the single audit requirement applies to: the single audit requirement applies to:

(a) Financial statements. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. In Toll Free Call Center: 1-877-696-6775, Content created by DATA Act Program Management Office (DAP), U.S. Department of Health & Human Services, Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of Finance (OF), Chief Financial Officers and Services Contacts, has sub items, about Office of Grants (OG), Division of Policy, Oversight, and Evaluation (DPOE), has sub items, about Office of Acquisitions (OA), The Office of Small and Disadvantaged Business Utilization (OSDBU), Grants Quality Service Management Office (QSMO), Common Data Element Repository (CDER) Library, Consolidated Federal Financial Reporting (FFR), Notice of Award Proof Concept (NOA-POC). (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. SEFA vs. SF-SAC). Choosing an item from The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. 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. (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. (a) Audit findings reported. 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 (b) Summary schedule of prior audit findings. When the direct funding represents less than 25 percent of the total expenditures (as direct and subawards) by the non-Federal entity, then the Federal agency with the predominant amount of total funding is the designated cognizant agency for audit. (1) Weaknesses in internal control over Federal programs would indicate higher risk. 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. 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. (e) Request for a program to be audited as a major program. (i) Perform an audit of the financial statement(s) for the Federal program in accordance with GAGAS; (ii) Obtain an understanding of internal controls and perform tests of internal controls over the Federal program consistent with the requirements of 200.514(c) for a major program; (iii) Perform procedures to determine whether the auditee has complied with Federal statutes, regulations, and the terms and conditions of Federal awards that could have a direct and material effect on the Federal program consistent with the requirements of 200.514(d) for a major program; (iv) 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 the requirements of 200.511, 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; and. (f) Free rent. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. (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. The cumulative balance of Federal awards for endowment funds that are federally restricted are considered Federal awards expended in each audit period in which the funds are still restricted. Solutions available. Existing awards that do not receive additional funding will continue to be administered by the terms and conditions in effect at the time of the original award. In cases of continued inability or unwillingness to have an audit conducted in accordance with this part, Federal agencies and pass-through entities must take appropriate action as provided in 200.339. In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the best estimate of total costs questioned (likely questioned costs), not just the questioned costs specifically identified (known questioned costs). 200.506 Audit costs. (3) When the auditee believes the audit findings are no longer valid or do not warrant further action, the reasons for this position must be described in the summary schedule. (10) Views of responsible officials of the auditee. The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, The FAC website can be found at: https://facweb.census.gov/ I understand and acknowledge the above federal audit (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. 200.503 Relation to other audit requirements. 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. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. DISCLAIMER: The contents of this database lack the force and effect of law, except as WebThe Single Audit Act was enacted to standardize the requirements for auditing federal programs. 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. Navigate by entering citations or phrases (viii) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the. Equal to or exceed $750,000 but less than or equal to $25 million, Exceed $25 million but less than or equal to $100 million, Exceed $100 million but less than or equal to $1 billion, Exceed $1 billion but less than or equal to $10 billion. 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.. This may require the auditor to audit more programs as major programs than the number of Type A programs. Criteria generally identify the required or desired state or expectation with respect to the program or operation. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. 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. U.S. Department of Health & Human Services on the guidance repository, except to establish historical facts. (a) General. 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. 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. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at The auditor should report whether the sampling was a statistically valid sample. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Pay close attention to the cumulative total received, because that threshold applies whether the funds come from one grant or a combination of several smaller awards. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. (4) A statement of cause that identifies the reason or explanation for the condition or the factors responsible for the difference between the situation that exists (condition) and the required or desired state (criteria), which may also serve as a basis for recommendations for corrective action. site when drafting amendatory language for Federal regulations: The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. This risk-based approach must include consideration of: current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. 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. For a cluster of programs also provide the total for the cluster. At the completion of the audit, the auditee must prepare, in a document separate from the auditor's findings described in 200.516, a corrective action plan to address each audit finding included in the current year auditor's reports. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). 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. (a) General. Any biennial audit must cover both years within the biennial period. This recalculation of the Type A program is performed after removing the total of all large loan programs. However, if the auditor does become aware of questioned costs for a Federal program that is not audited as a major program (e.g., as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $25,000, then the auditor must report this as an audit finding. This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. 