Fiscal Audit Reports

Statutory Requirement to Obtain an Independent Audit or Independent Review Report of Financial Statements

In 2011, Section 4652.5 was added to the Welfare and Institutions Code requiring an independent auditing firm for an audit or review report of their financial statements.

Per the California Code, Welfare and Institutions Code – WIC § 4652.5:

(A) If the amount received from the regional center or regional centers during each state fiscal year is more than or equal to five hundred thousand dollars ($500,000), but less than two million dollars ($2,000,000), the entity shall obtain an independent review report of its financial statements for the entity’s fiscal year.

(B) If the amount received from the regional center or regional centers during each state fiscal year is equal to or more than two million dollars ($2,000,000), the entity shall obtain an independent audit of its financial statements for the entity’s fiscal year.

Additionally, an entity required to obtain an independent review report of its financial statements may apply to the regional center for, and the regional center shall grant, a two-year exemption from the independent review report requirement if the regional center does not find issues in the prior year’s independent review report that have an impact on regional center services.

Likewise, an entity required to obtain an independent audit of its financial statements 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.

Independent Fiscal Audits:

2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14