Grantee Audit Responsibilities
SINGLE AUDIT REPORT REQUIREMENTS
The subgrantee must comply with all federal and state audit
requirements including: The Single Audit Act Amendments of 1996;
Office of Management and Budget, Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, (OMB Circular A-133) as amended;
and any other applicable law or regulation, and any amendment to such other
applicable law or regulation which may be enacted or promulgated by the federal
If the subgrantee is a local government or non-profit organization
and expends total federal awards of $500,000 or more during its fiscal year,
received either directly from the federal government or indirectly from a
recipient of federal funds, the subgrantee is required to have an audit made in
accordance with the provisions of OMB Circular A-133.
If the subgrantee is a local government or non-profit organization
and expends total federal awards of $500,000 or more during its fiscal year
under one federal program, received either directly from the federal
government or indirectly from a recipient of federal funds, the subgrantee can
submit a program-specific audit in lieu of a single audit in accordance with the
provisions of OMB Circular A-133.
If the subgrantee expends total federal awards of less than
$500,000 during its fiscal year, it is exempt from these audit requirements, but
is required to maintain auditable records of federal awards and any state funds
which supplement such awards, and to provide access to such records by federal
and state agencies or their designees.
If the subgrantee is a for-profit entity, it is not subject to the
auditing and reporting requirements of OMB Circular A-133. However, the
pass-through commonwealth agency is responsible for establishing requirements,
as necessary, to ensure compliance by for-profit subrecipients. The contract
with the for-profit subrecipient should describe applicable compliance
requirements and the for-profit subrecipient’s compliance responsibility.
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. The post-award audits may be in the form of a financial audit in
accordance with Government Auditing Standards, a single audit report or
program-specific audit report in accordance with OMB Circular A-133.
However, these post-award audits must be submitted directly to the affected
commonwealth agency that provided the funding. Only single audit reports for
local governmental and non-profit subrecipients are electronically submitted to
the Office of the Budget, Office of Comptroller Operations, Bureau of Audits.
COMPONENTS OF THE SINGLE AUDIT REPORTING PACKAGE
The subgrantee must submit an electronic copy of the audit report
package to the commonwealth, which shall include:
auditor’s report on the financial statements, which expresses an opinion on
whether the financial statements are presented fairly in all material respects
in conformity with the stated accounting principles.
auditor’s report on the supplementary Schedule of Expenditures of Federal Awards
(SEFA), which expresses an opinion on whether the SEFA is presented fairly in
all material respects in relation to the financial statements taken as a whole.
This report can be issued separately or combined with the independent auditor’s
report on the financial statements.
on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with
Government Auditing Standards.
on compliance for each major program and report on internal control over
of findings and questioned costs.
statements and notes to the financial statements
and notes to the SEFA
single audit reporting packages must contain a SEFA prepared by the
subrecipient, not the subrecipient’s auditor. In accordance with §___.310(b) of
OMB Circular A-133, all SEFAs, at a minimum, shall:
individual federal programs by federal agency. For federal programs included in
a cluster of programs, list individual programs within a cluster of programs.
For research and development (R&D), the total federal awards expended shall
be shown either by individual award or by federal agency and major subdivision
within the federal agency;
federal awards received as a subrecipient, include the name of the pass-through
entity and the identifying number assigned by the pass-through entity;
the total federal awards expended for each individual federal program and the
CFDA number or other identifying number when the CFDA information is not
notes that describe the significant accounting policies used in preparing the
federal awards received as a pass-through entity, identify, to the extent
practical, the total amount provided to subrecipients from each federal program;
in either the SEFA or a note to the SEFA, the value of federal awards expended
in the form of noncash assistance, the amount of insurance in effect during the
year, and loans or loan guarantees outstanding at year end.
addition to the requirements of OMB Circular A-133, single audit
reporting packages containing federal funding passed through a commonwealth
agency must include the following components in the SEFA as required by the pass
breakdown of federal funds passed through the commonwealth, by federal grantor,
CFDA number, CFDA name and state program name (if different from CFDA name),
state program year, and state contract number (if applicable);
period beginning and ending dates for federal funds passed through each
commonwealth agency, by contract;
or award amount for each commonwealth agency, by contract;
received during the year for each commonwealth agency, by contract;
or deferred revenue at the beginning of the year for each commonwealth agency,
recognized during the year for each commonwealth agency, by contract;
or deferred revenue at the end of the year for each commonwealth agency, by
of Findings and Questioned Costs
schedule of prior audit findings
action plan (if applicable)
letter (if applicable)
In instances where a federal program-specific audit guide is
available, the audit report package for a program-specific audit may be
different and should be prepared in accordance with the appropriate audit guide,
Government Auditing Standards, and OMB Circular A-133.
OF THE AUDIT REPORT
The Office of the Budget, Office of Comptroller Operations, Bureau
of Audits accepts only electronic submissions of single
audit/program-specific audit reporting packages. Instructions and information
regarding submission of the single audit/program-specific audit reporting
package are available to the public on Single Audit Submissions page of the
Office of the Budget website (http://www.budget.state.pa.us).
The subgrantee is responsible for obtaining the necessary audit and securing the services of a certified public accountant or independent governmental auditor.
The commonwealth reserves the right for federal and state agencies
or their authorized representatives to perform additional audits of a financial
or performance nature, if deemed necessary by commonwealth or federal agencies.
Any such additional audit work will rely on work already performed by the
subgrantee's auditor and the costs for any additional work performed by the
federal or state agencies will be borne by those agencies at no additional
expense to the subgrantee.
Audit documentation and audit reports must be
retained by the subgrantee's auditor for a minimum of five years from the date
of issuance of the audit report, unless the subgrantee 's auditor is notified in
writing by the commonwealth, the cognizant federal agency for audit, or the
oversight federal agency for audit to extend the retention period. Audit
documentation will be made available upon request to authorized representatives
of the commonwealth, the cognizant federal agency for audit, the oversight
federal agency for audit, the federal funding agency, or the Government
in its sole discretion, may undertake an inspection and/or audit of the
financial records of the Applicant relating to the Subgrant
Applicant shall provide PCCD with full and complete access to all records
relating to the performance of the Subgrant Project and to all persons who were
involved in the Subgrant Project.
may also require, as a condition of award, that an independent financial audit