Supersedes 417 FW 1, FWM 454, 08/23/04
Date: April 19, 2010
Part 417: Wildlife and Sport Fish Restoration Program Audits
Originating Office: Office of Wildlife and Sport Fish Restoration
1.1 What is the purpose of this chapter? This chapter:
A. Gives employees an overview of Service-administered audits of grantees in the Wildlife and Sport Fish Restoration Program (WSFR), and
B. Describes the program authorities and responsibilities for all the chapters in Part 417.
1.2 To which grant programs does this chapter apply? This chapter applies to Service-administered audits, which are examinations of the grant programs that WSFR administers. If WSFR shares responsibility with another entity for a grant program, the chapter applies only to those grants in the program that WSFR administers.
A. Mandatory audits. The Service must audit grantees for the programs and subprograms in Table 1–1 at least once every 5 years (also see section 1.7). The table includes the Catalog of Federal Domestic Assistance (CFDA) numbers for each program.
B. Discretionary audits. The Service may audit grantees at its discretion for the grant programs and subprograms in Table 1–2:
1.3 What are the authorities for the chapters in Part 417? The authorities for this program are:
B. Administrative and Audit Requirements and Cost Principles for Assistance Programs (43 CFR 12).
C. Administrative Requirements, Pittman-Robertson Wildlife Restoration and Dingell-Johnson Sport Fish Restoration Acts (50 CFR 80).
D. Conservation of Endangered and Threatened Species of Fish, Wildlife, and Plants–Cooperation with the States (50 CFR 81).
E. National Coastal Wetlands Conservation Grant Program (50 CFR 84).
F. Clean Vessel Act Grant Program (50 CFR 85).
G. Boating Infrastructure Grant Program (50 CFR 86).
H. 360 DM 1–3, Departmental Audits.
I. 361 DM 1, General Audit Followup Responsibilities.
J. Government Auditing Standards (Yellow Book), GAO–07–731G, United States Government Accountability Office, July 2007.
K. Office of Management and Budget (OMB) Circular A–21, Cost Principles for Educational Institutions.
L. OMB Circular A–50, Audit Follow-up.
M. OMB Circular A–87, Cost Principles for State, Local, and Indian Tribal Governments.
N. OMB Circular A–102, Grants and Cooperative Agreements with State and Local Governments.
O. OMB Circular A–110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations.
P. OMB Circular A–122, Cost Principles for Non-Profit Organizations.
Q. OMB Circular A–133, Audits of States, Local Governments, and Non-Profit Organizations.
1.4 Who is responsible for the Wildlife and Sport Fish Restoration Program’s Service-administered audits of grantees? Table 1–3 lists the officials with responsibilities for the audit program.
1.5 What terms do you need to know to understand this chapter? The terms you need to know to understand this chapter are in the Service handbook, Wildlife and Sport Fish Restoration Program Glossary.
1.6 What are Service-administered audits of grantees? Service-administered audits of grantees are examinations of grantees receiving funds that WSFR administers. These audits supplement Single Audit Act audits that we perform according to OMB Circular A–133 (see 417 FW 6).
A. The auditor for Service-administered audits must be a public accountant from a private firm or a local, State, or Federal Government organization that performs audits. The Department of the Interior’s OIG is an example of an organization in the Federal Government that performs audits. The auditor must meet the general standards specified in Generally Accepted Government Auditing Standards.
B. The auditor performs an audit under contract to the Service. The AD–WSFR recommends an auditor for selection by the Director, and the Service’s Division of Contracting and Facilities Management administers the contract through a Contracting Officer. The Chief-AIM/HQ is the Contracting Officer’s Technical Representative. The auditors report to the Contracting Officer in consultation with the Contracting Officer’s Technical Representative.
C. The objectives of the audits are to:
(1) Verify compliance with:
(a) Applicable Federal laws, regulations, and the Generally Accepted Accounting Principles;
(b) Policies applicable to the program that provided the funds;
(c) Terms of the grant; and
(d) Applicable State laws and regulations;
(2) Assess financial integrity, accountability, and controls over use of Federal funds following the Generally Accepted Accounting Principles; and
(3) Deter and detect fraud and abuse in programs and operations.
1.7 What are the special audit requirements for mandatory audits? The Wildlife Restoration program, the Sport Fish Restoration program, their component subprograms, and the Enhanced Hunter Education and Safety program have the following special requirements:
A. We must audit each grantee that receives funds from these programs once for each 5-year period (audit cycle) as follows. The audit must include revenue and expenditures of:
(1) Protected State hunting and fishing license funds for the audit period, and
(2) The grant funds received during the audit period.
B. The auditor must work with the Regional Director and the grantee to determine the audit period. The Regional Director must approve the audit period. The audit period must cover the two most recently completed State fiscal years or two consecutive recently completed State fiscal years. We choose which years to cover based on such considerations as:
(1) Completion of the Single Audit. A Single Audit is an audit that a non-Federal entity must obtain from an independent auditor if it expends:
(a) $500,000 or more in a fiscal year, or
(b) Another amount specified by OMB. The auditor must be a public accountant or a Federal, State, or local government audit organization that meets the general standards in Generally Accepted Government Auditing Standards.
(2) Completion and submission of a final Federal Financial Report (SF–425).
(3) Changes to the accounting system (e.g., the introduction and use of new accounting software).
(4) Grantee budget cycle.
C. Audit reports must only address the audit period unless there is an extraordinary finding.
(1) Extraordinary findings are those that involve fraud, direct and material illegal acts, or noncompliance that could result in exclusion from further participation in the program.
(2) Except for a fraud investigation, the Director must approve expanding the audit period to investigate extraordinary findings. Justification for requesting an expanded audit period must address the following elements:
(b) Condition, and
(c) Effect (measure of consequences) of the finding.
(3) The Director may expand the audit period to include all unaudited Federal funds and license fee revenues.
D. Real and personal property is subject to audit regardless of the date of purchase.
1.8 Who maintains audit files, what is in them, and how long does the Service have to maintain them?
A. The Regional Director is responsible for maintaining audit files.
B. The following documents must be in the audit file:
(1) All audit-resolution correspondence, incoming and outgoing;
(2) Final audit reports;
(3) Any approved CAP for the audit;
(4) Documentation the grantee provides that the Regional Director uses to verify that the grantee resolved findings and implemented the auditor’s recommendation; and
(5) Documentation that the OIG or the Department closed the audit.
C. The documents must remain in the audit files until the OIG or Department closes the audit and the auditor completes the next audit. See 283 FW 1–4 for more information about retaining Government records.
1.9 What do the other Service Manual chapters in Part 417 cover? Table 1–4 summarizes the other chapters in this Part.
For information on the content of this chapter, contact the Office of Wildlife and Sport Fish Restoration. For more information on this Web site, contact Krista Holloway in the Division of Policy and Directives Management.