NAO 213-5: Resolution of Audit-Related Debts

NOAA Circular 90-07; Effective 03/27/90 Last Reviewed: 02/06/2019



File as NOAA Administrative Order 213-5

1. On January 27, 1989, a Policy Statement on the Department of Commerce Policies and Procedures for Resolution of Audit-Related Debts was published in the Federal Register. The Policy Statement was based on a Memorandum of Agreement between the Assistant Secretary for Administration and the Inspector General establishing internal policies and procedures for handling the resolution and reconsideration of financial assistance audits which have resulted in or may result in the establishment of a debt (account receivable) for financial assistance awards. The Memorandum of Agreement was effective September 26, 1988.

2. Paragraph D.7. of the Memorandum of Agreement provides that the decision on an appeal of the establishment of an audit-related debt shall be made jointly by the Inspector General and the head of the organization unit that provides financial assistance administration of the subject grant or cooperative agreement (the Under Secretary for Oceans and Atmosphere for NOAA), after consultation with the Department of Commerce General Counsel or designee. The paragraph further provides that any disagreement between the parties shall be elevated to the Deputy Secretary for a final decision. If the Deputy Secretary made the original Audit Resolution Determination under Department Administrative Order (DAO) 213-5, the appeal will be submitted to the Deputy Secretary for his/her reconsideration of the determination.

3. The Under Secretary's authority set forth in the Memorandum of Agreement cited above is hereby redelegated to the Deputy Under Secretary for Oceans and Atmosphere.


Under Secretary for Oceans and Atmosphere