The determination of when an award is expended should be based on when the activity related to the award occurs. For nonprofits using the calendar year as their fiscal year, these requirements became effective for December 31, 2015 year-end audits. This report shall describe the scope of testing of internal control and the results of the tests, and, where applicable, refer to the separate schedule of findings and questioned costs described in paragraph d of this section. Characteristics indicative of a Federal award received by a subrecipient are when the organization: 1 Determines who is eligible to receive what Federal financial assistance; 2 Has its performance measured against whether the objectives of the Federal program are met; 3 Has responsibility for programmatic decision making; 4 Has responsibility for adherence to applicable Federal program compliance requirements; and 5 Uses the Federal funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity. The summary schedule of prior audit findings shall report the status of all audit findings included in the prior audit's schedule of findings and questioned costs relative to Federal awards.
These goods or services may be for an organization's own use or for the use of beneficiaries of the Federal program. In assessing risk, auditors are encouraged to use an approach that allows different programs to be identified as high risk over time. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the contract, and post-award audits. Unless restricted by law or regulation, the auditee shall make copies available for public inspection. It is considered to be the most important tool of an for a. Research is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied.
The auditor shall use a risk-based approach to determine which Federal programs are major programs. Non-profit organization means: 1 any corporation, trust, association, cooperative, or other organization that: i Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; ii Is not organized primarily for profit; and iii Uses its net proceeds to maintain, improve, or expand its operations; and 2 The term non-profit organization includes non-profit institutions of higher education and hospitals. In most cases, the auditee's compliance responsibility for vendors is only to ensure that the procurement, receipt, and payment for goods and services comply with laws, regulations, and the provisions of contracts or grant agreements. It serves to identify existing important compliance requirements that the Federal Government expects to be considered as part of a Single Audit. For purposes of this part, loans made from the National Credit Union Share Insurance Fund and the Central Liquidity Facility that are funded by contributions from insured institutions are not considered Federal awards expended. The financial statements shall be for the same organizational unit and fiscal year that is chosen to meet the requirements of this part. However, if the auditor does become aware of questioned costs for a Federal program which is not audited as a major program e.
If the recipient does not meet this threshold, a Single Audit is not required, although the recipient may elect to have a program-specific audit an audit of a single federal program, without auditing the entire entity. Check any old links to our website for they have changed. State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, any instrumentality thereof, any multi-State, regional, or interstate entity which has governmental functions, and any Indian tribe as defined in this section. This report shall also include an opinion or disclaimer of opinion as to whether the auditee complied with laws, regulations, and the provisions of contracts or grant agreements which could have a direct and material effect on each major program, and, where applicable, refer to the separate schedule of findings and questioned costs described in paragraph d of this section. For example, audit cognizance for periods ending in 2006 through 2010 will be determined based on Federal awards expended in 2004. However, the auditee is responsible for ensuring compliance for vendor transactions which are structured such that the vendor is responsible for program compliance or the vendor's records must be reviewed to determine program compliance. To the extent this audit meets a Federal agency's needs, it shall rely upon and use such audits.
Except for the provisions for biennial audits provided in paragraphs a and b of this section, audits required by this part shall be performed annually. Special consideration must be given to large loan programs in determining the Type A threshold. Federal non-cash assistance, such as free rent, food stamps, food commodities, donated property, or donated surplus property, shall be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency. When assessing risk in a large single audit, the auditor shall consider whether weaknesses are isolated in a single operating unit e. Audit findings shall be presented in sufficient detail for the auditee to prepare a corrective action plan and take corrective action and for Federal agencies and pass-through entities to arrive at a management decision. However, monitoring which disclosed significant problems would indicate higher risk.
The auditor shall report the following as audit findings in a schedule of findings and questioned costs: 1 Reportable conditions in internal control over major programs. At least one half of the Type B programs identified as high-risk under Step 3 paragraph d of this section , except this paragraph e 2 i A does not require the auditor to audit more high-risk Type B programs than the number of low-risk Type A programs identified as low-risk under Step 2. This Circular will have a policy review three years from the date of issuance. Individual programs within a cluster of programs should be listed in the same level of detail as they are listed in the schedule of expenditures of Federal awards. This section helps recipients and auditors by describing, for each type of compliance requirement, the objectives and certain characteristics of internal control that, when present and operating effectively, may ensure compliance with program requirements.
The term auditor does not include internal auditors of non-profit organizations. Except for audit follow-up, the auditor is not required under this part to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program which is not audited as a major program. Vanderbilt University is committed to principles of equal opportunity and affirmative action. The process in paragraphs b through i of this section shall be followed. For Federal programs included in a cluster of programs, list individual Federal programs within a cluster of programs. They must understand the recipient, its organization, operations, internal control systems, and ability to responsibly manage federal assistance. Vendor means a dealer, distributor, merchant, or other seller providing goods or services that are required for the conduct of a Federal program.
A non-Federal entity shall not charge the following to a Federal award: 1 The cost of any audit under the Single Audit Act Amendments of 1996 31 U. The financial statements and schedule of expenditures of Federal awards shall be for the same fiscal year. The cognizant agency for audit may grant extensions for good cause. Circular A-133 is issued under the authority of sections 503, 1111, and 7501 et seq. The third report is an opinion, or a disclaimer thereof, on the degree to which the recipient has complied with laws, regulations, and the terms and conditions of the federal assistance awards. The management decision shall clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. Also, when the schedule of findings and questioned costs disclosed audit findings or the summary schedule of prior audit findings reported the status of any audit findings, the auditee shall submit one copy of the reporting package to the Federal clearinghouse on behalf of the Federal awarding agency, or directly to the pass-through entity in the case of a subrecipient.