SECTION .0400 - RESPONSIBILITIES OF AGENCIES

09 NCAC 03M .0401         Agency Responsibilities

(a)  An agency that receives State funds and disburses those funds as State financial assistance to a recipient shall:

(1)           Notify each recipient, at the time the State financial assistance award is made, of the purpose of the award and the reporting requirements established in this Subchapter.

(2)           Prior to disbursing any State financial assistance:

(A)          Register each State assistance program with the Office of State Budget and Management in the format and method specified by the Office of State Budget and Management.

(B)          Execute a contract with the recipient that complies with the requirements of this Subchapter.

(C)          Report each individual award to the Office of State Budget and Management in the format and method specified by the Office of State Budget and Management.

(D)          Follow the procedures for disbursement of State financial assistance.

(3)           Develop compliance supplement reports that describe standards of compliance and audit procedures to give direction to independent auditors. This report shall be provided to the State and Local Government Finance Division in the North Carolina Department of State Treasurer for inclusion in the North Carolina State Compliance Supplement.

(4)           Develop a monitoring plan for each State assistance program the agency oversees and submit the plan to the Office of State Budget and Management for approval.

(5)           Perform monitoring and oversight functions as specified in agency monitoring plans to ensure that State financial assistance is used for authorized purposes in compliance with laws, regulations, and the provisions of contracts, and that performance goals are achieved.

(6)           Ensure that State financial assistance is spent consistent with the purposes for which it was awarded.

(7)           Determine that reporting requirements have been met by the recipient and that all reports have been completed and submitted in accordance with the recipient's contract.

(8)           Monitor compliance by recipients with all terms of a contract. Upon determination of noncompliance the agency shall take appropriate action as specified in Section .0800 of this Subchapter.

(9)           Require agency internal auditors to conduct periodic audits of agency compliance with requirements of this Subchapter.

(10)         Provide all requested documentation when subject to an audit of compliance with the requirements of this Subchapter. Audits may be conducted by the Office of State Budget and Management, the Office of the State Auditor, or the agency's internal auditor.

(b)  Each recipient shall ensure that subrecipients have complied with the applicable provisions of this Subchapter. Failure to comply with such provisions shall be the basis for an audit exception.

History Note:        Authority G.S. 143C-6-22; 143C-6-23;

Eff. July 1, 2005;

Readopted Eff. July 1, 2016.