Authority/Reference(s) 45 CFR §75, Subpart F; Uniform Grant Guidance (UGG)
Revision Date September 3, 2024

Policy

The Department of Family and Protective Services (DFPS), in collaboration with Health and Human Services-Procurement and Contracting Services (HHS-PCS), applies single audit requirements to subrecipients and recipients (grantees) that expend $750,000 or more in federal funds or $750,000 or more in state funds. Grantees not meeting this threshold are exempt from a single audit but must complete a Single Audit Determination (SAD) form, submit financial information, and abide by Uniform Grant Guidance (UGG) and/or Texas Grant Management Standards (TxGMS) cost principles and administration requirements.
Entities classified as vendors (contractors) as documented on form 438, Contracting Relationship Determination, are exempt from the single audit process.

Single Audit Determination

To determine if a grantee is required to have a single audit:

  1. HHS-PCS distributes the first notification (email) to all DFPS grantees:
    • prompting them to complete the online SAD form to determine if a single audit is required,
    • requests submission financial records,
    • informs grantees about completing the online determination form and Single Audit reporting requirements (threshold, report submission).
      • This notification is sent via email to the grantee and the contract manager with the highest contract value in SCOR.
  2. If a grantee doesn’t complete the online SAD form within 30 calendar days of the first notification:
    • HHS-PCS sends a delinquency letter (mail).
    • HHS-PCS sends an email to the contract manager with the highest contract value in SCOR, with all other contract managers cc’d.
  3. COS distributes an annual notification to all grantees providing instructions to request expenditure information from the DFPS Accounting division.
  4. If the audit report or financial statements aren’t submitted within nine months after the grantee’s fiscal year-end:
    • HHS-PCS sends a delinquency letters (mai)
    • If there are Single Audit findings, HHS-PCS sends a Request for Information (RFI) to DFPS Contract Technical assistance: conttech@dfps.texas.gov.

Post Single Audit Completion

Following the single audit:

  1. Grantee uploads an electronic copy of the single audit and financial records to the HHS-PCS portal and emails a copy to their DFPS contract manager.
  2. HHS-PCS conducts a desk review of the single audit and forwards the notice of compliance/noncompliance to the grantee (cc’ing DFPS COS Technical Assistance mailbox). DFPS COS serves as a liaison between HHS-PCS and DFPS contract staff to address and respond to notices of compliance/noncompliance/delinquency.
  3. HHS-PCS will upload single audit documentation into SCOR under the relevant grantee's file.

Noncompliance and Sanctions

If a grantee is found to be noncompliant, they shall be subject to the DFPS sanctions outlined below:

Types of Noncompliance Number of Follow-ups Prior to Imposing Sanctions Possible Sanctions

Failure to complete the online Single Audit Determination (SAD) form

1st Notification: Contract staff send an email reminder to grantee that they are not compliant with one of the single audit requirements and give them a deadline to comply by. grantee must submit documentation to contract staff that demonstrates acknowledgement of receipt from HHS-PCS (e.g., screen shot of completed online SAD form, email from HHS-PCS validating receipt of single audit).

2nd Notification: Contract staff send the grantee a warning letter that identifies potential sanctions that may be imposed if noncompliance is not corrected.

3rd Notification: Contract management staff send the grantee a letter notifying them that a sanction will be imposed within a given date.
  • Suspension of payments
  • Suspension of referrals or service authorizations
  • Denial of contract renewal
  • Termination of contract (requires meeting with contract management staff and legal to discuss prior to execution)

Failure to submit single audit report to HHS-PCS and DFPS (reports due no later than nine months from fiscal year end (FYE) date)

Failure to submit a corrected single audit report after receiving a “Rejected” single audit notice

Failure to submit an acceptable corrective action plan after receiving “Notice of Single Audit Findings”