Agenda Module I • Introduction • Overview of the A-133 Audit • Schedule of Expenditures of Federal Awards • Authoritative Literature and Resources
Module I Single Audit Overview
Entities Subject to A-133 Audit • An entity is subject to the A-133 Audit if it spends US$500,000 or more in federal awards • States and local governments • Non-profit organizations • Higher education institutions • Hospitals
Determining When a Federal Award Is Expended • Amount of federal awards expended is the basis for determining if A-133 audit is required • Based on when the activities that require compliance with laws, regulations and the provisions of the contracts or grant agreement takes place • Definition of expenditure may differ from GAAP
Schedule of Expenditures of Federal Awards (SEFA) • Auditee’s responsibility to prepare • List of individual federal programs by federal agency • Federal awards received as a subrecipient • Name of pass-through entity • Identifying number assigned by the pass-through entity • Total federal awards expended by program • Catalog of Federal Domestic Assistance (CFDA) number or other identifying number • Amount of pass-through awards from each federal program • Noncash awards in either the schedule or a note to the schedule • Include notes that describe the significant accounting policies used in preparing the schedule • Accrual or other disclosed basis of accounting
SEFA Example XYZ Foundation/Campus Schedule of Expenditure of Federal Awards For the Fiscal Year Ended June 30, 2008 CFDA # Pass-Through Id#Expenditure U.S. Department of Agriculture Direct Programs: Food Donation 10.550 $1,000,000 Passed through the State Department of Education: Child and Adult Care Food Program 10.558 C-104622 $ 500,000 Total U.S. Department of Agriculture $1,700,000 U.S. Department of Justice Passed through the State Department of Corrections: Juvenile Accountability Incentive Block Grant 16.523 2007TFEKI8954 $ 100,000 Local Law Enforcement Block Grants 16.592 2006SHWX0688 $2,000,000 Total U.S. Department of Justice $2,100,000
SEFA – YES Reporting Package Schedule of Expenditure of Federal Awards For the Fiscal Year Ended June 30, 2008 • Student Financial Assistance Cluster • Additional Programs • For #1 and 2 above, each entity is Required to list: • CFDA #, • Federal Expenditures, • Federal Grantor Agency, • Pass-Through Agency, • Pass-Through Entity Identifying Number and • Amounts Provided to Subrecipients • Federal Perkins Loan Program Information (e.g., Total borrowers not in repayment status, borrows on schedule in repayment status, borrowers in default, etc.) • Administrative Cost Allowances • Federal Perkins Loan Program • Federal Supplemental Educational Grant Program • Federal Work-Study Program
Authoritative Literature • Office of Management and Budget (OMB) Circular A-133 • The OMB can be obtained through the Internet at http://www.whitehouse.gov/omb/circulars/index.html • Cost Principles • OMB Circular A-21—Higher Educational Institutions • OMB Circular A-87—State & Local Governments • OMB Circular A-122—Non-Profit Organizations • Health and Human Services at 45 CFR Part 74 Appendix E - Hospitals
Authoritative Literature (Continued) • Administrative Requirements • OMB Circular A-110 – Non-Profit, Higher Education & Hospitals • A-102 Common Rule – State and Local Government • CFR references for specific agency A-102 requirements in OMB A-133 Compliance Supplement (Appendix 2) • Education 34 CFR 80 • Health and Human Services 45 CFR 92 • Agriculture 7 CFR 3016
Other Program Information CFDA • The Catalog of Federal Domestic Assistance (CFDA) contains background information and a brief description of some of the major requirements for each federal program. • Each program in the CFDA has a federally assigned index number (CFDA number) to identify itself. • Among other things, each program listing includes: • Name of the federal awarding agency • Statutory and regulatory cites • Program objectives (usually derived from legislative language) • Type of assistance (financial, non-financial) • Use and use restrictions • Eligibility requirements and the methods used to ensure they are met • Formula and matching requirements • Reporting and recordkeeping requirements • The CFDA can be found through the Internet at http://www.cfda.gov/.
Other Program Information CFR • The Code of Federal Regulations (CFR) is a multivolume manual which represents the actual laws placed in effect by the federal government related to each program. • CFRs are referenced throughout the OMB Circular A-133 Compliance Supplement as the authoritative literature for the various requirements that are being tested. • The CFR can be obtained through the Internet at http://www.gpoaccess.gov/nara/index.html.
Other Program Information USC • The United States Code (USC) is the codification by subject matter of the general and permanent laws of the United States. • It is divided by broad subjects into 50 titles and published by the Office of the Law Revision Counsel of the U.S. House of Representatives. • It is published every six years. In between editions, annual cumulative supplements are published in order to present the most current information. • USCs are also referenced throughout the OMB Circular A-133 Compliance Supplement as the authoritative literature for the various requirements that are being tested. • The USC can be obtained through the Internet at http://www.gpoaccess.gov/uscode/index.html