(1) In addition to the requirements of GAGAS, the auditor must determine whether the auditee has complied with Federal statutes, regulations, and the terms and conditions of Federal awards that may have a direct and material effect on each of its major programs. (c) Loan and loan guarantees (loans) at IHEs. (4) Known questioned costs that are greater than $25,000 for a Federal program which is not audited as a major program. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. Single Audit Requirements. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. 200.502 Basis for determining Federal awards expended. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. A listing of current program-specific audit guides can be found in the compliance supplement, Part 8, Appendix VI, Program-Specific Audit Guides, which includes a website where a copy of the guide can be obtained. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (i) An opinion (or disclaimer of opinion) as to whether the financial statement(s) of the Federal program is presented fairly in all material respects in accordance with the stated accounting policies; (ii) A report on internal control related to the Federal program, which must describe the scope of testing of internal control and the results of the tests; (iii) A report on compliance which includes an opinion (or disclaimer of opinion) as to whether the auditee complied with laws, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on the Federal program; and. The cognizant agency for audit must: (i) Provide technical audit advice and liaison assistance to auditees and auditors. 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. Identified Q&As 61. 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.. Known questioned costs are those specifically identified by the auditor. (e) Nothing in this part precludes combining of the audit reporting required by this section with the reporting required by 200.512(b) when allowed by GAGAS and appendix X to this part. Webprinciples, and single audit requirements contained in the . HHS/ACF formatting. A Federal awarding agency may request that an auditee have a particular Federal program audited as a major program in lieu of the Federal awarding agency conducting or arranging for the additional audits. (4) Corrective action plan discussed in 200.511(c). The single audit requirement applies to (b) Federal agency. (e) Request for a program to be audited as a major program. If you work for a Federal agency, use this drafting The auditor must report the following as audit findings in a schedule of findings and questioned costs: (1) Significant deficiencies and material weaknesses in internal control over major programs and significant instances of abuse relating to major programs. (c) Promptly follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action plan in accordance with 200.511(b) and (c), respectively. c. However, the auditor is not required to identify more high-risk Type B programs than at least one fourth the number of low-risk Type A programs identified as low-risk under Step 2 (paragraph (c) of this section). (1) The auditor must identify the larger Federal programs, which must be labeled Type A programs. Organization and Purpose 31 USC Ch. 75: REQUIREMENTS FOR SINGLE AUDITS (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. (6) Known or likely fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards. (a) Financial statements. 200.503 Relation to other audit requirements. Single Audit . WebQ-10. (2) The principal compliance requirements applicable to most Federal programs and the compliance requirements of the largest Federal programs are included in the compliance supplement. OMB will provide this identification in the compliance supplement. Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency. Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. Total Federal awards expended times .0015. 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. However, the reporting in one section of the schedule may be in summary form with a reference to a detailed reporting in the other section of the schedule. If so, a single audit will be required, in addition to your financial statement audit. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. "Published Edition". (h) For-profit subrecipient. WebThe single audit requirement applies to: a. Exceed $10 billion but less than or equal to $20 billion. The Department may not cite, use, or rely on any guidance that is not posted WebSingle Audit Determination. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. 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. (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. (4) Include the total amount provided to subrecipients from each Federal program. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. This document is available in the following developer friendly formats: Information and documentation can be found in our The single audit requirement applies to A. Single Audit Requirements for Nonprofit Organizations that [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug. 13, 2020]. The federal expenditures that are included on the SEFA are to be based on determining when a New Federal Guidance for Auditing ARPA SLFRF The auditor must also decide whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole. (1) Cognizant agency for audit responsibilities. For a cluster of programs also provide the total for the cluster. Background and more details are available in the 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. (3) When a program-specific audit guide is not available, the reporting package for a program-specific audit must consist of the financial statement(s) of the Federal program, a summary schedule of prior audit findings, and a corrective action plan as described in paragraph (b)(2) of this section, and the auditor's report(s) described in paragraph (b)(4) of this section. Reduces compliance costs for non-federal entities. on the guidance repository, except to establish historical facts. 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. Single Audit (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. All audits of state and local government 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. (ix) Provide advice to auditees as to how to handle changes in fiscal years. 