1. Subrecipient Monitoring: A-133 Single Audit Compliance Michigan State Police Emergency Management and Homeland Security Division Jackie Reese, Audit Unit Manager Richard Sheaffer, Auditor

2. http://www.michigan.gov/emhsd2 To remind all pass-through entities (Regional Fiduciary) of their Single Audit, A-133 responsibilities. To provide a job aid for pass-through entities (Regional Fiduciary) to successfully monitor their subrecipients’ single audit compliance. Objectives

3. http://www.michigan.gov/emhsd3 The Single Audit Act and OMB Circular A-133 Audits of States, Local Governments, and Non- Profit Organizations. Established Federal audit regulations for entities that receive Federal financial assistance. Established subrecipient monitoring responsibilities.

4. http://www.michigan.gov/emhsd4 Responsibilities and Guidance OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations http://www.whitehouse.gov/omb/rewrite/circulars/a133/a133.html U.S. Department of Homeland Security Preparedness Directorate – Financial Management Guide http://www.dhs.gov/xlibrary/assets/Grants_FinancialManagementGuide.pdf U.S. Department of Homeland Security, 2009 Homeland Security Grant Program, Guidance and Application Kit http://www.fema.gov/pdf/government/grant/hsgp/fy09_hsgp_guidance.pdf 2009 Homeland Security Grant Program Grant Agreement

5. http://www.michigan.gov/emhsd5 Federal Awarding Agency Recipient Subrecipient Flow of Federal Financial Assistance

6. http://www.michigan.gov/emhsd6 Federal Awarding Agency = Recipient = Subrecipient = (Grantor) (Subgrantor) (Subgrantee) Flow of Federal Financial Assistance

7. http://www.michigan.gov/emhsd7 Federal Awarding Agency = Recipient = Subrecipient = DHS MSP EMHSD Regional Fiduciary Flow of Federal Financial Assistance

8. http://www.michigan.gov/emhsd8 Federal Awarding Agency = Recipient = Subrecipient = DHS MSP EMHSD Regional Fiduciary Local Jurisdiction Pass-through

9. http://www.michigan.gov/emhsd9 Roles and Responsibilities DHS is the Federal awarding agency. MSP EMHSD is the recipient and a pass-through entity. Regional Fiduciary is a subrecipient and a pass- through entity. Local Jurisdiction is a subrecipient.

10. http://www.michigan.gov/emhsd10 Who is required to have a single audit? A recipient/subrecipient that expends at least $500,000 in total federal awards in a year. Important Notes: This includes all Federal grant money expended from all Federal grant programs, not just the programs you administer. Usually, a CPA firm conducts the single audit and prepares the report. Your entity (Regional Fiduciary) does not conduct the single audit and does not prepare the report. OMB Circular A-133 §.200 (b)

11. http://www.michigan.gov/emhsd11 Important Note: If you have a Single Audit, report the correct pass-through entity on the Schedule of Expenditures of Federal Awards (SEFA) MSP-EMHSD shall report DHS Regional Fiduciary shall report MSP-EMHSD Local Jurisdiction shall report Regional Fiduciary

12. http://www.michigan.gov/emhsd12 When is the Single Audit Due? Within nine months after fiscal year end. FYE 06/30/2009 → Due 03/31/2010 FYE 09/30/2009 → Due 06/30/2010 FYE 12/31/2009 → Due 09/30/2010 OMB Circular A-133 §.320 (a)

13. http://www.michigan.gov/emhsd13 Where should the Single Audit be submitted? To the Federal Clearinghouse To all agencies and pass-through agencies that provide funds to your agency. ○ MSP EMHSD → DHS (and other agencies) ○ Regional Fiduciary → MSP EMHSD (and other agencies) ○ Local Jurisdiction → Regional Fiduciary (and other agencies)

14. http://www.michigan.gov/emhsd14 Pass-through Entity Responsibility Who needs to review the Single Audit Report? MSP-EMHSD reviews their subrecipients (Regional Fiduciary and any other subrecipients). Regional Fiduciary reviews their subrecipients. OMB Circular A-133 §.400 (d)(4-6)

15. http://www.michigan.gov/emhsd15 Important Note You may already have personnel in your organization reviewing Single Audit Reports. If so, be able to provide contact name and phone number to MSP-EMHSD upon request. Communicate, communicate, communicate.

16. http://www.michigan.gov/emhsd16 Major Parts of the Single Audit Report Report 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. (Results summarized in the Schedule of Findings and Questioned Costs.) Report on Compliance with requirements applicable to each major program and on Internal Control over compliance in accordance with OMB A-133. (Results summarized in the Schedule of Findings and Questioned Costs.)

17. http://www.michigan.gov/emhsd17 Major Parts of the Single Audit Report Corrective Action Plan (Generally included in the Schedule of Findings and Questioned Costs.) Schedule of Findings and Questioned Costs. Summary Schedule of Prior Audit Findings. Schedule of Federal Expenditures and Federal Awards (SEFA).

18. http://www.michigan.gov/emhsd18 Job Aid Sample Subrecipient Single Audit Review Form Sample form is provided for guidance only and is not required.

19. http://www.michigan.gov/emhsd19 Completion of Review Management Decision ○ On audit findings that apply to Federal awards your agency passed through. ○ Within 6 months of receipt of single audit report. ○ Ensure that the subrecipient takes appropriate and timely corrective action. OMB Circular A-133 §.405

20. http://www.michigan.gov/emhsd20 Additional Resources Federal Program Names and CFDA #: https://www.cfda.gov/index?s=main&mode=list&ta b=list Local Audit Reports: http://www.michigan.gov/treasury/0,1607,7-121- 1751_31038---,00.html Data Collection Form (Federal Clearinghouse) http://harvester.census.gov/sac/dissem/entity.html

21. http://www.michigan.gov/emhsd21 Questions

22. http://www.michigan.gov/emhsd22 Contact Information Richard Sheaffer, Auditor Phone: (517) 333-4624 Cell: (517) 282-7548 Email: sheaffrp@michigan.govsheaffrp@michigan.gov Jackie Reese, Audit Unit Manager Phone: (517) 324-2330 Email: reesej@michigan.govreesej@michigan.gov