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Date: August 31, 1999
Reference #: SMP 1999-1
To: Special Milk Program (SMP) Contractors
Subject: Single Audit Documentation and Compliance Requirements for Contractor Fiscal Years Beginning After June 30, 1998
Effective: July 1, 1999
As stated in Policy Alert SNP 97-3, the Single Audit Act was significantly amended in 1996. Included in the amendments were changes to reduce the time frames for contractors to submit an audit as required by the Single Audit Act from 13 months from the end of the contractor's fiscal year to 9 months from the end of the contractor's fiscal year subject to audit. In response, the Special Nutrition Programs adopted a rule in the Texas Register implementing the changes.
Beginning with contractor fiscal years starting after June 30, 1998, the audits for contractors who are subject to the requirements of the Single Audit Act must be received by the Texas Department of Human Services (TDHS) nine (9) months from the end of the contractor's fiscal year subject to audit.
You will continue to receive advance notifications of when your audit is due; however, instead of three advance notices, you will now receive two notifications because of the reduced time frame for submitting the audit.
NOTE: TDHS may extend the time within which you must submit an audit if TDHS determines that such an extension is justified.
Once your contract has been terminated for failure to comply with the Single Audit Act, you must provide an acceptable audit for any outstanding audit year(s) and comply with the requirements of the Single Audit Act, as amended, in order to be eligible to participate in the Special Nutrition Programs.
The audit threshold for being required to submit a single audit was changed in the amendments to the Single Audit Act of 1996 from $25,000 in federal financial assistance received during a contractor's fiscal year to $300,000 in federal financial assistance expended during a contractor's fiscal year. This change was effective with contractor fiscal years beginning on or after July 1, 1996. If your organization did not expend $300,000 or more in federal financial assistance during your (contractor) fiscal year subject to audit, you are not required to obtain an audit according to the requirements of the Single Audit Act.
NOTE: TDHS will not review Single Audits for contractor fiscal years in which less than $300,000 in federal assistance was expended.
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