the single audit requirement applies to:

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 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. 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). 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. Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. (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. 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. If the auditee has not completed corrective action, a timetable for follow-up should be given. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. (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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49572, Aug. 13, 2020]. (i) A Federal program administered under multiple internal control structures may have higher risk. 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. (b) Loan and loan guarantees (loans). 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. For specific questions and information concerning the submission process: HHS is committed to making its websites and documents accessible to the widest possible audience, All audits of state and local government reporting entities. Federal award compliance requirements normally do not pass through to contractors. 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. In 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 audit must be conducted in accordance with GAGAS. 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. 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. developer resources. Single Audit . (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. A senior level representative of the auditee (e.g., state controller, director of finance, chief executive officer, or chief financial officer) must sign a statement to be included as part of the data collection that says that the auditee complied with the requirements of this part, the data were prepared in accordance with this part (and the instructions accompanying the form), the reporting package does not include protected personally identifiable information, the information included in its entirety is accurate and complete, and that the FAC is authorized to make the reporting package and the form publicly available on a website. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. 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. 200.520 Criteria for a low-risk auditee. When a current program-specific audit guide is available, the auditor must follow GAGAS and the guide when performing a program-specific audit. (a) Retention of audit documentation. Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. incorporated into a contract. 1 CFR 1.1 (h) Medicare. An official website of the United States government. guide. (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. HHS/ACF has implemented the Uniform Guidance at 45 CFR 75Visit disclaimer page. Comments or questions about document content can not be answered by OFR staff. WebThe single audit requirement applies to A All audits of Doc Preview. Pages 13. Prior to commencing such an audit, the Federal agency or pass-through entity must review the FAC for recent audits submitted by the non-Federal entity, and to the extent such audits meet a Federal agency or pass-through entity's needs, the Federal agency or pass-through entity must rely upon and use such audits. This web site is designed for the current versions of The process in paragraphs (b) through (h) of this section must be followed. Learn more about the eCFR, its status, and the editorial process. > Single Audit. DISCLAIMER: The contents of this database lack the force and effect of law, except as You are using an unsupported browser. 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. 200.503 Relation to other audit requirements. (f) Report retention requirements. (3) Known or likely questioned costs that exceeded five percent of the total Federal awards expended for a Type A program during the audit period. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. 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. or existing codification. Within 30 calendar days after any reassignment, both the old and the new oversight agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. 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. (g) FAC responsibilities. (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. (c) A report on compliance for each major program and a report on internal control over compliance. (e) None of the Federal programs had audit findings from any of the following in either of the preceding two audit periods in which they were classified as Type A programs: (1) Internal control deficiencies that were identified as material weaknesses in the auditor's report on internal control for major programs as required under 200.515(c); (2) A modified opinion on a major program in the auditor's report on major programs as required under 200.515(c); or. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal The site is secure. (e) Reference numbers. This is a common question raised by recipients of funds from these programs. > About Total Federal awards expended times .003. Any biennial audit must cover both years within the biennial period. The trigger for a Single Audit is when a nonprofit receives money from the federal government and expends more than $750,000 in a single year. (a) Auditor procurement. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. 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). When advised of deficiencies, the auditee must work with the auditor to take corrective action. As part of audit follow-up, the Federal awarding agency must: (i) Issue a management decision as prescribed in 200.521; (ii) Monitor the recipient taking appropriate and timely corrective action; (iii) Use cooperative audit resolution mechanisms (see the definition of cooperative audit resolution in 200.1 of this part) to improve Federal program outcomes through better audit resolution, follow-up, and corrective action; and. Choosing an item from 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. (d) Submission to FAC. Navigate by entering citations or phrases You can learn more about the process (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (c) Reporting package. (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. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMBCircular A-133. 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 49570, Aug. 13, 2020]. (3) Known questioned costs that are greater than $25,000 for a type of compliance requirement for a major program. Please do not provide confidential Non-federal entities typically include states, local governments, Indian tribes, universities, and non-profit organizations. Audits to determine efficiency and economy. (1) The auditor must identify the larger Federal programs, which must be labeled Type A programs. Known questioned costs are those specifically identified by the auditor. 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. B. 3515. What Is a Single Audit? A single audit, previously known as the OMB Circular A-133 audit, is required for any organization that accepts $750,000 or more in federal funds during the fiscal year. the hierarchy of the document. (e) Audit follow-up. As part of this responsibility, the auditee must prepare a summary schedule of prior audit findings. (a) General. (a) Audit required. 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. (e) Federally Funded Research and Development Centers (FFRDC). (2) Provide technical advice and counsel to auditees and auditors as requested. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. 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. Should we get an audit if we are not required to have a Single Audit? Criteria provide a context for evaluating evidence and understanding findings. 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. 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. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. WebQ-10. (1) The audit must be completed and the reporting required by paragraph (c)(2) or (c)(3) of this section 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, unless a different period is specified in a program-specific audit guide. With no significant As a 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. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at 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. (h) For-profit subrecipient. The Department may not cite, use, or rely on any guidance that is not posted (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. (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. 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. (1) Weaknesses in internal control over Federal programs would indicate higher risk. (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. 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. 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. Choosing an item from The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. A Federal awarding agency may request that an auditee have a particular Federal program audited as a major program in lieu of the Federal awarding agency conducting or arranging for the additional audits. "Published Edition". For a cluster of programs also provide the total for the cluster. (b) Access to audit documentation. (d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part. When the major program determination was performed and documented in accordance with this Subpart, the auditor's judgment in applying the risk-based approach to determine major programs must be presumed correct. Pressing enter in the search box When identifying which Type B programs to risk assess, the auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B programs to be audited as major over a period of time. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. U.S. Department of Health & Human Services contact the publishing agency. (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. (a) Determining Federal awards expended. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. The FAC must make available the reporting packages received in accordance with paragraph (c) of this section and 200.507(c) to the public, except for Indian tribes exercising the option in (b)(2) of this section, and maintain a data base of completed audits, provide appropriate information to Federal agencies, and follow up with known auditees that have not submitted the required data collection forms and reporting packages. HUD and HUD OIGs role in Single Audits HUD provides assistance to independent public accountants who have questions on HUD program requirements and procedures. (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. 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 auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (a) Financial statements. WebThe Single Audit must be performed by an independent auditor and the reporting package (which includes the audit report) must be submitted to the Federal Audit Clearinghouse Single Audit, previously known as the OMB Circular A-133 audit, is an organization-wide financial statement and federal awards audit of a non-federal entity

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