the single audit requirement applies to:

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. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. The auditor must include in the audit documentation the risk analysis process used in determining major programs. This contact form is only for website help or website suggestions. Before sharing sensitive information, make sure youre on a federal government site. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). A listing of current program-specific audit guides can be found in the compliance supplement, Part 8, Appendix VI, Program-Specific Audit Guides, which includes a website where a copy of the guide can be obtained. 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. (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. 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. (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. As required in 200.512(b)(3), the auditor must complete and sign specified sections of the data collection form. (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. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. Criteria generally identify the required or desired state or expectation with respect to the program or operation. Subscribe to: Changes in Title 2 :: Subtitle A :: Chapter II :: Part 200 :: Subpart F. View the most recent official publication: These links go to the official, published CFR, which is updated annually. Search & Navigation Please do not provide confidential (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). (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. (b) Any nonprofit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo its audits pursuant to this part biennially. 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. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. 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. The Single Audit Act of 1984 standardized audits for states, local and tribal If the auditee has not completed corrective action, a timetable for follow-up should be given. (1) The auditor must identify the larger Federal programs, which must be labeled Type A programs. (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. If you have questions for the Agency that issued the current document please contact the agency directly. For those grants, the US Department of This content is from the eCFR and may include recent changes applied to the CFR. 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. In reporting questioned costs, the auditor must include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. (5) The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards. (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. 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. The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. Prior to issuing the management decision, the Federal agency or pass-through entity may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. The audit must be conducted in accordance with GAGAS. 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 Single Audit Requirement. (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. The Contractor shall retain a licensed certified public accountant, who will prepare an annual Single Audit as required by 31 USC 7501 7507, as well as its implementing regulations under 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. the hierarchy of the document. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. 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. Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. Learn more about the eCFR, its status, and the editorial process. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. The eCFR is displayed with paragraphs split and indented to follow In some cases, a program-specific audit guide will be available to provide specific guidance to the auditor with respect to internal controls, compliance requirements, suggested audit procedures, and audit reporting requirements. Financial audits of all not-for-profit entities. The Federal awarding agency must then promptly confirm to the auditee whether it wants the program audited as a major program. 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. OMB will provide this identification in the compliance supplement. 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. If a program under the here. 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) Promptly inform other affected Federal agencies and appropriate Federal law enforcement officials of any direct reporting by the auditee or its auditor required by GAGAS or statutes and regulations. 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 (3) When the auditee believes the audit findings are no longer valid or do not warrant further action, the reasons for this position must be described in the summary schedule. > Data Act Program Management Office "Published Edition". (i) A Federal program administered under multiple internal control structures may have higher risk. (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. (a) Determining Federal awards expended. (8) Identification of whether the audit finding was a repeat of a finding in the immediately prior audit and if so any applicable prior year audit finding numbers. (viii) Support the Federal awarding agency's single audit accountable official's mission. Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. (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. (d) Inherent risk of the Federal program. 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.. A pass-through entity may use the provisions of this paragraph for a subrecipient. 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. Websingle audit conducted for that year. (7) Information to provide proper perspective for judging the prevalence and consequences of the audit findings, such as whether the audit findings represent an isolated instance or a systemic problem. WebGovernments may engage one auditor to audit the primary government and other auditors to audit certain component units a)True b)False True Generally accepted government (6) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 200.414. DISCLAIMER: The contents of this database lack the force and effect of law, except as (h) Electronic filing. Single audits under the Uniform Guidance cover an organizations entire financial operations and are substantially more detailed than a regular independent audit. (a) Audit required. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. Pressing enter in the search box (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. 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. (b) Financial statements. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49574, Aug. 13, 2020]. site when drafting amendatory language for Federal regulations: [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. As a (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. 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. These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. The auditor must 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 200.511(b), 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. 200.502 Basis for determining Federal awards expended. U.S. Department of Health & Human Services Uses stakeholder feedback to inform changes. (d) Submission to FAC. 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. (iv) Advise the community of independent auditors of any noteworthy or important factual trends related to the quality of audits stemming from quality control reviews. 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. WebQ-10. For a cluster of programs also provide the total for the cluster. If the program is to be audited as a major program based upon this Federal awarding agency request, and the Federal awarding agency agrees to pay the full incremental costs, then the auditee must have the program audited as a major program. 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. Guidance on determining Federal awards expended is provided in 45 CFR 75.502. (g) Compliance responsibility for contractors. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. (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. B. The payments received for goods or services provided as a contractor are not Federal awards. (b) Data collection. Criteria provide a context for evaluating evidence and understanding findings. (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). Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. 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. (f) Percentage of coverage rule. 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. Webdefinition. (a) Procure or otherwise arrange for the audit required by this part in accordance with 200.509, and ensure it is properly performed and submitted when due in accordance with 200.512. (iii) Responsible for designating the Federal agency's key management single audit liaison. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). 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). 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. The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Issued by: Administration for Children and Families (ACF). (3) The condition found, including facts that support the deficiency identified in the audit finding. (b) Federal agency. (c) Pass-through entity. (a) General. Has your state, local government or NPO expended federal awards over the threshold for a single audit? Enhanced content is provided to the user to provide additional context. If you would like to comment on the current content, please use the 'Content Feedback' button below for instructions on contacting the issuing agency. Why is it called a single audit? This content is from the eCFR and is authoritative but unofficial. At the completion of the audit, the auditee must prepare, in a document separate from the auditor's findings described in 200.516, a corrective action plan to address each audit finding included in the current year auditor's reports. 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. 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. 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. 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. 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. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. Identified Q&As 61. 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. learn more about the process here. WebQ-10. (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. full text search results (eg: d. Only those governments and not-for-profit entities that are audited by a federal audit agency. (10) Views of responsible officials of the auditee. > Single Audit. (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. 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. 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. 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. 2. (1) Cognizant agency for audit responsibilities. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization.

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