3.19 Audit Requirements
Awards are subject to conditions of fiscal, program, and general administration to which the recipient expressly agrees upon acceptance of the award.
- The audit objective is to review the recipient’s accountability of funds and required non-Federal contributions to determine whether the recipient has done all of the following:
- Established an accounting system with adequate internal controls that provide full accountability for revenues, expenditures, assets, and liabilities.
- Prepared financial statements which are presented fairly and in accordance with generally accepted accounting principles.
- Submitted financial reports (including Federal Finance Reports [SF-425s]; cash reports; and claims for advances and reimbursements) that contain accurate and reliable financial data and are presented in accordance with the terms of applicable agreements.
- Expended Federal funds in accordance with the terms of award agreements and those provisions of Federal law or regulations that could have a material effect on the financial statements or on the awards tested.