Source + trust record
Source checked as of September 18, 2026. Primary authority: EDD WSD22-06, current Uniform Guidance, and EDD WSIN25-17.
Check result: WSD22-06 remains active California audit-resolution guidance. The directive requires the audit-resolution process to be completed within six months after receipt of the audit report and links findings, questioned or disallowed costs, corrective action, final determinations, repayment, and appeals. Current federal adjustments raised the Single Audit expenditure threshold to $1 million for applicable fiscal years, so the older $750,000 threshold must not be carried forward. This AI-assisted brief does not receive human legal or compliance review. Official sources control.
WDB decision strip
| STATUS | ACTION | PRIMARY OWNER | CURRENT TIMING | IMPACT |
|---|---|---|---|---|
| FINAL · ACTIVE | RESOLVE FINDINGS + QUESTIONED COSTS | Fiscal + Compliance Leadership | When audit/monitoring findings are issued | Audit resolution · Corrective action · Repayment · Appeals |
The bottom line
An audit finding is not closed when the response is sent; it is closed when the issue, questioned cost, corrective action, and final determination are resolved and documented. Boards should centralize ownership of audit resolution and connect findings to fiscal recovery, policy changes, subrecipient oversight, and appeals when necessary.
An audit finding becomes a management obligation: resolve it, document it, and prevent recurrence
WSD22-06 establishes California’s process for resolving WIOA audit findings. It connects audit receipt, management decisions, corrective action, questioned or disallowed costs, debt collection, and documentation into a formal resolution process. Local Areas should treat the six-month resolution window as a governance deadline—not simply an accounting task.
At a glance
Issued
November 14, 2022
Revised
December 9, 2022
Resolution target
Within 6 months
Current single-audit threshold
$1 million
Executive takeaway
Audit resolution is the process of converting an auditor’s finding into an official management decision and documented corrective action. Local Areas also need to determine whether costs are allowable, whether debt exists, who is responsible, and whether the underlying control weakness has actually been corrected.
The resolution chain
| Stage | Management question |
|---|---|
| Audit report | What finding, questioned cost, or control weakness was identified? |
| Management decision | What is accepted, disallowed, corrected, or disputed? |
| Corrective action | What changed, who owns it, and how will completion be demonstrated? |
| Debt resolution | If costs are disallowed, how will repayment or other authorized resolution occur? |
| Closure | What evidence proves the finding is fully resolved? |
Updated threshold: Federal Uniform Guidance raised the single-audit expenditure threshold to $1,000,000 for fiscal years beginning on or after October 1, 2024. Do not rely on the older threshold that may appear in historical materials.
Operational considerations for Local Boards
- Put every audit finding on a centralized corrective-action log immediately.
- Assign both a responsible owner and an executive reviewer.
- Separate the corrective-control issue from any associated debt-collection issue.
- Require evidence that the corrective action is operating, not merely that a new policy was written.
- Track the six-month resolution timeline and escalate aging items before the deadline.
Source basis
Primary source: EDD WSD22-06 — Audit Resolution
Current-context note: Current Uniform Guidance and EDD federal-adjustment notices control updated dollar thresholds; the audit-resolution framework in WSD22-06 remains active.