Management System: Financial Assistance
Subject Area: Post-Award Administration

Procedure 4. Requesting and Coordinating Audit Findings

Management System Coordinators
Process Steward:
Implementation Lead:
Subject Matter Expert:
Subject Area Point of Contact:

Latest MS Specific Document Revision Date 5/24/2018
Latest MS Total Biennial Review Completed 5/24/2018
SCMS Revision 2.1

1.0  Applicability

This procedure applies to all Project Officers, Contract Specialists (CSs), Grant Management Specialists (GMSs), and Contracting Officers (COs) who have responsibility in requesting and coordinating audit findings.

2.0  Required Procedure

Step 1 During the pre-award phase, the CS/GMS assesses audit reports in the Federal Audit Clearinghouse through the Integrated Support Center (ISC)-Chicago (CH) Finance & Accounting (CRA) group's A-133 database, found on the ISC-CH-ACQ shared directory
Step 2 Based on recommendations in any CRA report found for the recipient in the A-133 database, the CO determines recipient compliance and need for any special provisions. See FAH-09B - Financial Assistance Budget Review and Cost Analysis and OMB Circular A-133, Audit Requirements (Other than SBIR/STTR Awards) – for specific guidance.
Step 3 The recipient submits the required documentation to the CS/GMS and to the Federal Audit Clearinghouse no later than 60 calendar days after the date of the award if special provisions were incorporated in the award document for either of the following events:
  1. If the recipient is delinquent in submitting an audit report, the recipient submits a report immediately.

  2. If the recipient has audit findings, the recipient submits a corrective action plan or evidence of implemented corrective action for review.

Step 4

If special provisions were incorporated in the award document, requiring submission of an audit report or corrective action plan:

  1. If the CS/GMS receives the required documents and the recipient has complied with or shown improvement with the requirements set forth in the special terms and conditions, the CS/GMS removes the special provision at the next modification.

  2. If the CS/GMS does not receive the required documents within 60 calendar days, the CS/GMS prepares a letter for the CO's signature, which notifies the recipient of the delinquency and requests the report.

NOTE: This letter may be sent electronically. The letter must state that, if the document can not be submitted promptly, the recipient should explain the reason and state a date by which DOE will receive the report. A deadline for responding to the letter must be stated. If neither a report nor an acceptable explanation for not submitting the report is received from the recipient within the deadline given in the letter, the CO proceeds to Step 6.

Step 5 If the recipient has not complied with or shown improvement with the requirements set forth in the special terms and conditions, the CS/GMS in coordination with the Project Officer and CO determine if one of the following actions are appropriate:
  • Temporarily withhold final payment on the current award and other awards;

  • Disallow costs associated with the current award and other awards;

  • Maintain adverse financial management information for consideration in making future awards; or

  • Withhold future awards for the project or program. This procedure concludes; skip Step 6.

NOTE: The special terms and conditions may be lessened or removed if recipient complies.

Step 6

Upon determination of the appropriate action, the CS/GMS prepares a letter for the CO's signature.

Step 7

In addition to the procedures in the above steps, CRA may become aware of DOE-related audit findings specifically for awards for which ISC-CH is the awarding office. In that case:

  • CRA prepares recommended Management Decision Letter (MDL) addressing the DOE findings.

  • The CO reviews and sign the MDL, if in agreement.

  • The CS/GMS monitors and follow up on required recipient resolution in conjunction with CRA.

3.0  References

  • 2 CFR 200, as amended by DOE Section 910, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (For awards with an effective on or after December 26, 2014)

  • 10 CFR 600, Financial Assistance Rules

  • DOE G FA, DOE Guide to Financial Assistance

  • FAH-09B, Financial Assistance Budget Review and Cost Analysis/A-133 Audit Requirements (Other Than SBIR/STTR Awards) (Exhibit 1)

  • Federal Audit Clearinghouse