our roots run deep TM MAYER HOFFMAN MCCANN P.C. – AN INDEPENDENT CPA FIRM A publication of the Professional Standards Group MHMMessenger © 2013 MAYER HOFFMAN MCCANN P.C. 877-887-1090 • www.mhmcpa.com • All rights reserved. TM New form and instructions applicable for audit periods ending in 2013, 2014 and 2015 Are you required to perform a single audit each year? If you are a non-federal entity — including states, local and tribal governments, colleges, universities, and other not-for-profit organizations — that annually expends $500,000 or more in federal awards, the answer is “Yes.” This detailed financial examination is designed to assure the federal government that award recipients are properly using federal funds and are complying with all applicable federal and state laws and regulations. Single audits are data-intensive endeavors and completing them requires auditors to provide specific information relevant to your organization’s operations that are funded by the federal awards. The information must be supplied to the Federal Audit Clearinghouse website. However, there are several proposed changes regarding the Data Collection Form (DCF), the package of information that summarizes the results of each single audit. August 2013 Proposed Changes to Single Audit Data Collection Form Impact Not-for-Profits Proposed Changes On May 9, 2013, the U.S. Office of Management and Budget (OMB) issued a Federal Register Notice that proposed changes to the DCF and its instructions. The comment period for these changes ended on July 8, 2013. These changes, if accepted, will be applicable for audit periods ending in 2013, 2014, and 2015. Some of the proposed key changes to the DCF include: A new federal award findings page While the old form already required detailed audit information, a new findings page in Part III will broaden the information the federal government requires in instances when the single audit results include findings. In addition, Part III will include an entirely new column labeled “Number of Findings” as a cross reference with the findings detail on Part III, Item 7 to ensure that data on both pages relate. This revision will provide a link between audit finding number, type of finding, type of compliance requirement and questioned costs — a link the OMB hopes will help improve federal oversight. Additional reporting requirements for federal loan and loan guarantees If accepted, the proposed changes will require that you answer “yes” or “no” regarding whether the program is a federal loan or guarantee for each federal award you report on Part III, Item 6. This change is intended to allow improved oversight of federal loan expenditures.
Proposed Changes to Single Audit Data Collection Form Impact Not-for-Profits
Jun 10, 2015
New form and instructions applicable for audit periods ending in 2013, 2014 and 2015
Are you required to perform a single audit each year? If you are a non-federal entity — including states, local and tribal governments, colleges, universities, and other not-for-profit organizations — that annually expends $500,000 or more in federal awards, the answer is "Yes." This detailed financial examination is designed to assure the federal government that award recipients are properly using federal funds and are complying with all applicable federal and state laws and regulations.
Single audits are data-intensive endeavors and completing them requires auditors to provide specific information relevant to your organization's operations that are funded by the federal awards.
The information must be supplied to the Federal Audit Clearinghouse website. However, there are several proposed changes regarding the Data Collection Form (DCF), the package of information that summarizes the results of each single audit.
Are you required to perform a single audit each year? If you are a non-federal entity — including states, local and tribal governments, colleges, universities, and other not-for-profit organizations — that annually expends $500,000 or more in federal awards, the answer is "Yes." This detailed financial examination is designed to assure the federal government that award recipients are properly using federal funds and are complying with all applicable federal and state laws and regulations.
Single audits are data-intensive endeavors and completing them requires auditors to provide specific information relevant to your organization's operations that are funded by the federal awards.
The information must be supplied to the Federal Audit Clearinghouse website. However, there are several proposed changes regarding the Data Collection Form (DCF), the package of information that summarizes the results of each single audit.
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our roots run deepTM
MAYER HOFFMAN MCCANN P.C. – AN INDEPENDENT CPA FIRM
A publication of the Professional Standards Group
MHMMessenger
© 2 0 1 3 M AY E R H O F F M A N M C C A N N P. C . 877-887-1090 • www.mhmcpa.com • All rights reserved.
