Audit Requirements

SUBRECIPIENTS 

Pursuant to Office of Management and Budget (OMB) Circular A-133 and subrecipient contracts, subrecipient Contractors must submit to the Department either a Single Audit, Financial Statement Audit, or Audit Status Notification Letter within nine months after the end of the Contractor's fiscal year.  If submitting a Single Audit or Financial Statement Audit, Contractors must also submit a Corrective Action Plan for any audit findings that impact MDCH-funded programs, and management letter (if issued) with a response.

a.   Single Audit 

Contractors that expend $500,000 or more in federal awards during the Contractor's fiscal year must submit to the Department a Single Audit prepared consistent with the Single Audit Act Amendments of 1996, and OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations," (as revised).

b.   Financial Statement Audit 

Contractors exempt from the Single Audit requirements that receive $500,000 or more in total funding from the Department in State and Federal grant funding must submit to the Department a Financial Statement Audit prepared in accordance with generally accepted auditing standards (GAAS).  Contractors exempt from the Single Audit requirements that receive less than $500,000 of total Department grant funding must submit to the Department a Financial Statement Audit prepared in accordance with GAAS if the audit includes disclosures that may negatively impact MDCH-funded programs including, but not limited to fraud, going concern uncertainties, financial statement misstatements, and violations of contract and grant provisions.

c.   Audit Status Notification Letter 

Contractors exempt from both the Single Audit and Financial Statement Audit requirements (a. and b. above) must submit an Audit Status Notification Letter that certifies these exemptions.  The Audit Status Notification Letter must be signed by the Contractor's Financial Director or their designee.  Audit Status Notification Letter - Microsoft Word versionAdobe Acrobat version.

PREPAID INPATIENT HEALTH PLANS (PIHPs)/COMMUNITY MENTAL HEALTH SERVICE PROVIDERS (CMHSPs) 

Pursuant to PIHP/CMHSP contracts, PIHPs and CMHSPs must submit to the Department a Financial Statement Audit, a Compliance Examination Report conducted in accordance with the AICPA's SSAE 10 and the CMH Compliance Examination Guidelines, a Corrective Action Plan for any audit or examination findings that impact MDCH-funded programs, and management letter (if issued) with a response within nine months after the end of the PIHP's/CMHSP's fiscal year end.