(g) Documentation of risk. (4) Corrective action plan discussed in 200.511(c). 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. Single Audit Requirements. 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. 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. 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. contact the publishing agency. This may require the auditor to audit more programs as major programs than the number of Type A programs. The auditor should report whether the sampling was a statistically valid sample. (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. d. Only those governments and not-for-profit entities that are audited by a federal audit agency. (b) Any nonprofit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo its audits pursuant to this part biennially. 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. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee. This content is from the eCFR and may include recent changes applied to the CFR. Getting the SEFA right is required to determine when a Single Audit is required and, if required, the proper scope of the Single Audit. 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. 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. Web 200.501 Audit requirements. If the auditee has not completed corrective action, a timetable for follow-up should be given. Does the Single Audit requirement apply to CARES Act funding? 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. HHS/ACF The management decision should describe any appeal process available to the auditee. The audit requirements apply to audits of organizations with fiscal years beginning on/after December 26, 2014. 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. (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. (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. 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 audit conducted in accordance with 200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) of this section. 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. (3) Findings and questioned costs for Federal awards which must include audit findings as defined in 200.516(a). The auditor must perform audit follow-up procedures regardless of whether a prior audit finding relates to a major program in the current year. Regulation Y Building on the Single Audit Act of 1984, the 1996 amendments laid out updated audit requirements for organizations and people who receive Federal awards. (f) Free rent. The Code of Federal Regulations (CFR) is the official legal print publication containing the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. 2 CFR part 200 Subpart F-Audit Requirements. c. 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. 200.502 Basis for determining Federal awards expended. (v) Report any audit findings consistent with the requirements of 200.516. 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. The .gov means its official. 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. Federal programs primarily involving staff payroll costs may have high risk for noncompliance with requirements of 200.430, but otherwise be at low risk. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. (h) Electronic filing. (10) Views of responsible officials of the auditee. The Contractor shall retain a licensed certified public accountant, who will prepare an annual Single Audit as required by 31 USC 7501 7507, as well as its implementing regulations under 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Enhanced content is provided to the user to provide additional context. We recommend you directly contact the agency responsible for the content in question. 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. WebAn auditee may simultaneously be a recipient, a subrecipient, and a contractor. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. At a minimum, the auditor must audit all of the following as major programs: (1) All Type A programs not identified as low risk under step two (paragraph (c)(1) of this section). (c) Loan and loan guarantees (loans) at IHEs. (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. 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. Challenges by Federal agencies and pass-through entities must only be for clearly improper use of the requirements in this part. (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). (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. 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. (eg: Background and more details are available in the An NFP may elect to conduct a program-specific audit if it meets the following requirements: It expended all federal Programs which do not meet the $750,000 threshold are not required to engage in audit services. Webprinciples, and single audit requirements contained in the . 49 CFR 172.101 (1) The auditor must identify Type A programs which are low-risk. These requirements may be facilitated by a more streamlined approach for SF-SAC/SEFA reporting. is available with paragraph structure matching the official CFR 1) The Paycheck Protection Program and Employee Retention Tax Credits are not subject to the Single Audit requirement. (h) Auditor's judgment. 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. (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. This single audit user convenience only and is not intended to alter agency intent The Department may not cite, use, or rely on any guidance that is not posted (7) Information to provide proper perspective for judging the prevalence and consequences of the audit findings, such as whether the audit findings represent an isolated instance or a systemic problem. WebSingle Audit Determination. The payments received for goods or services provided as a contractor are not Federal awards. incorporated into a contract. Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. Builds on the concept of developing a central location for non-federal entities to submit all information electronically. Consideration should be given to the control environment over Federal programs and such factors as the expectation of management's adherence to Federal statutes, regulations, and the terms and conditions of Federal awards and the competence and experience of personnel who administer the Federal programs. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC. > ASFR Total Federal awards expended times .003. To sign up for updates or to access your subscriber preferences, please enter your contact information below. This content is from the eCFR and is authoritative but unofficial. 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. 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. 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. (e) Endowment funds. 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. (2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit.