1. REVISED AUDIT AND REPORTING REQUIREMENTS
HELLO &WELCOME TO
SINGLE AUDIT
REVISED AUDIT AND REPORTING REQUIREMENTS
March 11, 2010
PRESENTED BY:
DENISE LOVEJOY, CGFM
COMMONWEALTH AUDIT MANAGER
KRISTA SHOWERS, CPA, CEBS
TROUT EBERSOLE & GROFF LLP

2. AN OVERVIEW OF THE SINGLE AUDIT REVISED AUDIT & REPORTING REQUIREMENTS
Brief Overview
Current Audit Developments & Updates of the Auditing & Reporting Requirements for OMB Circular A-133
New Online Submission of the Single Audit Reporting Package
Common Problems with the Single Audit Reporting Package
Updates of the American Reinvestment & Recovery Act of 2009
Conclusion
Questions and Answers

3. Brief Overview 1979: Federal Audit Requirement
Attachment P, Audit Requirements, to OMB Circular A- 102, “Grants and Cooperative Agreements with State and Local Governments.”
1984: Single Audit Act
Established uniform audit requirements and an organization wide audit process for state and local government.
1996: Single Audit Act Amendment
Raised the audit threshold from $25,000 to $300,000;
Revised the definition of “Major Program” to incorporate the risk-based approach; &
Created uniform requirements for all recipients.
As we all know, billions of federal dollars are expended by non-Federal entities (NFEs), i.e, state, federally recognized Indian tribes, local government, university, or other non-profit organizations. The Single Audit is the primary mechanism used by the Federal agencies to ensure accountability for Federal Awards.
The first organization wide audit requirements were contained in an attachment to OMB Circular a-102, Grants and Cooperative Agreements with State and Local Governments issued in Prior to that time, each Federal awarding agency was responsible for the audit of its own awards. Just like today, many NFEs received awards from more than one Federal Agency. Frequently, the grant-by-grant audit processes of the Federal Agencies were not coordinated, resulting in audits that overlapped or were conducted at different times. This inflated the audit costs cost to the Federal gov’t and placed an undue administrative burden to many NFEs. Additionally, come NFEs may not have been audited at all.
The Single Audit Act of 1984 legislatively established uniform audit requirements and an organization wide audit process for state and local government. While the 1984 Act was a significant step forward in producing quality audit of Federal programs, experience demonstrated that improvements could be made. This led to the Single Act Amendments of 1996.
The auditor provides an opinion as to whether the auditee’s financial statements are presented fairly, thus providing a tool to assess the financial condition of the auditee.
A risk-based audit approach assures audit coverage to high dollar, high-risk Federal programs and provides opportunities for the auditing of small-dollar, high-risk programs
Single audit reports are not intended to provide detailed audit Is Not Intended to Do coverage of all the Federal awards or provide detailed financial
information for individual awards. To do so would be cost prohibitive

4. Brief Overview 1997 - OMB Circular A-133 Circular
Revised and renamed “Audits of States, Local Governments, and Non-profit Organization;
Extended the statutory audit requirement to non-profit organizations;
Placed states, local governments, universities and non-profit organizations under the same audit process;
Increased the expenditure level from $25,000 to $300,000; &
Set standards for consistency and uniformity for the audits required by the 1996 amendments.
To implement the requirements of the 1996 amendments, the OMB Circular A-133 was revised and remanded “Audits of States, Local Governments, and Non-profit Organization, which extended the statutory audit requirement to non-profit organizations, placing states, local governments, universities and non-profit organizations under the same audit process. It also increased the expenditure level from $25,000 to $300,000 before a non-federal entity becomes subject to single audit. The Circular provides specific policy, procedures, and criteria which the Federal Agencies, auditees, and auditors are required to follow.
The 1996 amendment, also provided for the Director of OMB to review the single audit threshold on a biennial basis and increase it as appropriate." The single audit is intended to provide a cost-effective audit of NFEs.
Efficiencies can be considerable when an organization- wide audit, or single audit, is conducted in lieu of multiple audits of individual Federal programs. The parties involved in the audit process know beforehand what is expected and what the products of the audit will be. Furthermore, repeated exposures to a structured audit process promote discipline in an auditee’s accounting practices.

5. Brief Overview 2003 - OMB Circular A-133 Revised
Increased the threshold for Single Audit from $300,000 to $500,000
Increased the threshold for Cognizant Agency for audit from $25 million to $50 million
Provided for federal agency re-assignment of oversight agency for audit
2007 – OMB Circular A-133 Revised
Updated the internal control terminology
Simplified the audit reporting package submission requirement to the Federal Audit Clearinghouse (FAC). The FAC serves as the central collection point, repository, and distribution center for single audit reports
The purpose of the Circular is to set standards for consistency and uniformity for the audits required by the 1996 amendments which shall be applied by all Federal agencies.
On June 2003, the OMB Circular was revised, to:
Increase the threshold for single audit from $300,000 to $500,000. This increase relieves almost 6,000 entities from the audit requirements of Circular a-133 while only exempting from audit less than ½ of 1% of federal award dollars expended by entities conducting Circ a-133 audits in 2002 when the revision was proposed.
Increase the threshold for cognizant agency for audit from $25M to $50 million and
Make related technical changes to facilitate the determination of cognizant agency for audit and provide for federal agency re-assignment of oversight agency for audit.
The revision allowed the Federal agencies to provide more focused attention where there is the greatest risk in terms of Federal Awards expended and still provide the non-federal entity with an assigned oversight agency for audit from which to request advise.
On June 2007 – the Circular was further revised to update internal control terminology and simplify the audit reporting package submission requirement to the Federal audit Clearinghouse [FAC].

6. Overview of the Single Audit Process
Brief Overview
Overview of the Single Audit Process
Auditees’ Responsibilities:
Prepare the Financial Statements and a Schedule of Expenditures of Federal Awards (SEFA). The statements and schedule must be prepared for the same audit period.
Select the auditor to conduct the audit. Non-governmental auditees normally must engage a certified public accountant (CPA) or CPA firm to conduct the audit.
A grantee is responsible for selecting an auditor under Circular A An auditor can include an independent licensed CPA or a federal, state or local government audit organizations that meets the general standards specified in Government Auditing Standards (GAS), Chapter 3.
For example, many states and state agencies have their audits performed by state auditors. The term auditor does not include internal auditors.
NFEs subject to audit (auditees) must: (1) arrange for a timely audit; (2) prepare appropriate financial statements and a schedule of expenditures of Federal awards; (3) ensure the audit is properly completed; (4) submit the single audit report when due; and (5) take corrective action on audit findings.
The fair share of the cost of the single audit is an allowable cost to Federal awards provided that the audit was conducted in accordance with the requirements of the Circular and the cost is not otherwise prohibited by law or regulation
The audit must be conducted in accordance with the Government Auditing Standards. The auditor must: (1) audit and provide opinions on the fair presentation of the financial statements and the schedule of expenditures of Federal awards; (2) gain an understanding of internal control over Federal programs and test internal control over major programs; and (3) audit and provide an opinion on compliance with requirements for major program. A NFE may provide a portion of its award to another NFE. The NFE providing the award is called a pass-through entity, or PTE.
Auditees are responsible for preparing their financial statements Financial Statements and a schedule of expenditures of Federal awards. The and Schedule statements and schedule must be prepared for the same time Auditee period. Selection of an Selecting an auditor to conduct the audit required by the
Auditor Circular can be the auditee’s most important activity in the audit
process. For some governmental auditees, state or local law
places the authority and responsibility to conduct or arrange for
the audit with an independent government auditor. Other
governmental auditees may have the option to engage an
independent government auditor or a public accounting firm.
Non-governmental auditees normally must engage a public
accounting firm to conduct the audit.
The auditee is responsible for ensuring the auditor has the
professional qualifications and technical abilities to conduct the
audit. The Circular provides information to assist the NFE in
evaluating the sufficiency of potential audit services (also see
page 15 - Supplemental Information Available on the Internet).
The auditor is required to
The REQUIRED ELEMENTS for a single audit report and the will be discussed later in the presentation

7. Overview of the Single Audit Process (Continued)
Brief Overview
Overview of the Single Audit Process (Continued)
Ensure the auditor has the professional qualifications and technical abilities to conduct the audit;
Preparing a Corrective Action Plan for current-year audit findings and take action to correct the reported findings;
Report on the Schedule of Prior Year Audit Findings the status of its corrective action for each prior-year finding until the finding has been corrected or the finding is no longer valid or warrants corrective action; &
Submission of Data Collection Form (SF-SAC Form) and the audit report to the Federal Audit Clearinghouse within 30 days of receipt of the auditor’s reports, but no later than 9 months after the end of the auditee’s fiscal year.

