10. Entitywide financial reporting. "Entitywide financial reporting" means financial statements and agreement supplemental schedules of a community agency prepared based on its fiscal year. At a minimum, the supplemental schedules of the agreements must identify opening and ending balances and receipts and disbursements revenues and expenditures for each agreement.

11. Federal audit. "Federal audit" means an audit made pursuant to the federal Office of Management and Budget Circulars A-128 or Circular A-133 or any subsequent revisions to these circulars. The federal audit must be conducted by qualified independent public accountants.

14. Government auditing standards. "Government auditing standards" means auditing standards promulgated by the Comptroller General of the United States that are applicable to financial audits.

Sec. SS-2. 5 MRSA §1660-F, sub-§1, as enacted by PL 1995, c. 402, Pt. C, §2, is amended to read:

1. Accounting systems and reporting. Community agencies shall maintain an accounting system in accordance with rules adopted by the commissioner. The rules must require annual entitywide financial reporting to the department. The annual reporting requirements and the related dollar thresholds of accountability are as follows.

A. If the community agency receives at least $25,000 and expends less than $300,000 of agreement funding from the department $500,000, the agency must have an entitywide compilation of financial statements and agreement supplemental schedules prepared by a qualified independent public accountant shall comply with the terms of financial reporting contained in the individual social service agreements with the department.

B. If the community agency receives $300,000 expends $500,000 or more of agreement funding from the department, the agency must have an entitywide financial and compliance report, audit or review of the agency's financial statements and agreement supplemental schedules prepared by a qualified independent public accountant in accordance with the reporting requirements for the department and comply with