Organizations”). The Compliance Supplement identifies important fiscal and programmatic compliance requirements that the Federal Government expects auditors to examine for each major Federal program that they review in a State or local single audit. For the 2003 Compliance Supplement, in addition to cross-cutting program requirements (such as allowable activities and cash management), auditors who audit charges to the MEP are asked to consider compliance with the for services” requirement (See “priority Questions B1-B6 in Chapter V of Services.”) and the SEA’s subgrant – “Provision process (i.e., whether it takes into account the four factors in the statute). (See Questions B7-B17 of this chapter.) F3. May an SEA use MEP funds to pay for the cost (or portion of the cost) of a Single Audit? Yes. An SEA may use MEP funds to pay a prorated share of the cost of the audit according to the percentage the MEP contributes toward the total amount of Federal assistance received by the SEA or LEA. The percentage may be exceeded in cases where appropriate documentation shows that higher actual costs were incurred to audit the MEP program. F4. Who resolves audit findings? The Department resolves audits regarding SEAs and SEAs resolve audits regarding local operating agencies. F5. Who has the authority to conduct audits of the use of MEP funds? At the Federal both the Department's Office of Inspector General (OIG) and the General Accounting Office (GAO) may conduct audits of the use of program funds. The OIG conducts three types of audits: (1) external audits of grantee or contractor operations; (2) internal audits of the Department’s administration and management; and (3) national audits of issues or problem areas having national significance and potentially requiring corrective action at the Federal level. At the State level, audits are conducted annually by independent auditors, as required by the Single Audit Act. States implement this provision through use of a State auditor or hiring an independent auditing firm. F6. What is the Office of Inspector General (OIG)? Congress created the OIG through the Inspector General Act of 1978. Although it reports to the Secretary, it is separate and distinct from the program office units in the Department. The authorizing statute establishes OIG as an independent and objective unit that: Conducts and supervises audits and investigations relating to the programs and operations of the Department;
Organizations”). The Compliance Supplement identifies important fiscal and programmatic compliance requirements that the Federal Government expects auditors to examine for each major Federal program that they review in a State or local single audit. For the 2003 Compliance Supplement, in addition to cross-cutting program requirements (such as allowable activities and cash management), auditors who audit charges to the MEP are asked to consider compliance with the “priority for services” requirement (See Questions B1-B6 in Chapter V – “Provision of Services.”) and the SEA’s subgrant process (i.e., whether it takes into account the four factors in the statute). (See Questions B7-B17 of this chapter.) F3. May an SEA use MEP funds to pay for the cost (or portion of the cost) of a Single Audit? Yes. An SEA may use MEP funds to pay a prorated share of the cost of the audit according to the percentage the MEP contributes toward the total amount of Federal assistance received by the SEA or LEA. The percentage may be exceeded in cases where appropriate documentation shows that higher actual costs were incurred to audit the MEP program. F4. Who resolves audit findings? The Department resolves audits regarding SEAs and SEAs resolve audits regarding local operating agencies. F5. Who has the authority to conduct audits of the use of MEP funds? At the Federal both the Department's Office of Inspector General (OIG) and the General Accounting Office (GAO) may conduct audits of the use of program funds. The OIG conducts three types of audits: (1) external audits of grantee or contractor operations; (2) internal audits of the Department’s administration and management; and (3) national audits of issues or problem areas having national significance and potentially requiring corrective action at the Federal level. At the State level, audits are conducted annually by independent auditors, as required by the Single Audit Act. States implement this provision through use of a State auditor or hiring an independent auditing firm. F6. What is the Office of Inspector General (OIG)? Congress created the OIG through the Inspector General Act of 1978. Although it reports to the Secretary, it is separate and distinct from the program office units in the Department. The authorizing statute establishes OIG as an independent and objective unit that: Conducts and supervises audits and investigations relating to the programs and operations of the Department;