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. 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 the auditee has not completed corrective action, a timetable for follow-up should be given. You are using an unsupported browser. entities that expend $750,000 or more in federal awards in a fiscal year must have a single or program-specific audit conducted for that fiscal year. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49575, Aug. 13, 2020]. Single Audit Requirements. (a) General. 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. (b) Summary schedule of prior audit findings. A single audit is a comprehensive review of an organizations financial activity for a fiscal year. 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. (j) Certain loans provided by the National Credit Union Administration. 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. (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. (c) Reporting package. The Federal awarding agency must then promptly confirm to the auditee whether it wants the program audited as a major program. (3) Any interest subsidy, cash, or administrative cost allowance received. 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. 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. Before 1984, each federal grantmaking agency was required to carry out its own audit. Total Federal awards expended times .003. Any biennial audit must cover both years within the biennial period. 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. incorporated into a contract. (4) Include the total amount provided to subrecipients from each Federal program. Audited in at least one of the two most recent audit periods as a major program. However, the auditor must report a significant deficiency or material weakness in accordance with 200.516, assess the related control risk at the. All audits of state and local government 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. 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 summary schedule of prior audit findings and the corrective action plan must include the reference numbers the auditor assigns to audit findings under 200.516(c). (6) Identification of questioned costs and how they were computed. (1) When a current program-specific audit guide is not available, the auditee and auditor must have basically the same responsibilities for the Federal program as they would have for an audit of a major program in a single audit. (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. (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. When the major program determination was performed and documented in accordance with this Subpart, the auditor's judgment in applying the risk-based approach to determine major programs must be presumed correct. 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 Act was enacted to standardize the requirements for auditing federal programs. Guidance on determining Federal awards expended is provided in 45 CFR 75.502. Notably, OMB also released guidance earlier this year allowing counties that received less than $10 million in Recovery Funds and spent less than $750,000 of non-ARPA federal in a single fiscal year to opt for attestation instead of audit under the Single Audit Act. This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. 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 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 Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee management and the Federal agency or pass-through entity. (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. 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. 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. 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. (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. This requirement must still be in effect for the biennial period. or existing codification. Before sharing sensitive information, make sure youre on a federal government site. [78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49572, Aug. 13, 2020; 86 FR 10440, Feb. 22, 2021]. This contact form is only for website help or website suggestions. (6) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 200.414. (h) Electronic filing. (2) Findings relating to the financial statements which are required to be reported in accordance with GAGAS. 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. Uses stakeholder feedback to inform changes. WebDetermining whether single audit requirements or another federal compliance audit requirement applies to your organization. (e) Request for a program to be audited as a major program. A single audit is the default requirement. (b) Schedule of expenditures of Federal awards. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. Criteria provide a context for evaluating evidence and understanding findings. 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. Web20. (b) Single audit. information or personal data. The auditee must also prepare a corrective action plan for current year audit findings. (ii) Held accountable to improve the effectiveness of the single audit process based upon metrics as described in paragraph (c)(3)(iv) of this section. D. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. 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. Auditees must keep one copy of the data collection form described in paragraph (b) of this section and one copy of the reporting package described in paragraph (c) of this section on file for three years from the date of submission to the FAC. 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) 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. guide. (iii) Responsible for designating the Federal agency's key management single audit liaison. Builds on the concept of developing a central location for non-federal entities to submit all information electronically. (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. 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) When a program-specific audit guide is available, the auditee must electronically submit to the FAC the data collection form prepared in accordance with 200.512(b), as applicable to a program-specific audit, and the reporting required by the program-specific audit guide. The governmentwide project can rely on the current and on-going quality control review work performed by the agencies, State auditors, and professional audit associations. The oversight agency for audit: (1) Must provide technical advice to auditees and auditors as requested. Pay close attention to the cumulative total received, because that threshold applies whether the funds come from one grant or a combination of several smaller awards. If the amount of the EIDL loan in combination with other federal funds exceeds $750,000 in their fiscal year, the nonprofit must complete a Single Audit. (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. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. You can 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. This depends on the type of Federal financial assistance being provided by the Federal agency through the CARES Act. Displaying title 2, up to date as of 3/02/2023. If a program under the In The single audit requirement applies to A. 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. (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. Learn more about the eCFR, its status, and the editorial process. (3) Using the information included in the reporting package described in paragraph (c) of this section, the auditor must complete the applicable data elements of the data collection form. The cognizant agency for audit must: (i) Provide technical audit advice and liaison assistance to auditees and auditors. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. (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. (ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors, and provide the results to other interested organizations. Criteria generally identify the required or desired state or expectation with respect to the program or operation. B. 1 CFR 1.1 (1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be 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. The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. (4) Known questioned costs that are greater than $25,000 for a Federal program which is not audited as a major program. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following: (a) Financial statements. 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. This content is from the eCFR and is authoritative but unofficial. Audit findings must be presented in sufficient detail and clarity for the auditee to prepare a corrective action plan and take corrective action, and for Federal agencies and pass-through entities to arrive at a management decision. (d) The auditor did not report a substantial doubt about the auditee's ability to continue as a going concern. Why is it called a single audit? For specific questions and information concerning the submission process: HHS is committed to making its websites and documents accessible to the widest possible audience, You can learn more about the process 450b(l)) may opt not to authorize the FAC to make the reporting package publicly available on a Web site, by excluding the authorization for the FAC publication in the statement described in paragraph (b)(1) of this section. 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). 78 FR 78608, Dec. 26, 2013, unless otherwise noted. Hypothesis: If non-federal entities do not have to report the same information on duplicative forms (i.e. - 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. It is not an official legal edition of the CFR. Federal auditors may perform all or part of the work required under this part if they comply fully with the requirements of this part. This paragraph does not require the auditor to report publicly information which could compromise investigative or legal proceedings or to make an additional reporting when the auditor confirms that the fraud was reported outside the auditor's reports under the direct reporting requirements of GAGAS. (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. (1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken.