the single audit requirement applies to:

(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. (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. (b) Access to audit documentation. WebThe single audit requirement applies to A All audits of Doc Preview. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. 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. 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. A non-Federal entity that expends less than $750,000 in Federal awards during the non-Federal entitys fiscal year is exempt from Federal single audit requirements for that year, except as noted in (c) Program-specific audit election. (3) Notwithstanding the manner in which audit cognizance is determined, a Federal awarding agency with cognizance for an auditee may reassign cognizance to another Federal awarding agency that provides substantial funding and agrees to be the cognizant agency for audit. 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. However, non-Federal entity-wide financial statements may also include departments, agencies, and other organizational units that have separate audits in accordance with 200.514(a) and prepare separate financial statements. A single audit is the default requirement. 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. (i) Medicaid. 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. When information, such as the Assistance Listings title and number or Federal award identification number, is not available, the auditor must provide the best information available to describe the Federal award. The official, published CFR, is updated annually and available below under (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. Pages 13. (b) Notwithstanding subsection (a), a Federal agency, Inspectors General, or GAO may conduct or arrange for additional audits which are necessary to carry out its responsibilities under Federal statute or regulation. If you work for a Federal agency, use this drafting (iv) A schedule of findings and questioned costs for the Federal program that includes a summary of the auditor's results relative to the Federal program in a format consistent with 200.515(d)(1) and findings and questioned costs consistent with the requirements of 200.515(d)(3). 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. (d) Inherent risk of the Federal program. c. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Free rent received by itself is not considered a Federal award expended under this part. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the. is available with paragraph structure matching the official CFR This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. 1 CFR 1.1 (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. 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. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. 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. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional bodies for disciplinary action. 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. incorporated into a contract. If a program under the 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 (h) Electronic filing. 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. 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. (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. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. We are in the process of retroactively making some documents accessible. 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. When a current program-specific audit guide is available, the auditor must follow GAGAS and the guide when performing a program-specific audit. including individuals with disabilities. (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. authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically The auditee is responsible for follow-up and corrective action on all audit findings. 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. Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. 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. (d) Exemption when Federal awards expended are less than $750,000. Webprinciples, and single audit requirements contained in the . learn more about the process here. (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. 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. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. 200.520 Criteria for a low-risk auditee. 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. (b) Financial statements. If an NFP receives and spends a minimum amount from the federal government in a given year, it must conduct a single audit for that year. Identified Q&As 61. 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. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov. 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). Each audit finding in the schedule of findings and questioned costs must include a reference number in the format meeting the requirements of the data collection form submission required by 200.512(b) to allow for easy referencing of the audit findings during follow-up. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. 200.502 Basis for determining Federal awards expended. 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). (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. 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. 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. (a) Retention of audit documentation. This is in addition to the organizations financial statement audit. The audit requirements apply to audits of organizations with fiscal years beginning on/after December 26, 2014. None of the federal funds require an audit that includes financial statements. (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. Background and more details are available in the 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. Enhanced content is provided to the user to provide additional context. (d) Submission to FAC. (c) Pass-through entity. (e) Audit follow-up. 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). The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (a) Financial statements. 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. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. 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. 200.502 Basis for determining Federal awards expended. result, it may not include the most recent changes applied to the CFR. (2) Notwithstanding paragraph (c)(1) of this section, OMB may approve a Federal awarding agency's request that a Type A program may not be considered low risk for a certain recipient. (h) Auditor's judgment. 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. (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. (c) Federal awarding agency responsibilities. In reporting questioned costs, the auditor must include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. 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. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. The Federal awarding agency must then promptly confirm to the auditee whether it wants the program audited as a major program. (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. This obligation 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. (d) Time requirements. For the purposes of this paragraph a program is only considered to be a Federal program providing loans if the value of Federal awards expended for loans within the program comprises fifty percent or more of the total Federal awards expended for the program. 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. This single audit Any biennial audit must cover both years within the biennial period. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk. (c) Program-specific audit 3515. (e) None of the Federal programs had audit findings from any of the following in either of the preceding two audit periods in which they were classified as Type A programs: (1) Internal control deficiencies that were identified as material weaknesses in the auditor's report on internal control for major programs as required under 200.515(c); (2) A modified opinion on a major program in the auditor's report on major programs as required under 200.515(c); or. The auditor should report whether the sampling was a statistically valid sample. Criteria generally identify the required or desired state or expectation with respect to the program or operation. 2) The Single Audit requirement applies to non-federal entities. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. 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. (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. (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. If you have questions or comments regarding a published document please information or personal data. > ASFR As provided in 200.513(a)(3)(vii), the cognizant agency for audit must be responsible for coordinating a management decision for audit findings that affect the programs of more than one Federal agency. (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. 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 (5) The possible asserted effect to provide sufficient information to the auditee and Federal agency, or pass-through entity in the case of a subrecipient, to permit them to determine the cause and effect to facilitate prompt and proper corrective action. (e) Endowment funds. 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. Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part. will bring you directly to the content. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the agreement, and post-award audits. 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. Has your state, local government or NPO expended federal awards over the threshold for a single audit? As part of audit follow-up, the Federal awarding agency must: (i) Issue a management decision as prescribed in 200.521; (ii) Monitor the recipient taking appropriate and timely corrective action; (iii) Use cooperative audit resolution mechanisms (see the definition of cooperative audit resolution in 200.1 of this part) to improve Federal program outcomes through better audit resolution, follow-up, and corrective action; and. b. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). 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 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. 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. (c) Loan and loan guarantees (loans) at IHEs. 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. 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. B. (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. 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 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. 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. 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. (ii) Held accountable to improve the effectiveness of the single audit process based upon metrics as described in paragraph (c)(3)(iv) of this section. WebThe single audit requirement applies to: a. 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 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. Criteria provide a context for evaluating evidence and understanding findings. The auditor's determination of whether a deficiency in internal control is a significant deficiency or a material weakness for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program identified in the Compliance Supplement. (h) For-profit subrecipient. According to the Subpart F-Audits 45 CFR 75.501(a)Visit disclaimer page Non-Federal entities that expend $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. Issued by: Administration for Children and Families (ACF). If you have questions for the Agency that issued the current document please contact the agency directly. (1) The nature of a Federal program may indicate risk. For example, recent monitoring or other reviews performed by an oversight entity that disclosed no significant problems would indicate lower risk, whereas monitoring that disclosed significant problems would indicate higher risk. When identifying which Type B programs to risk assess, the auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B programs to be audited as major over a period of time. 78 FR 78608, Dec. 26, 2013, unless otherwise noted. 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 FAC operates on behalf of the OMB. 200.503 Relation to other audit requirements. will bring you to those results. 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. (viii) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit. (2) Prior audit findings would indicate higher risk, particularly when the situations identified in the audit findings could have a significant impact on a Federal program or have not been corrected. (eg: (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. Auditors are to apply judgement in designing audit procedures. 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. 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. (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. Within 30 calendar days after any reassignment, both the old and the new oversight agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. Otherwise, the auditor must 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 40 percent (0.40) of total Federal awards expended. The management decision should describe any appeal process available to the auditee. Loans, the proceeds of which were received and expended in prior years, are not considered Federal awards expended under this part when the Federal statutes, regulations, and the terms and conditions of Federal awards pertaining to such loans impose no continuing compliance requirements other than to repay the loans. This contact form is only for website help or website suggestions. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

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