8. Brief Overview of the Single Audit Process
Auditor’s Responsibilities:
Perform the audit in accordance with the Government Auditing Standards;
Apply risk assessment procedures to determine which programs will be audited;
Determine whether the financial statements and Schedule of Expenditures of Federal Awards (SEFA) are presented fairly;
Gain an understanding of internal control over Federal programs and test internal control over major programs;
Determine whether the auditee has complied with the compliance requirements, which may have a direct and material effect on each of its major programs; &
Follow-up on prior audit findings.
Until the FAC receives an acceptable audit report and SF-SAC
Form, the auditee does not receive credit for meeting the audit
requirement.

9. Brief Overview of the Single Audit Process
Audit Findings - Statement of Findings and Questioned Costs
Deficiency in internal control related to major programs tested ;
Material noncompliance with the laws, regulations, or contract or grant provisions related to the major programs tested;
For major programs tested, questioned costs which exceed, or are likely to exceed, $10,000 for each type of compliance requirement;
Detected fraud, which affects a program, and misrepresentation of the status of a prior audit finding; &
Prepare specific components of the audit report and sections of the SF-SAC.

10. Current Audit Developments & Updates of the Auditing & Reporting Requirements for OMB Circular A-133

11. New Single Audit Reporting Package Submission
For the Commonwealth of PA and the Federal Audit Clearinghouse, there is a “New & Improved” Single Audit Reporting Package Submission Process.
A more detailed explanation will be provided further in this presentation.

12. Circular A-133 Compliance Supplement
Current Updates for the Office of Management & Budget (OMB) Circular A-133
Circular A-133 Compliance Supplement
Provides guidance to the auditor regarding testing Federal programs;
Provides audit guidance for Cluster of Programs identified by the CFDA (Catalog of Federal Domestic Assistance) number;
A cluster of programs is a group of closely related programs that share common compliance requirements and are considered one program for audit purposes. Clusters of programs are identified in Part 5 of the Compliance Supplement;
Provides a narrative description of each program and contains information to help the auditor understand the purpose of the program and how it operates; &
Provides guidance to the auditor on the auditing of programs not included in the supplement.
It is important that subrecipients of federal dollars and auditors understand what is happening in the Government Auditing Standards and OMB Circular A-133 arena for performance of single audits.
“The Single Audit Act and Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” govern the auditing of Federal awards made to non-Federal entities.
To accommodate new, revised, or terminated programs, OMB
Compliance issues an annual revision to the supplement. Through their
Supplement agency Compliance Supplement Policy Official, Federal
officials can suggest improvements to the supplement. Non-Federal officials can suggest improvements to OMB through an annual notice in the Federal Register requesting comments.

13. Circular A-133
Prepared by US Office of Management and Budget
Released annually in the spring
March 2009
Most current supplement
Addendum issued in August 2009
Address matters related to ARRA
Written on national level
Commonwealth of PA specific requirements not included
Valuable resource for auditors

