Contracting Agencies Audit Guidelines & Resources

Resources for external auditors and contracting agencies for completing the annual audits of Child Care & Development and Nutrition programs.


As of July 1, 2021, the Early Childhood Development Act of 2020 transferred administration of the following child care and development programs to the California Department of Social Services:

  • General Child Care and Development Programs (CCTR)
  • Migrant Child Care and Development Programs (CMIG)
  • Alternative Payment Programs (CAPP)
  • Stages 2 and 3 of the California Work Opportunity and Responsibility to Kids (CalWORKs) Child Care Programs (C2AP and C3AP)
  • Migrant Alternative Payment Programs (CMAP)
  • Child Care and Development services for children with severe disabilities (CHAN)
  • Child Care Resource and Referral (CRRP)
  • The California Child Care Initiative Project (CCIP)
  • The Child and Adult Care Food Program (CACFP)

Audit Guide

CDE & CDSS Audit Guide, Revised 2021 (PDF; 15MB)

Audit requirements and guidance applicable to certain state and federal programs operated by private and public agencies under agreements with the California Department of Education (CDE) and/or the California Department of Social Services (CDSS). Includes guidelines for independent auditors conducting audits of Child Care & Development, Nutrition, Adult Education, and No Child Left Behind contracts administered by CDE and/or CDSS.

Quality Review Checklist

Quality Review Checklist FY2020-21 (PDF; 28KB)

A Quality Review Checklist is required to be completed by an agency representative (i.e. an employee of the agency or an accountant or CPA acting on behalf of the agency) prior to the issuance of the final audit report. The quality review checklist is a separate document from the audit report but does need to be included as part of the audit report submission.

Audited Attendance and Fiscal Reports

Forms and instructions for independent auditors to simplify the audit process and facilitate CDSS’s determination of fiscal year and reimbursable earnings needed to close out child development contracts.

AUD Forms – Fiscal Year 2020-21

AUD Forms – Fiscal Year 2019-20

Extension Request Form

Except for Child Development program contractors on conditional status, Title 5, California Code of Regulations (5 CCR), Section 18073, allows a one-time-only per year, 30-calendar-day extension of the audit due date, provided the inability of the contractor to submit the audit report by the due date was beyond the fault and control of the contractor.

Extension requests postmarked or emailed after the due date and time will not be considered or granted. More information and a sample Extension Request Form can be provided in the CDE & CDSS Audit Guide.

Annual Audit Status Certification (AASC)

Organizations that participate in Child Care & Development, and Nutrition programs administered by the California Department of Social Services (CDSS) must annually report to the CDSS the total amount of federal and state funds expended during the past fiscal year. The AASC form, while streamlining this process, does not replace the federal and state requirements to submit an annual audit report to the Federal Clearinghouse and to the CDSS Office of Audit Services Branch.

The AASC form must be completed according to the AASC form instructions and returned to the CDSS Office of Audit Services Branch by the deadline noted at the top of the form. To ensure the accuracy of reported information, the person completing the AASC form should have knowledge of all your organization’s financial contracts and programs. If the information requested on the AASC form does not apply to your organization for reasons such as cancellation, termination, or voluntary discontinuation of CDSS’s programs, please sign, date, and return the form with a notation stating the reason of non-applicability.

Please submit your organization’s completed and signed AASC form electronically to AuditsOffice@dss.ca.gov.

You may also submit it by mail to:

California Department of Social Services
Office of Audit Services Branch
Attn: Audit Report Review Bureau
744 P Street, Mailbox 9-13-04
Sacramento, CA 95814

Failure to timely submit the AASC form to the CDSS Office of Audit Services Branch may jeopardize your continued participation in all programs administered by the CDSS.

If you need assistance with the AASC form, please email us at AuditsOffice@dss.ca.gov.

Resources

Child Development Fiscal Services Web Site
Information on child care and development programs that includes (1) contract funding terms and conditions and (2) fiscal reporting and reimbursement procedures (the "Greenbook").

Government Auditing Standards (the "Yellowbook")
United States Government Accountability Office’s standards for use by auditors of government entities and entities that receive government awards and audit organizations performing audits under these standards.

Electronic Code of Federal Regulations
Part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

Questions: AuditsOffice@dss.ca.gov.