verify agreement or perform alternative procedures to verify the accuracy and completeness of the reports and that they agree with the accounting records. Ascertain that financial reports were submitted when due. b. Program reports: (1) Trace the data to records that accumulate and summarize data. (2) Perform tests of the underlying data to verify that the data were accumulated and summarized in accordance with the required or stated criteria and methodology, including the accuracy and completeness of the reports. c. When intervening computations or calculations are required between the records and the reports, trace reported data elements to supporting worksheets or other documentation that link reports to the data. d. Test mathematical accuracy of reports and supporting worksheets. 4. Test the selected reports for completeness. a. For financial reports, review accounting records and ascertain if all applicable accounts were included in the sampled reports (e.g., program income, expenditure credits, loans, and reserve funds). b. For program reports, review the supporting records and ascertain if all applicable data elements were included in the sampled reports. 5. Obtain written representation from management that the reports provided to the auditor are true copies of the reports submitted or electronically transmitted to the awarding agency or pass-through entity in the case of a subrecipient. 14. SPECIAL TESTS AND PROVISIONS Pursuant to N.C.G.S. §143B-168.12.(c), North Carolina Compliance Requirements – “The Partnership shall require each local partnership to place in each of its contracts a statement…that contractors and subcontractors shall be fidelity bonded, unless the contractors or subcontractors receive less than one hundred thousand dollars ($100,000) or unless the contract is for child care subsidy services…”. The specific requirements regarding insurance are found in the provisions of the Smart Start local partnership contract with the DSP. Audit Objective Determine that the DSP is complying with the insurance requirements as – stated in the contract between the local partnership and DSP. Suggested Audit Procedures Obtain the contract and review the insurance requirements. Determine whether the DSP is in compliance with requirements. All non-State entities that receive, use or expend State funds, Compliance Requirement – including federal funds passed through the N. C. Department of Health and Human Services,
verify agreement or perform alternative procedures to verify the accuracy and completeness of the reports and that they agree with the accounting records. Ascertain that financial reports were submitted when due. b. Program reports: (1) Trace the data to records that accumulate and summarize data. (2) Perform tests of the underlying data to verify that the data were accumulated and summarized in accordance with the required or stated criteria and methodology, including the accuracy and completeness of the reports. c. When intervening computations or calculations are required between the records and the reports, trace reported data elements to supporting worksheets or other documentation that link reports to the data. d. Test mathematical accuracy of reports and supporting worksheets. 4. Test the selected reports for completeness. a. For financial reports, review accounting records and ascertain if all applicable accounts were included in the sampled reports (e.g., program income, expenditure credits, loans, and reserve funds). b. For program reports, review the supporting records and ascertain if all applicable data elements were included in the sampled reports. 5. Obtain written representation from management that the reports provided to the auditor are true copies of the reports submitted or electronically transmitted to the awarding agency or pass-through entity in the case of a subrecipient. 14. SPECIAL TESTS AND PROVISIONS Compliance Requirements – Pursuant to N.C.G.S. §143B-168.12.(c), “The North Carolina Partnership shall require each local partnership to place in each of its contracts a statement…that contractors and subcontractors shall be fidelity bonded, unless the contractors or subcontractors receive less than one hundred thousand dollars ($100,000) or unless the contract is for child care subsidy services…”. The specific requirements regarding insurance are found in the provisions of the Smart Start local partnership contract with the DSP. Audit Objective – Determine that the DSP is complying with the insurance requirements as stated in the contract between the local partnership and DSP. Suggested Audit Procedures Obtain the contract and review the insurance requirements. Determine whether the DSP is in compliance with requirements. Compliance Requirement – All non-State entities that receive, use or expend State funds, including federal funds passed through the N. C. Department of Health and Human Services,
DHHS-8a-2017.docx