New Federal Guidance for Auditing ARPA SLFRF These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. Single Audit | HHS.gov You can learn more about the process (2) In addition to the requirements of GAGAS, the auditor must perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs. (2) When audit findings were not corrected or were only partially corrected, the summary schedule must describe the reasons for the finding's recurrence and planned corrective action, and any partial corrective action taken. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. As provided in 200.332(d), the pass-through entity must be responsible for issuing a management decision for audit findings that relate to Federal awards it makes to subrecipients. The auditee must prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. (f) Subrecipients and contractors. 78 FR 78608, Dec. 26, 2013, unless otherwise noted. The following is a listing of the suggested audit procedures for procurement as detailed in Part 3.2: Obtain the entitys procurement policies and verify that the policies comply with the compliance requirements highlighted above. Hypothesis: If non-federal entities do not have to report the same information on duplicative forms (i.e. Prior to issuing the management decision, the Federal agency or pass-through entity may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. Choosing an item from Single Audits (g) Compliance responsibility for contractors. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 200.502. The auditee, after consultation with its auditor, should promptly respond to such a request by informing the Federal awarding agency whether the program would otherwise be audited as a major program using the risk-based audit approach described in 200.518 and, if not, the estimated incremental cost. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (g) FAC responsibilities. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program that is not audited as a major program. If so, a single audit will be required, in addition to your financial statement audit. (a) General. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at (d) Time requirements. Audits or existing codification. Search & Navigation (d) Submission to FAC. Eliminates unnecessary duplication in audit and financial reporting (i.e. Audit Requirements | HRSA At a minimum, the auditor must audit all of the following as major programs: (1) All Type A programs not identified as low risk under step two (paragraph (c)(1) of this section). C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. Webjurisdiction was subject to the federal single audit requirements for the current, or the immediately preceding, fiscal year,1 you must attach proof of submission2 of your audit reporting package to the FAC website. The auditor must use a risk-based approach to determine which Federal programs are major programs. Webdefinition. 1/1.1 > About (h) Medicare. Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. The (e) Endowment funds. Type A programs are defined as Federal programs with Federal awards expended during the audit period exceeding the levels outlined in the table in this paragraph (b)(1): (2) Federal programs not labeled Type A under paragraph (b)(1) of this section must be labeled Type B programs. ACF grantees are responsible for submitting their Single Audit Reports and the Data Collections Forms (SF-FAC) electronically to theto the Federal Audit ClearinghouseVisit disclaimer page (FAC) within the earlier of 30 days after receipt or nine months after the FYs end of the audit period. The oversight agency for audit: (1) Must provide technical advice to auditees and auditors as requested. Your First Single Audit, What Do Comments or questions about document content can not be answered by OFR staff. Single Audit Requirements for Nonprofits Receiving Federal Funds The corrective action plan must provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. This content is from the eCFR and may include recent changes applied to the CFR. Requirements under a single audit When is a single audit required? (c) Reference numbers. The audit requirements apply to audits of organizations with fiscal years beginning on/after December 26, 2014. (3) Known questioned costs that are greater than $25,000 for a type of compliance requirement for a major program. High levels of testing are required to establish that: The financial statements are not only presented fairly and accurately, but that they are in accordance with federal cost principles. (4) Provide OMB annual updates to the compliance supplement and work with OMB to ensure that the compliance supplement focuses the auditor to test the compliance requirements most likely to cause improper payments, fraud, waste, abuse or generate audit finding for which the Federal awarding agency will take sanctions. (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. (iii) Oversee training for the Federal awarding agency's program management personnel related to the single audit process. (1) When a current program-specific audit guide is not available, the auditee and auditor must have basically the same responsibilities for the Federal program as they would have for an audit of a major program in a single audit. Uniform Guidance If you would like to comment on the current content, please use the 'Content Feedback' button below for instructions on contacting the issuing agency. The site is secure. The auditee must initiate and proceed with corrective action as rapidly as possible and corrective action should begin no later than upon receipt of the audit report. If corrective action is not taken, the cognizant agency for audit must notify the auditor, the auditee, and applicable Federal awarding agencies and pass-through entities of the facts and make recommendations for follow-up action. (a) Audit findings reported. (iii) Known or likely questioned costs that exceed five percent of the total Federal awards expended for the program. The following specific information must be included, as applicable, in audit findings: (1) Federal program and specific Federal award identification including the Assistance Listings title and number, Federal award identification number and year, name of Federal agency, and name of the applicable pass-through entity. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. Single Audit Requirement. The summary schedule of prior audit findings and the corrective action plan must include the reference numbers the auditor assigns to audit findings under 200.516(c). (iii) Promptly inform other affected Federal agencies and appropriate Federal law enforcement officials of any direct reporting by the auditee or its auditor required by GAGAS or statutes and regulations. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Why is it called a single audit? Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards. 2021 Single Audit Guidance (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. In making this determination, the auditor must consider whether the requirements in 200.519(c), the results of audit follow-up, or any changes in personnel or systems affecting the program indicate significantly increased risk and preclude the program from being low risk. The Department may not cite, use, or rely on any guidance that is not posted (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. (e) Federally Funded Research and Development Centers (FFRDC). (a) Audit required. (9) Recommendations to prevent future occurrences of the deficiency identified in the audit finding. The auditor must follow-up on prior audit findings, perform procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by the auditee in accordance with 200.511(b), and report, as a current year audit finding, when the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding. Single Audit Single Audit Where practical, audit findings should be organized by Federal agency or pass-through entity. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective internal control. The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, (ii) Promote interagency coordination, consistency, and sharing in areas such as coordinating audit follow-up; identifying higher-risk non-Federal entities; providing input on single audit and follow-up policy; enhancing the utility of the FAC; and studying ways to use single audit results to improve Federal award accountability and best practices. WebThe single audit requirement applies to: a. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. (d) Federal agency to pay for additional audits. The Uniform Guidance: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) has been issued by the Office of Management and Budget (OMB). Background and more details are available in the The auditor must retain audit documentation and reports for a minimum of three years after the date of issuance of the auditor's report(s) to the auditee, unless the auditor is notified in writing by the cognizant agency for audit, oversight agency for audit, cognizant agency for indirect costs, or pass-through entity to extend the retention period. OMB will provide this identification in the compliance supplement. (3) Except as provided in paragraph (c)(4) of this section, the auditor must: (i) Plan the testing of internal control over compliance for major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; and. The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional bodies for disciplinary action. They are meant to ensure that federal funds are spent in accordance with compliance requirements, and unfortunately, these requirements are typically different Choosing an item from Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. Please do not provide confidential The auditor must sign a statement to be included as part of the data collection form that indicates, at a minimum, the source of the information included in the form, the auditor's responsibility for the information, that the form is not a substitute for the reporting package described in paragraph (c) of this section, and that the content of the form is limited to the collection of information prescribed by OMB. 2) The Single Audit requirement applies to non-federal entities. If the auditee meets the criteria in 200.520, the auditor need only audit the major programs identified in Step 4 (paragraphs (e)(1) and (2) of this section) and such additional Federal programs with Federal awards expended that, in aggregate, all major programs encompass at least 20 percent (0.20) of total Federal awards expended. Test: Provide non-federal entities with the draft 2016 expanded Single Audit Concept Form (SF-SAC only), and collect participant feedback on a more streamlined approach for SF-SAC/SEFA reporting. If the amount of the EIDL loan in combination with other federal funds exceeds $750,000 in their fiscal year, the nonprofit must complete a Single Audit. (v) Report any audit findings consistent with the requirements of 200.516. information or personal data. For example, requirements that may be applicable under the FAR or CAS and the terms and conditions of a cost-reimbursement contract may include additional applicable audits to be conducted or arranged for by Federal agencies. Audit requirements WebApplicable non-federal entity recipients performing a single audit will submit the data collection form (SF-SAC), and the Single Audit reporting package through the If you work for a Federal agency, use this drafting The requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. b. (iv) Develop a baseline, metrics, and targets to track, over time, the effectiveness of the Federal agency's process to follow-up on audit findings and on the effectiveness of Single Audits in improving non-Federal entity accountability and their use by Federal awarding agencies in making award decisions. FAR). (2) When a program-specific audit guide is available, the auditee must electronically submit to the FAC the data collection form prepared in accordance with 200.512(b), as applicable to a program-specific audit, and the reporting required by the program-specific audit guide. Washington, D.C. 20201 The eCFR is displayed with paragraphs split and indented to follow (iii) Responsible for designating the Federal agency's key management single audit liaison. All audits of state and local government NEW JERSEY DEPARTMENT OF LAW AND PUBLIC SAFETY Single Audit Requirements A statement of the effect or potential effect should provide a clear, logical link to establish the impact or potential impact of the difference between the condition and the criteria. Nonprofits that expended $750,000 or more in federal funds in a single fiscal year are subject to the single audit, named after the Single Audit Act of 1984. These complex and often expensive audits add a major compliance burden. However, the auditee is responsible for ensuring compliance for procurement transactions which are structured such that the contractor is responsible for program compliance or the contractor's records must be reviewed to determine program compliance. 200 Independence Avenue, S.W. Single Audit Questions and Answers | BDO Insights | BDO 3515. 07/06/2015. All audits of state and local government (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). Subject to OMB Uniform Guidance in CFR Part 200, nonfederal entities that have expended federal funds of $750,000 or more during the fiscal year are required to have a single audit performed on those funds. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. Before 1984, each federal grantmaking agency was required to carry out its own audit. (a) Retention of audit documentation. WebSingle Audit Determination. Program-specific audits are subject to: (1) 200.500 Purpose through 200.503 Relation to other audit requirements, paragraph (d); (2) 200.504 Frequency of audits through 200.506 Audit costs; (3) 200.508 Auditee responsibilities through 200.509 Auditor selection; (5) 200.512 Report submission, paragraphs (e) through (h); (7) 200.516 Audit findings through 200.517 Audit documentation; (9) Other referenced provisions of this part unless contrary to the provisions of this section, a program-specific audit guide, or program statutes and regulations. For example, during the first and last years that an auditee participates in a Federal program, the risk may be higher due to start-up or closeout of program activities and staff. The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. The FAC website can be found at: https://facweb.census.gov/ I understand and acknowledge the above federal audit (b) Summary schedule of prior audit findings. WebRequirement to Have a Single Audit Single Audit Act State Audit BUY AMERICA REQUIREMENT (Applies only to Federally Funded Highway State Audits Medical Reports Mutual Fund Entity Name Reference ID Entity Type State Auditor Treatment of Unallowable Costs Previously Submitted for Payment Searchable Whois Related to State Single Audit 200.504 Frequency of audits. Regulation Y Single Audit Requirement (h) Electronic filing. The Uniform Guidance: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) has been issued by the Office of Management and Budget (OMB). (c) Loan and loan guarantees (loans) at IHEs. > ASFR (a) General. In some cases, a program-specific audit guide will be available to provide specific guidance to the auditor with respect to internal controls, compliance requirements, suggested audit procedures, and audit reporting requirements. This is an automated process for (c) Report submission for program-specific audits. (f) Free rent. (eg: An auditee that meets all of the following conditions for each of the preceding two audit periods must qualify as a low-risk auditee and be eligible for reduced audit coverage in accordance with 200.518. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal funds on one federal program, except for R&D (see below). Any additional audits must be planned and performed in such a way as to build upon work performed, including the audit documentation, sampling, and testing already performed, by other auditors. The audit must be conducted in accordance with GAGAS. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. When advised of deficiencies, the auditee must work with the auditor to take corrective action. When the auditor is aware that the Federal agency, pass-through entity, or auditee is contesting an audit finding, the auditor must contact the parties contesting the audit finding for guidance prior to destruction of the audit documentation and reports. A single audit, previously known as the OMB Circular A-133 audit, is required for any organization that accepts $750,000 or more in federal funds during the fiscal year. Single Audit for Beginners: 10 FAQs When the major program determination was performed and documented in accordance with this Subpart, the auditor's judgment in applying the risk-based approach to determine major programs must be presumed correct. (d) Prior loan and loan guarantees (loans). WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. single audit in your future A non-Federal entity that expends less than $750,000 during the non-Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in 200.503, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO). Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. WebAn auditee may simultaneously be a recipient, a subrecipient, and a contractor. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. A cluster of programs is treated as one program and the value of Federal awards expended under a loan program is determined as described in 200.502. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. (a) General. switch to drafting.ecfr.gov. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. (a) Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in 200.512. When loans are made to students of an IHE but the IHE does not make the loans, then only the value of loans made during the audit period must be considered Federal awards expended in that audit period. 200.502 Basis for determining Federal awards expended. In procuring audit services, the auditee must follow the procurement standards prescribed by the Procurement Standards in 200.317 through 200.327 of subpart D of this part or the FAR (48 CFR part 42), as applicable. WebUnder a single audit, low-risk Type A programs are identified as those: A. U.S. Department of Health & Human Services For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. Audit documentation must be made available upon request to the cognizant or oversight agency for audit or its designee, cognizant agency for indirect cost, a Federal agency, or GAO at the completion of the audit, as part of a quality review, to resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this part. The corrective action plan and summary schedule of prior audit findings must include findings relating to the financial statements which are required to be reported in accordance with GAGAS. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. The Act provides that grantees are subject to one audit of all of their federal programs versus separate audits of each federal program, hence the term single audit.. Single Audit Requirements The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. Single Audit Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part. Doc & NFP Chapter 11 Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. Criteria provide a context for evaluating evidence and understanding findings. (f) Percentage of coverage rule. (d) Inherent risk of the Federal program. (b) Oversight agency for audit responsibilities. (iv) Advise the community of independent auditors of any noteworthy or important factual trends related to the quality of audits stemming from quality control reviews. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. The governmentwide project can rely on the current and on-going quality control review work performed by the agencies, State auditors, and professional audit associations. The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring that could be material to the Federal program. In most cases, the auditee's compliance responsibility for contractors is only to ensure that the procurement, receipt, and payment for goods and services comply with Federal statutes, regulations, and the terms and conditions of Federal awards. When an auditee expends Federal awards under only one Federal program (excluding R&D) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the auditee may elect to have a program-specific audit conducted in accordance with 200.507. and HEERF, must have a single audit conducted in accordance with . If you have questions or comments regarding a published document please This document is available in the following developer friendly formats: Information and documentation can be found in our [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021].