Grantee Audits

Grantees of FTA funding must ensure that sub-recipients and contractors implement a compliant drug and alcohol testing program in accordance with 49 CFR Parts 655 and 40.  Compliance with these federal regulations is a condition of continued receipt of federal funds, therefore grantees often enlist the services of subject matter experts to perform annual program audits to aid sub-recipients and contractors in maintaining federally-compliant testing programs.

Byrnes and Associates's auditors approach every audit as an opportunity to provide technical assistance, guidance and best practices.  We are passionate about helping you succeed in implementing an effective testing program that keeps all of us safe. 

1. On-Site Audits: Most audits are performed on-site at the sub-recipient's or contractor's office. The in-person meeting affords an opportunity for the auditor to view all of the testing program records and to evaluate record maintenance and retention practices.  Additionally, the in-person meeting allows the auditor to develop a rapport with the DAPM, facilitating the sharing of resources and best practices to aid in maintaining or improving compliance.
2. Virtual Audits:  Audits are performed virtually when a sub-recipient or contractor is located outside of the grantee's region. Byrnes & Associates uses Microsoft Teams to perform virtual audits.  The DAPM will be asked to submit a pre-audit questionnaire to help the auditor obtain testing program information and details.  During the virtual meeting, the auditor will ask the DAPM a series of questions to evaluate the employer's testing program compliance.  Telephone interviews with service agents, such as collectors, Medical Review Officers and others will also be performed by the auditor.

On behalf of the grantee, Byrnes & Associates will email a formal audit notification letter to the Drug & Alcohol Program Manager (DAPM) no less than 30 days before the scheduled audit.  Once notified of a scheduled audit, the DAPM should immediately begin preparing for the audit and respond promptly to the auditor's request for documentation.  

This checklist will assist you in gathering the necessary documentation, testing records and other program information, subject to auditing.

To assist the auditor in obtaining necessary testing program information, you will be asked to complete our Pre-Audit Questionnaire.  Please answer the questions to the best of your ability and provide as much detail as possible. Completed questionnaires must be emailed to the auditor per the instructions provided in the audit notification letter.

Within 5 business days of the audit, a written audit report will be sent to the DAPM, via email.  The audit report will outline any corrective action requirements needed to bring your employer's testing program into compliance.  Documentation demonstrating that the corrective action has been implemented will be due 45 calendar days from the date of the audit report.  Byrnes & Associates auditors are available to assist in the development and implementation of corrective action items, if needed.