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. The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, (2) When a program-specific audit guide is available, the auditee must electronically submit to the FAC the data collection form prepared in accordance with 200.512(b), as applicable to a program-specific audit, and the reporting required by the program-specific audit guide. (2) Provide technical advice and counsel to auditees and auditors as requested. (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. (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. CARES Act and M -20-21 - CFO 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. 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. Single Audit Any biennial audit must cover both years within the biennial period. Does the Single Audit requirement apply to CARES Act funding? (2) Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program. (viii) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit. (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. (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. Webprinciples, and single audit requirements contained in the . 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020]. (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. 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. (3) Any interest subsidy, cash, or administrative cost allowance received. Webdefinition. site when drafting amendatory language for Federal regulations: 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. Enhanced content is provided to the user to provide additional context. Type A programs are defined as Federal programs with Federal awards expended during the audit period exceeding the levels outlined in the table in this paragraph (b)(1): (2) Federal programs not labeled Type A under paragraph (b)(1) of this section must be labeled Type B programs. 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. (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. authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically (a) General. Issued by: Administration for Children and Families (ACF). Whenever possible, the auditee must make positive efforts to utilize small businesses, minority-owned firms, and women's business enterprises, in procuring audit services as stated in 200.321, or the FAR (48 CFR part 42), as applicable. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. 200.502 Basis for determining Federal awards expended. The Uniform Grant Guidance does not apply to grant awards made before December 26, 2014. Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. Financial audits of all not-for-profit entities. (c) Pass-through entity. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. full text search results 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). will bring you to those results. 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. Single Audit Requirements for Nonprofits Receiving Federal Funds Receive the latest updates from the Secretary, Blogs, and News Releases. To allow for planning, such requests should be made at least 180 calendar days prior to the end of the fiscal year to be audited. 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.. 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 single audit requirement applies to A. When advised of deficiencies, the auditee must work with the auditor to take corrective action. WebGovernments may engage one auditor to audit the primary government and other auditors to audit certain component units a)True b)False True Generally accepted government Audit or existing codification. 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. 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. (c) Loan and loan guarantees (loans) at IHEs. (d) Time requirements. will also bring you to search results. (c) Program-specific audit 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. 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. Total Federal awards expended times .003. The auditor must also report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. 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. A single audit is the default requirement. 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. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov. Known questioned costs are those specifically identified by the auditor. Single Audit 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. 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. Before 1984, each federal grantmaking agency was required to carry out its own audit. (a) A state, local government, or Indian tribe that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo its audits pursuant to this part biennially. OMB will provide this identification in the compliance supplement. (g) FAC responsibilities. Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. Except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part must be performed annually. Before sharing sensitive information, make sure youre on a federal government site. WebThe single audit requirement applies to A All audits of state and local from ACCT 567 acct 567 at DeVry University, Keller Graduate School of Management Expert Help Study However, this new guidance confirms that nonprofits will not need to include any PPP loan amounts in this calculation. DISCLAIMER: The contents of this database lack the force and effect of law, except as 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 eCFR is displayed with paragraphs split and indented to follow A federal government website managed by the Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. The summary schedule of prior audit findings and the corrective action plan must include the reference numbers the auditor assigns to audit findings under 200.516(c). 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. Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards. 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. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. Schedule of Expenditures of Federal Awards (SEFA Builds on the concept of developing a central location for non-federal entities to submit all information electronically. Single Audit - Wikipedia single audit in your future contact the publishing agency. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. (b) Loan and loan guarantees (loans). Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program that is not audited as a major program. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. information or personal data. 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. Single Audit If corrective action is not taken, the cognizant agency for audit must notify the auditor, the auditee, and applicable Federal awarding agencies and pass-through entities of the facts and make recommendations for follow-up action. HHS/ACF has implemented the Uniform Guidance at 45 CFR 75Visit disclaimer page. (a) Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in 200.512. (c) Federal awarding agency responsibilities. (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. The Single Audit test model examines non-federal entity post-award reporting requirements under the Single Audit Act. 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. (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. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. guidance on single audit requirements This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. (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. Single Audit Requirement The auditee must electronically submit to the FAC the data collection form described in paragraph (b) of this section and the reporting package described in paragraph (c) of this section. Exceed $10 billion but less than or equal to $20 billion. 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. (c) A report on compliance for each major program and a report on internal control over compliance. Uniform Guidance 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. 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. A Federal agency with oversight for an auditee may reassign oversight to another Federal agency that agrees to be the oversight agency for audit. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 2021 Single Audit Guidance 200 Independence Avenue, S.W. Choosing an item from The auditor should report whether the sampling was a statistically valid sample. result, it may not include the most recent changes applied to the CFR. (a) Program-specific audit guide available. (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. (e) Audit follow-up. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. (a) General. (a) General. Audit Requirements Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. 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. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). 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. Single Audit You can learn more about the process 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. 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. 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. Web 200.501 Audit requirements. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. CARES Act and M -20-21 - CFO (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. will bring you directly to the content. (3) Federal programs not recently audited as major programs may be of higher risk than Federal programs recently audited as major programs without audit findings. A valid reason for considering an audit finding as not warranting further action is that all of the following have occurred: (i) Two years have passed since the audit report in which the finding occurred was submitted to the FAC; (ii) The Federal agency or pass-through entity is not currently following up with the auditee on the audit finding; and. Audits to determine efficiency and economy. An official website of the United States government. (d) Federal agency to pay for additional audits. Comments or questions about document content can not be answered by OFR staff. 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. For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. (a) Determining Federal awards expended. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. U.S. Department of Health & Human Services (1) Oversight exercised by Federal agencies or pass-through entities could be used to assess risk. (b) Summary schedule of prior audit findings. (a) Audit required. Audits to determine efficiency and economy. (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. 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). 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. (4) Include the total amount provided to subrecipients from each Federal program. Single Audit Act Amendments (1996 Identified Q&As 61. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk. (eg: (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.