<html> <head> <title>Rule 46:11:04:02 Accounting systems, cost reporting and annual audits.</title> <META NAME="Keywords" Content="Administrative Rules 46:11:04:02"> <META NAME="Description" Content="Administrative Rules 46:11:04:02 Accounting systems, cost reporting and annual audits."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; text-align:justify; font-size:12.0pt; font-family:"Times New Roman",serif; color:black;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:#954F72; text-decoration:underline;} .MsoChpDefault {font-size:10.0pt; color:black;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink="#954F72"> <div class=WordSection1> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>46:11:04:02.&nbsp;&nbsp;Accounting systems, cost reporting and annual audits.</b> The provider shall maintain an accounting system pursuant to Generally Accepted Accounting Principles (GAAP). If required by the department, the provider must submit to the department a copy of an annual entity-wide, independent financial audit that shall be conducted by a certified public accountant who is not an employee of the provider or a member of its board of directors. The audit shall be completed and filed with the department within the fourth month following the end of the provider's reporting period.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An audit conducted in accordance with this section shall contain, as part of the supplementary information, a cost report as outlined by the department. If applicable, the audit shall be conducted in accordance with the Federal Office of Management and Budget (OMB) Uniform Guidance 2 CFR Chapter I, Chapter II, Part 200, et.al. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards by an auditor approved by the Auditor General to perform the audit.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For either an entity-wide, independent financial audit or an OMB Uniform Guidance 2 CFR 200 audit, the provider shall assure resolution of all interim audit findings. The provider shall facilitate and aid any such reviews, examinations, and agreed upon procedures the department or any contractor may perform.</p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 22 SDR 104, effective February 13, 1996; 27 SDR 63, effective December 31, 2000; 40 SDR 102, effective December 3, 2013; 43 SDR 9, effective August 2, 2016.</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=27B-2-26">27B-2-26(2).</A></p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=27B-2-26">27B-2-26.</A></p> <p class=MsoNormal>&nbsp;</p> <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Reference:</b> <b>Office of Management and Budget (OMB) </b><b>Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards.</b> Copies are available free of charge from the following website: <a href="https://federalregister.gov/a/2013-30465">https://federalregister.gov/a/2013-30465</a>.</p> <p class=MsoNormal>&nbsp;</p> </div> </body> </html>