The auditor must also determine 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. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). However, Federal agencies and pass-through entities may provide auditors guidance about the risk of a particular Federal program and the auditor must consider this guidance in determining major programs in audits not yet completed. 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 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. (a) Audit required. (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. As required in 200.512(b)(3), the auditor must complete and sign specified sections of the data collection form. 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. They are meant to ensure that federal funds are spent in accordance with compliance requirements, and unfortunately, these requirements are typically different However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective internal control. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. 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. (2) Provide technical advice and counsel to auditees and auditors as requested. 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. 31 USC Ch. 75: REQUIREMENTS FOR SINGLE AUDITS This obligation COVID-19 Funding: Do I need a Single Audit? | Wipfli This may require the auditor to audit more programs as major programs than the number of Type A programs. (8) Identification of whether the audit finding was a repeat of a finding in the immediately prior audit and if so any applicable prior year audit finding numbers. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. and HEERF, must have a single audit conducted in accordance with . 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. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (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. 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. Any biennial audit must cover both years within the biennial period. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. The eCFR is displayed with paragraphs split and indented to follow (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). 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. 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 audit conducted in accordance with 200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) of this section. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. (c) Use of Federal auditors. Single Audit Act Amendments (1996 CARES Act and M -20-21 - CFO (4) When internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph (c)(3) of this section are not required for those compliance requirements. Audits Program-specific audits are subject to: (1) 200.500 Purpose through 200.503 Relation to other audit requirements, paragraph (d); (2) 200.504 Frequency of audits through 200.506 Audit costs; (3) 200.508 Auditee responsibilities through 200.509 Auditor selection; (5) 200.512 Report submission, paragraphs (e) through (h); (7) 200.516 Audit findings through 200.517 Audit documentation; (9) Other referenced provisions of this part unless contrary to the provisions of this section, a program-specific audit guide, or program statutes and regulations. When corrective action taken is significantly different from corrective action previously reported in a corrective action plan or in the Federal agency's or pass-through entity's management decision, the summary schedule must provide an explanation. (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 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. (e) Step four. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (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. The Audit Program B. 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. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. All audits of state and local government reporting entities. (a) Retention of audit documentation. Learn more about the eCFR, its status, and the editorial process. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. 200.520 Criteria for a low-risk auditee. (1) Cognizant agency for audit responsibilities. However, this new guidance confirms that nonprofits will not need to include any PPP loan amounts in this calculation. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. With no significant WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Has your state, local government or NPO expended federal awards over the threshold for a single audit? are applicable. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. U.S. Department of Health & Human Services 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 single audit requirement applies to A. (b) Program-specific audit guide not available. The site is secure. 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. 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). (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) Known questioned costs that are greater than $25,000 for a type of compliance requirement for a major program. An auditee who does not have a designated cognizant agency for audit will be under the general oversight of the Federal agency determined in accordance with 200.1 oversight agency for audit. (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. Management decisions must include the reference numbers the auditor assigned to each audit finding in accordance with 200.516(c). user convenience only and is not intended to alter agency intent The federal expenditures that are included on the SEFA are to be based on determining when a The auditor should report whether the sampling was a statistically valid sample. (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. Webprinciples, and single audit requirements contained in the . 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. 07/06/2015. (b) Schedule of expenditures of Federal awards. (viii) Support the Federal awarding agency's single audit accountable official's mission. The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. Single audits under the Uniform Guidance cover an organizations entire financial operations and are substantially more detailed than a regular independent audit. (b) Federal agency. Total Federal awards expended times .0015. Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. As a The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. (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. These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. (a) General. 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. Audit 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49572, Aug. 13, 2020]. (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. Uses stakeholder feedback to inform changes. (f) Report retention requirements. 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. Single Audit U.S. Department of Health & Human Services Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. A Federal agency that conducts or arranges for additional audits must, consistent with other applicable Federal statutes and regulations, arrange for funding the full cost of such additional audits. 2021 Single Audit Guidance (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. Background and more details are available in the (3) Any interest subsidy, cash, or administrative cost allowance received. 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. 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. 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. Does the Single Audit requirement apply to CARES Act funding?