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.