3.19 Audit Requirements
Audit Reporting Requirements
Independent auditors should follow the requirements prescribed in Office of Management and Budget (OMB) Circular A-133 [PDF - 176 Kb]
- The recipient’s accounting records must support all amounts reported to the Office of Justice Programs (OJP).
- The recipient’s financial activity reported to OJP should reconcile to the amounts reported on the recipient’s audited financial statements.
- If there are any differences between the recipient’s audited financial statements and the financial activity reported to OJP, the recipient must be able to explain the differences.
- If the auditor becomes aware of illegal acts or other irregularities, he or she must give prompt notice to the recipient's management officials above the level of involvement.
- The recipient, in turn, must promptly notify the Federal cognizant agency and/or awarding agency of the illegal acts or irregularities and of proposed and actual actions, if any.
- All awarding agency personnel are responsible for informing the following individuals and groups of any known violations of the law within their respective area of jurisdiction:
- OJP Office of the Chief Financial Officer
- OJP Office of the General Counsel
- U.S. Department of Justice Office of the Inspector General (OIG)
- State and local law enforcement agencies or prosecuting authorities, as appropriate (see Chapter 3.21: Grant Fraud, Waste, and Abuse).
Financial Management Tip
Costs for audits not required or not performed in accordance with OMB Circular A-133 are unallowable. If you did not expend $500,000 or more in Federal funds during your organization’s fiscal year, but contracted with a certified public accountant to perform an audit, those costs may not be charged to the grant.
Audit costs, if allowable by your award, should be prorated and charged to the grant based on the ratio of all Federal grants being audited.