HOUSE BILL No. 5553

 

April 24, 2012, Introduced by Reps. Denby, McMillin, Jacobsen, Price, Lund, Bledsoe and Brown and referred to the Committee on Oversight, Reform, and Ethics.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 461 (MCL 18.1461), as amended by 1999 PA 8.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 461. (1) As required by federal law, all federal grants

 

awarded to the state shall be audited by the auditor general, an

 

independent accounting firm selected by the auditor general, or an

 

auditor approved by the appropriate federal agency. The funding for

 

each audit shall be from the respective federal grants audited.

 

     (1) (2) Each audit performed pursuant to Public Law 104-156 31

 

USC 7501 to 7507 shall be conducted by an independent auditor in

 

accordance with generally accepted government auditing standards.

 

Single audits for this state shall be conducted in accordance with

 

Public Law 104-156 31 USC 7501 to 7507 by the auditor general , or

 

an independent accounting firm selected by the auditor general. ,

 


or an independent auditor approved by the appropriate federal

 

agency. For fiscal years beginning October 1, 1985 and thereafter,

 

through September 30, 2011, biennial audits of state departments

 

and agencies shall be performed for purposes of complying with the

 

requirements of Public Law 104-156 31 USC 7501 to 7507 pertaining

 

to audit evaluation of the internal controls of this state and the

 

state's compliance with material features of laws and regulations

 

related to major federal assistance programs. For fiscal years

 

beginning October 1, 2011 and each fiscal year thereafter, an

 

annual statewide single audit shall be performed for purposes of

 

complying with the requirements of 31 USC 7501 to 7507 pertaining

 

to audit evaluation of the internal controls of this state and the

 

state's compliance with material features of laws and regulations

 

related to major federal assistance programs.

 

     (2) (3) The For fiscal years beginning October 1, 1985 and

 

through September 30, 2011, the funding for single audits shall be

 

from the respective federal grants audited, in accordance with

 

Public Law 104-156. 31 USC 7501 to 7507. For fiscal years beginning

 

October 1, 2011 and each fiscal year thereafter, funding for the

 

statewide single audit shall be allocated to federal programs based

 

on a methodology determined by the director that is in accordance

 

with federal compliance requirements. The chief executive officer

 

of each principal department shall ensure that sufficient amounts

 

are encumbered from the appropriate federal grants to finance the

 

cost of the audits. Any unexpended amounts of encumbered funds may

 

be carried over into succeeding years to cover the cost of the

 

single audits.

 


     (3) (4) Before February 1 of each year, the director of each

 

principal department shall submit to the director, fiscal agencies

 

and the auditor general a The director, in consultation with the

 

auditor general, shall issue directives to all state agencies

 

concerning the procedures and timelines for compiling the schedule

 

of expenditures of federal financial assistance for the last

 

completed fiscal year in a form approved by the auditor general.

 

awards and all other information required for the statewide single

 

audit. The director shall submit the schedule of expenditures of

 

federal awards to the auditor general and the fiscal agencies.

 

     (5) As used in this section, "Public Law 104-156" means

 

chapter 75 of title 31 of the United States Code, 31 U.S.C. 7501 to

 

7507.