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. 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) Determining Federal awards expended. (1) Oversight exercised by Federal agencies or pass-through entities could be used to assess risk. We are in the process of retroactively making some documents accessible. 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. Notably, OMB also released guidance earlier this year allowing counties that received less than $10 million in Recovery Funds and spent less than $750,000 of non-ARPA federal in a single fiscal year to opt for attestation instead of audit under the Single Audit Act. A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. 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. See also 200.332. (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. (a) General. 200.507 Program-specific audits. 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. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk. (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. A single audit is the default requirement. (e) Endowment funds. It is not an official legal edition of the CFR. Web(b) Single audit. 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. (b) Schedule of expenditures of Federal awards. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. (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. (b) Access to audit documentation. (d) Other sections of this part may apply. 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. 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. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. This content is from the eCFR and is authoritative but unofficial. Eliminates unnecessary duplication in audit and financial reporting (i.e. (a) An audit conducted in accordance with this part must be in lieu of any financial audit of Federal awards which a non-Federal entity is required to undergo under any other Federal statute or regulation. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. Single Audit . D. (6) Identification of questioned costs and how they were computed. B. All audits of state and local government reporting entities. (iii) A management decision was not issued. 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. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. 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. A single audit is the default requirement. (c) Use of Federal auditors. 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 As part of this responsibility, the auditee must prepare a summary schedule of prior audit findings. (2) Exception for Indian Tribes and Tribal Organizations. While not required, the Federal agency or pass-through entity may also issue a management decision on findings relating to the financial statements which are required to be reported in accordance with GAGAS. (ix) A statement as to whether the auditee qualified as a low-risk auditee under 200.520. (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. An official website of the United States government. (vi) Coordinate, to the extent practical, audits or reviews made by or for Federal agencies that are in addition to the audits made pursuant to this part, so that the additional audits or reviews build upon rather than duplicate audits performed in accordance with this part. (i) Audit findings (e.g., internal control findings, compliance findings, questioned costs, or fraud) that relate to the same issue must be presented as a single audit finding. The data collection form prepared in accordance with 200.512(b), as applicable to a program-specific audit, and one copy of this reporting package must be electronically submitted to the FAC. here. Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee management and the Federal agency or pass-through entity. The law aimed to streamline the auditing process so that award recipients only have to conduct a single, annual audit instead of conducting multiple audits of individual programs. Within 30 calendar days after any reassignment, both the old and the new cognizant agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. For those grants, the US Department of Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. As provided in 200.513(c)(3)(i), a Federal awarding agency is responsible for issuing a management decision for findings that relate to Federal awards it makes to non-Federal entities. 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 that expends $750,000 or more in federal funds in one year. 200.519 Criteria for Federal program risk. Guidance on determining Federal awards expended is provided in 45 CFR 75.502. Before 1984, each federal grantmaking agency was required to carry out its own audit. You can learn more about the process A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. (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. All audits of state and local government reporting entities. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. (h) Medicare. 49 CFR 172.101 will bring you directly to the content. 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. (d) A schedule of findings and questioned costs which must include the following three components: (1) A summary of the auditor's results, which must include: (i) The type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP (i.e., unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (ii) Where applicable, a statement about whether significant deficiencies or material weaknesses in internal control were disclosed by the audit of the financial statements; (iii) A statement as to whether the audit disclosed any noncompliance that is material to the financial statements of the auditee; (iv) Where applicable, a statement about whether significant deficiencies or material weaknesses in internal control over major programs were disclosed by the audit; (v) The type of report the auditor issued on compliance for major programs (i.e., unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (vi) A statement as to whether the audit disclosed any audit findings that the auditor is required to report under 200.516(a); (vii) An identification of major programs by listing each individual major program; however, in the case of a cluster of programs, only the cluster name as shown on the Schedule of Expenditures of Federal Awards is required; (viii) The dollar threshold used to distinguish between Type A and Type B programs, as described in 200.518(b)(1) or (3) when a recalculation of the Type A threshold is required for large loan or loan guarantees; and. 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. Section 200.331 sets forth the considerations in determining whether payments constitute a Federal award or a payment for goods or services provided as a contractor. Programs which do not meet the $750,000 threshold are not required to engage in audit services. (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.