The auditee, after consultation with its auditor, should promptly respond to such a request by informing the Federal awarding agency whether the program would otherwise be audited as a major program using the risk-based audit approach described in 200.518 and, if not, the estimated incremental cost. Nonprofits that expended $750,000 or more in federal funds in a single fiscal year are subject to the single audit, named after the Single Audit Act of 1984. These complex and often expensive audits add a major compliance burden. formatting. (5) Provide OMB with the name of a single audit accountable official from among the senior policy officials of the Federal awarding agency who must be: (i) Responsible for ensuring that the agency fulfills all the requirements of paragraph (c) of this section and effectively uses the single audit process to reduce improper payments and improve Federal program outcomes. Criteria generally identify the required or desired state or expectation with respect to the program or operation. (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. 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. 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. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. The federal expenditures that are included on the SEFA are to be based on determining when a A single audit is the default requirement. 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. In making this determination, the auditor must consider whether the requirements in 200.519(c), the results of audit follow-up, or any changes in personnel or systems affecting the program indicate significantly increased risk and preclude the program from being low risk. 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. Organization and Purpose This single audit will bring you directly to the content. The cognizant agency for audit must: (i) Provide technical audit advice and liaison assistance to auditees and auditors. (c) Loan and loan guarantees (loans) at IHEs. 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. Free rent received by itself is not considered a Federal award expended under this part. 200.506 Audit costs. (a) Determining Federal awards expended. Programs which do not meet the $750,000 threshold are not required to engage in audit services. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). The data collection form prepared in accordance with 200.512(b), as applicable to a program-specific audit, and one copy of this reporting package must be electronically submitted to the FAC. 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.. Please do not provide confidential citations and headings authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically 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. Reduces compliance costs for non-federal entities. Navigate by entering citations or phrases will also bring you to search results. (a) General. 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. (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) 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. 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 [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug. 13, 2020]. This is an automated process for (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. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMBCircular A-133. ACCT 567. mari1975. In 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. (c) Federal awarding agency responsibilities. (e) Reference numbers. The Department may not cite, use, or rely on any guidance that is not posted (c) Program-specific audit election. For example, it may be necessary for a large Type A program to be audited as a major program each year at a particular recipient to allow the Federal awarding agency to comply with 31 U.S.C. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. Criteria provide a context for evaluating evidence and understanding findings. The eCFR is displayed with paragraphs split and indented to follow (ix) Provide advice to auditees as to how to handle changes in fiscal years. All audits of state and local government reporting entities. (d) Exemption when Federal awards expended are less than $750,000. 1/1.1 (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. Home A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. The balance of loans for previous audit periods is not included as Federal awards expended because the lender accounts for the prior balances. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. Audits to determine efficiency and economy. When advised of deficiencies, the auditee must work with the auditor to take corrective action. 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. Comments or questions about document content can not be answered by OFR staff. (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. (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. (viii) Support the Federal awarding agency's single audit accountable official's mission. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. When the direct funding represents less than 25 percent of the total expenditures (as direct and subawards) by the non-Federal entity, then the Federal agency with the predominant amount of total funding is the designated cognizant agency for audit. Hypothesis: If non-federal entities do not have to report the same information on duplicative forms (i.e. Choosing an item from This report must describe the scope of testing of internal control over compliance, include an opinion or disclaimer of opinion as to whether the auditee complied with Federal statutes, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on each major program and refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. learn more about the process here. 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. Single audits under the Uniform Guidance cover an organizations entire financial operations and are substantially more detailed than a regular independent audit. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. Why is it called a single audit? contact the publishing agency. The payments received for goods or services provided as a contractor are not Federal awards. For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. Search & Navigation 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. (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). full text search results The audit must be conducted in accordance with GAGAS. If a program under the In response to requests by a Federal agency or pass-through entity, auditees must submit a copy of any management letters issued by the auditor. For specific questions and information concerning the submission process: HHS is committed to making its websites and documents accessible to the widest possible audience, (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. (d) Prior loan and loan guarantees (loans). They are meant to ensure that federal funds are spent in accordance with compliance requirements, and unfortunately, these requirements are typically different 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. This document is available in the following developer friendly formats: Information and documentation can be found in our (d) Other sections of this part may apply. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. The auditor should report whether the sampling was a statistically valid sample. on the guidance repository, except to establish historical facts. 