The FAC website can be found at: https://facweb.census.gov/ I understand and acknowledge the above federal audit Programs which do not meet the $750,000 threshold are not required to engage in audit services. (c) A report on compliance for each major program and a report on internal control over compliance. 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. WebA Single Audit is an audit of compliance with compliance requirements defined by the Office of Management and Budget every year in the OMB Compliance Supplement. (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. c. (2) Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program. 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 (v) Report any audit findings consistent with the requirements of 200.516. The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. > ASFR 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. will bring you directly to the content. The Single Audit Act of 1984 standardized audits for states, local and tribal (d) Other sections of this part may apply. (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. The official, published CFR, is updated annually and available below under We are in the process of retroactively making some documents accessible. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at (a) A state, local government, or Indian tribe that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo its audits pursuant to this part biennially. here. (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. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 200.502. The financial statements must be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. 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. (h) Auditor's judgment. This audit requirement applies to audits of non-federal entity fiscal years beginning on or after December 26, 2014. 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). A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. (4) Provide OMB annual updates to the compliance supplement and work with OMB to ensure that the compliance supplement focuses the auditor to test the compliance requirements most likely to cause improper payments, fraud, waste, abuse or generate audit finding for which the Federal awarding agency will take sanctions. authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (c) Corrective action plan. Within 30 calendar days after any reassignment, both the old and the new cognizant agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. The administrative requirements and cost principles are effective for new awards and to additional funding on existing awards as of December 26, 2014. This is a common question raised by recipients of funds from these programs. Issued by: Administration for Children and Families (ACF). (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. The management decision should describe any appeal process available to the auditee. (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. formatting. 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. contact the publishing agency. (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. The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. 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. As part of this responsibility, the auditee must prepare a summary schedule of prior audit findings. For those Federal programs not covered in the compliance supplement, the auditor must follow the compliance supplement's guidance for programs not included in the supplement. (b) Data collection. Basis for determining Federal awards expended. For example, requirements that may be applicable under the FAR or CAS and the terms and conditions of a cost-reimbursement contract may include additional applicable audits to be conducted or arranged for by Federal agencies. - 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. learn more about the process here. See also 200.332. 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. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). WebQ-10. None of the federal funds require an audit that includes financial statements. (b) Financial statements. WebSingle Audit Extension 45 CFR Part 75, Subpart F, requires recipients expending $750,000 or more in Federal awards during their Fiscal Years to complete Single Audits and Before 1984, each federal grantmaking agency was required to carry out its own audit. 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 The auditee must also prepare a corrective action plan for current year audit findings. When is an audit required? A business must have its 401k plan audited if they have 100 or more eligible plan participants. However, a specific rule called the 80-120 rule allows a company to postpone an audit until it begins a plan year with 121 or more eligible participants. 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. 2 CFR part 200 Subpart F-Audit Requirements. 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. For a cluster of programs also provide the total for the cluster. on the guidance repository, except to establish historical facts. (d) The auditor did not report a substantial doubt about the auditee's ability to continue as a going concern. (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. 200.503 Relation to other audit requirements. In requesting proposals for audit services, the objectives and scope of the audit must be made clear and the non-Federal entity must request a copy of the audit organization's peer review report which the auditor is required to provide under GAGAS. (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. (iii) A management decision was not issued. (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. 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. 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. However, the auditee is responsible for ensuring compliance for procurement transactions which are structured such that the contractor is responsible for program compliance or the contractor's records must be reviewed to determine program compliance. 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. (4) For biennial audits permitted under 200.504, the determination of Type A and Type B programs must be based upon the Federal awards expended during the two-year period. 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. 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. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. (iii) Responsible for designating the Federal agency's key management single audit liaison. Where practical, audit findings should be organized by Federal agency or pass-through entity. (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. (a) Audit required. Except for the provisions for biennial audits provided in paragraphs (a) and (b) of this section, audits required by this part must be performed annually. 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. (b) Schedule of expenditures of Federal awards. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49570, Aug. 13, 2020]. (2) Federal agencies, with the concurrence of OMB, may identify Federal programs that are higher risk. 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. For example, a new Federal program with new or interim regulations may have higher risk than an established program with time-tested regulations. 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. 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. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. The process in paragraphs (b) through (h) of this section must be followed. (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. > Agencies (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with 200.510. 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. 200 Independence Avenue, S.W. This obligation [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. 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. These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. (e) Nothing in this part precludes combining of the audit reporting required by this section with the reporting required by 200.512(b) when allowed by GAGAS and appendix X to this part. (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. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. (d) Submission to FAC. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. (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. Reduces compliance costs for non-federal entities. If the auditee meets the criteria in 200.520, the auditor need only 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 20 percent (0.20) of total Federal awards expended. Financial audits of all not-for-profit entities. 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. (3) Any interest subsidy, cash, or administrative cost allowance received. An official website of the United States government. An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal 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. For those grants, the US Department of In reporting questioned costs, the auditor must include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. (3) The phase of a Federal program in its life cycle at the auditee may indicate risk. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. 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. Uses stakeholder feedback to inform changes. Does the Single Audit requirement apply to CARES Act funding? (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. Navigate by entering citations or phrases 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. 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. Non-federal entities typically include states, local governments, Indian tribes, universities, and non-profit organizations. Single Audit . A separate drafting site The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. All audits of state and local government (c) Program-specific audit election. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. Known questioned costs must be identified by applicable Assistance Listings number(s) and applicable Federal award identification number(s). (10) Views of responsible officials of the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. 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. 2. Displaying title 2, up to date as of 3/02/2023. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. To sign up for updates or to access your subscriber preferences, please enter your contact information below. 1 CFR 1.1 (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. 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 However, the auditor is not required to identify more high-risk Type B programs than at least one fourth the number of low-risk Type A programs identified as low-risk under Step 2 (paragraph (c) of this section). If you have questions for the Agency that issued the current document please contact the agency directly. (4) Corrective action plan discussed in 200.511(c). (f) Percentage of coverage rule. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Solutions available. 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. Organization and Purpose Pages 13. (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. It is intended to provide assurance to the Federal Government that a non-federal entity has adequate internal controls in place, and is generally in compliance with program requirements. 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. (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). 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. 200.520 Criteria for a low-risk auditee. (2) Provide technical advice and counsel to auditees and auditors as requested. (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. 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. Search & Navigation Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. c. Most audits of state and local governments expending federal grant funds. (d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part. HUD and HUD OIGs role in Single Audits HUD provides assistance to independent public accountants who have questions on HUD program requirements and procedures. (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. (e) Endowment funds. 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). The auditor must also determine whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole. 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. 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.