ARRA Impact on State Government and Audit Issues. Presented by Rich Gilbert and Steve Blake. American Recovery and Reinvestment Act (ARRA) of 2009. Statement of Purpose: To preserve and create jobs and promote economic recovery To assist those most impacted by the recession
Rich Gilbert and Steve Blake
Statement of Purpose:
ARRA funded programs are consider Received
“High Risk”+ARRA Impact on Single Audit
Recipients must maintain records that identify the source and application of ARRA funds.
Recipients must separately identify the ARRA expenditures on the SEFA and Data Collection FormSchedule of Expenditures of Federal Awards (SEFA)
Recipients must notify subrecipients of the following: and application of ARRA funds.
Federal award number, CFDA number and amount of ARRA funds.
Subrecipient must separately account for ARRA funds and separately report ARRA expenditures on its SEFA
Subrecipient must separately report ARRA expenditures on the SEFARecipients Responsibility
Major Program identification is the auditor’s responsibility
The auditor shall use a risk-based approach to determine which Federal programs are major programs.
The auditor shall audit as major programs Federal programs with Federal awards expended that, in the aggregate, encompass at least 50 percent of total Federal awards expended.Major Program Determination
Dollar Threshold – $19,792,452 responsibility
Major Programs – 21
Qualified Opinion on Compliance – 62009 Major Programs
STARS Expenditures – $6,652,392,728 responsibility
Agency SFFA – $7,731,432,598
Type A Program Range –
$19,957,178 to $23,194,298
Major Programs – Type A – 19; Type B - 32010 Major Programs
Major Program identification is auditor responsibility responsibility
Impact on “Large” Loan balances [i.e. FFEL and Direct Lending]
Exclude the entire cluster if loan program determined to be large
Impact – much lower trigger for Type A program determination.Major Program Determination