WIA Title I-B Program Management Policies and procedures
Memorandum #05-04

To:  All Subrecipients

Subject:  Audit Resolution and Appeal Procedures

Effective Date: November 15, 2005

A.    AUDIT RESOLUTION PROCEDURES

The Snohomish County Workforce Development Council (WDC) requires that an independent audit be conducted by each of its subrecipients in conformance with the Single Audit Act and OMB Circular A-133 for each of its subrecipients other than entities receiving less than $500,000 in Federal funds in a given audit year. For such entities, a program audit is required for each WDC subcontract with the subrecipient.

Each subrecipient required to conduct an audit is to submit a copy of the audit to the WDC within 30 days of receipt.

The subrecipient is to provide comments to the WDC regarding any questioned or disallowed costs within 30 days of submission of the audit. The WDC will notify the subrecipient of its initial findings and determination within 15 days following the end of the 30 day comment period.

The subrecipient will have 30 days from the date of the WDC's initial findings and determination to request an informal resolution or provide a response.

The WDC will issue a final findings and determination within 15 days following the completion of the second 30 day period.

The subrecipient may request an extension if it is unable to respond within either 30 day period.

The WDC may allow subrecipient costs which were questioned or disallowed based on appropriate allowability criteria and subrecipient comment subject to approval by Washington State Employment Security Department and the United States Department of Labor.

B.    APPEAL PROCEDURES

The subrecipient will be allowed 10 days to appeal the establishment of a debt through the audit resolution process described above. Hearings will be provided 30 days after the receipt of the appeal unless waived or postponed at the request of the subrecipient.

An impartial hearing officer will be provided to conduct hearings on appeals. The hearing officer will be an individual(s) who has(have) qualifications necessary to conduct proceedings which meet these requirements and to make decisions which reflect the Job Training Partnership Act, the Workforce Investment Act, and/or the Welfare to Work Program and associated regulations and other applicable laws, regulations, and policies. No individual will hear or decide a case in which s/he is an interested party.

Full and complete records will be maintained for all appeal proceedings.

Each individual involved in appeal proceedings has the right to be represented by counsel or other authorized agent(s). The WDC will not be liable for costs of legal counsel or representation incurred by any party or individual.

All parties have the right to present witnesses and evidence.

The subrecipient has the right to question witnesses and other parties.

The burden of proof rests with the subrecipient to demonstrate that any disallowed cost should be allowed.

A written decision will be issued to the subrecipient within 60 days of the filing of the appeal unless the right to a hearing within 30 days has been waived.

All audit and appeal correspondence will be maintained to provide an adequate audit trail regarding decisions made during the audit resolution and appeal processes. These records shall be kept for 3 years after closure of the audit by the United States Department of Labor.

If, after exhausting these appeal procedures, the subrecipient is dissatisfied with the outcome, the subrecipient may appeal the final determination to Washington State Employment Security Department.

Following completion of any and all appeals, the subrecipient is to provide the WDC with payment for any disallowed costs within 30 days of final determination by the WDC or the State of Washington .