5/18/2018 11:11 PM State of New Hampshire Office of Economic Stimulus The Single Audit Act, as amended on July 5, 1996 Presentation to New Hampshire Association of School Business Officials (NHASBO) September 10, 2010 Sergio A. Gonzalez 1

Table of Contents – Part A 5/18/2018 11:11 PM Table of Contents – Part A General Overview of the Single Audit Act When is the Single Audit Required? By when must the Single Audit Report be Submitted? Federal Audit Clearinghouse Address What does Expended Mean? Document Descriptions for Single Audit Act, OMB Circulars A-133, A-133 Compliance Supplement, A-133 Addendum Number 1, and Government Auditing Standards Web Address of Key Single Audit Document Excerpts from the LEA Application for SFSF – Education Excerpt from the State Fiscal Stabilization Fund (SFSF) – Education State of New Hampshire Application Excerpt from the Education Jobs Fund Application Excerpt from the OMB Standard Form 424B

Table of Contents – Part B 5/18/2018 11:11 PM Table of Contents – Part B Federal Compliance Exclusions (Not Applicable) Document Descriptions for Presidential Executive Order 12372, OMB Circulars A-87, A-102, and A-110 www.cfda.gov listed Single Audit Requirement The Single Audit Act Auditor Responsibilities Education Jobs Fund Allowable Costs/Expenses Education Jobs Fund Allowable LEA Positions – Part A Education Jobs Fund Allowable LEA Positions – Part B Education Jobs Fund UnAllowable Costs/Expenses Davis–Bacon Act New Hampshire Office of Economic Stimulus Comments? / Questions?

General Overview of the Single Audit Act 5/18/2018 11:11 PM General Overview of the Single Audit Act Each year, the Federal Government provides over $400 billion in grants to State, local, and tribal governments, colleges, universities, and other non-profit organizations (non-Federal entities). The Single Audit Act of 1984 (with amendment in 1996) and OMB Circular A-133 (“Audits of State, Local Governments, and Non-Profit Organizations”) provide audit requirements for ensuring that these funds are expended properly.

When is the Single Audit Required? 5/18/2018 11:11 PM When is the Single Audit Required? All non-Federal entities that expend $500,000 or more of Federal awards in a year are required to obtain an annual audit in accordance with the Single Audit Act, as amended in 1996, OMB Circular A-133, the OMB Circular Compliance Supplement, and Government Auditing Standards. A single audit is intended to provide a cost-effective audit for non-Federal entities in that one audit is conducted in lieu of multiple audits of individual programs.

By when must the Single Audit Report be Submitted? 5/18/2018 11:11 PM By when must the Single Audit Report be Submitted? Annual Single Audit to be completed and submitted to the Federal Audit Clearinghouse within the earlier of: 30 days after receipt of the external auditor’s Single Audit report Nine months after the end of the fiscal year Copies of the Annual Single Audit Report shall be available for public inspection

Federal Audit Clearinghouse Address 5/18/2018 11:11 PM Federal Audit Clearinghouse Address Federal Audit Clearinghouse Bureau of the Census 1201 East 10th Street Jeffersonville, IN 47132

What does Expended Mean? 5/18/2018 11:11 PM What does Expended Mean? “Expended” is Federal Government speak for “spent”. “Spent would be on accrual basis accounting, not on cash basis accounting Accrual basis accounting is simple, if I shutdown today, and ignored shutdown costs (costs created because I am shutting down), what would I still have to pay? Anything you would still have to pay should have been accrued as a cost/expense in your financial system

Document Descriptions 5/18/2018 11:11 PM Document Descriptions Single Audit Act Federal law requiring annual audit for recipients of $500K in Federal funds OMB Circular A-133 Guidance to external auditors on what to test in a Single Audit OMB Circular A-133 Compliance Supplement OMB periodically issued supplement to complete Circular A-133 OMB Circular A-133 Addendum Number 1 OMB issued Circular A-133 supplement focused on ARRA Programs Government Auditing Standards General guidance to auditors on how to conduct a governmental audit

Web Address of Key Single Audit Document 5/18/2018 11:11 PM Web Address of Key Single Audit Document Internet website address of OMB Circular A-133 Addendum Number 1 http://www.whitehouse.gov/sites/default/files/omb/assets/a133_compliance/arra_addendum_1.pdf

Excerpts from the LEA Application for SFSF – Education 5/18/2018 11:11 PM Excerpts from the LEA Application for SFSF – Education From Page 2 of 5 of the LEA Application Part I. SFSF General Assurances (20 U.S.C. 1232e) The above referenced LEA assures: (1) the LEA will administer each program covered by the application in accordance with all applicable statutes, regulations, program plans, and applications; From Page 4 of 5 of the LEA Application Part IV: Other Assurances The above referenced LEA acknowledges: (1) That in the State’s application for SFSF the Governor made the assurances in “Part 7: Other Assurances and Certifications” of the application.

