the single audit requirement applies to:

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. b. (c) Report submission for program-specific audits. (Your Answer) D. Financial and performance audits, and attestation engagements. NEW JERSEY DEPARTMENT OF LAW AND PUBLIC SAFETY Demystifying the Single Audit for Nonprofits Does the Single Audit requirement apply to CARES Act funding? 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. The oversight agency for audit: (1) Must provide technical advice to auditees and auditors as requested. Single Audit Act Requirements - michigan.gov Issued by: Administration for Children and Families (ACF). Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Single Audit Requirements for Nonprofit Organizations that (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. (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. 200.502 Basis for determining Federal awards expended. It is not an official legal edition of the CFR. WebSingle Audit Determination. - 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. This risk-based approach must include consideration of: current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. CARES Act and M -20-21 - CFO (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. 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. Single Audit Builds on the concept of developing a central location for non-federal entities to submit all information electronically. WebThe single audit is generally conducted by an independent certified public accountant or state auditor and is intended to assess whether the recipient spends federal funds properly. (6) Provide OMB with the name of a key management single audit liaison who must: (i) Serve as the Federal awarding agency's management point of contact for the single audit process both within and outside the Federal Government. The following specific information must be included, as applicable, in audit findings: (1) Federal program and specific Federal award identification including the Assistance Listings title and number, Federal award identification number and year, name of Federal agency, and name of the applicable pass-through entity. (c) Program-specific audit election. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. DISCLAIMER: The contents of this database lack the force and effect of law, except as A single audit is the default requirement. (2) Provide technical advice and counsel to auditees and auditors as requested. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. Singapore's Health Sciences Authority (HSA) From 01 January 2014 to 31 December 2016, FDA, alongside its international partners, participated in a Medical Device Single Audit Program Pilot. This is in addition to the organizations financial statement audit. The summary schedule of prior audit findings must report the status of all audit findings included in the prior audit's schedule of findings and questioned costs. Audited in at least one of the two most recent audit periods as a major program. (ix) Provide advice to auditees as to how to handle changes in fiscal years. (9) Recommendations to prevent future occurrences of the deficiency identified in the audit finding. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (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. 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. 49 CFR 172.101 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.. (g) Valuing non-cash assistance. Single Audit However, Federal agencies and pass-through entities may provide auditors guidance about the risk of a particular Federal program and the auditor must consider this guidance in determining major programs in audits not yet completed. As a The summary schedule must also include audit findings reported in the prior audit's summary schedule of prior audit findings except audit findings listed as corrected in accordance with paragraph (b)(1) of this section, or no longer valid or not warranting further action in accordance with paragraph (b)(3) of this section. A Federal agency with oversight for an auditee may reassign oversight to another Federal agency that agrees to be the oversight agency for audit. 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. (e) Endowment funds. Single Audit Requirements Your First Single Audit, What Do Single Audit: Understanding the Requirements U.S. Department of Health & Human Services (6) Identification of questioned costs and how they were computed. Single Audit Questions and Answers | BDO Insights | BDO Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). 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. 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. are applicable. (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. Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards. 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. "Published Edition". 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. Requirements under a single audit When is a single audit required? 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. 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. In Why is it called a single audit? 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. 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. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49574, Aug. 13, 2020]. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with 200.511(b) materially misrepresents the status of any prior audit finding. 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. (f) Percentage of coverage rule. Single Audit Requirements | Guidance Portal - HHS.gov 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. WebQ-10. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. 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. If you receive $750k in federal grants and expend $300k one year and $450k the next, the Single Audit trigger may not have been reached. Should we get an audit if we are not required to have a Single Audit? (h) Electronic filing. guide. (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. For example, a new Federal program with new or interim regulations may have higher risk than an established program with time-tested regulations. Identified Q&As 61. 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. > About For a cluster of programs also provide the total for the cluster. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. An auditor who prepares the indirect cost proposal or cost allocation plan may not also be selected to perform the audit required by this part when the indirect costs recovered by the auditee during the prior year exceeded $1 million. Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. This is a common question raised by recipients of funds from these programs. (d) Submission to FAC. The management decision must clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. 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. Audits to determine efficiency and economy. The official, published CFR, is updated annually and available below under (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. 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. Audit Requirements | HRSA Before sharing sensitive information, make sure youre on a federal government site. (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. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. Websingle audit conducted for that year. (a) General. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken. If an organization expends over $750,000 in federal funding as a recipient or subrecipient in a given fiscal year, the organization is required to have a Single Audit. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. (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. Single Audit (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. Pages 13. (iii) A management decision was not issued. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. The auditee is responsible for follow-up and corrective action on all audit findings. (1) Weaknesses in internal control over Federal programs would indicate higher risk. The Federal awarding agency must then promptly confirm to the auditee whether it wants the program audited as a major program. If you would like to comment on the current content, please use the 'Content Feedback' button below for instructions on contacting the issuing agency. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. Consideration should be given to the control environment over Federal programs and such factors as the expectation of management's adherence to Federal statutes, regulations, and the terms and conditions of Federal awards and the competence and experience of personnel who administer the Federal programs. (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. 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. 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. This governmentwide audit quality project must be performed once every 6 years (or at such other interval as determined by OMB), and the results must be public. (ii) Perform testing of internal control as planned in paragraph (c)(3)(i) of this section. The single audit requirement applies to What is a single audit? A nonprofit or governmental organization with federal expenditures in excess of $750,000 is required by law to have a single audit performed, which includes an audit of both the financial statements and the federal awards. (1) The nature of a Federal program may indicate risk. Basis for determining Federal awards expended. Significant problems or quality issues consistently identified through quality control reviews of audit reports must be referred to appropriate state licensing agencies and professional bodies. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. 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. The following steps are involved to determine if an entity is required to have a single audit: Verification of relationship determination as While not required, the Federal agency or pass-through entity may also issue a management decision on findings relating to the financial statements which are required to be reported in accordance with GAGAS. guidance on single audit requirements 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. (g) FAC responsibilities. A program-specific audit may not be elected for R&D unless all of the Federal awards expended were received from the same Federal agency, or the same Federal agency and the same pass-through entity, and that Federal agency, or pass-through entity in the case of a subrecipient, approves in advance a program-specific audit. 200.504 Frequency of audits. The eCFR is displayed with paragraphs split and indented to follow Single Audit Requirement. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. If you need assistance accessing an accessible version of this document, please reach out to the guidance@hhs.gov. (a) Audit required. (ix) A statement as to whether the auditee qualified as a low-risk auditee under 200.520. SEFA vs. SF-SAC). Total Federal awards expended times .0015. Single Audit . (4) A statement of cause that identifies the reason or explanation for the condition or the factors responsible for the difference between the situation that exists (condition) and the required or desired state (criteria), which may also serve as a basis for recommendations for corrective action. A single audit is the default requirement. None of the federal funds require an audit that includes financial statements. Learn more about the eCFR, its status, and the editorial process. 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. (v) Advise the auditor, Federal awarding agencies, and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective action by the auditor. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49573, Aug. 13, 2020]. (1) In addition to the requirements of GAGAS, the auditor must determine whether the auditee has complied with Federal statutes, regulations, and the terms and conditions of Federal awards that may have a direct and material effect on each of its major programs.