the single audit requirement applies to: the single audit requirement applies to:

If the auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan must include an explanation and specific reasons. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. (f) Free rent. > Data Act Program Management Office Single audits under the Uniform Guidance cover an organizations entire financial operations and are substantially more detailed than a regular independent audit. A single audit is the default requirement. are applicable. A pass-through entity may use the provisions of this paragraph for a subrecipient. Basis for determining Federal awards expended. Management decisions must include the reference numbers the auditor assigned to each audit finding in accordance with 200.516(c). 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. 200 Independence Avenue, S.W. 450b(l)) may opt not to authorize the FAC to make the reporting package publicly available on a Web site, by excluding the authorization for the FAC publication in the statement described in paragraph (b)(1) of this section. 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. Programs which do not meet the $750,000 threshold are not required to engage in audit services. As provided in 200.332(d), the pass-through entity must be responsible for issuing a management decision for audit findings that relate to Federal awards it makes to subrecipients. c. (a) Audit findings reported. 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. Washington, D.C. 20201 [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. However, free rent received as part of a Federal award to carry out a Federal program must be included in determining Federal awards expended and subject to audit under this part. 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. WebApplicable non-federal entity recipients performing a single audit will submit the data collection form (SF-SAC), and the Single Audit reporting package through the The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. (2) To provide for continuity of cognizance, the determination of the predominant amount of direct funding must be based upon direct Federal awards expended in the non-Federal entity's fiscal years ending in 2019, and every fifth year thereafter. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization. The balance of loans for previous audit periods is not included as Federal awards expended because the lender accounts for the prior balances. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. 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. (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. In The single audit requirement applies to Understanding Single Audits - Office of Inspector General, U.S (2) Notwithstanding paragraph (c)(1) of this section, OMB may approve a Federal awarding agency's request that a Type A program may not be considered low risk for a certain recipient. (f) Subrecipients and contractors. Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). If so, a single audit will be required, in addition to your financial statement audit. 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. 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. 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). Required components of an audit include such things as financial statements and records, expenditures, and internal controls. Learn more about the eCFR, its status, and the editorial process. 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. (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. (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. 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. For a cluster of programs also provide the total for the cluster. (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. The auditee is responsible for follow-up and corrective action on all audit findings. It is not an official legal edition of the CFR. 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 The auditor must consider criteria, such as described in paragraphs (b), (c), and (d) of this section, to identify risk in Federal programs. (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. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. > About (4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended. Auditees must keep one copy of the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section on file for three years from the date of submission to the FAC. 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). [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. (e) Request for a program to be audited as a major program. 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. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. 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. WebThe single audit requirement applies to: a. This is an automated process for Does the Single Audit requirement apply to CARES Act funding? (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. Where there have been changes to the compliance requirements and the changes are not reflected in the compliance supplement, the auditor must determine the current compliance requirements and modify the audit procedures accordingly. As required in 200.512(b)(3), the auditor must complete and sign specified sections of the data collection form. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. 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. (2) Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program. 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. 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. 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. The Uniform Grant Guidance does not apply to grant awards made before December 26, 2014. 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 FAC is the repository of record for subpart F of this part reporting packages and the data collection form. 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). (1) The compliance supplement provides guidance on internal controls over Federal programs based upon the guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States and the Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 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. 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. (c) Corrective action plan. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. (d) The auditor did not report a substantial doubt about the auditee's ability to continue as a going concern. All audits of state and local government will bring you to those results. The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. is available with paragraph structure matching the official CFR - 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. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. If an NFP receives and spends a minimum amount from the federal government in a given year, it must conduct a single audit for that year. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed twenty-five percent (0.25) of the Type A threshold determined in Step 1 (paragraph (b) of this section). (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. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal funds on one federal program, except for R&D (see below). All audits of state and local government Federal award compliance requirements normally do not pass through to contractors. This single audit [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. 