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will bring you directly to the content. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (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. (h) For-profit subrecipient. The requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. Total views 100+ DeVry University, Keller Graduate School of Management. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. The auditor must consider criteria, such as described in paragraphs (b), (c), and (d) of this section, to identify risk in Federal programs. In procuring audit services, the auditee must follow the procurement standards prescribed by the Procurement Standards in 200.317 through 200.327 of subpart D of this part or the FAR (48 CFR part 42), as applicable. 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 or existing codification. (a) Financial statements. The reporting package must include the: (1) Financial statements and schedule of expenditures of Federal awards discussed in 200.510(a) and (b), respectively; (2) Summary schedule of prior audit findings discussed in 200.511(b); (3) Auditor's report(s) discussed in 200.515; and. This single audit Does the Single Audit requirement apply to CARES Act funding? FAR). 200 Independence Avenue, S.W. (4) Known questioned costs that are greater than $25,000 for a Federal program which is not audited as a major program. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. WebQ-10. (viii) Support the Federal awarding agency's single audit accountable official's mission. (c) Pass-through entity. Why is it called a single audit? The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. (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. With no significant The auditee must initiate and proceed with corrective action as rapidly as possible and corrective action should begin no later than upon receipt of the audit report. (f) Free rent. 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). Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. (3) Except as provided in paragraph (c)(4) of this section, the auditor must: (i) Plan the testing of internal control over compliance for major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program; 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 audit conducted in accordance with 200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) of this section. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. (3) Any interest subsidy, cash, or administrative cost allowance received. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. Regulation Y For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. 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. 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. (i) Medicaid. (iii) A management decision was not issued. A single audit is the default requirement. Federal award compliance requirements normally do not pass through to contractors. At a minimum, the auditor must audit all of the following as major programs: (1) All Type A programs not identified as low risk under step two (paragraph (c)(1) of this section). The single audit requirement applies to A. 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. A valid reason for considering an audit finding as not warranting further action is that all of the following have occurred: (i) Two years have passed since the audit report in which the finding occurred was submitted to the FAC; (ii) The Federal agency or pass-through entity is not currently following up with the auditee on the audit finding; and. 200.520 Criteria for a low-risk auditee. (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. Before sharing sensitive information, make sure youre on a federal government site. (3) The condition found, including facts that support the deficiency identified in the audit finding. (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. To allow for planning, such requests should be made at least 180 calendar days prior to the end of the fiscal year to be audited. WebThe single audit requirement applies to A All audits of state and local from ACCT 567 acct 567 at DeVry University, Keller Graduate School of Management Expert Help Study Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. This content is from the eCFR and is authoritative but unofficial. Background and more details are available in the 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. 200.506 Audit costs. Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals are not considered Federal awards expended under this part unless a state requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis. The eCFR is displayed with paragraphs split and indented to follow (c) Program-specific audit WebThe single audit requirement applies to: A. However, non-Federal entity-wide financial statements may also include departments, agencies, and other organizational units that have separate audits in accordance with 200.514(a) and prepare separate financial statements. 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. (b) Schedule of expenditures of Federal awards. This is in addition to the organizations financial statement audit. Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. (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 part of audit follow-up, the Federal awarding agency must: (i) Issue a management decision as prescribed in 200.521; (ii) Monitor the recipient taking appropriate and timely corrective action; (iii) Use cooperative audit resolution mechanisms (see the definition of cooperative audit resolution in 200.1 of this part) to improve Federal program outcomes through better audit resolution, follow-up, and corrective action; and. The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring that could be material to the Federal program. Criteria provide a context for evaluating evidence and understanding findings. (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. (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. 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). The auditee must prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. 49 CFR 172.101 (g) Compliance responsibility for contractors. (b) Audit finding detail and clarity. (d) Inherent risk of the Federal program. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. 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. (d) A schedule of findings and questioned costs which must include the following three components: (1) A summary of the auditor's results, which must include: (i) The type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP (i.e., unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (ii) Where applicable, a statement about whether significant deficiencies or material weaknesses in internal control were disclosed by the audit of the financial statements; (iii) A statement as to whether the audit disclosed any noncompliance that is material to the financial statements of the auditee; (iv) Where applicable, a statement about whether significant deficiencies or material weaknesses in internal control over major programs were disclosed by the audit; (v) The type of report the auditor issued on compliance for major programs (i.e., unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion); (vi) A statement as to whether the audit disclosed any audit findings that the auditor is required to report under 200.516(a); (vii) An identification of major programs by listing each individual major program; however, in the case of a cluster of programs, only the cluster name as shown on the Schedule of Expenditures of Federal Awards is required; (viii) The dollar threshold used to distinguish between Type A and Type B programs, as described in 200.518(b)(1) or (3) when a recalculation of the Type A threshold is required for large loan or loan guarantees; and. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization. Audits to determine efficiency and economy. The federal expenditures that are included on the SEFA are to be based on determining when a are applicable. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49572, Aug. 13, 2020]. 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. Pressing enter in the search box The oversight agency for audit: (1) Must provide technical advice to auditees and auditors as requested. When an auditee expends Federal awards under only one Federal program (excluding R&D) and the Federal program's statutes, regulations, or the terms and conditions of the Federal award do not require a financial statement audit of the auditee, the auditee may elect to have a program-specific audit conducted in accordance with 200.507. 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. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. 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 (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. In reporting questioned costs, the auditor must include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. 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. Unless restricted by Federal statute or regulation, if the auditee opts not to authorize publication, it must make copies of the reporting package available for public inspection. Issued by: Administration for Children and Families (ACF). [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020]. WebSingle Audit Determination. 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. (iii) Known or likely questioned costs that exceed five percent of the total Federal awards expended for the program. You are using an unsupported browser. (3) Known or likely questioned costs that exceeded five percent of the total Federal awards expended for a Type A program during the audit period. WebThe single audit requirement applies to: a. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. (c) Oversight exercised by Federal agencies and pass-through entities. Since this part does not apply to for-profit subrecipients, the pass-through entity is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients. (b) Federal agency. 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). This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. 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