14. 2009 Compliance Supplement - Released May 26, 2009 -
Effective for audits of fiscal years beginning after June 30, 2008, which supersedes the Compliance Supplement dated March 2008
Appendix V of the supplement “List of Changes for the 2009 Compliance Supplement”
The more significant changes in the 2009
Five new programs were added and five programs were deleted;
32 programs and 10 program clusters had significant changes through updates and/or corrections;
Significant changes were made to Part II, “Matrix of Compliance Requirements;”
On May 26, 2009 OMB released the annual Circular A-133 Compliance Supplement, effective for audits of fiscal years beginning after June 30, 2008, superseding the2008 OMB Circ A-133 Comp Supplement offering auditors and federal assistance recipients an updated resource for meeting their responsibilities under an A-133 audit.
The new annual Supplement contains information updated to reflect new programs, deleted programs and modified program requirements. Some of the highlights of the regular supplement include:
A new Appendix VII which covers the effect of the ARRA on single audits based on currently available information and a listing of the common audit deficiencies cited in the federal study on single audit quality
The ARRA guidance in Appendix VII is just a first step at this early stage. Given the short period of time between the enactment of ARRA and the Supplement’s issuance, OMB is expected to release future addenda to the Supplement regarding ARRA compliance requirements.
Appendix VII does state OMB’s expectation that ARRA will have an impact of increasing significance on single audits throughout the year, and auditors will be checking to ensure that ARRA award recipients and subrecipients have properly identified ARRA awards.
Federal agencies are required to specifically identify ARRA awards, using new CFDA numbers for new ARRA programs, but a separate CFDA number is NOT required for existing programs. If ARRA funds are included in an existing CFDA number, and it is type A, then it would be considered high risk. The Supplement does give the auditor the ability to rank a program as low risk if the auditor clearly documents the reasons (such as a very small amount of ARRA funds).
Cluster guidance will be updated monthly as new CFDA numbers are added. If a new CFDA number is included in an existing cluster, then the entire cluster becomes high risk. Audits should comply with the last update before the fiscal year-end under the audit. For June 30, 2009 year-end single audits, the June 30th cluster guidance will be in effect.
ARRA funds must be identified separately on both the Schedule of Expenditures of Federal Awards (SEFA) and the Data Collection Form (DCF), regardless of whether a new CFDA number is created. Recipients are also required to disclose to subrecipients any portion of funding that are ARRA funds. However, because of the “limited time” between enactment of the American Recovery and Reinvestment Act and the issuance of the 2009 supplement, the guidance does not fully incorporate the requirements resulting from the massive economic stimulus package. Instead, OMB has included a brief appendix (Appendix 7) that highlights some areas of importance to A-133 audits, such as the impact on determining major programs, reporting on the Schedule of Expenditure of Federal Awards, and award terms and conditions and related compliance requirements.

15. 2009 Compliance Supplement - Released May 26, 2009 -
Effective for audits of fiscal years beginning after June 30, 2008, which supersedes the Compliance Supplement dated March (Continued)
Changes were also made to Part III, Compliance requirement and Part VI, Internal Control;
Procurement, Suspension, and Debarment were also updated;
Updates made to Appendix VI, “ Disaster Waivers and Special Provision affecting Single Audits; and
A new Appendix VII - Other OMB Circular A-133 Advisories
The effect of the American Recovery and Reinvestment Act of 2009 (ARRA) on single audits based on currently available information
List of the common audit deficiencies cited in the Federal study on “Single Audit Quality”

16. AICPA Audit Guide for Government Auditing Standards and OMB Circular A-133 Audits – October 1, 2009.
The Guide’s purpose is to provide auditors with the basic understanding of the procedures they should perform and of the reports they should issue for single audits and audits performed in accordance with Government Auditing Standards
The AICPA publishes various Audit Risk Alerts. If you are performing a financial audit or a single audit of state, local government, or nonprofit organization, you can refer to the following
Audit Risk Alerts:
Audit Risk Alert – State and Local Governmental Developments
Audit Risk Alert – Non-Profit Organizations Industry Developments
Audit Risk Alert – Government Auditing Standards and Circular A-133 Developments
These alerts can be obtained by calling the AICPA at or visiting
For those who are performing financial audit or single audit of state local government or non profit organization, you may also find AICPA’s various audit risk alerts. Among the most current publication, AICPA Audit Guide for Government Auditing Standards and OMB Circular A-133 Audits, is dated August 1, 2008, and the next update is scheduled to be published by August 2009The AICPA publishes various Audit Risk Alerts. If you are performing a financial audit or a single audit of state, local government, or nonprofit organization, you can refer to the following
Audit Risk Alerts:
current relevant alerts are as follows:
Audit Risk Alert – State and Local Governmental Developments–2008 (product #022438)
Audit Risk Alert – Non-Profit Organizations Industry Developments–2008 (product #022428)
Audit Risk Alert – Government Auditing Standards and Circular A-133 Developments –2008 (product #022458)
These alerts can be obtained by calling the AICPA at or visiting
These alerts could assist you in gaining an understanding of key developments regarding the audit and to address areas of audit concerns.

