Code of Maryland Regulations › Title 26 - DEPARTMENT OF ENVIRONMENT › Part 1 - SUBTITLES 01-07 › Subtitle 01 - GENERAL PROVISIONS › Chapter 26.01.06 - Standards for Audits of Grants and Contracts with Providers and Local Agencies › Section 26.01.06.04 - Agency Responsibility

Current through Register Vol. 51, No. 14, July 12, 2024
A. The
				  Secretary of the Environment 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. Finance and Administration of the
				  Department of the Environment 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, Finance and Administration 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 the
				  Environment and its various administrations.
D. Finance and Administration of the
				  Department of the Environment may audit a sub-grantee, 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 sub-grantee, shall inform
				  the primary grantee, in writing, that the primary grantee is absolved of the
				  responsibility stated in Regulation .05C, of this chapter.
E. Finance and Administration 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. Finance and
				  Administration, 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) Finance and Administration of the
				  Department of the Environment, as applicable;
(3) Director of the appropriate program
				  administration of the Department of the Environment.