Excerpt from the SFSF – Education Application 5/18/2018 11:11 PM Excerpt from the SFSF – Education Application Page 16 from the submitted State Fiscal Stabilization Fund – Education Application “PART 7: OTHER ASSURANCES AND CERTIFICATIONS The Governor or his/her authorized representative assures or certifies the following: The State will comply with… Single Audit Act;…”

Excerpt from the Education Jobs Fund Application 5/18/2018 11:11 PM Excerpt from the Education Jobs Fund Application From Page 2: “10. The State will comply with all applicable assurances in OMB Standard Form 424B (Assurances for Non-Construction Programs); and”

Excerpt from the OMB Standard Form 424B 5/18/2018 11:11 PM Excerpt from the OMB Standard Form 424B From Page 2: “17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular Number A-133, “Audits of States, Local Governments, and Non-Profit Organizations.”

Federal Compliance Exclusions (Not Applicable) 5/18/2018 11:11 PM Federal Compliance Exclusions (Not Applicable) State Fiscal Stabilization Fund (SFSF) – Education and the Education Jobs Fund are EXCLUDED from coverage under (see www.cfda.gov): Presidential Executive Order 12372 OMB Circular Number A-87 OMB Circular Number A-102 OMB Circular Number A-110

Document Descriptions 5/18/2018 11:11 PM Document Descriptions Presidential Executive Order 12372 A Presidential Order for intergovernmental review of Federal programs OMB Circular A–87 Cost Principles for State, Local, and Indian Tribal Governments OMB Circular A–102 Administration of Grants to, and Cooperative Agreements with, State and Local Governments OMB Circular A–110 Administration of Grants to, and Cooperative Agreements with, institutions of higher education, hospitals, and other non-profit organizations

www.cfda.gov listed Single Audit Requirement 5/18/2018 11:11 PM www.cfda.gov listed Single Audit Requirement For both 84.394 State Fiscal Stabilization Fund (SFSF) – Education and 84.410 Education Jobs Fund: Post Assistance Requirements (110) Audits (112): In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular Number A-133. All grantees are subject to the provisions of the Single Audit Act, 31 U.S.C. 75, and OMB Circular A-133.

The Single Audit Act Auditor Responsibilities 5/18/2018 11:11 PM The Single Audit Act Auditor Responsibilities Determine whether the financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles; Determine whether the schedule of expenditures of Federal awards (SEFA) is presented fairly in all material respects in relation to the financial statements taken as a whole; With respect to internal controls pertaining to the compliance requirements for each major program – (A) obtain an understanding of such internal controls; (B) assess control risk; and (C) perform tests of controls unless the controls are deemed to be ineffective. Determine whether the non-Federal entity has complied with the provisions of laws, regulations, and contracts or grants pertaining to Federal awards that have a direct and material effect on each major program.

Education Jobs Fund Allowable Costs/Expenses 5/18/2018 11:11 PM Education Jobs Fund Allowable Costs/Expenses Compensation, benefits, and other expenses, such as support services, necessary to retain existing LEA employees, to recall or rehire former LEA employees, and to hire new LEA employees, in order to provide early childhood, elementary, or secondary education and related services Salaries Performance bonuses Health and dental insurance Retirement benefits Incentives for early retirement Pension fund contributions Tuition reimbursement Student loan repayment assistance Transportation subsidies Reimbursement for childcare expenses

Education Jobs Fund Allowable LEA Positions – Part A 5/18/2018 11:11 PM Education Jobs Fund Allowable LEA Positions – Part A Teachers Principals and Assistant Principals Academic Coaches and In-Service Teacher Trainers Classroom Aides Counselors Librarians Secretaries Social Workers and Psychologists Interpreters