17. Current Updates for the Office of Management & Budget (OMB) Circular A-133
The AICPA Revised the Internal Control Standards Adopted in the Yellow Book
According to the Single Audit Information Service (January 2009, Issue 289), in response to the AICPA’s recent revision of internal control definitions, the GAO issued interim guidance that alters the terms “significant deficiency” and “material weakness” in the Government Auditing Standards. The AICPA released SAS No. 115, Communicating Internal Control Related Matters Identified in an Audit, effective for audits of financial statements for periods ending on or after December 15, 2009, although earlier implementation is permitted.
Among the recent audit issues and developments is the AICPA’s Oct 2008 issuance of the Statement of Auditing standards (SAS No. 115 which replaces the SAS No. 112, Guidance on Communicating Internal Control related Matters Identified in an Audit.
This statement defines the term deficiency in internal control, significant deficiency and material weakness, provide guidance on evaluating the severity of deficiencies in internal control identified in an audit of financial statements and requires the auditor to communicate in writing to management and those charged with governance , significant deficiency and material weakness identified in an audit. SAS No 115 is effective for audits of fin Statements for period ending on or after December 15, Earlier implementation is permitted.
According to the Single Audit Information Service (January 2009, Issue 289), in response to the AICPA’s recent revision of internal control definitions, the GAO issued interim guidance that alters the terms “significant deficiency” and “material weakness” in the Government Auditing Standards.

18. Current Updates for the Office of Management & Budget (OMB) Circular A-133
SAS No. 115 supersedes SAS No. 112 and provides new definitions of “material weakness” and “significant deficiency.”
Material weakness is “a deficiency, or combination of deficiencies, in internal control, such that there is reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis.”
Significant deficiency is “ a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.”

19. Current Updates for the Office of Management & Budget (OMB) Circular A-133
To help auditors comply with the Yellow Book until the next update, the GAO provided the following interim guidance for complying with the internal control reporting requirements:
Auditors may satisfy the internal control reporting requirements by including in the Yellow Book report on internal control all identified material weaknesses and significant deficiencies following the new definitions and requirements from SAS No. 115 and SSAE No. 15, as applicable, providing those definitions, and describing the scope of testing performed on the entity’s internal control over financial reporting.

20. Current Updates for the Office of Management & Budget (OMB) Circular A-133
AICPA officials added that auditors should note that the OMB has not updated Circular A-133 or other similar federal regulations to reflect the new internal control definitions. Therefore, it would not be appropriate for auditors to use definitions for reporting on internal control over compliance that may be consistent with the definitions found in SAS No. 115 until such time as Circular A-133 or other regulations or guides are amended to allow usage of new updated definitions.

21. New Single Audit Reporting Package Submission
The Commonwealth of PA and the Federal Audit Clearinghouse, have a “New and Improved” Single Audit Reporting Package Submission Process.

22. Commonwealth of PA Single Audit Submission Procedures
Effective July 1, 2009, Bureau of Audits will begin accepting electronic submission of single audit or program-specific audit reporting packages.  Electronic submission is required and mandatory for fiscal year ending December 31, 2008 and subsequent years. The reporting package must be submitted electronically in single Portable Document Format (PDF) file to an resource account. 

23. Commonwealth of PA Single Audit Submission Procedures
The complete single audit or program-specific audit reporting package, must be submitted to:
The subrecipient will receive an to confirm the receipt of the Checklist and the Single Auditor Program-Specific Audit Reporting Package.
Specific instructions on how to submit the single audit report or program-specific audit reporting package as a single PDF file to the address are provided on the following website:
Select “ Single Audit Submissions”

24. Commonwealth of PA Single Audit Submission Procedures
Go to the website, Click on “Single
Audit Submissions”
The Single Audit or Program-Specific Audit Submission
Method:
Complete the checklist to ensure the single audit or program-specific audit reporting package is completed.  Select the “Checklist” link. This link will provide a printable checklist for the subrecipient to input the information, complete and print the checklist.
Upload the complete Single Audit or Program-Specific Audit Reporting Package along with the checklist in a single PDF file.  Identify in the “Subject” of the the exact name on the single audit or program-specific audit reporting package and the year-end.

