The Coronavirus Aid, Relief, and Economic Security Act (the “关心行为”) and related federal programs provided vital funding to organizations across the U.S. – including not-for-profit, governmental, and for-profit entities. If total federal award expenditures related to certain programs exceeded $750,每一财政年度可领取000英镑, your entity will be required to have a single audit in accordance with 45 CFR 75.

While specific guidance regarding compliance testing of COVID-19 related funding is expected to be provided in an addendum to the Office of Management and Budget (OMB) 2020合规补充 this fall, there are steps an entity can be taking now to prepare for its single audit.

1. 收集所有联邦拨款信息.

Accumulate and summarize all federal awards received and expended during the fiscal year under audit. 信息应包括U.美国联邦资助人/项目头衔, 联邦国内援助(CFDA)编号目录, 传递实体名称和授予人号码(如适用), total receipts awarded and expenditures of such awards made during the fiscal year. This information will aid in preparing the entity’s Schedule of Expenditures of Federal Awards (SEFA) that will be included in the entity’s financial statements as required supplementary information.

2. 了解适用的法规遵从性需求

在审计中, auditors are required to test compliance over federal awards that the auditor determines to be major programs. 管理预算办公室的 2020合规补充 将决定 法规遵循需求 审计人员必须考虑对每个主要程序进行测试. Testing requirements for the COVID-19 related funding have not been published but are expected to be addressed in the addendum to the 2020合规补充, 哪部电影预计今年秋天上映. 实体必须遵守所有规定 审计需求 and will need to ensure they understand the specific requirements applicable to each federal award received. These 法规遵循需求 can include allowability of costs, 资格, 履行期限, 以及其他报告要求, 等. Understanding the terms of the grant will help ensure your entity maintains compliance with federal grants and avoids potential audit findings.

3. Develop and review policies and procedures for internal controls in place over federal funds received.

除了测试遵从性之外, auditors are also required to test internal controls over federal awards for major programs. Entities should have controls in place to monitor expenditures related to federal awards.

Types of controls and processes auditors will be looking for include:

  • a description of the control including the title of person in charge of performing the control
  • how the control is performed and the frequency with which it is performed
  • 用于执行控制的文档
  • 发现错误时采取的纠正措施

Developing written policies using these guidelines can help auditors identify what controls have been implemented and test that they are operating effectively.

在考虑联邦项目的内部控制时, entities may look to Part 6 of the OMB’s annual 合规 Supplement for understanding and developing internal controls over federal award programs. This section of the 合规 Supplement includes a summary of the requirements for non-federal entities receiving federal awards, background discussions on internal control concepts and illustrations of entity-wide internal control over federal awards and internal controls specific to each type of compliance requirement.

4. 考虑内部控制的书面证据.

在测试内部控制的运行有效性时, auditors will want to see documentary support over controls (i.e. sign offs indicating review, approved invoices, authorized checks, etc.). 审计程序可以包括对文件的检查, 向管理层查询, 观察控制是否到位, 走槽, 等. Documenting your processes and having support readily available will substantiate that controls are in place and operating effectively. Inadequate or insufficient controls can result in potential deficiencies, significant deficiencies or material weaknesses that may have repercussions on future audits or funding 资格.

5. 咨询你的审核团队

Information regarding COVID-19 related funding and additional 审计需求 is ever- changing as more information becomes available. Reach out to a member of your audit team to discuss the scope and nature of your audit.

LBMC provides Single 审计 and compliance audit services to both not-for-profit and for-profit organizations. As a member of the AICPA’s 政府al 审计 Quality Center, we understand the complex requirements Single 审计 and compliance audits require and utilize our expertise to help our clients stay compliant, 管理风险，提高绩效.