Library: Policy

340:65-1-8. Audit Responsibilities

Issued 9-15-23

(a) Audit requirements.  A non-federal entity that expends $750,000 or more in federal awards during a fiscal year must complete a single audit or a program specific audit, per Section 7502(a)(1) and (a)(3) of Title 31 of the United States Code (31 U.S.C. § 7502(a)(1) and (a)(3)) and Section 200.501 of Title 2 of the Code of Federal Regulations.  • 1

(b) Oklahoma Human Services (OKDHS) responsibilities.  When OKDHS operates as a federal award pass-through entity, per 31 U.S.C. § 7502(f)(2), ¢ 2 OKDHS must:

(1) provide its federal award subrecipients with the federal requirements that govern the award's use and the program name and any identifying numbers from which such assistance is derived;

(2) supply the OKDHS Office of Inspector General with an updated list of all subrecipients quarterly;

(3) monitor the award's use through site visits, limited scope inspections, and other means;

(4) review the audits to ensure prompt and appropriate corrective action occurred with respect to audit findings; •  3 and

(5) require each subrecipient to allow any OKDHS independent auditor access to the subrecipient's records and financial statements. 

INSTRUCTIONS TO STAFF 340:65-1-8

Issued 9-15-23

1.  A non-federal entity is a state, a local government, or a nonprofit organization.

2.       Oklahoma Human Services (OKDHS) operates as a pass-through entity when it provides federal awards to another non-federal entity to carry out a federal program. Most commonly, this practice occurs when OKDHS provides federal funds to a nonprofit organization.

3.  OKDHS program staff reviews the Office of Inspector General's Audit Control Log database quarterly to ensure subrecipients submit the required audits and take appropriate corrective actions.