How to Determine the Type of Audit Needed

Agencies which receive more than $25,000 in funding from the Department of Health and Family Services, whether direct from the department or passed through another agency, need to have an annual audit, unless the audit is waived by the department.  The audit needs to be in accordance with generally accepted auditing standards, Government Auditing Standards, (exit DHFS) and the applicable state or department audit guide: the State Single Audit Guidelines (exit DHFS) or the Provider Agency Audit Guide (PDF, 421 KB).   If the agency is a government or a non-profit which expended $500,000 or more in federal financial assistance, the audit also needs to be in accordance with the requirements of the federal OMB Circular A-133 (exit DHFS) "Audits of States, Local Governments, and Non-Profit Organizations."

Which state or department audit guide is applicable depends on the nature of the agency and the nature and amount of government funding the agency received or expended. 

• The State Single Audit Guidelines (exit DHFS) are applicable if the agency is a local government which has an audit in accordance with OMB Circular A-133 (i.e. it expended more than $500,000 in federal funding) and which received funding from or passed through a state agency.
• The Provider Agency Audit Guide (PDF, 421 KB) is applicable to all other agencies which need to have an audit.

Last Revised:  May 30, 2007