The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. All audits of state and local government c. (2) The auditor is not expected to perform risk assessments on relatively small Federal programs. 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. 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. (g) Compliance responsibility for contractors. 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. formatting. 200.505 Sanctions. The FAC is the repository of record for subpart F of this part reporting packages and the data collection form. (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. Test: Provide non-federal entities with the draft 2016 expanded Single Audit Concept Form (SF-SAC only), and collect participant feedback on a more streamlined approach for SF-SAC/SEFA reporting. 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 payments received for goods or services provided as a contractor are not Federal awards. 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). 200.502 Basis for determining Federal awards expended. Websingle audit conducted for that year. 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. 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. (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. (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. This single audit (c) Loan and loan guarantees (loans) at IHEs. At the completion of the audit, the auditee must prepare, in a document separate from the auditor's findings described in 200.516, a corrective action plan to address each audit finding included in the current year auditor's reports. Singapore's Health Sciences Authority (HSA) From 01 January 2014 to 31 December 2016, FDA, alongside its international partners, participated in a Medical Device Single Audit Program Pilot. (e) Endowment funds. An auditee who does not have a designated cognizant agency for audit will be under the general oversight of the Federal agency determined in accordance with 200.1 oversight agency for audit. (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. (1) The auditor must identify Type B programs which are high-risk using professional judgment and the criteria in 200.519. (6) Identification of questioned costs and how they were computed. (i) A Federal program administered under multiple internal control structures may have higher risk. OMB will provide this identification in the compliance supplement. The SEFA is required to be completed in accordance with the Uniform Guidance (2.CFR.200.502). (1) The auditor must identify Type A programs which are low-risk. (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. Audits to determine efficiency and economy. (b) Data collection. A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. HUD and HUD OIGs role in Single Audits HUD provides assistance to independent public accountants who have questions on HUD program requirements and procedures. (iv) Promote the Federal awarding agency's use of cooperative audit resolution mechanisms. 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. 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 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. WebDiscussion of potential single audit implications and other related guidance expected from OMB 3. (eg: This report must describe the scope of testing of internal control over compliance, include an opinion or disclaimer of opinion as to whether the auditee complied with Federal statutes, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on each major program and refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section. 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. (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. The financial statements and schedule of expenditures of Federal awards must be for the same audit period. (iii) Oversee training for the Federal awarding agency's program management personnel related to the single audit process. 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. (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 a Federal program providing loans exceeds four times the largest non-loan program it is considered a large loan program, and the auditor must consider this Federal program as a Type A program and exclude its values in determining other Type A programs. (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. 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). Where there have been changes to the compliance requirements and the changes are not reflected in the compliance supplement, the auditor must determine the current compliance requirements and modify the audit procedures accordingly. Exceed $10 billion but less than or equal to $20 billion. Federal government websites often end in .gov or .mil. (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. Organization and Purpose (e) Requests for management letters issued by the auditor. The Single Audit requirements, which require a compliance audit in addition to a financial statement audit, apply to state and local governments, Indian tribes, This document is available in the following developer friendly formats: Information and documentation can be found in our A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. Program-specific audits are subject to: (1) 200.500 Purpose through 200.503 Relation to other audit requirements, paragraph (d); (2) 200.504 Frequency of audits through 200.506 Audit costs; (3) 200.508 Auditee responsibilities through 200.509 Auditor selection; (5) 200.512 Report submission, paragraphs (e) through (h); (7) 200.516 Audit findings through 200.517 Audit documentation; (9) Other referenced provisions of this part unless contrary to the provisions of this section, a program-specific audit guide, or program statutes and regulations. 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. Pressing enter in the search box (i) Medicaid. 200.519 Criteria for Federal program risk. This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. WebThe Single Audit is a tool to help program and Tribal management monitor Federal program activities. 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. 