If the auditors' report discloses deficiencies in internal control, fraud, illegal acts, violations of provisions of contracts or grant agreements, or abuse, the auditors should:

1Notify the federal department designated as the cognizant agency

2Notify all federal agencies the funds of which were subject to the violations

3Include in the notes to the financial statements a schedule detailing the violations and indicating their impact on the financial statements

4Obtain and report the views of responsible officials concerning the findings