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EAP Policy Manual FFY24 Chapter 13 Program Fiscal Management Page 10 In addition to the regular audit, Service Providers must maintain books, financial records, programmatic records, documents and accounting procedures and practices relating to EAP for possible state or federal special examinations (see Chapter 13 - Data Practices & Records, OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. pt. 200), and Minn. Stat. § 16C.05, subd. 5). Type of Audit Required EAP Service Providers must comply with the Single Audit Act Amendments of 1996 and the audit provisions of OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. pt. 200). These documents define when a Service Provider must be audited, and the type of audit to be completed. The type of audit depends on the total amount of federal money the Service Provider receives from all sources (see 2 CFR 200.501 - Audit Requirements, Page 1). Commerce requires that federally funded performance-based contracts are included in the definition of federal assistance. Minnesota Audit Requirements Service Providers who expend $100,000 or more in state funds are required to have an annual financial statement audit per generally accepted auditing standards. EAP Service Providers and all tiers of subgrantees must use the standards outlined in OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C.F.R. pt. 200), and others as applicable (including modifications) in the administration of EAP grants. General modifications in 2 C.F.R. pt. 200: • The state of Minnesota stands in the place of the federal agency in the language of the guidance. • Service Providers may use their own rules and procedures if they meet the above standards or are more restrictive. • Where choices are available, the grant agreement must clearly indicate the required choice (i.e., program income treatment). • Service Providers’ ethics codes must include real, apparent, or potential conflicts of interest regarding procurement. • Service Providers must have a written cost allocation plan that clearly explains how joint costs are to be charged to each program the organization operates, or a federally approved indirect cost rate.