(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. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization. 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. The audit must cover the entire operations of the auditee, or, at the option of the auditee, such audit must include a series of audits that cover departments, agencies, and other organizational units that expended or otherwise administered Federal awards during such audit period, provided that each such audit must encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which must be considered to be a non-Federal entity. (b) Schedule of expenditures of Federal awards. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. It is not an official legal edition of the CFR. The auditee is responsible for follow-up and corrective action on all audit findings. If you receive $750k in federal grants and expend $300k one year and $450k the next, the Single Audit trigger may not have been reached. (b) Single audit. 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. The Single Audit test model examines non-federal entity post-award reporting requirements under the Single Audit Act. Audits to determine efficiency and economy. Web(2) When reporting on any single audit, the auditor shall include a summary of the auditor's results regarding the non-Federal entity's financial statements, internal controls, and WebRequirement to Have a Single Audit Single Audit Act State Audit BUY AMERICA REQUIREMENT (Applies only to Federally Funded Highway State Audits Medical Reports Mutual Fund Entity Name Reference ID Entity Type State Auditor Treatment of Unallowable Costs Previously Submitted for Payment Searchable Whois Related to State Single Audit A pass-through entity may use the provisions of this paragraph for a subrecipient. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (i) An opinion (or disclaimer of opinion) as to whether the financial statement(s) of the Federal program is presented fairly in all material respects in accordance with the stated accounting policies; (ii) A report on internal control related to the Federal program, which must describe the scope of testing of internal control and the results of the tests; (iii) A report on compliance which includes an opinion (or disclaimer of opinion) as to whether the auditee complied with laws, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on the Federal program; and. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with 200.510. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. (1) The auditor must identify the larger Federal programs, which must be labeled Type A programs. 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). The Uniform Grant Guidance does not apply to grant awards made before December 26, 2014. 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 requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. (c) Loan and loan guarantees (loans) at IHEs. (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with 200.511(b) materially misrepresents the status of any prior audit finding. (d) Time requirements. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. Home (e) Audit follow-up. Criteria generally identify the required or desired state or expectation with respect to the program or operation. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug. 13, 2020]. The Federal awarding agency or pass-through entity responsible for issuing a management decision must do so within six months of acceptance of the audit report by the FAC. switch to drafting.ecfr.gov. 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. 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. 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. 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. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. The auditor must use a risk-based approach to determine which Federal programs are major programs. (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. (4) Corrective action plan discussed in 200.511(c). site when drafting amendatory language for Federal regulations: The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. (b) Data collection. > Data Act Program Management Office (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). Nonprofits that expended $750,000 or more in federal funds in a single fiscal year are subject to the single audit, named after the Single Audit Act of 1984. These complex and often expensive audits add a major compliance burden. (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. For those grants, the US Department of The Department may not cite, use, or rely on any guidance that is not posted A single audit is the default requirement. > Single Audit. will bring you directly to the content. 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. (g) Documentation of risk. Financial audits of all not-for-profit entities. Subscribe to: Changes in Title 2 :: Subtitle A :: Chapter II :: Part 200 :: Subpart F. View the most recent official publication: These links go to the official, published CFR, which is updated annually. 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. 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. However, this new guidance confirms that nonprofits will not need to include any PPP loan amounts in this calculation. (b) Oversight agency for audit responsibilities. Title 2 was last amended 3/01/2023. 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. (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. 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). FAR). Regulation Y (e) Federally Funded Research and Development Centers (FFRDC). 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. 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. WebThe single audit requirement applies to: a. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. This may require the auditor to audit more programs as major programs than the number of Type A programs. WebSingle Audit Determination. This web site is designed for the current versions of WebQ-10. B. 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. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). 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 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. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. (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. The cognizant agency for audit must: (i) Provide technical audit advice and liaison assistance to auditees and auditors. U.S. Department of Health & Human Services The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (10) Views of responsible officials of the auditee. 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. A non-Federal entity that expends less than $750,000 during the non-Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in 200.503, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO). (iii) Oversee training for the Federal awarding agency's program management personnel related to the single audit process. (b) Loan and loan guarantees (loans). Displaying title 2, up to date as of 3/02/2023. 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 Issued by: Administration for Children and Families (ACF). The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. 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). Federal awards expended as a recipient or a subrecipient are subject to audit under this part. (1) The nature of a Federal program may indicate risk. Prior to issuing the management decision, the Federal agency or pass-through entity may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. All audits of state and local government 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. Pages 13. 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. WebThe Single Audit provides the Federal government with assurance that these recipients comply with such directives by having an independent external source (the CPA) report The Contractor shall retain a licensed certified public accountant, who will prepare an annual Single Audit as required by 31 USC 7501 7507, as well as its implementing regulations under 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. This recalculation of the Type A program is performed after removing the total of all large loan programs. Why is it called a single audit? 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. (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). 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. including individuals with disabilities. 200.502 Basis for determining Federal awards expended. When loans are made to students of an IHE but the IHE does not make the loans, then only the value of loans made during the audit period must be considered Federal awards expended in that audit period. (i) Medicaid. 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 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. 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. (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. (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. developer resources. They are meant to ensure that federal funds are spent in accordance with compliance requirements, and unfortunately, these requirements are typically different If this option is exercised, the auditee becomes responsible for submitting the reporting package directly to any pass-through entities through which it has received a Federal award and to pass-through entities for which the summary schedule of prior audit findings reported the status of any findings related to Federal awards that the pass-through entity provided. 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. The corrective action plan and summary schedule of prior audit findings must include findings relating to the financial statements which are required to be reported in accordance with GAGAS. HHS/ACF (c) Federal awarding agency responsibilities. (c) Corrective action plan. (iii) Known or likely questioned costs that exceed five percent of the total Federal awards expended for the program. You can 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. Identified Q&As 61. Single Audit Requirements. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. 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. c. The designated cognizant agency for audit must be the Federal awarding agency that provides the predominant amount of funding directly (direct funding) (as listed on the Schedule of expenditures of Federal awards, see 200.510(b)) to a non-Federal entity unless OMB designates a specific cognizant agency for audit. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov. 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. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. 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 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. Known questioned costs are those specifically identified by the auditor. 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. (d) Submission to FAC. Federal government websites often end in .gov or .mil. (6) Provide OMB with the name of a key management single audit liaison who must: (i) Serve as the Federal awarding agency's management point of contact for the single audit process both within and outside the Federal Government. (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. (Your Answer) D. Financial and performance audits, and attestation engagements. The official, published CFR, is updated annually and available below under 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. are applicable. Test: Provide non-federal entities with the draft 2016 expanded Single Audit Concept Form (SF-SAC only), and collect participant feedback on a more streamlined approach for SF-SAC/SEFA reporting. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk. This restriction applies to the base year used in the preparation of the indirect cost proposal or cost allocation plan and any subsequent years in which the resulting indirect cost agreement or cost allocation plan is used to recover costs. To sign up for updates or to access your subscriber preferences, please enter your contact information below. (e) Nothing in this part precludes combining of the audit reporting required by this section with the reporting required by 200.512(b) when allowed by GAGAS and appendix X to this part. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. 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. 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. Websingle audit conducted for that year. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional bodies for disciplinary action.

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