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. (e) Audit follow-up. This is a common question raised by recipients of funds from these programs. (c) Oversight exercised by Federal agencies and pass-through entities. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. > ASFR user convenience only and is not intended to alter agency intent 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. 200.520 Criteria for a low-risk auditee. Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of peer and external quality control reviews, and price. (4) The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. 3515. (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. 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. 49 CFR 172.101 eCFR :: 2 CFR Part 200 Subpart F -- Audit Requirements A non-Federal entity that expends less than $750,000 during the non-Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in 200.503, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO). information or personal data. 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. (g) Compliance responsibility for contractors. If you have questions or comments regarding a published document please (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. SEFA vs. SF-SAC). 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. Single Audit . WebAn auditee may simultaneously be a recipient, a subrecipient, and a contractor. (1) The auditor must identify the larger Federal programs, which must be labeled Type A programs. 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. Single Audit Requirements for Nonprofits Receiving Federal Funds (2) The principal compliance requirements applicable to most Federal programs and the compliance requirements of the largest Federal programs are included in the compliance supplement. (a) Determining Federal awards expended. Choosing an item from WebThe Single Audit Act was enacted to standardize the requirements for auditing federal programs. (d) Federal agency to pay for additional audits. 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. 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. Audit findings must be presented in sufficient detail and clarity for the auditee to prepare a corrective action plan and take corrective action, and for Federal agencies and pass-through entities to arrive at a management decision. The auditor must use a risk-based approach to determine which Federal programs are major programs. (Your Answer) D. Financial and performance audits, and attestation engagements. The (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. (e) Reference numbers. (3) Federal programs not recently audited as major programs may be of higher risk than Federal programs recently audited as major programs without audit findings. HHS/ACF has implemented the Uniform Guidance at 45 CFR 75Visit disclaimer page. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. single audit in your future (e) Requests for management letters issued by the auditor. Please do not provide confidential "Published Edition". Single Audit Title 2 was last amended 3/01/2023. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. This content is from the eCFR and may include recent changes applied to the CFR. FAR). (f) Percentage of coverage rule. 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. The provisions of this part do not authorize any non-Federal entity to constrain, in any manner, such Federal agency from carrying out or arranging for such additional audits, except that the Federal agency must plan such audits to not be duplicative of other audits of Federal awards. 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. (a) Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in 200.512. 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 (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. B. 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. CARES Act and M -20-21 - CFO 200 Independence Avenue, S.W. (b) Single audit. 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. The Single Audit Act of 1984 standardized audits for states, local and tribal 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. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal (vii) Ensure the Federal awarding agency provides annual updates of the compliance supplement to OMB. 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. Home HHS/ACF 200.502 Basis for determining Federal awards expended. Criteria provide a context for evaluating evidence and understanding findings. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. (a) General. Demystifying the Single Audit for Nonprofits (2) Provide technical advice and counsel to auditees and auditors as requested. The auditor's report(s) may be in the form of either combined or separate reports and may be organized differently from the manner presented in this section. Receive the latest updates from the Secretary, Blogs, and News Releases. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug. 13, 2020]. Reduces compliance costs for non-federal entities. The auditee must electronically submit to the FAC the data collection form described in paragraph (b) of this section and the reporting package described in paragraph (c) of this section. (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. 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. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. Medical Device Single Audit Program (g) FAC responsibilities. 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. Web 200.501 Audit requirements. (3) Such additional programs as may be necessary to comply with the percentage of coverage rule discussed in paragraph (f) of this section. (10) Views of responsible officials of the auditee. The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, New Federal Guidance for Auditing ARPA SLFRF A single audit is the default requirement. 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. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. (1) Weaknesses in internal control over Federal programs would indicate higher risk. The auditor must retain audit documentation and reports for a minimum of three years after the date of issuance of the auditor's report(s) to the auditee, unless the auditor is notified in writing by the cognizant agency for audit, oversight agency for audit, cognizant agency for indirect costs, or pass-through entity to extend the retention period. result, it may not include the most recent changes applied to the CFR. (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 corrective action plan and summary schedule of prior audit findings must include findings relating to the financial statements which are required to be reported in accordance with GAGAS. Exceed $10 billion but less than or equal to $20 billion. (g) Valuing non-cash assistance. (3) When a program-specific audit guide is not available, the reporting package for a program-specific audit must consist of the financial statement(s) of the Federal program, a summary schedule of prior audit findings, and a corrective action plan as described in paragraph (b)(2) of this section, and the auditor's report(s) described in paragraph (b)(4) of this section.