North Carolina Administrative Code
Title 10A - HEALTH AND HUMAN SERVICES
Chapter 97 - ECONOMIC OPPORTUNITY
Subchapter C - COMMUNITY SERVICES BLOCK GRANT PROGRAM
Section .0500 - AUDIT STANDARDS
Section 97C .0502 - AUDIT REQUIREMENTS

(1) Audits will include, at a minimum, an examination of the systems of internal control, systems established to ensure compliance with laws and regulations affecting the expenditure of grant funds, financial transactions and accounts, and financial statements and reports of recipient organizations;

(2) Financial statements shall include footnotes, comments which identify the statements examined, the period covered, identification of the various projects under which the recipient received CSBG funds, and the amount of the awards received;

(3) The audit shall include the auditor's opinion as to whether the financial statements are fairly presented in accordance with generally accepted accounting principles;

(4) The auditors' comments on compliance and internal control should:

(5) Work papers and reports shall be retained for a minimum of three years from the date of the audit report unless the auditor is notified in writing by the Office of the need to extend the retention period. The audit work papers shall be made available upon request to the Office and the General Accounting Office or its designees; and

(6) If during the course of the audit, the auditor becomes aware of irregularities in the recipient organization, the auditor shall promptly notify the Office and recipient management officials about the level of involvement. Irregularities include such matters as conflicts of interests, falsification of records or reports, and misappropriation of funds or other assets.