7 AAC 78.230. Audit requirements

(a) At least once every two years, a grantee that is not subject to audit under 2 AAC 45.010 shall ensure that a fiscal audit of the grantee's operations under the grant program is performed by an independent certified public accountant. The department may accept a state or federal audit as a substitute for this audit. In addition to this audit, or an audit conducted under 2 AAC 45.010, the department may conduct an audit of a grantee's operations at any time that the department determines an audit is needed. If the department conducts an audit under this subsection, the auditor may be a representative of the department or an independent certified public accountant. If the grant includes money provided by the federal government or a municipal government, and the federal or municipal government conducts an audit, the auditor may be a representative of the federal or municipal government or an independent certified public accountant. For an audit conducted under this subsection, or for an audit conducted under 2 AAC 45.010, the grantee shall provide the auditor with reasonable access to the grantee's books, documents, papers, and records.

(b) For an audit conducted under this section or under 2 AAC 45.010, the audit report must include a statement of revenue and expenses, budget and actual, that provides, for each state fiscal year grant,

(1) the final approved budget by line-item category;

(2) actual revenues and expenditures by approved line-item category;

(3) any variance between budgeted and actual revenues and expenditures; and

(4) any disallowed or questioned costs.

(c) In the audit report prepared under (b) of this section, any outstanding liability to the state, including unspent grant funds and disallowed costs, must be shown as payable to the state.

(d) An audit under this section must be conducted in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained, in the most current version of Government Auditing Standards, issued by the Comptroller General of the United States. If an audit is required under 2 AAC 45.010, the records and accounts of the grantee must also be audited in accordance with the most current version of the State of Alaska Audit Guide and Compliance Supplement for State Single Audits.

(e) Within 30 days after a grantee receives written notice of an audit report prepared under this section or under 2 AAC 45.010 that questions a cost incurred by the grantee or otherwise notes an audit exception, the grantee shall provide to the department a response to the question or exception. If the grantee fails to respond, or if the department determines that the response does not adequately explain or justify the questioned cost or other audit exception, the department may require the grantee to refund to the department the grant money paid on the questioned cost or other audit exception, as applicable. The grantee shall refund the money as specified by the department.

History: Eff. 4/11/81, Register 78; am 7/21/2002, Register 163; am 6/24/2004, Register 170

Authority: AS 18.05.040

The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.