Audit Transmittal Letter - A letter that must be submitted by the subrecipient agency to DHS.

CFDA Number - The number assigned to a federal program in the Catalog of Federal Domestic Assistance (CFDA).

Corrective Action Plan - At the completion of the audit, the auditee shall prepare a corrective action plan to address each audit finding included in the current year auditor's reports. The corrective action plan shall provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. If the auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan shall include an explanation and specific reasons.

Fiduciary Agencies - DHS, along with several other state agencies, has created a new method of purchasing services. The fiduciary method is a process where a state agency will contract with an agency in an area. This agency will in turn, contract with many local agencies in the area to provide services to clients. Many different federal funding sources may be used to purchase these services. To aid CPA firms in auditing these programs, DHS, along with the state agencies, developed an audit guide.

Management Decision - The evaluation by the federal awarding agency or pass-through entity (DHS is a pass-through entity) of the audit findings and corrective action, plan and the issuance of a written decision as to what corrective action is necessary.

Questioned Cost - A cost that is questioned by the auditor because of an audit finding:
(1) Which resulted from a violation or possible violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the use of federal unds, including funds used to match federal funds;
(2) Where the costs, at the time of the audit, are not supported by adequate documentation; or
(3) Where the costs incurred appear unreasonable and do not reflect the actions a prudent person would take in the circumstances.

Single Audit - An audit which includes both the entity's financial statements and the federal awards.

Subrecipient - A non-federal entity that expends federal awards received from a pass-through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency.

Vendor Relationship - A dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a federal program. These goods or services may be for an organization's own use or for the use of beneficiaries of the federal program.

Vendor Relationship-Foster Care and Adoption - A requirement imposed by DHS which calls for all Foster Care and Adoption agencies to have a financial audit.