The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. For purposes of this part, loans made from the National Credit Union Share Insurance Fund and the Central Liquidity Facility that are funded by contributions from insured non-Federal entities are not considered Federal awards expended. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Required components of an audit include such things as financial statements and records, expenditures, and internal controls. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. The auditor must determine whether the financial statements of the auditee are presented fairly in all material respects in accordance with generally accepted accounting principles. 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. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). (v) Report any audit findings consistent with the requirements of 200.516. Pages 13. If you work for a Federal agency, use this drafting It is not an official legal edition of the CFR. Single Audit . WebQ-10. result, it may not include the most recent changes applied to the CFR. Comments or questions about document content can not be answered by OFR staff. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. For specific questions and information concerning the submission process: HHS is committed to making its websites and documents accessible to the widest possible audience, The following steps are involved to determine if an entity is required to have a single audit: Verification of relationship determination as If so, a single audit will be required, in addition to your financial statement audit. (vii) Coordinate a management decision for cross-cutting audit findings (see in 200.1 of this part) that affect the Federal programs of more than one agency when requested by any Federal awarding agency whose awards are included in the audit finding of the auditee. (b) Any nonprofit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo its audits pursuant to this part biennially. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. This web site is designed for the current versions of Per 2 CFR 200.245 (a)(2), grantees who are not required to have an audit conducted and elect to do so cannot charge audit costs to their federal awards. When a Federal program providing loans exceeds four times the largest non-loan program it is considered a large loan program, and the auditor must consider this Federal program as a Type A program and exclude its values in determining other Type A programs. "Published Edition". For those Federal programs not covered in the compliance supplement, the auditor must follow the compliance supplement's guidance for programs not included in the supplement. switch to drafting.ecfr.gov. However, this new guidance confirms that nonprofits will not need to include any PPP loan amounts in this calculation. As required in 200.512(b)(3), the auditor must complete and sign specified sections of the data collection form. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. If an organization expends over $750,000 in federal funding as a recipient or subrecipient in a given fiscal year, the organization is required to have a Single Audit. (b) Schedule of expenditures of Federal awards. If you have comments or suggestions on how to improve the www.ecfr.gov website or have questions about using www.ecfr.gov, please choose the 'Website Feedback' button below. b. 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 data elements and format must be approved by OMB, available from the FAC, and include collections of information from the reporting package described in paragraph (c) of this section. (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). The auditor must determine and provide an opinion (or disclaimer of opinion) whether the financial statements of the auditee are presented fairly in all materials respects in accordance with generally accepted accounting principles (or a special purpose framework such as cash, modified cash, or regulatory as required by state law). (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. What is a single audit? A nonprofit or governmental organization with federal expenditures in excess of $750,000 is required by law to have a single audit performed, which includes an audit of both the financial statements and the federal awards. The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. Before 1984, each federal grantmaking agency was required to carry out its own audit. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed twenty-five percent (0.25) of the Type A threshold determined in Step 1 (paragraph (b) of this section). 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. A pass-through entity may use the provisions of this paragraph for a subrecipient. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. In response to requests by a Federal agency or pass-through entity, auditees must submit a copy of any management letters issued by the auditor. You are using an unsupported browser. We are in the process of retroactively making some documents accessible. (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. The provisions of this part do not authorize any non-Federal entity to constrain, in any manner, such Federal agency from carrying out or arranging for such additional audits, except that the Federal agency must plan such audits to not be duplicative of other audits of Federal awards. The Federal awarding agency must perform the following for the Federal awards it makes (See also the requirements of 200.211): (1) Ensure that audits are completed and reports are received in a timely manner and in accordance with the requirements of this part. It is intended to provide assurance to the Federal Government that a non-federal entity has adequate internal controls in place, and is generally in compliance with program requirements. developer resources. HHS/ACF has implemented the Uniform Guidance at 45 CFR 75Visit disclaimer page. This report must describe the scope of testing of internal control over compliance, include an opinion or disclaimer of opinion as to whether the auditee complied with Federal statutes, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on each major program and refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. SEFA vs. SF-SAC). None of the federal funds require an audit that includes financial statements. 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. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. Total Federal awards expended times .003. When a current program-specific audit guide is available, the auditor must follow GAGAS and the guide when performing a program-specific audit. 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. (f) Report retention requirements. Does the Single Audit requirement apply to CARES Act funding? The FAC website can be found at: https://facweb.census.gov/ I understand and acknowledge the above federal audit WebThe single audit is generally conducted by an independent certified public accountant or state auditor and is intended to assess whether the recipient spends federal funds properly. The auditor must use a risk-based approach to determine which Federal programs are major programs. site when drafting amendatory language for Federal regulations: The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, entities that expend $750,000 or more in federal awards in a fiscal year must have a single or program-specific audit conducted for that fiscal year. ACCT 567. mari1975. (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. Identified Q&As 61. (c) Program-specific audit election. A federal government website managed by the > Data Act Program Management Office (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. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. will bring you directly to the content. 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. (a) General. OMB will provide this identification in the compliance supplement. (viii) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit. (d) Submission to FAC. Where there have been changes to the compliance requirements and the changes are not reflected in the compliance supplement, the auditor must determine the current compliance requirements and modify the audit procedures accordingly. 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. 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. The auditee is responsible for follow-up and corrective action on all audit findings. (c) Pass-through entity. 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. (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. (4) Corrective action plan discussed in 200.511(c). When assessing risk in a large single audit, the auditor must consider whether weaknesses are isolated in a single operating unit (e.g., one college campus) or pervasive throughout the entity. 200 Independence Avenue, S.W. The single audit requirement is triggered by expenditure of $750,000 or more federal financial assistance received as direct federal awards or passed through other recipients such as state agencies or county governments during the auditees fiscal year. 200.519 Criteria for Federal program risk. All audits of state and local government reporting entities. 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). (4) Include the total amount provided to subrecipients from each Federal program. (2) The criteria or specific requirement upon which the audit finding is based, including the Federal statutes, regulations, or the terms and conditions of the Federal awards. The FAC must make available the reporting packages received in accordance with paragraph (c) of this section and 200.507(c) to the public, except for Indian tribes exercising the option in (b)(2) of this section, and maintain a data base of completed audits, provide appropriate information to Federal agencies, and follow up with known auditees that have not submitted the required data collection forms and reporting packages. 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). (3) For the compliance requirements related to Federal programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). The requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals are not considered Federal awards expended under this part unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The trigger for a Single Audit is when a nonprofit receives money from the federal government and expends more than $750,000 in a single year. Single Audit, previously known as the OMB Circular A-133 audit, is an organization-wide financial statement and federal awards audit of a non-federal entity formatting. 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. 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 FAC operates on behalf of the OMB. 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. Requirements under a single audit When is a single audit required? The reporting package must include the: (1) Financial statements and schedule of expenditures of Federal awards discussed in 200.510(a) and (b), respectively; (2) Summary schedule of prior audit findings discussed in 200.511(b); (3) Auditor's report(s) discussed in 200.515; and.