Audit Resolution - 03-07

CITY AND COUNTY OF SAN FRANCISCO GAVIN NEW SOM, MAYOR OFFICE OF ECONOMIC AND W ORKFORCE DEVELOPMENT DIRECTIVE NO: 03-07 TO: WIA Service Providers EFFECTIVE: July 1, 2007 SUBJECT: Audit Resolution REFERENCES: Title 20 Code of Federal Regulations (CFR) 667.200(b), 667.500(a) Title 29 CFR 95.26 Title 29 CFR 96.53 Title 29 CFR 97.26 Office of Management and Budget (OMB) Circular A-133, Subject: Audits of States, Local Governments and Non-Profit Organizations (June 24, 1997) State Directive WIAD01-3, “Audit Resolution” PURPOSE: This policy provides guidance regarding policy and procedures for the resolution of audit findings and disallowed costs. BACKGROUND: Entities receiving awards of Workforce Investment Act (WIA) funds must meet the audit requirements of OMB Circular A-133. 20 CFR 667.200(b)(2)(ii) requires that organizations that expend more than $500,000 of federal funds have either an organization-wide audit conducted in accordance with OMB Circular A-133 or a program specific financial and compliance audit. These regulations require the establishment of procedures for audit resolution. DEFINITIONS: Costs recommended for disallowance are costs identified by auditors that are supported by accounting records but are a violation of law, regulation or contract, or are determined unreasonable by the auditor. Federal financial assistance means assistance received directly ...