09 NCAC 03M .0205. REPORTING THRESHOLDS AND FORMATS FOR GRANTEES AND SUBGRANTEES

(a)  For the purposes of this Subchapter, there are three reporting thresholds established for grantees and subgrantees receiving State funds.  The reporting thresholds are:

(1)           Less than $25,000 – A grantee that receives, uses, or expends State funds in an amount less than twenty-five thousand dollars ($25,000) within its fiscal year must comply with the reporting requirements established by this Subchapter including: 

(A)          A certification completed by the grantee Board and management stating that the State funds were received, used, or expended for the purposes for which they were granted; and

(B)          An accounting of the State funds received, used, or expended.

All reporting requirements shall be filed with the funding agency within six months after the end of

the grantee's fiscal year in which the State funds were received.

(2)           $25,000 up to $500,000 - A grantee that receives, uses, or expends State funds in an amount of at least twenty-five thousand ($25,000) and up to five hundred thousand dollars ($500,000) within its fiscal year must comply with the reporting requirements established by this Subchapter including:

(A)          A certification completed by the grantee Board and management stating that the State funds were received, used, or expended for the purposes for which they were granted;

(B)          An accounting of the State funds received, used, or expended; and

(C)          A description of activities and accomplishments undertaken by the grantee with the State funds.

All reporting requirements shall be filed with the funding agency within six months after the end of the grantee's fiscal year in which the State funds were received.

(3)           Greater than $500,000 – A grantee that receives, uses, or expends State funds and in the amount greater than five hundred thousand dollars ($500,000) within its fiscal year must comply with the reporting requirements established by this Subchapter including:

(A)          A certification completed by the grantee Board and management stating that the State funds were received, used, or expended for the purposes for which they were granted;

(B)          An audit prepared and completed by a licensed Certified Public Accountant for the grantee consistent with the reporting requirement of this Subchapter; and

(C)          A description of activities and accomplishments undertaken by the grantee with the State funds.

All reporting requirements shall be filed with both the funding agency and the Office of the State Auditor within nine months after the end of the grantee's fiscal year in which the State funds were received.

(b)  Unless prohibited by law, the costs of audits made in accordance with the provisions of this rule are allowable charges to State and Federal awards.  The charges may be considered a direct cost or an allocated indirect cost, as determined in accordance with cost principles outlined in the Office of Budget and Management (OMB) Circular A-87. The cost of any audit not conducted in accordance with this Subchapter is unallowable and shall not be charged to State or Federal grants.

(c)  The audit requirements in this Subchapter do not replace a request for submission of audit reports by grantor agencies in connection with requests for direct appropriation of state aid by the General Assembly.

(d)  Notwithstanding the provisions of this Subchapter, a grantee may satisfy the reporting requirements of Part (a)(3)(B) of this Rule by submitting a copy of the report required under the federal law with respect to the same funds. 

(e)  All grantees and subgrantees shall use the forms of the Office of State Budget and Management and of the Office of the State Auditor in making reports to the awarding agencies and the Office of the State Auditor.

 

History Note:        Authority G.S. 143C-6-22; 143C-6-23;

Eff. July 1, 2005.