Common use of Failure to Comply with the Audit Requirements Clause in Contracts

Failure to Comply with the Audit Requirements. DHS may impose sanctions when needed to ensure that auditees have complied with the requirements to provide DHS with an audit that meets the applicable standards and to administer state and federal programs in accordance with the applicable requirements. Examples of situations when sanctions may be warranted include: 1. The auditee did not have an audit. 2. The auditee did not send the audit to DHS or another granting agency within the original or extended audit deadline. 3. The auditor did not perform the audit in accordance with applicable standards, including the standards described in the SSAG. 4. The audit reporting package is not complete; for example, the reporting package is missing the corrective action plan or other required elements. 5. The auditee does not cooperate with DHS or another granting agency’s audit resolution efforts; for example, the auditee does not take corrective action or does not repay disallowed costs to the granting agency.

Failure to Comply with the Audit Requirements. DHS may impose sanctions when needed to ensure that auditees have complied with the requirements to provide DHS with an audit reporting package that meets the applicable standards and to administer state and federal programs in accordance with the applicable requirements. Examples of situations when sanctions may be warranted include: 1. The auditee did not have an audit. 2. The auditee did not send submit the audit reporting package to the FAC, DHS or another granting agency within the original or extended audit deadline. 3. The auditor did not perform the audit in accordance with applicable standards, including the standards described in the SSAGSSAG and DHS Audit Guide. 4. The audit reporting package is not complete; for example, the audit reporting package is missing omitted the corrective action plan or other required elements. 5. The auditee does not cooperate with DHS or another granting agency’s audit resolution efforts; for example, the auditee does not take corrective action or does not repay disallowed costs to the granting agency.