TM
New form and instructions applicable for audit periods ending in 2013, 2014 and 2015
Are you required to perform a single audit each year? If you are a non-federal entity — including states, local and tribal governments, colleges, universities, and other not-for-profit organizations — that annually expends $500,000 or more in federal awards, the answer is “Yes.” This detailed financial examination is designed to assure the federal government that award recipients are properly using federal funds and are complying with all applicable federal and state laws and regulations.
Single audits are data-intensive endeavors and completing them requires auditors to provide specific information relevant to your organization’s operations that are funded by the federal awards.
The information must be supplied to the Federal Audit Clearinghouse website. However, there are several proposed changes regarding the Data Collection Form (DCF), the package of information that summarizes the results of each single audit.
August 2013
Proposed Changes to Single Audit Data Collection Form Impact Not-for-Profits
Proposed Changes
On May 9, 2013, the U.S. Office of Management and Budget (OMB) issued a Federal Register Notice that proposed changes to the DCF and its instructions. The comment period for these changes ended on July 8, 2013. These changes, if accepted, will be applicable for audit periods ending in 2013, 2014, and 2015. Some of the proposed key changes to the DCF include:
A new federal award findings page
While the old form already required detailed audit information, a new findings page in Part III will broaden the information the federal government requires in instances when the single audit results include findings.
In addition, Part III will include an entirely new column labeled “Number of Findings” as a cross reference with the findings detail on Part III, Item 7 to ensure that data on both pages relate. This revision will provide a link between audit finding number, type of finding, type of compliance requirement and questioned costs — a link the OMB hopes will help improve federal oversight.
Additional reporting requirements for federal loan and loan guarantees
If accepted, the proposed changes will require that you answer “yes” or “no” regarding whether the program is a federal loan or guarantee for each federal award you report on Part III, Item 6. This change is intended to allow improved oversight of federal loan expenditures.
© 2 0 1 3 M AY E R H O F F M A N M C C A N N P. C . 877-887-1090 • www.mhmcpa.com • All rights reserved.
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The information in this MHM Messenger is a brief summary and may not include all the details relevant to your situation. Please contact your MHM service provider to further discuss the impact on your financial statements.
Personally identifiable information
Another proposed change is the requirement for auditors and auditees to certify that their reporting package does not contain personally identifiable information, which is defined as “information which can be used to distinguish or trace an individual’s identity, such as their name, social security number, biometric records etc. alone or when combined with other personal or identifying information which is linked or linkable to a specific individual, such as date and place of birth, mother’s maiden name etc.”
Auditors must identify themselves
Beginning with 2013 audits, auditors must supply their Employer Identification Number. Primary auditors will include this information in Part 1: General Information, while other auditors will report it on the secondary auditor contact information page on Part I, Item 8.
New submission requirements
For some 2013 audits that meet specific criteria (generally entities with Federal expenditures over $50 million), and the remaining audits for 2014, all reporting package uploads must be text searchable, unlocked and unencrypted PDF files. The Federal Audit Clearinghouse (FAC) will provide instructions once the changes are finalized. The longer term goal of the FAC is to make all reporting packages transparent to the public.
Caveat: New Forms are Not Yet Available
The final 2013 DCF is not expected to be issued until at least late summer of this year. That’s a big problem for organizations that have single audits for a fiscal period ending in 2013 that are due before the new DCF is released. To prevent auditees from missing the mandatory 30-day submission deadline, the OMB has extended the reporting deadline until September 30, 2013 for any DCFs due before that date. This extension applies only to single audits for fiscal periods ending in 2013. Note that the extension is automatic and no prior approval is required.
We will keep you up-to-date as further developments occur related to the proposed changes. If you have questions in the meantime about how the changes to the DCF will impact your organization, contact Michelle Spriggs of our Professional Standards Group or your local Mayer Hoffman McCann office. Michelle can be reached at [email protected] or 774-206-8336.
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