25. Federal Audit Clearinghouse’s Contact Information
For Questions Concerning:
Form SF-SAC and A-133 submission questions, contact the telephone voice or toll free numbers, fax number or address.
(Voice)
(Toll Free)
(Fax)

26. Single Audit or Program-Specific Audit Reporting Package
For A Single Audit:
Financial Statements and Notes
Schedule of Expenditures of Federal Awards (SEFA) and Notes
Auditor’s Report on F/S and SEFA
Auditor’s Reports on Internal Control and Compliance
In Accordance with GAS
In Accordance with A-133 .

27. Single Audit or Program-Specific Audit Reporting Package
For A Single Audit (Continued):
Schedule of Findings and Questioned Costs
Including Summary of Auditor’s Results
Summary Schedule of Prior Audit Findings
Corrective Action Plan
Copy of Data Collection Form

28. Single Audit or Program-Specific Audit Reporting Package
For A Program-Specific Audit:
Financial Statements of the Federal Program and Notes
~~~And/Or~~~
Schedule of Expenditures of Federal Awards (SEFA) and Notes
Auditor’s Report on F/S and/or SEFA
Auditor’s Report on Compliance with Requirements Applicable to the Federal Program and on Internal Control Over Compliance in Accordance with the Program-Specific Audit Option Under OMB Circular A-133.

29. Single Audit or Program-Specific Audit Reporting Package
For A Program-Specific Audit
(Continued):
Schedule of Findings and Questioned Costs
Including Summary of Auditor’s Results
Summary Schedule of Prior Audit Findings
Corrective Action Plan
Copy of Data Collection Form

30. Common Problems with the Single Audit Reporting Package

31. Common Problems with the Single Audit Reporting Package
Missing Components of Reporting Package
Report on the SEFA
Schedule of Findings and Questioned Costs
Summary of Auditor’s Results
Summary Schedule of Prior Audit Findings
Corrective Action Plan
Improper Application of Risk-Based Approach and Major Program Determination
Problems with SEFA

32. Report on the SEFA
Usually Included in Auditor’s Report on the Financial Statements as a Paragraph on the Supplementary Information
The Paragraph Must Reference the SEFA and OMB Circular A-133

33. Schedule of Findings and Questioned Costs
Include in the Schedule of Findings and Questioned Costs the Following Three Parts:
Summary of Auditor’s Results
Findings Related to the Financial Statements
Findings and Questioned Costs for Federal Awards

34. Summary of Auditor’s Results
Include Items Such as the Following:
Types of Opinions on F/S and Major Programs
Significant Deficiencies (Control Deficiencies) or Material Weaknesses
Noncompliance Material to F/S or Major Programs
Identification of Major Programs
Dollar Threshold to Distinguish Type A & B
Whether Auditee Qualified as Low-risk

35. Summary Schedule of Prior Audit Findings
Prepared by Auditee, Reviewed by Auditor
From latest prior audit - Status of All Prior Audit Findings Relative to Federal Awards (even if they have been resolved)
Also from any other prior audits - Status of any Findings Relative to Federal Awards that have not been resolved

36. Corrective Action Plan
Address Each Finding in Schedule of Findings and Questioned Costs
Provide Contact Person, Corrective Action Planned, and Anticipated Completion Date
If Auditee Does Not Agree With Finding, Provide Explanation and Reasons

37. Failure to Audit as Major --Type A Programs Not Low Risk
Improper Application of the Risk-Based Approach & Major Program Determination
Failure to Audit as Major --Type A Programs Not Low Risk
Failure to Substitute High Risk Type B for Low-Risk Type A
Failure to Meet the % of Coverage Rule
Failure to Audit All Programs in a Cluster

38. SEFA Presentation

39. Problems with the SEFA
Failure to Identify Pass-through Entities and/or Pass-through Grant Numbers
Failure to Identify Programs as Part of a “Cluster”
Failure to Include Notes to the SEFA
Not All Funds are Included on the SEFA
