the single audit requirement applies to:
Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. Exceed $10 billion but less than or equal to $20 billion. In reporting questioned costs, the auditor must include information to provide proper perspective for judging the prevalence and consequences of the questioned costs. When corrective action taken is significantly different from corrective action previously reported in a corrective action plan or in the Federal agency's or pass-through entity's management decision, the summary schedule must provide an explanation. 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. 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prior audit findings except audit findings listed as corrected in accordance with paragraph (b)(1) of this section, or no longer valid or not warranting further action in accordance with paragraph (b)(3) of this section. (3) For the compliance requirements related to Federal programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. 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. This contact form is only for website help or website suggestions. (e) Audit follow-up. on the guidance repository, except to establish historical facts. (a) Audit findings reported. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. We are in the process of retroactively making some documents accessible. This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. Does the Single Audit requirement apply to CARES Act funding? (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. If you have comments or suggestions on how to improve the www.ecfr.gov website or have questions about using www.ecfr.gov, please choose the 'Website Feedback' button below. > ASFR 200.520 Criteria for a low-risk auditee. (vi) Organize the Federal cognizant agency for audit's follow-up on cross-cutting audit findings that affect the Federal programs of more than one Federal awarding agency. 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. 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. 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 program-specific audit may not be elected for R&D unless all of the Federal awards expended were received from the same Federal agency, or the same Federal agency and the same pass-through entity, and that Federal agency, or pass-through entity in the case of a subrecipient, approves in advance a program-specific audit. 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. 1/1.1 full text search results The FAC operates on behalf of the OMB. This obligation Discussion: Present the draft expanded Single Audit form and allow participants to comment upon the SF-SAC changes in a live setting. The process in paragraphs (b) through (h) of this section must be followed. Criteria generally identify the required or desired state or expectation with respect to the program or operation. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the. A single audit is the default requirement. Pressing enter in the search box B. This single audit Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. SEFA vs. SF-SAC), then non-federal entity burden will be reduced. 200.503 Relation to other audit requirements. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective internal control. Background and more details are available in the (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. Toll Free Call Center: 1-877-696-6775, Call FAC at the toll-free number: (800) 253-0696. (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. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. (c) Report submission for program-specific audits. This document is available in the following developer friendly formats: Information and documentation can be found in our (e) Requests for management letters issued by the auditor. 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. 200.505 Sanctions. 49 CFR 172.101 (c) Use of Federal auditors. Total Federal awards expended times .0015. c. (3) Any interest subsidy, cash, or administrative cost allowance received. A single audit is the default requirement. 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. Total Federal awards expended times .003. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. Programs which do not meet the $750,000 threshold are not required to engage in audit services. (1) The auditee must submit required data elements described in Appendix X to Part 200, which state whether the audit was completed in accordance with this part and provides information about the auditee, its Federal programs, and the results of the audit. 200.502 Basis for determining Federal awards expended. The Federal awarding agency must perform the following for the Federal awards it makes (See also the requirements of 200.211): (1) Ensure that audits are completed and reports are received in a timely manner and in accordance with the requirements of this part. (f) Data collection form. here. 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. 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. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. You are using an unsupported browser. 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. 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. 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. 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). 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. The federal expenditures that are included on the SEFA are to be based on determining when a Single Audit . In 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. The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. 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. Navigate by entering citations or phrases 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. 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. (b) Single audit. (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. (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. HHS/ACF has implemented the Uniform Guidance at 45 CFR 75Visit disclaimer page. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. 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. 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. An auditee that meets all of the following conditions for each of the preceding two audit periods must qualify as a low-risk auditee and be eligible for reduced audit coverage in accordance with 200.518. An official website of the United States government. A separate drafting site (2) When audit findings were not corrected or were only partially corrected, the summary schedule must describe the reasons for the finding's recurrence and planned corrective action, and any partial corrective action taken. The requirements for a Single Audit are described in OMB 2 CFR 200 subpart F Audit Requirements. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (a) Financial statements. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. (2) Provide technical advice and counsel to auditees and auditors as requested. (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. This report must describe the scope of testing of internal control and compliance and the results of the tests, and, where applicable, it will refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. (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 audit must cover the entire operations of the auditee, or, at the option of the auditee, such audit must include a series of audits that cover departments, agencies, and other organizational units that expended or otherwise administered Federal awards during such audit period, provided that each such audit must encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which must be considered to be a non-Federal entity. 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. 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. All audits of state and local government reporting entities. user convenience only and is not intended to alter agency intent (g) Compliance responsibility for contractors. The auditor must sign a statement to be included as part of the data collection form that indicates, at a minimum, the source of the information included in the form, the auditor's responsibility for the information, that the form is not a substitute for the reporting package described in paragraph (c) of this section, and that the content of the form is limited to the collection of information prescribed by OMB. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. A cluster of programs is treated as one program and the value of Federal awards expended under a loan program is determined as described in 200.502. 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. All audits of state and local government reporting entities. If you work for a Federal agency, use this drafting (c) Reference numbers. (a) An audit conducted in accordance with this part must be in lieu of any financial audit of Federal awards which a non-Federal entity is required to undergo under any other Federal statute or regulation. 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. c. Most audits of state and local governments expending federal grant funds. 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 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. Requirements under a single audit When is a single audit required? 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. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. Should we get an audit if we are not required to have a Single Audit? 78 FR 78608, Dec. 26, 2013, unless otherwise noted. The single audit requirement applies to A. 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. 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. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133. 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 FAC must make available the reporting packages received in accordance with paragraph (c) of this section and 200.507(c) to the public, except for Indian tribes exercising the option in (b)(2) of this section, and maintain a data base of completed audits, provide appropriate information to Federal agencies, and follow up with known auditees that have not submitted the required data collection forms and reporting packages. 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. including individuals with disabilities. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation, as is reasonable and necessary. (e) Endowment funds. 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. are applicable. Builds on the concept of developing a central location for non-federal entities to submit all information electronically. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. (v) Coordinate the Federal awarding agency's activities to ensure appropriate and timely follow-up and corrective action on audit findings. The auditee must also prepare a corrective action plan for current year audit findings. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. 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. [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]. (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. 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. switch to drafting.ecfr.gov. (3) The condition found, including facts that support the deficiency identified in the audit finding. Financial audits of all not-for-profit entities. 200.502 Basis for determining Federal awards expended. Microsoft Edge, Google Chrome, Mozilla Firefox, or Safari. (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. The balance of loans for previous audit periods is not included as Federal awards expended because the lender accounts for the prior balances.
