The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. With no significant 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. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Audits to determine efficiency and economy. If a program under the 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. Basis for determining Federal awards expended. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. 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. 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. 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. The site is secure. (j) Certain loans provided by the National Credit Union Administration. 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. OMB will provide this identification in the compliance supplement. You can 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. (3) Using the information included in the reporting package described in paragraph (c) of this section, the auditor must complete the applicable data elements of the data collection form. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (a) Financial statements. The federal expenditures that are included on the SEFA are to be based on determining when a 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. (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. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at (h) For-profit subrecipient. Receive the latest updates from the Secretary, Blogs, and News Releases. 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. The data must include information available from the audit required by this part that is necessary for Federal agencies to use the audit to ensure integrity for Federal programs. 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. This report must describe the scope of testing of internal control and compliance and the results of the tests, and, where applicable, it will refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. Washington, D.C. 20201 Total Federal awards expended times .003. Audit documentation must be made available upon request to the cognizant or oversight agency for audit or its designee, cognizant agency for indirect cost, a Federal agency, or GAO at the completion of the audit, as part of a quality review, to resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this part. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. As a 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. 200.502 Basis for determining Federal awards expended. The auditor must report the following as audit findings in a schedule of findings and questioned costs: (1) Significant deficiencies and material weaknesses in internal control over major programs and significant instances of abuse relating to major programs. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. (d) Other sections of this part may apply. However, free rent received as part of a Federal award to carry out a Federal program must be included in determining Federal awards expended and subject to audit under this part. 200.506 Audit costs. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. incorporated into a contract. "Published Edition". WebThe single audit requirement applies to: A. 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. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal (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. (f) Subrecipients and contractors. This content is from the eCFR and is authoritative but unofficial. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (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. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. (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. 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. WebStill, one requirement applies to any non-federal entity that expends more than $750,000 in federal funding during its fiscal yearthe Single Audit (or Uniform Guidance Audit). 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. 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. full text search results 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). A federal government website managed by the U.S. Department of Health & Human Services 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 (2) The phase of a Federal program in its life cycle at the Federal agency may indicate risk. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. 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. (5) For loan or loan guarantee programs described in 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. Except for known material weakness in internal control or compliance problems as discussed in 200.519(b)(1) and (2) and (c)(1), a single criterion in risk would seldom cause a Type B program to be considered high-risk. (b) Oversight agency for audit responsibilities. (e) Step four. Management decisions must include the reference numbers the auditor assigned to each audit finding in accordance with 200.516(c). Guidance on determining Federal awards expended is provided in 45 CFR 75.502. 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.