Audit Requirements

SUBRECIPIENTS 

Pursuant to 2 CFR 200 and subrecipient contracts, subrecipient providers must submit to the Department either a Single Audit, Financial Related Audit, or Audit Exemption Notice (all described below) within nine months after the end of the provider’s fiscal year.  Providers exempt from the Single Audit and Financial Related Audit requirements (that are required to submit an Audit Exemption Notice) must submit to the Department a Financial Statement Audit prepared in accordance with generally accepted auditing standards if the audit includes disclosures that may negatively impact the Department funded programs including but not limited to fraud, going concern uncertainties, financial statement misstatements and violations of the contract requirements.  If submitting a Single Audit, Financial Related Audit, or Financial Statement Audit, Providers must also submit a Corrective Action Plan for any audit findings that impact MDHHS-funded programs, and management letter (if issued) with a response.

a.   Single Audit 

Providers that are designated as subrecipients that expend $750,000 or more in federal awards during the provider’s fiscal year must submit to the Department a Single Audit prepared consistent with 2 CFR 200 Subpart F.

b.   Financial Related Audit 

Providers that are for-profit organizations that expend $750,000 or more in federal awards during the Provider’s fiscal year must submit either a financial related audit prepared in accordance with Government Auditing Standards relating to all federal awards, or an audit that meets the requirements contained in 2 CFR 200 Subpart F, if required by the federal awarding agency.

c.   Audit Exemption Notice 

Providers exempt from both the Single Audit and Financial Related Audit requirements (a. and b. above) must submit an Audit Exemption Notice that certifies these exemptions.  The Audit Exemption Notice form is available at: 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 prepared in accordance with generally accepted auditing standards, a Compliance Examination Report conducted in accordance with the AICPA's SSAE 18 and the CMH Compliance Examination Guidelines, a Corrective Action Plan for any audit or examination findings that impact MDHHS-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.