11/26/2001 Council Packet - Laserfiche WebLink

Home Search

ATTACHMENT B FEDERAL AUDIT REQUIREMENTS 1. For subrecipients who are state (includes Indian tribes) or local governments • If the grantee expends total direct and indirect federal assistance of: Equal to or in excess of $300,000 or more per year, the grantee agrees to obtain a financial and compliance audit made in accordance with the Single Audit Act of 1984 (Public Law 98 -502) and the federal Office of Management and Budget (OMB) Circular A -133. The law and circular provide that the audit shall cover the entire operations of the grantee government or, at the option of the grantee government, it may cover departments, agencies or establishments that received, expended, or otherwise administered federal financial assistance during the year. Audits shall be made annually unless the State or local government has, by January 1, 1987, a constitutional or statutory requirement for less frequent audits. For those governments, the cognizant agency shall permit biennial audits, covering both years, if the government so requests. It shall also honor requests for biennial audits by governments that have an administrative policy calling for audits less frequent than annual, but only for fiscal years beginning before January 1, 1987. 2. For subrecipients who are institutions of higher education, hospitals, or other nonprofit organizations - If the grantee expends total direct and indirect federal assistance of $300,000 or more per year, the grantee agrees to obtain a financial and compliance audit made in accordance with OMB Circular A -133. The audit must be organization wide audit, unless it is a coordinated audit in accordance with OMB Circular A -133. However, when the $300,000 or more was expended under only one program, the subrecipient may have an audit of that one program. • Audits shall usually be made annually, but not less frequently than every two years. 3. All audits shall be made by an independent auditor. An independent auditor is a state or local government auditor or a public accountant who meets the independence standards specified in the General Accounting Office's Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. 4. Audit reports shall state that the audit was performed in accordance with the provisions of OMB Circular A -133, as applicable. The reporting requirements for audit reports shall be in accordance with the American Institute of Certified Public Accountants' (AICPA) Statement on Auditing Standards (SAS) 58, "Reports on Audited Financial Statements" or, SAS 62, "Special Reports ", as applicable. The reporting requirements for audit reports on compliance and internal controls shall be in accordance with AICPA's SAS 63, "Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance" and Statement of Position (SOP) 89 -6, "Auditors' Reports in Audits of State and Local Governmental Units." In addition to the audit report, the recipient shall provide comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and comments on the status of corrective action taken on prior findings. If corrective action is not necessary a statement describing the reason it is not should accompany the audit report. 5. The grantee agrees that the grantor, the Legislative Auditor, the State Auditor and any independent auditor designated by the grantor shall have such access to grantee's records and financial statements as may be necessary for the grantor to comply with the Single Audit Act and OMB Circular A -133, as applicable. B -1