Emily Sobczak, CPA Partner Greene Finney, LLP 2019 SINGLE AUDIT UPDATE Emily Sobczak, CPA Partner Greene Finney, LLP

What is new for 2019? No significant changes from prior year Refer to Uniform Guidance and most current compliance supplement when questions arise 2019 Compliance Supplement is expected to be issued in June 2019 Continue to focus on improved documentation of internal controls Communicate with program directors to ensure they are staying informed of any changes to compliance requirements

Internal Controls Internal controls are required to be clearly documented in writing and must address each of the applicable compliance requirements. Internal controls should be reviewed and assessed regularly (at least annually) to determine that all components of internal control are present (properly designed and implemented) and functioning (operating effectively). Consider referencing the COSO requirements as part of internal control documentation. Grantees are required to ensure all assets are properly safeguarded and used solely for authorized purposes (including assets that do not meet the threshold for capitalization). The non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award

Internal Controls (Continued) Limitations on Internal Controls Potential for flawed human judgment in decision- making Management’s consideration of the relative costs and benefits in responding to risk and establishing controls Possibility that controls can be circumvented by collusion of two or more people Ability of management to override internal control functions and decisions These limitations preclude the Board and management from ever having absolute assurance of the achievement of the entity’s objectives; internal controls provide reasonable but not absolute assurance.

Single Audit and Reporting Single Audit threshold is $750,000 Disbursements to subrecipients must be reported on the SEFA Repeat findings are required to be identified in the schedule of findings and questioned costs Summary Schedule of Prior Audit Findings must include both GAGAS and Uniform Guidance findings Corrective Action Plan must be included in the Compliance Section (should be printed on auditee’s letterhead and include the name of the contact person responsible for the corrective action, the corrective action planned, and the anticipated completion date)

Questions?