Under current law, service providers who are paid an amount more than or equal to $500,000 but less than $2 million in the vendor’s fiscal year from regional center payments shall be required to obtain an independent review conducted by a CPA firm. Providers that are paid by regional centers an amount equal to or more than $2 million shall obtain an independent audit of its financial statements. Please review the DDS memo to learn more and determine if your organization requires an audit or review.
A vendor subject to the independent audit or review requirements shall provide copies of the report, and accompanying management letters. to the vendoring regional centers within nine months of the end of the vendor’s fiscal year.
If your agency meets the requirements to have an independent audit or review, please submit an electronic or scanned copy of your audit and management recommendation letter (if any) by clicking here.
Exemption – An entity required to obtain an independent audit of its financial statements pursuant to subparagraph (B) of paragraph (1) of subdivision (a) may apply to the regional center for an exemption from the independent audit requirement, subject to both of the following conditions:
(A) If the independent audit for the prior year resulted in an unmodified opinion or an unmodified opinion with additional communication, the regional center shall grant the entity a two-year exemption.
(B) If the independent audit for the prior year resulted in a qualified opinion and the issues are not material, the regional center shall grant the entity a two-year exemption. The entity and the regional center shall continue to address issues raised in this independent audit, regardless of whether the exemption is granted.
Click on the Audit/Review Exemption Request form link below, download, complete and sign the exemption form and click here to email the request.