04 NCAC 19S .1103. AUDIT

(a)  Audits must be conducted in accordance with OMB Circular A‑128 as implemented by 24 CFR Part 44 and OMB Circular A‑133, as applicable.

(1)           The recipient shall provide for an audit of its HOME funds on an annual basis in accordance with the annual independent audit procedures set forth in G.S. 159‑34.

(2)           A recipient receiving less than twenty five thousand dollars ($25,000) during a fiscal year may elect to have the funds audited with funds received in the following fiscal year.

(3)           The Audit of HOME funds may be performed in conjunction with the regular annual independent audit of the recipient and shall contain an examination of all financial aspects of the HOME program as well as a review of the procedures and documentation supporting the recipient's compliance with applicable statutes and regulations.

(4)           HOME funds can not be used to pay for the HOME portion of the audit.

(5)           The recipient shall submit a copy of the Annual Audit Report to the Department, including all information required by federal and state regulations.

(6)           The Department may require separate closeout audits to be prepared by the recipient.

(7)           Work papers and reports shall be maintained for a minimum of three years from the date of the audit report unless the auditor is notified in writing by the Department of the need to extend the retention period.  The audit workpapers shall be made available upon request to the Department and the General Accounting office or its designees.

(8)           If during the course of the audit, the auditor becomes aware of irregularities in the recipient organization the auditor shall promptly notify the Department and recipient management officials about the level of involvement.  Irregularities include such matters as conflict of interest, falsification of records or reports, and misappropriation of funds or other assets.

(b)  All records, data, audit reports and files shall be maintained in accordance with Rule .1105 of this Section.

(c)  The provisions of this Rule do not limit the authority of the Department to make audits of recipients' organizations.

 

History Note:        Authority G.S. 143B‑10; 143B‑431; 24 C.F.R. Part 92;

Eff. November 2, 1992.