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. This is a common question raised by recipients of funds from these programs. Audited in at least one of the two most recent audit periods as a major program. Webprinciples, and single audit requirements contained in the . (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. 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. The auditor must also report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Uses stakeholder feedback to inform changes. Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part. (eg: In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the best estimate of total costs questioned (likely questioned costs), not just the questioned costs specifically identified (known questioned costs). (2) The auditee must prepare the financial statement(s) for the Federal program that includes, at a minimum, a schedule of expenditures of Federal awards for the program and notes that describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the requirements of 200.511(b), and a corrective action plan consistent with the requirements of 200.511(c). 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. (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. (b) Access to audit documentation. 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. For a Type A program to be considered low-risk, it must have been audited as a major program in at least one of the two most recent audit periods (in the most recent audit period in the case of a biennial audit), and, in the most recent audit period, the program must have not had: (i) Internal control deficiencies which were identified as material weaknesses in the auditor's report on internal control for major programs as required under 200.515(c); (ii) A modified opinion on the program in the auditor's report on major programs as required under 200.515(c); or. (iii) Known or likely questioned costs that exceed five percent of the total Federal awards expended for the program. The law aimed to streamline the auditing process so that award recipients only have to conduct a single, annual audit instead of conducting multiple audits of individual programs. The Federal awarding agency must notify the recipient and, if known, the auditor of OMB's approval at least 180 calendar days prior to the end of the fiscal year to be audited. (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. For a cluster of programs also provide the total for the cluster. B. - Office of Management and Budget Guidance for Grants and Agreements, - Office of Management and Budget Guidance, - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-F. (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 auditee must also prepare a corrective action plan for current year audit findings. 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. 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. 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. (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. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. (b) Financial statements. (c) Oversight exercised by Federal agencies and pass-through entities. 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. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. (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. Federal award compliance requirements normally do not pass through to contractors. 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. (e) Step four. The audit requirements apply to audits of organizations with fiscal years beginning on/after December 26, 2014. (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. (3) For the compliance requirements related to Federal programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. The following is a listing of the suggested audit procedures for procurement as detailed in Part 3.2: Obtain the entitys procurement policies and verify that the policies comply with the compliance requirements highlighted above. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. 200.502 Basis for determining Federal awards expended. Title 2 was last amended 3/01/2023. All audits of state and local government reporting entities. Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. Toll Free Call Center: 1-877-696-6775, Content created by DATA Act Program Management Office (DAP), U.S. Department of Health & Human Services, Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of Finance (OF), Chief Financial Officers and Services Contacts, has sub items, about Office of Grants (OG), Division of Policy, Oversight, and Evaluation (DPOE), has sub items, about Office of Acquisitions (OA), The Office of Small and Disadvantaged Business Utilization (OSDBU), Grants Quality Service Management Office (QSMO), Common Data Element Repository (CDER) Library, Consolidated Federal Financial Reporting (FFR), Notice of Award Proof Concept (NOA-POC). Section 200.331 sets forth the considerations in determining whether payments constitute a Federal award or a payment for goods or services provided as a contractor. 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. 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. 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. 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. (a) General. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. > ASFR The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. Cooperate and provide support to the Federal agency designated by OMB to lead a governmentwide project to determine the quality of single audits by providing a reliable estimate of the extent that single audits conform to applicable requirements, standards, and procedures; and to make recommendations to address noted audit quality issues, including recommendations for any changes to applicable requirements, standards and procedures indicated by the results of the project. 200.519 Criteria for Federal program risk. incorporated into a contract. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. (2) Prior audit findings would indicate higher risk, particularly when the situations identified in the audit findings could have a significant impact on a Federal program or have not been corrected. Total Federal awards expended times .003. (a) General. Basis for determining Federal awards expended. > Data Act Program Management Office Auditors are to apply judgement in designing audit procedures. 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 that expends $750,000 or more in federal funds in one year. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. The auditor's determination of whether a noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards is material 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. For the purposes of this paragraph a program is only considered to be a Federal program providing loans if the value of Federal awards expended for loans within the program comprises fifty percent or more of the total Federal awards expended for the program. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. 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 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. 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. (iv) Develop a baseline, metrics, and targets to track, over time, the effectiveness of the Federal agency's process to follow-up on audit findings and on the effectiveness of Single Audits in improving non-Federal entity accountability and their use by Federal awarding agencies in making award decisions. (3) Any interest subsidy, cash, or administrative cost allowance received. 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).