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. The cognizant agency for audit must: (i) Provide technical audit advice and liaison assistance to auditees and auditors. [78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75887, Dec. 19, 2014]. This is in addition to the organizations financial statement audit. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk. 2) The Single Audit requirement applies to non-federal entities. Within 30 calendar days after any reassignment, both the old and the new oversight agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. WebThis analysis of the Companies Act explains what audit requirements companies, governments, parastatals and non-profit organisations must comply with in South Africa, from reviews of annual financial statements to classification of companies, audit committee appointments and the prescribed financial reporting standard. (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. 2. Also, when these procurement transactions relate to a major program, the scope of the audit must include determining whether these transactions are in compliance with Federal statutes, regulations, and the terms and conditions of Federal awards. (v) Report any audit findings consistent with the requirements of 200.516. Reduces compliance costs for non-federal entities. (7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with 200.511(b) materially misrepresents the status of any prior audit finding. WebGovernments may engage one auditor to audit the primary government and other auditors to audit certain component units a)True b)False True Generally accepted government 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). (1) Oversight exercised by Federal agencies or pass-through entities could be used to assess risk. The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring that could be material to the Federal program. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. (2) Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. (3) Follow-up on audit findings to ensure that the recipient takes appropriate and timely corrective action. 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. (e) None of the Federal programs had audit findings from any of the following in either of the preceding two audit periods in which they were classified as Type A programs: (1) Internal control deficiencies that were identified as material weaknesses in the auditor's report on internal control for major programs as required under 200.515(c); (2) A modified opinion on a major program in the auditor's report on major programs as required under 200.515(c); or. A single audit is the default requirement. 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. 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. (e) Step four. Receive the latest updates from the Secretary, Blogs, and News Releases. SEFA vs. SF-SAC). (j) Certain loans provided by the National Credit Union Administration. (a) Financial statements. Webjurisdiction was subject to the federal single audit requirements for the current, or the immediately preceding, fiscal year,1 you must attach proof of submission2 of your audit reporting package to the FAC website. 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) General. The Displaying title 2, up to date as of 3/02/2023. (ii) Perform testing of internal control as planned in paragraph (c)(3)(i) of this section. WebThe single audit requirement applies to: A. are applicable. (2) All Type B programs identified as high-risk under step three (paragraph (d) of this section). This requirement must still be in effect for the biennial period. In most cases, the auditee's compliance responsibility for contractors is only to ensure that the procurement, receipt, and payment for goods and services comply with Federal statutes, regulations, and the terms and conditions of Federal awards. (a) Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in 200.512. (ii) Audit findings that relate to both the financial statements and Federal awards, as reported under paragraphs (d)(2) and (d)(3) of this section, respectively, must be reported in both sections of the schedule. 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. The .gov means its official. The auditor must report the following as audit findings in a schedule of findings and questioned costs: (1) Significant deficiencies and material weaknesses in internal control over major programs and significant instances of abuse relating to major programs. (g) Documentation of risk. Please do not provide confidential (a) General. Nothing in this part must preclude electronic submissions to the FAC in such manner as may be approved by OMB. WebThe single audit requirement applies to: a. 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. 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. WebThe single audit requirement applies to: Multiple Choice Most audits of state and local governments expending federal grant funds. Required components of an audit include such things as financial statements and records, expenditures, and internal controls. Choosing an item from (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). For those grants, the US Department of Issued by: Administration for Children and Families (ACF). (2) Prior audit findings would indicate higher risk, particularly when the situations identified in the audit findings could have a significant impact on a Federal program or have not been corrected. (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. Single Audit Requirements. (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. 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. (f) Free rent. 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. 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. Pages 13. (c) Reporting package. The official, published CFR, is updated annually and available below under (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. (e) Reference numbers. (vii) Coordinate a management decision for cross-cutting audit findings (see in 200.1 of this part) that affect the Federal programs of more than one agency when requested by any Federal awarding agency whose awards are included in the audit finding of the auditee. 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. (2) Provide technical advice and counsel to auditees and auditors as requested.