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. For a Type A program to be considered low-risk, it must have been audited as a major program in at least one of the two most recent audit periods (in the most recent audit period in the case of a biennial audit), and, in the most recent audit period, the program must have not had: (i) Internal control deficiencies which were identified as material weaknesses in the auditor's report on internal control for major programs as required under 200.515(c); (ii) A modified opinion on the program in the auditor's report on major programs as required under 200.515(c); or. However, free rent received as part of a Federal award to carry out a Federal program must be included in determining Federal awards expended and subject to audit under this part. Since this part does not apply to for-profit subrecipients, the pass-through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. DISCLAIMER: The contents of this database lack the force and effect of law, except as Does the Single Audit requirement apply to CARES Act funding? (ii) Audit findings that relate to both the financial statements and Federal awards, as reported under paragraphs (d)(2) and (d)(3) of this section, respectively, must be reported in both sections of the schedule. (3) Using the information included in the reporting package described in paragraph (c) of this section, the auditor must complete the applicable data elements of the data collection form. All audits of state and local government reporting entities. 78 FR 78608, Dec. 26, 2013, unless otherwise noted. WebSingle Audit Extension 45 CFR Part 75, Subpart F, requires recipients expending $750,000 or more in Federal awards during their Fiscal Years to complete Single Audits and result, it may not include the most recent changes applied to the CFR. You can learn more about the process Auditees must keep one copy of the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section on file for three years from the date of submission to the FAC. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020]. This content is from the eCFR and may include recent changes applied to the CFR. 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. 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. (a) General. For example, it may be necessary for a large Type A program to be audited as a major program each year at a particular recipient to allow the Federal awarding agency to comply with 31 U.S.C. The designated cognizant agency for audit must be the Federal awarding agency that provides the predominant amount of funding directly (direct funding) (as listed on the Schedule of expenditures of Federal awards, see 200.510(b)) to a non-Federal entity unless OMB designates a specific cognizant agency for audit. Total views 100+ DeVry University, Keller Graduate School of Management. 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). This governmentwide audit quality project must be performed once every 6 years (or at such other interval as determined by OMB), and the results must be public. Please do not provide confidential The auditee must also prepare a corrective action plan for current year audit findings. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49574, Aug. 13, 2020]. site when drafting amendatory language for Federal regulations: (1) The auditee must submit required data elements described in Appendix X to Part 200, which state whether the audit was completed in accordance with this part and provides information about the auditee, its Federal programs, and the results of the audit. (a) Audit findings reported. (c) Oversight exercised by Federal agencies and pass-through entities. This content is from the eCFR and is authoritative but unofficial. The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. (c) Reference numbers. 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). Does the Single Audit requirement apply to CARES Act funding? If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. B. An auditor who prepares the indirect cost proposal or cost allocation plan may not also be selected to perform the audit required by this part when the indirect costs recovered by the auditee during the prior year exceeded $1 million. the hierarchy of the document. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. Comments or questions about document content can not be answered by OFR staff. Uses stakeholder feedback to inform changes. Medical Device Single Audit Program A pass-through entity may use the provisions of this paragraph for a subrecipient. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. are applicable. This report must describe the scope of testing of internal control and compliance and the results of the tests, and, where applicable, it will refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. The single audit requirement applies to A All audits of (e) Reference numbers. (3) The condition found, including facts that support the deficiency identified in the audit finding. WebA Single Audit is an audit of compliance with compliance requirements defined by the Office of Management and Budget every year in the OMB Compliance Supplement. For those grants, the US Department of (7) Information to provide proper perspective for judging the prevalence and consequences of the audit findings, such as whether the audit findings represent an isolated instance or a systemic problem. Eliminates unnecessary duplication in audit and financial reporting (i.e. Should we get an audit if we are not required to have a Single Audit? (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). This paragraph does not require the auditor to report publicly information which could compromise investigative or legal proceedings or to make an additional reporting when the auditor confirms that the fraud was reported outside the auditor's reports under the direct reporting requirements of GAGAS. (10) Views of responsible officials of the auditee. (a) Procure or otherwise arrange for the audit required by this part in accordance with 200.509, and ensure it is properly performed and submitted when due in accordance with 200.512. (5) Provide OMB with the name of a single audit accountable official from among the senior policy officials of the Federal awarding agency who must be: (i) Responsible for ensuring that the agency fulfills all the requirements of paragraph (c) of this section and effectively uses the single audit process to reduce improper payments and improve Federal program outcomes. (v) Advise the auditor, Federal awarding agencies, and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective action by the auditor. