Effective systems of internal review. F10. What kinds of activities might be the subject of an audit? An audit will review such compliance requirements as: Eligibility of participants; Consolidation of administrative funds; Use of unneeded program funds; Use of funds in coordinated service projects and schoolwide programs; Allowable Supplement, Not Supplant compliance; Comparability compliance; Participation of private school children; Period of availability of Federal funds; and Financial reporting. F11. How long must a grantee keep, for purposes, records related to a grant? Grant records that are the subject of an audit initiated prior to the end of the record retention period must be retained until the audit, audit resolution, or audit appeal is complete. Record keeping should establish an audit trail beginning with the preparation of the application, and should include records to support the application. (See Chapter XI Administration” for general record-keeping requirements.) – “State F12. What happens after the SEA submits the audit to the Department? The Department reviews the auditor’s findings and the SEA’s response to determine whether the audit findings are sustainable. If the findings are not sustainable, the Department will inform the SEA that no further action is necessary. If the findings are sustainable, the Department may, depending on the nature of the finding, provide technical assistance, require corrective action, or request a reimbursement of funds. If the Department requires the SEA to take corrective action or reimburse funds, it will issue a program determination letter (PDL) stating the reasons for this determination.
Effective systems of internal review. F10. What kinds of activities might be the subject of an audit? An audit will review such compliance requirements as: Eligibility of participants; Consolidation of administrative funds; Use of unneeded program funds; Use of funds in coordinated service projects and schoolwide programs; Allowable Supplement, Not Supplant compliance; Comparability compliance; Participation of private school children; Period of availability of Federal funds; and Financial reporting. F11. How long must a grantee keep, for purposes, records related to a grant? Grant records that are the subject of an audit initiated prior to the end of the record retention period must be retained until the audit, audit resolution, or audit appeal is complete. Record keeping should establish an audit trail beginning with the preparation of the application, and should include records to support the application. (See Chapter XI – “State Administration” for general record-keeping requirements.) F12. What happens after the SEA submits the audit to the Department? The Department reviews the auditor’s findings and the SEA’s response to determine whether the audit findings are sustainable. If the findings are not sustainable, the Department will inform the SEA that no further action is necessary. If the findings are sustainable, the Department may, depending on the nature of the finding, provide technical assistance, require corrective action, or request a reimbursement of funds. If the Department requires the SEA to take corrective action or reimburse funds, it will issue a program determination letter (PDL) stating the reasons for this determination.