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. A pass-through entity may use the provisions of this paragraph for a subrecipient. Criteria provide a context for evaluating evidence and understanding findings. The single audit requirement kicks in when a non-federal entity expends $750,000 or more in federal funds in one year. (ii) When significant parts of a Federal program are passed through to subrecipients, a weak system for monitoring subrecipients would indicate higher risk. The requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. When the direct funding represents less than 25 percent of the total expenditures (as direct and subawards) by the non-Federal entity, then the Federal agency with the predominant amount of total funding is the designated cognizant agency for audit. Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. Web 200.501 Audit requirements. (b) Data collection. (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. (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. To sign up for updates or to access your subscriber preferences, please enter your contact information below. Organization and Purpose (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. 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). 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. The data elements and format must be approved by OMB, available from the FAC, and include collections of information from the reporting package described in paragraph (c) of this section. WebThe single audit is generally conducted by an independent certified public accountant or state auditor and is intended to assess whether the recipient spends federal funds properly. All audits of state and local government reporting entities. All audits of state and local government These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. (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 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. 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. The auditor must include in the audit documentation the risk analysis process used in determining major programs. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. (5) The possible asserted effect to provide sufficient information to the auditee and Federal agency, or pass-through entity in the case of a subrecipient, to permit them to determine the cause and effect to facilitate prompt and proper corrective action. A senior level representative of the auditee (e.g., state controller, director of finance, chief executive officer, or chief financial officer) must sign a statement to be included as part of the data collection that says that the auditee complied with the requirements of this part, the data were prepared in accordance with this part (and the instructions accompanying the form), the reporting package does not include protected personally identifiable information, the information included in its entirety is accurate and complete, and that the FAC is authorized to make the reporting package and the form publicly available on a website. (2) Exception for Indian Tribes and Tribal Organizations. (g) Compliance responsibility for contractors. For example, during the first and last years that an auditee participates in a Federal program, the risk may be higher due to start-up or closeout of program activities and staff. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. A non-Federal entity that expends less than $750,000 in Federal awards during the non-Federal entitys fiscal year is exempt from Federal single audit requirements for that year, except as noted in (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. See also 200.332. 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. (b) Single audit. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49573, Aug. 13, 2020]. Total Federal awards expended times .0015. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49571, Aug. 13, 2020]. 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. (b) Access to audit documentation. (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. (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. 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. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. Except for known material weakness in internal control or compliance problems as discussed in 200.519(b)(1) and (2) and (c)(1), a single criterion in risk would seldom cause a Type B program to be considered high-risk. 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. 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. 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. Programs which do not meet the $750,000 threshold are not required to engage in audit services. ACF grantees are responsible for submitting their Single Audit Reports and the Data Collections Forms (SF-FAC) electronically to theto the Federal Audit ClearinghouseVisit disclaimer page (FAC) within the earlier of 30 days after receipt or nine months after the FYs end of the audit period. Builds on the concept of developing a central location for non-federal entities to submit all information electronically. The federal expenditures that are included on the SEFA are to be based on determining when a Webprinciples, and single audit requirements contained in the . 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. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). (c) Program-specific audit election. A separate drafting site In making this determination, the auditor must consider whether the requirements in 200.519(c), the results of audit follow-up, or any changes in personnel or systems affecting the program indicate significantly increased risk and preclude the program from being low risk. If you have questions or comments regarding a published document please The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. 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. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken. This may require the auditor to audit more programs as major programs than the number of Type A programs. For a cluster of programs also provide the total for the cluster. (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. (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). Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. (g) Documentation of risk. The auditee is responsible for follow-up and corrective action on all audit findings. Home WebThe single audit requirement applies to A All audits of Doc Preview. The management decision must clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. site when drafting amendatory language for Federal regulations: (9) Recommendations to prevent future occurrences of the deficiency identified in the audit finding. Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. Single Audit Requirements. The cumulative balance of Federal awards for endowment funds that are federally restricted are considered Federal awards expended in each audit period in which the funds are still restricted. Subject to OMB Uniform Guidance in CFR Part 200, nonfederal entities that have expended federal funds of $750,000 or more during the fiscal year are required to have a single audit performed on those funds. 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. 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. Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. the hierarchy of the document. The auditor should report whether the sampling was a statistically valid sample. (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. (1) The audit must be completed and the reporting required by paragraph (c)(2) or (c)(3) of this section submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a different period is specified in a program-specific audit guide. Equal to or exceed $750,000 but less than or equal to $25 million, Exceed $25 million but less than or equal to $100 million, Exceed $100 million but less than or equal to $1 billion, Exceed $1 billion but less than or equal to $10 billion. 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. 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. (e) Endowment funds. 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. 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. 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. The eCFR is displayed with paragraphs split and indented to follow (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. 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. 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. The corrective action plan must provide the name(s) of the contact person(s) responsible for corrective action, the corrective action planned, and the anticipated completion date. The following specific information must be included, as applicable, in audit findings: (1) Federal program and specific Federal award identification including the Assistance Listings title and number, Federal award identification number and year, name of Federal agency, and name of the applicable pass-through entity. Known questioned costs are those specifically identified by the auditor. 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.