(i.e. non-cash federal assistance)

40. SEFA - Minimum Requirements
Federal Programs by Federal Grantor and Pass-through Grantor
Pass-through Grant Number
Catalog of Federal Domestic Assistance (CFDA) Name, CFDA # and Total Expenditures for Each Federal Program
Notes to the SEFA Including at the Minimum a Note That Describes the Significant Accounting Policies Used in Preparing the SEFA
Value of Non-Cash Assistance

41. Clusters of Programs
Identify Cluster Title (Child Nutrition Cluster, WIA Cluster, Aging Cluster, etc.)
List Individual Programs Within a Cluster
Provide Total Expenditures for Cluster
Treat as One Program for Major Program Determination
The 2009 Compliance Supplement, Part 5 (Released May ), provides a comprehensive section of cluster programs.

42. SEFA - Additional Information
Not Required But May Be Requested by Pass-through Agencies:
Federal Expenditures by Award Year or Contract
Award Amount and Grant Period
Beginning and Ending Balances
Receipts or Revenue Recognized or Revenue Deferred

43. SEFA for Local Educational Agencies (LEA)
PA Department of Education (PDE) Requests Additional Information for LEAs (School Districts, Charter School, and Other Educational Institutions):
Source Code (Direct or Indirect)
Grant Period
Program or Award Amount
Total Received and Revenue Recognized
Beginning/Ending Balances

44. SEFA Accountability It is very important for the SEFA to contain
reliable information because accountability
becomes critical. Recipients and Subrecipients
of federal dollars must properly manage and
administer the federal dollars and more
importantly the vast sums of federal dollars
being doled out to the state and local
government under the American Recovery
and Reinvestment Act.

45. Updates on the American Reinvestment and Recovery Act of 2009

46. Overall Look at Single Audits Program Determination
Single Audit Act and OMB Circular No. A-133 require for a “risk based” approach to determine those programs will be included in Single Audit for major program determination and testing; &
Prescribed approach to determine those programs will be subject to a detailed compliance testing relies heavily on the following:
The amount of federal expenditures during a fiscal year; &
Whether findings were reported in the previous period.

47. Overall Look at Single Audits Program Determination
Under the current approach for risk determination, certain risks may not receive full consideration
Unique challenges associated with Recovery Act funding:
Sudden increase in funds that most recipients are experiencing;
New government programs and programs that are new for the recipient entity; &
Need for timely and efficient oversight in response to the Recovery Act’s accountability requirements.

48. Additional Resources
Attachment 1 – Provides guidance on ARRA and implementation thereof; &
Attachment 2 – Provides ARRA Examples on planning a single audit.

49. AN OVERVIEW OF THE SINGLE AUDIT DEVELOPMENTS AND UPDATES
Conclusion
Current Audit Developments & Updates of the Auditing & Reporting Requirements for OMB Circular A-133
New Online Submission of the Single Audit Reporting Package
Common Problems with the Single Audit Reporting Package
Updates of the American Reinvestment & Recovery Act of 2009

50. Special Audit Services Division Forum Place -- 8th Floor
Denise Lovejoy’s Contact Information
Denise Lovejoy, CGFM
Bureau of Audits
Special Audit Services Division
Forum Place -- 8th Floor
555 Walnut Street
Harrisburg, PA 17101
(Single Audit Line)
(Fax Line)
(Denise’s Desk Line)
(personal )
Single Audit Report Submission

51. Krista Showers, CPA, CEBS Trout Ebersole & Groff, LLP 1705 Oregon Pike
Krista Showers’ Contact Information
Krista Showers, CPA, CEBS
Trout Ebersole & Groff, LLP
1705 Oregon Pike
Lancaster, PA
, ext. 104
(Fax Line)
(Toll-free)
( )

52. Questions & Answers

53. …THANK YOU FOR YOUR
TIME AND ATTENDANCE