N.J. Admin. Code § 10:66-4.3 - Audited financial statement

(a) The audited financial statement of a Federally qualified health center shall be:

1. Conducted by one of the following:

i. A licensed certified public accountant or persons working for a licensed certified public accounting firm; or

ii. A public accountant licensed on or before December 31, 1970; or

iii. Persons working for a public accounting firm licensed on or before December 31, 1970, sufficiently independent as defined by GAO standards, to produce unbiased opinions, conclusions, or judgments;

2. Conducted annually based on the FQHC's fiscal year;

3. Conducted on an organization-wide basis to ascertain that the financial statements fairly present the financial position and results of the FQHC's total operations and cash flows;

4. Submitted within 150 days of the FQHC's fiscal year end; and

5. Conducted in accordance with the following standards, incorporated herein by reference, and as amended and supplemented:

i. Generally accepted auditing standards established by the American Institute of Certified Public Accountants (AICPA);

ii. Government Auditing Standards established by the Comptroller General of the United States and issued by the U.S. Government Accountability Office;

iii. The AICPA audit and accounting guide Audits of State and Local Governmental Units and, as applicable, AICPA industry audit guides or Statements of Position;

iv. Federal Single Audit Act of 1984 ( P.L. 98-502);

v. Federal OMB Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations";

vi. Federal OMB "Compliance Supplement for Single Audits of State and Local Governments" (September 1990);

vii. Federal OMB "Compliance Supplement for Single Audits of Educational Institutions and Other Nonprofit Organizations," when issued, may supersede the Federal "Compliance Supplement for Single Audits of State and Local Governments;" and

viii. Federal OMB Circulars A-87 "Cost Principles for State and Local Governments" or A-122 "Costs Principles for Nonprofit Organizations," as applicable.

(b) The audit report shall include the following:

1. An opinion on the financial statements taken as a whole;

2. Presentation of financial statements in accordance with the following applicable AICPA audit and accounting guides--Audits of State and Local Governmental Units, industry audit guides, or Statements of Position;

3. A supplementary schedule and opinion thereon of the FQHC's state and Federal financial assistance programs, showing expenditures by program. See the AICPA's audit guide, Audits of State and Local Governmental Units, Fifth Edition, pages 196 and 230;

4. A report(s) on the auditor's considerations of the internal control structure covering:

i. The internal control structure relevant to the financial statement audit; and

ii. The internal control structure used in administering state/federal financial assistance programs;

5. Compliance Report Based on an Audit of General Purpose or Basic Financial Statements Performed in Accordance with Government Auditing Standards;

6. Single audit compliance report(s) covering:

i. General requirements applicable to major programs;

ii. Opinion on compliance with specific requirements applicable to major programs; and

iii. Requirements applicable to nonmajor programs;

7. A specific statement that all required tax returns have been filed and taxes including, but not limited to, payroll taxes, have been paid;

8. A copy of the management advisory letter when provided as a routine part of the audit engagement;

9. A statement of the FQHC's response to findings of deficiencies in internal control and compliance, including a description of corrective action taken or planned on prior findings; and

10. A report on fraud, abuse or illegal acts, or indications of such acts when discovered. A separate written report is required.

(c) Report guidance can be obtained from AICPA Statements of Position 89-6 and 90-9. If other guidance from the AICPA or the Federal government is issued, it may supersede some of these requirements.

(d) If the audit uncovers or suggests any potentially fraudulent acts, these acts shall be communicated immediately by the independent public accountant to:

Department of Human Services

Director, Office of Auditing

Capital Place One

PO Box 700

Trenton, New Jersey 08625-0700

Notes

N.J. Admin. Code § 10:66-4.3

Amended by 49 N.J.R. 1405(a), effective 6/5/2017