendar days. The entity
				  shall be notified in writing concerning the hearing's time and location, and
				  the procedures of the hearing. Upon completion of the hearing, the hearing
				  officer shall make a report to the State Superintendent. No later than 10 days
				  after the hearing, the State Superintendent shall issue a written ruling,
				  including reasons therefor. If the State Superintendent determines such final
				  action was contrary to Federal or State law, or the rules, regulations, and
				  guidelines governing such applicable program, the State Superintendent shall
				  rescind such final action. All additional rules and timelines regarding the
				  appeals and hearing process will apply based upon the applicable federal agency
				  regulations of the federal program(s) cited in the single audit reports.
The Bureau of Internal Audit shall be responsible for record
				  retention of the documents received by the Bureau during the audit resolution
				  process as related to these procedures in accordance with Uniform Grant
				  Guidance.
2 C.F.R. §§
											200.331-200.344,
				  200.501, Miss. Code Ann. §
										37-1-3 (Revised
				  5/2023)