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional bodies for disciplinary action. > ASFR (5) The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. 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. HUD and HUD OIGs role in Single Audits HUD provides assistance to independent public accountants who have questions on HUD program requirements and procedures. WebThe single audit requirement applies to A All audits of Doc Preview. To the extent that such audit provides a Federal agency with the information it requires to carry out its responsibilities under Federal statute or regulation, a Federal agency must rely upon and use that information. 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. When a current program-specific audit guide is available, the auditor must follow GAGAS and the guide when performing a program-specific audit. 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. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. 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. (ix) A statement as to whether the auditee qualified as a low-risk auditee under 200.520. (a) Program-specific audit guide available. WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. As a The Single Audit test model examines non-federal entity post-award reporting requirements under the Single Audit Act. (c) Program-specific audit election. WebAn auditee may simultaneously be a recipient, a subrecipient, and a contractor. Web(2) When reporting on any single audit, the auditor shall include a summary of the auditor's results regarding the non-Federal entity's financial statements, internal controls, and Your First Single Audit, What Do (a) General. Significant problems or quality issues consistently identified through quality control reviews of audit reports must be referred to appropriate state licensing agencies and professional bodies. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. Websingle audit conducted for that year. The Uniform Grant Guidance does not apply to grant awards made before December 26, 2014. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken. (c) The provisions of this part do not limit the authority of Federal agencies to conduct, or arrange for the conduct of, audits and evaluations of Federal awards, nor limit the authority of any Federal agency Inspector General or other Federal official. (c) Use of Federal auditors. (b) Financial statements. (i) A Federal program administered under multiple internal control structures may have higher risk. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. Single Audit Requirement. The Contractor shall retain a licensed certified public accountant, who will prepare an annual Single Audit as required by 31 USC 7501 7507, as well as its implementing regulations under 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. (iii) A management decision was not issued. The auditee is responsible for follow-up and corrective action on all audit findings. 200.504 Frequency of audits. See also 200.332. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. (2) Exception for Indian Tribes and Tribal Organizations. (d) Prior loan and loan guarantees (loans). If the auditee has not completed corrective action, a timetable for follow-up should be given. 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. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at (2) To provide for continuity of cognizance, the determination of the predominant amount of direct funding must be based upon direct Federal awards expended in the non-Federal entity's fiscal years ending in 2019, and every fifth year thereafter. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. 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. (d) Federal agency to pay for additional audits. This restriction applies to the base year used in the preparation of the indirect cost proposal or cost allocation plan and any subsequent years in which the resulting indirect cost agreement or cost allocation plan is used to recover costs. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. All audits of state and local government reporting entities. (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. 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. 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. 450b(l)) may opt not to authorize the FAC to make the reporting package publicly available on a Web site, by excluding the authorization for the FAC publication in the statement described in paragraph (b)(1) of this section. (d) Inherent risk of the Federal program. Before sharing sensitive information, make sure youre on a federal government site. Single Audit - Wikipedia (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. If you receive $750k in federal grants and expend $300k one year and $450k the next, the Single Audit trigger may not have been reached. (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. Washington, D.C. 20201 single audit in your future (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. Demystifying the Single Audit for Nonprofits (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. Since the Federal Government is at risk for loans until the debt is repaid, the following guidelines must be used to calculate the value of Federal awards expended under loan programs, except as noted in paragraphs (c) and (d) of this section: (1) Value of new loans made or received during the audit period; plus, (2) Beginning of the audit period balance of loans from previous years for which the Federal Government imposes continuing compliance requirements; plus. The data must include information available from the audit required by this part that is necessary for Federal agencies to use the audit to ensure integrity for Federal programs. (b) The auditor's opinion on whether the financial statements were prepared in accordance with GAAP, or a basis of accounting required by state law, and the auditor's in relation to opinion on the schedule of expenditures of Federal awards were unmodified. With no significant (c) A report on compliance for each major program and a report on internal control over compliance. WebThe Single Audit, typically performed annually, is intended to ensure an organization is using its federal funds correctly and is in compliance with all applicable CARES Act and M -20-21 - CFO (4) 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. incorporated into a contract. The auditor should report whether the sampling was a statistically valid sample. The auditor must also determine whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole.