The DOL official(s) responsible for audit resolution shall promptly
evaluate findings and recommendations reported by auditors and the CAP
developed by the recipient to determine proper actions in response to
audit findings and recommendations. The process of audit resolution
minimally includes an initial determination, an informal resolution
period and a final determination.
(a) Initial determination. After the conclusion of any comment
period for audits provided the grantee/contractor, the responsible DOL
official(s) shall make an initial determination on the allowability of
questioned costs or activities, administrative or systemic findings, and
the corrective actions outlined by the recipient. Such determination
shall be based on applicable statutes, regulations, administrative
directives, or grant/contract conditions.
(b) Informal resolution. The grantee/contractor shall have a
reasonable period of time (as determined by the DOL official(s)
responsible for audit resolution) from the date of issuance of the
initial determination to informally resolve those matters in which the
grantee/contractor disagrees with the decisions of the responsible DOL
official(s).
(c) Final determination. After the conclusion of the informal
resolution period, the responsible DOL official(s) shall issue a final
determination that:
(1) As appropriate, indicate that efforts to informally resolve
matters contained in the initial determination have either been
successful or unsuccessful;
(2) Lists those matters upon which the parties continue to disagree;
(3) Lists any modifications to the factual findings and conclusions
set forth in the initial determination;
(4) Lists any sanctions and required corrective actions; and
(5) Sets forth any appeal rights.
(d) Time limit. Insofar as possible, the requirements of this
section should be met within 180 days of the date the final approved
audit report is received by the DOL official(s) responsible for audit
resolution.
