Single Audits Are Not What They Used to Be: Certified Public Accountant

Single Audits Pre-COVID-19 The Single Audit Act requires that audits be performed annually, except for certain entities that have been grandfathered in for biennial audits, on behalf of all federal agencies by independent accounting firms or by individual states' internal auditors. Most of these awards were granted in 2021;however, this program was not included in the 2021 OMB Supplement. [...]auditors had to determine which compliance requirements needed to be tested using Part 7 and Part 3 of the supplement. Typically, the audit threshold for a single or program-specific audit of federal awards is based on expenditures. Because for-profit entities are not required to adhere to the audit requirements in 2 CFR Part 200, the SBA has the flexibility to define audit requirements and thresholds specific to the SVOG program. [...]the SBA has defined the audit threshold for a for-profit entity that has received an SVOG award based on the GAAP principle of revenue recognition, specifically applied to recognition of an SVOG award.

A First Look at the Addenda to the 2021 OMB Compliance Supplement: Certified Public Accountant

Helpful Guidance for Auditors and Not-for-Profit Organizations The guidance and requirements that auditors must follow to perform single audits, including program specific audits, are included in the U.S. Office of Management and Budgets (OMB) annual Compliance Supplement. The Compliance Supplement has helpful information to assist recipients of federal grants with the regulations and requirements of the federal program. Loans obtained under the Paycheck Protection Program (PPP) and refunds resulting from the Employee Retention Tax Credit (ERTC) are not subject to a single audit.

Complying with Federal Requirements for COVID-19 Funding in a Single Audit: Certified Public Accountant

When any of these five types of compliance requirements are applicable to a program (activities allowed or unallowed;eligibility;matching, level of effort, earmarking;reporting;and special tests and provisions), this part will always provide information specific to the program. Since this is very specific to each federal program, it is therefore included in the audit program in Part 4. There are, however, certain costs that are not allowed to be charged to a federal program, such as fines, penalties, bad debt, tobacco, and alcohol. Because this requirement applies to all federal programs, it is included once in Part 3. For reimbursements, an organization must pay for the program costs with their own funds prior to requesting reimbursement. Because this requirement applies to all federal programs, it is included once in Part 3. Because this requirement is for all federal programs, it is included once in Part 3. All non-procurement transactions entered into by a pass-through entity, irrespective of award amount, are considered covered transactions. Because this requirement is for all federal programs, it is included once in Part 3. Program income does not include inter-est earned on advances of federal funds or the proceeds from the sale of equipment or real property acquired with federal funds. Because this requirement is for all federal programs, it is included once in Part 3. The organization that passes through the funds must identify the award and applicable requirements to the other entity, evaluate the risk of their noncompliance, and monitor their activities. Because this requirement is for all federal programs, it is included once in Part 3. The COVID-19 awards are funded under the following acts: * Coronavirus Aid, Relief and Economic Security Act (CARES) * Coronavirus Preparedness and Response Supplemental Appropriations Act * Families First Coronavirus Response Act * Paycheck Protection Program (PPP) and Health Care Enhancement Act (PPP loans are not subject to a Single Audit).