Attachment M - Annual Audit Report Requirements.docx

This attachment outlines Annual Audit Report Requirements for contractors with the Maryland Department of Human Services, Social Services Administration (SSA), specifically those providing Residential Child Care services. The audit requirements mandate that contractors follow Generally Accepted Accounting Principles and Generally Accepted Auditing Standards as established by the American Institute of Certified Public Accountants. Contractors must submit comprehensive annual audit reports that include opinion statements on financial statements, compliance reports, and documentation of prior audit findings with corrective actions. The audit must encompass detailed financial statements including balance sheets, statements of revenue and expense, and functional distribution of expenses categorized by basic care, special education, and management and general functions.

The audit submission must include additional schedules documenting specific sources of funds received, comparisons of budgeted to actual expenses, computations of actual cost of care rates per month, comparisons of payment rates to actual rates, and determinations of overpayment and underpayment by service function. Contractors with multiple SSA contracts must provide discrete financial statements and schedules for each contract, and those with contracts from other DHS units, state executive departments, other states, or federal sources must separately list each revenue source with corresponding contract amounts and services provided. The annual audit report must be submitted by an independent certified public accountant directly to the SSA Office of Budget and Central Services at 25 S. Charles Street, 11th Floor, Baltimore, MD 21201, Attention: SSA Budget Supervisor by December 2, 2018, in the format specified by SSA. Submission to any other party does not satisfy this requirement.