(1) Weaknesses in internal control over Federal programs would indicate higher risk. You can learn more about the process 200.502 Basis for determining Federal awards expended. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. (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. 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. Understanding Single Audits - Office of Inspector General, U.S Understanding Your Reporting / Audit Requirements 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. The auditee is responsible for follow-up and corrective action on all audit findings. UNITED STATES DEPARTMENT OF EDUCATION Federal awards expended as a recipient or a subrecipient are subject to audit under this part. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. 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. This paragraph does not require the auditor to report publicly information which could compromise investigative or legal proceedings or to make an additional reporting when the auditor confirms that the fraud was reported outside the auditor's reports under the direct reporting requirements of GAGAS. Uniform Guidance (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. The data elements and format must be approved by OMB, available from the FAC, and include collections of information from the reporting package described in paragraph (c) of this section. 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 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. 200.520 Criteria for a low-risk auditee. An auditee that meets all of the following conditions for each of the preceding two audit periods must qualify as a low-risk auditee and be eligible for reduced audit coverage in accordance with 200.518. 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. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. This is in addition to the organizations financial statement audit. 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. (10) Views of responsible officials of the auditee. 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. (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. (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. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. 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. If you would like to comment on the current content, please use the 'Content Feedback' button below for instructions on contacting the issuing agency. For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. Uses stakeholder feedback to inform changes. As provided in 200.513(a)(3)(vii), the cognizant agency for audit must be responsible for coordinating a management decision for audit findings that affect the programs of more than one Federal agency. result, it may not include the most recent changes applied to the CFR. Audit requirements (ii) Perform testing of internal control as planned in paragraph (c)(3)(i) of this section. 07/06/2015. (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. (e) Endowment funds. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. (d) Inherent risk of the Federal program. incorporated into a contract. (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. The single audit requirement applies to (vii) Ensure the Federal awarding agency provides annual updates of the compliance supplement to OMB. [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]. > Single Audit. The Single Audit Act of 1984 standardized audits for states, local and tribal For example, recent monitoring or other reviews performed by an oversight entity that disclosed no significant problems would indicate lower risk, whereas monitoring that disclosed significant problems would indicate higher risk. (4) Known questioned costs that are greater than $25,000 for a Federal program which is not audited as a major program. 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. Washington, D.C. 20201 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. Web 200.501 Audit requirements. This web site is designed for the current versions of Audits to determine efficiency and economy. The auditor must use a risk-based approach to determine which Federal programs are major programs. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. An auditee that is an Indian tribe or a tribal organization (as defined in the Indian Self-Determination, Education and Assistance Act (ISDEAA), 25 U.S.C. Choosing an item from Exceed $10 billion but less than or equal to $20 billion. The auditor must determine whether the financial statements of the auditee are presented fairly in all material respects in accordance with generally accepted accounting principles. The auditor must consider criteria, such as described in paragraphs (b), (c), and (d) of this section, to identify risk in Federal programs. Unless restricted by Federal law or regulation, the auditee must make report copies available for public inspection. A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. (iii) Responsible for designating the Federal agency's key management single audit liaison. B. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. and HEERF, must have a single audit conducted in accordance with . 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. Guidance on determining Federal awards expended is provided in 45 CFR 75.502. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. 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. This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. 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. Audits (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. This may require the auditor to audit more programs as major programs than the number of Type A programs. Free rent received by itself is not considered a Federal award expended under this part. The audit requirements apply to audits of organizations with fiscal years beginning on/after December 26, 2014. (1) Oversight exercised by Federal agencies or pass-through entities could be used to assess risk. 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. 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. authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. (2) Exception for Indian Tribes and Tribal Organizations. (c) There were no deficiencies in internal control which were identified as material weaknesses under the requirements of GAGAS. 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. 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. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. Financial audits of all not-for-profit entities. The balance of loans for previous audit periods is not included as Federal awards expended because the lender accounts for the prior balances. 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.

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