Code of Maryland Regulations › Title 10 - MARYLAND DEPARTMENT OF HEALTH › Part 1 › Subtitle 04 - FISCAL › Chapter 10.04.03 - Standards for Audits of Grants and Contracts with Providers and Local Health Departments › Section 10.04.03.04 - Agency Responsibility

Current through Register Vol. 51, No. 14, July 12, 2024
A. The
				  Secretary of Health and Mental Hygiene shall provide for a periodic examination
				  of the accounts and records of grantees and local health departments receiving
				  funds under contracts and grants with the Department. In addition, periodic
				  audits shall be conducted of the accounts and records of vendors providing
				  purchase of care services for children, juveniles, and adults in
				  non-governmental facilities. The purpose of the audit is to determine if the
				  expenses incurred for which reimbursement was received were in accordance with
				  allowable cost guidelines of the grant award and contractual
				  agreement.
B. The Audit Division of
				  the Department of Health and Mental Hygiene shall be responsible for auditing
				  the accounts and records of all grantees, local health departments, and vendors
				  providing purchase of care services under grants and contracts with the
				  Department, except for those grants and contracts with local governments for
				  which audits have been conducted in accordance with the Single Audit Act of
				  1984. If these audits are not conducted, or are conducted but do not satisfy
				  the information requirements of the Department, the Audit Division shall be
				  responsible for such further auditing as it deems necessary under the
				  circumstances.
C. The audits shall
				  be conducted in accordance with the terms of the grant or contract, or both,
				  and in accordance with allowable cost guidelines of the Department of Health
				  and Mental Hygiene and its various administrations.
D. The Audit Division of the Department of
				  Health and Mental Hygiene may audit a subgrantee, notwithstanding the
				  responsibility of the primary grantee when it is in the interest of the State
				  to do so. The Department, when it elects to audit a subgrantee, shall inform
				  the primary grantee, in writing, that the primary grantee is absolved of the
				  responsibility stated in Regulation .05C, of this chapter.
E. The Audit Division shall conduct an exit
				  conference upon the conclusion of the audit. Before the exit conference the
				  grantee, vendor, or local health department shall be given a draft audit report
				  containing all findings, exceptions, and recommendations of the auditors. In
				  addition, the draft report shall provide detailed information pertaining to
				  amounts due to or from the State resulting from the audit.
F. The Audit Division, after consideration
				  and evaluation of additional information and evidence presented subsequent to
				  the promulgation of the draft audit report, shall issue a final audit
				  report.
G. The final audit report
				  shall be distributed to the:
(1) Grantee,
				  provider, vendor, or local health department;
(2) Division of Program Cost and Analysis of
				  the Department of Health and Mental Hygiene, as applicable;
(3) Director of the appropriate program
				  administration of the Department of Health and Mental Hygiene.