(b) Single audit. Demystifying the Single Audit for Nonprofits (b) Audit finding detail and clarity. (c) Oversight exercised by Federal agencies and pass-through entities. 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). 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. Single Audit 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. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMBCircular A-133. (i) A Federal program administered under multiple internal control structures may have higher risk. (c) A report on compliance for each major program and a report on internal control over compliance. (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. (v) Advise the auditor, Federal awarding agencies, and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective action by the auditor. Single Audit (10) Views of responsible officials of the auditee. (2) In addition to the requirements of GAGAS, the auditor must perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs. This is a common question raised by recipients of funds from these programs. (b) Program-specific audit guide not available. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. Web 200.501 Audit requirements. The eCFR is displayed with paragraphs split and indented to follow 31 USC Ch. 75: REQUIREMENTS FOR SINGLE AUDITS 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. We are in the process of retroactively making some documents accessible. 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. (eg: Receive the latest updates from the Secretary, Blogs, and News Releases. Choosing an item from All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. 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. New Federal Guidance for Auditing ARPA SLFRF With no significant (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. Programs which do not meet the $750,000 threshold are not required to engage in audit services. (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. Requirements under a single audit When is a single audit required? Washington, D.C. 20201 Toll Free Call Center: 1-877-696-6775, Content created by DATA Act Program Management Office (DAP), U.S. Department of Health & Human Services, Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of the Assistant Secretary for Financial Resources (ASFR), has sub items, about Office of Finance (OF), Chief Financial Officers and Services Contacts, has sub items, about Office of Grants (OG), Division of Policy, Oversight, and Evaluation (DPOE), has sub items, about Office of Acquisitions (OA), The Office of Small and Disadvantaged Business Utilization (OSDBU), Grants Quality Service Management Office (QSMO), Common Data Element Repository (CDER) Library, Consolidated Federal Financial Reporting (FFR), Notice of Award Proof Concept (NOA-POC). (2) Provide technical advice and counsel to auditees and auditors as requested. 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. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. (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. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. 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. Single Audit Requirements This document is available in the following developer friendly formats: Information and documentation can be found in our FAR). user convenience only and is not intended to alter agency intent [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. (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. Single Audit Questions and Answers | BDO Insights | BDO 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. 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. Single Audit Single Audit (2) The auditee must prepare the financial statement(s) for the Federal program that includes, at a minimum, a schedule of expenditures of Federal awards for the program and notes that describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the requirements of 200.511(b), and a corrective action plan consistent with the requirements of 200.511(c). (3) Known questioned costs that are greater than $25,000 for a type of compliance requirement for a major program. D. (f) Percentage of coverage rule. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. Single Audit Requirements for Nonprofits Receiving Federal Funds is available with paragraph structure matching the official CFR 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. (c) Reporting package. (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. Understanding Your Reporting / Audit Requirements Single Audit The management decision should describe any appeal process available to the auditee. Although the Single Auditrequirement applies to most of the CARES Act funds and programs, you should review the Assistance Listing, available at This risk-based approach must include consideration of: current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. Single Audit Requirements for Nonprofit Organizations that 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. 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. (b) Summary schedule of prior audit findings. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. (c) Corrective action plan. Prior to commencing such an audit, the Federal agency or pass-through entity must review the FAC for recent audits submitted by the non-Federal entity, and to the extent such audits meet a Federal agency or pass-through entity's needs, the Federal agency or pass-through entity must rely upon and use such audits. WebThe single audit requirement applies to: a. (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). will also bring you to search results. CARES Act and M -20-21 - CFO Single Audit Learn more about the eCFR, its status, and the editorial process. Should we get an audit if we are not required to have a Single Audit? 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 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. This single audit 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. Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. (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. When assessing risk in a large single audit, the auditor must consider whether weaknesses are isolated in a single operating unit (e.g., one college campus) or pervasive throughout the entity. 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. 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. Medical Device Single Audit Program Schedule of Expenditures of Federal Awards (SEFA (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. "Published Edition". 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. A separate drafting site Criteria provide a context for evaluating evidence and understanding findings. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020]. 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). 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. (c) Loan and loan guarantees (loans) at IHEs. The official, published CFR, is updated annually and available below under WebAn auditee may simultaneously be a recipient, a subrecipient, and a contractor. 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. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. The audit must be conducted in accordance with GAGAS. Webprinciples, and single audit requirements contained in the . The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. (3) The inclusion of large loan and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. (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. (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. (iii) Responsible for designating the Federal agency's key management single audit liaison. 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. (h) For-profit subrecipient. 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. 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. (f) Subrecipients and contractors. (c) Program-specific audit election. (c) Federal awarding agency responsibilities. B. c. Most audits of state and local governments expending federal grant funds. 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. Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. Non-federal entities typically include states, local governments, Indian tribes, universities, and non-profit organizations. (c) Program-specific audit The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. WebThe Single Audit, typically performed annually, is intended to ensure an organization is using its federal funds correctly and is in compliance with all applicable For specific questions and information concerning the submission process: HHS is committed to making its websites and documents accessible to the widest possible audience, (a) 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. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit. Single Audit Requirements | Guidance Portal - HHS.gov (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. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. Total views 100+ DeVry University, Keller Graduate School of Management. 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. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information. (2) Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program. authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically 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. (a) General. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49572, Aug. 13, 2020]. 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. 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 Before sharing sensitive information, make sure youre on a federal government site. B. - 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. 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. 2021 Single Audit Guidance Web20. developer resources. The Single Audit test model examines non-federal entity post-award reporting requirements under the Single Audit Act. Existing awards that do not receive additional funding will continue to be administered by the terms and conditions in effect at the time of the original award. > Data Act Program Management Office For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be of higher risk. 200.519 Criteria for Federal program risk. (Your Answer) D. Financial and performance audits, and attestation engagements. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014; 85 FR 49574, Aug. 13, 2020]. 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. The Electronic Code of Federal Regulations (eCFR) is a continuously updated online version of the CFR. (e) Request for a program to be audited as a major program. (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. Auditors are to apply judgement in designing audit procedures. Please do not provide confidential the hierarchy of the document. OMB will provide this identification in the compliance supplement. 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. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. 200.506 Audit costs. An official website of the United States government. Total Federal awards expended times .003. including individuals with disabilities. Single Audit for Beginners: 10 FAQs