PROGRAM 25 ­ ABSTINENCE EDUCATION PROGRAM DEPARTMENT OF…

       PROGRAM 25 ­ ABSTINENCE EDUCATION PROGRAM
        DEPARTMENT OF HEALTH AND SOCIAL SERVICES

I.   PROGRAM OBJECTIVES
     The objective for the community based Abstinence Education program is to provide
     abstinence education to primarily middle school students through the use of high
     school teen educators (utilizing the Postponing Sexual Involvement curricula).
     Services are designed to be community based and to be consistent with federal
     guidelines for abstinence education.


II. PROGRAM PROCEDURES
     Funds are appropriated for grants to community based nonprofit organizations.


III. COMPLIANCE REQUIREMENTS AND SUGGESTED AUDIT PROCEDURES
     A. TYPES OF SERVICES ALLOWED OR UNALLOWED -
         1.   Compliance Requirements: Grantees providing community based
              abstinence education are funded from multiple sources. Expenses are
              related to staff salaries and benefits, facilities, teaching (individual and
              group setting), counseling and health promotion supplies and
              transportation for student training. Funds are to be used in the above
              categories as identified in the approved budget and special conditions.
              Federal abstinence definitions are included in the Abstinence Education
              Request for Proposals.
              Suggested Audit Procedures: Review the following and test financial
              and related records to determine that funds expended were for purposes
              specified in the grant.
              a) Grant Award (GA) including all conditions;
              b) Grant revisions and related transmittal letters;
              c) Licenses, certifications, approvals, status of private nonprofit
                   corporation if applicable;
              d) Budget documents including final revised budget and budget
                   narrative.

         2.   Compliance Requirements: Costs allowed or unallowed under this
              program are determined by 7 AAC 78 as well as budget document and
              special conditions of the grant.
              Suggested Audit Procedures:
              a) Review Department of Health and Social Services' grant regulations
                  7 AAC 78 and budget documents;
              b) Test financial and related records to determine the appropriateness
                  of cost per 7 AAC 78; and
              c) Determine whether expenditures are within the budget limits
                  prescribed by 7 AAC 78.260(f) (1).


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       PROGRAM 25 ­ ABSTINENCE EDUCATION PROGRAM
        DEPARTMENT OF HEALTH AND SOCIAL SERVICES

    B. ELIGIBILITY -
    The auditor is not expected to verify eligibility.

    C. MATCHING, LEVEL OF EFFORT AND/OR EARMARKING REQUIREMENTS -
         1.   Compliance Requirement: There is a required local match of three non-
              federal dollars for every four federal abstinence education dollars
              awarded (75% non-federal match). Documentation of the match and
              assurance that all matched funds and other resources used to support the
              activities in the project are used in a manner that is consistent with the
              federal abstinence education definition.
              Suggested Audit Procedures: Test financial and related records to
              determine if the matching requirements were met.      Determine whether
              match was from non-federal source of funds.

    D. REPORTING REQUIREMENTS -
         1.   Compliance Requirement: The agency must submit quarterly activity
              and expenditure reports no later than thirty (30) days after the close of
              each quarter or as specified in the grant.
              Suggested Audit Procedures: Confirm if such reports are being filed
              timely; that reported revenues and expenditures agree with the agency's
              general ledger; and that expenditures are within the budget limits or grant
              provisions.

         2.   Compliance Requirement: The agency's audit report must present a
              statement of revenue and expenses, budget and actual, for each state
              grant. Such statements must show, for each state fiscal year grant, the
              final approved budget by line item category, actual revenues and
              expenditures and variance between budgeted and actual revenues and
              expenditures. Disallowed or questioned costs must be clearly disclosed.
              Suggested Audit Procedures:
              a) Review grant regulation 7 AAC 78.230.
              b) Review audit report for compliance with the above.

         3.   Compliance Requirement: The agency must clearly show on their audit
              report any outstanding liability to the state as payable to the state. This
              includes unspent grant funds and disallowed costs.
              Suggested Audit Procedures:
              a) Determine whether or not the agency has any outstanding liability to
                   the state.
              b) Review grant regulation 7 AAC 78.230.
              c) Review audit report to ensure proper presentation.




May 2007 Compliance Supplement             Page 2                        DHSS Program 25
         PROGRAM 25 ­ ABSTINENCE EDUCATION PROGRAM
          DEPARTMENT OF HEALTH AND SOCIAL SERVICES

    E.    SPECIAL TESTS AND PROVISIONS -
          1.   Compliance Requirement: The agency must act upon any
               recommendations made by program site review.
               Suggested Audit Procedures: Obtain copy of program site review if
               applicable; and determine if recommendations in the site review are being
               implemented.




May 2007 Compliance Supplement           Page 3                         DHSS Program 25