Education Jobs Fund Allowable LEA Positions – Part B 5/18/2018 11:11 PM Education Jobs Fund Allowable LEA Positions – Part B Physical Therapists, Speech Therapists, and Occupational Therapists Information Technology personnel Nurses Athletic Coaches Security Officers Custodians and Maintenance Workers Bus Drivers Cafeteria Workers

Education Jobs Fund UnAllowable Costs/Expenses 5/18/2018 11:11 PM Education Jobs Fund UnAllowable Costs/Expenses General administrative expenses as defined by the National Center for Education Statistics (NCES) in its Common Core of Data Administrative expenditures related to the operation of the Superintendent’s Office (SAU Superintendent) Including salaries and benefits of SAU level administrative employees Administrative expenditures related to the operation of the Board of Education SAU level Fiscal services SAU level Program Planners SAU level Researchers SAU level Human resource services

Davis–Bacon Compliance Review Officer Email: kathleen.bourret@nh.gov 5/18/2018 11:11 PM Davis–Bacon Act All construction, modernization, renovation, and repair activities are subject to the Davis–Bacon Act (Section 1606 of ARRA) Kathleen A. Bourret Davis–Bacon Compliance Review Officer Tel: (603) 856-5407 Fax: (603) 271-7640 Email: kathleen.bourret@nh.gov

New Hampshire Office of Economic Stimulus Physical Address State House Annex Building – Room 202A, 25 Capitol Street, Concord, New Hampshire 03301-6312 Mailing Address State House Building – Room 208, 107 North Main Street, Concord, New Hampshire 03301-4951 Email: nhoes@nh.gov Website: http://www.nh.gov/recovery/ Director: Chris Clement Manager: Sergio Gonzalez Tel: (603) 271-8785 Tel: (603) 271-2121 Ext. 243 Email: christopher.clement@nh.gov Email: sergio.gonzalez@nh.gov

5/18/2018 11:11 PM Comments? / Questions? Comments? Questions?

SFSF Allowable Activities – Part A 5/18/2018 11:11 PM SFSF Allowable Activities – Part A Any activity that is authorized under the following Federal education acts: The Elementary and Secondary Education Act of 1965 (ESEA); The Individuals with Disabilities Education Act (IDEA); The Adult Education and Family Literacy Act; or The Carl D. Perkins Career and Technical Education Act of 2006 To the extent consistent with State of New Hampshire law, an LEA may use Education Stabilization funds for modernization, renovation, or repair of public school facilities, including modernization, renovation, and repairs that are consistent with a recognized green building rating system Activities that would be allowable under Impact Aid

SFSF Allowable Activities – Part B 5/18/2018 11:11 PM SFSF Allowable Activities – Part B Construction of new school buildings is an authorized activity under the Impact Aid construction program in section 8007 of the ESEA…, including construction activities that are consistent with a recognized green–building rating Paying the salaries of administrators, teachers, and support staff Purchasing textbooks, computers, and other equipment Programs designed to address the educational needs of children at risk of academics failure, limited English proficient students, children with disabilities, and gifted students General expenses of an LEA (Section 14003 of ARRA)

SFSF Unallowable Activities – Part A 5/18/2018 11:11 PM SFSF Unallowable Activities – Part A Financial assistance to attend private elementary or secondary schools, unless the funds are used to provide special education related services to children with disabilities as authorized by the IDEA (Section 14011 of ARRA) [or, unless the LEA lacks its own elementary or secondary school] Maintenance of systems, equipment, or facilities (prohibition does NOT apply to custodians/janitor salaries and benefits of permanent LEA employees who are NOT external contractors) Stadiums, facilities used primarily for athletic contests or exhibitions, and facilities for events where admission is charged to the general public

SFSF Unallowable Activities – Part B 5/18/2018 11:11 PM SFSF Unallowable Activities – Part B Facilities used primarily for religious instruction/worship or in which a substantial portion of the functions are subsumed in a religious mission (Section 14004(c) of ARRA). Purchases or upgrades of vehicles Improvement of stand-alone facilities whose purpose is not the education of children; including, but not limited to, central office administration, operations, and logistical support facilities School modernization, renovation, or repair that is inconsistent with State of New Hampshire law (Section 14003(b) and (c) of ARRA)