the single audit requirement applies to:
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 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. 07/06/2015. WebSingle Audit Determination. 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. (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. 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. 78 FR 78608, Dec. 26, 2013, unless otherwise noted. (4) Include the total amount provided to subrecipients from each Federal program. Reduces compliance costs for non-federal entities. (c) Promptly follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action plan in accordance with 200.511(b) and (c), respectively. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. HHS/ACF [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49574, Aug. 13, 2020]. (Your Answer) D. Financial and performance audits, and attestation engagements. Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Has your state, local government or NPO expended federal awards over the threshold for a single audit? 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. 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. Aprio Can Help (6) Identification of questioned costs and how they were computed. The auditor should report whether the sampling was a statistically valid sample. 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. 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. If the program is to be audited as a major program based upon this Federal awarding agency request, and the Federal awarding agency agrees to pay the full incremental costs, then the auditee must have the program audited as a major program. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken. 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. 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. 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 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. (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. 2 CFR part 200 Subpart F-Audit Requirements. 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). 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. 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). (c) Reference numbers. (5) The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. 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. 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. Displaying title 2, up to date as of 3/02/2023. Federal government websites often end in .gov or .mil. > Agencies (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. When is an audit required? A business must have its 401k plan audited if they have 100 or more eligible plan participants. However, a specific rule called the 80-120 rule allows a company to postpone an audit until it begins a plan year with 121 or more eligible participants. 1/1.1 For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. (v) Report any audit findings consistent with the requirements of 200.516. 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. 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. See also 200.332. 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. If you work for a Federal agency, use this drafting A cluster of programs is treated as one program and the value of Federal awards expended under a loan program is determined as described in 200.502. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (vii) Coordinate a management decision for cross-cutting audit findings (see in 200.1 of this part) that affect the Federal programs of more than one agency when requested by any Federal awarding agency whose awards are included in the audit finding of the auditee. (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 auditor must use a risk-based approach to determine which Federal programs are major programs. (g) Valuing non-cash assistance. (d) Other sections of this part may apply. (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. 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 and HEERF, must have a single audit conducted in accordance with . If a program under the Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. (iii) Oversee training for the Federal awarding agency's program management personnel related to the single audit process. 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. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. This web site is designed for the current versions of 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. (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. (c) Pass-through entity. (b) Audit finding detail and clarity. (a) Retention of audit documentation. 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. WebAccording to subpart F part 200 of the Office of Management and Budget (OMB) Uniform Guidance (aka CFR): 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.. Washington, D.C. 20201 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. The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. (e) Federally Funded Research and Development Centers (FFRDC). However, if the auditor does become aware of questioned costs for a Federal program that is not audited as a major program (e.g., as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $25,000, then the auditor must report this as an audit finding. (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. Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. (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. ACCT 567. mari1975. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional bodies for disciplinary action. > Single Audit. 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. > ASFR (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. 200.519 Criteria for Federal program risk. Total views 100+ DeVry University, Keller Graduate School of Management. 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. All audits of state and local government 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.. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. Before 1984, each federal grantmaking agency was required to carry out its own audit. A Federal agency with oversight for an auditee may reassign oversight to another Federal agency that agrees to be the oversight agency for audit. This contact form is only for website help or website suggestions. > Data Act Program Management Office WebA Single Audit is an audit of compliance with compliance requirements defined by the Office of Management and Budget every year in the OMB Compliance Supplement. 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. (3) Except as provided in paragraph (c)(4) of this section, the auditor must: (i) Plan the testing of internal control over compliance for major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; and. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. (a) General. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. (b) Loan and loan guarantees (loans). 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. (vi) Organize the Federal cognizant agency for audit's follow-up on cross-cutting audit findings that affect the Federal programs of more than one Federal awarding agency. on the guidance repository, except to establish historical facts. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. Does the Single Audit requirement apply to CARES Act funding?