Frequently Asked Questions Regarding Independent Certified Public Accountant Audit Reports
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FAQ’s for Designators regarding Independent Certified Public Accountant Audit Reports from Providers
Do I have to ask a Provider if they have had an audit performed?
Yes. Designators should question a Provider about whether an audit has been performed.(DESIGNATOR SOURCES OF EVIDENCE TOOL STAR 4 – Centers)
Are all STAR Level Providers required to have an audit?
If the $300,000 threshold for all State and Federal Funding is met by any STAR level Provider, yes, an audit would be required.
FAQ’s forRegional Keys regarding Independent Certified Public Accountant Audit Reports from Providers
How do I know if a Provider in my RK might be near or over the $300,000 threshold for audit?
Look at the Provider activity list in PELICAN. If the provider has Head Start or PRE-K, it is likely that they will be close to or exceed the threshold.
Review payments made to legal entities to monitor if they meet the threshold.
Do I ask for an audit if the Provider is over the threshold?
Yes. If the RK finds that the Provider does exceed the $300,000 threshold they should ask the Provider for the audit.
Regional Keys could consider adding to their monitoring checklist, a statement from the Provider that they comply with the State and the grant request regarding getting an audit if over the $300,000 threshold).
What do I do with the Audit Report?
Review the report for any indication of specific mention of non-compliance, significant deficiencies, material weaknesses, etc. that could be a concern about the Provider’s operations. Any findings should be reported to OCDEL program staff for further guidance.
FAQ’s for Providers regarding Independent Certified Public Accountant Audit Reports
How do I know if I need an audit?
Any Provider, no matter what STAR level, who receives aggregate funding from Federal and State funding sources in excess of $300,000 are required to meet the audit requirements.
As a Provider, where do I find the requirements related to audit?
Audit requirements can be found in the following locations:
Grant Request documentation - PA Department of Public Welfare’s - Subrecipient/Vendor Audits – Sections I through VI and Audit Clauses A through E.
PA Key Website - Good, Better, Best Practices for the STAR 4 Business Practices Standard #3: “Annual Independent Financial Review by a Certified Public Accountant (CPA) is conducted”
Are the costs of an audit by an Independent Certified Public Accountant allowed to be paid for with Grant funds?
Yes. The cost of services provided by an Independent Certified Public Accountant for an Annual Independent Financial Review are allowable and may be funded through the Grant.