1. Single Audits & The Recovery Act
3/27/ :29 PM
Single Audits & The Recovery Act
Gilbert Tran
Senior Technical Manager
Office of Management & Budget
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2. Topics
Recovery Act and Its Impact & Coverage in Single Audits
2009 Compliance Supplement
Appendix VII
Addendum # 1
Single Audit Internal Control Project
Single Audits & the Recovery Act ---AGA PDC Conference
OMB Guidance (2/18 & 4/3)
Direct agencies to perform risk assessment on all programs receiving Recovery funds to determine whether they should be listed as “high-risk” for Single Audit purpose. Agencies use past single audits on their programs to make assessment.
Require that all Recovery programs and Recovery funds under existing programs to be separately identified for financial and audit reporting (on the Schedule of Expenditures for Federal Awards and the Data Collection Form). The requirements extend to subrecipients.
All single audits will be displayed on the Federal Audit Clearinghouse public website
2009 Compliance Supplement, Appendix VII (5/09)
Require that a type A program receiving Recovery dollars should be listed as a “high risk” program for single audit purpose and should be included as a major program to be reviewed. (Type A program is program that is material in dollar expenditures for a particular grantee --$300 k or 3% of total Federal awards expenditures for grantees with $300K - $100 Million Federal expenditures)
Require that any cluster with a new Recovery program should be considered as a new program and would not qualify as “a low risk Type A program.”
Include a guide to auditors performing single audits to highlight the new requirements for Recovery funds.
Appendix VII Addendum (planned for July 2009)
Add more instructions regarding the testing of internal controls and new reporting requirement for Recovery programs.
Encourage auditors to report the result of its internal control review early to recipient’s management
List the new clusters with Recovery programs
Add compliance requirements for 20+ Recovery programs including the Department of Education’s State Fiscal Stabilization Fund ($150 Billion budget)
Evaluating alternatives to provide auditors some relief in light of the expanded scope for Recovery programs.
$787,000,000,000 11

3. “Spending Stimulus take Money”
“We’re going to operate in a transparent fashion so that taxpayers know this money is not being wasted on a bunch of boondoggles”
President Obama, Washington Post, June 12, 2009

5. OMB Guidance /18, 04/03, 06/22
Agency use SA for program risk assessment
Agency use SA for program monitor
Separate ARRA CFDA, separate reporting on SEFA and DCF (including subrecipients)
Federal Audit Clearinghouse to display all single audits
New Appendix VII of 2009 Compliance Supplement - 05/06 highlights audit requirements for ARRA programs
Addendum to the CS /05
More detail requirements on ARRA programs
Guidance on Internal Control Review
New Cluster Listing
ARRA program compliance requirements in Part 4 11

6. Key Guidance in Appendix VII relates to:
• CFDA Numbers / Identifying Recovery Act programs
• Effect of Expenditures of Recovery Act Awards on
Major Program Determination
• Award Terms and Conditions and Compliance
Requirements
• Schedule of Expenditures of Federal Awards
(SEFA)

7. New Appendix VII of 2009 Compliance Supplement - 05/06 highlights audit requirements for ARRA programs
Require that a type A program receiving Recovery dollars should be listed as a “high risk” program for single audit purpose and should be included as a major program to be reviewed
Require that any cluster with a new Recovery program should be considered as a new program and would not qualify as “a low risk Type A program.”
Include a guide to auditors performing single audits to highlight the new requirements for Recovery funds.
Single Audits & the Recovery Act ---AGA PDC Conference
OMB Guidance (2/18 & 4/3)
Direct agencies to perform risk assessment on all programs receiving Recovery funds to determine whether they should be listed as “high-risk” for Single Audit purpose. Agencies use past single audits on their programs to make assessment.
Require that all Recovery programs and Recovery funds under existing programs to be separately identified for financial and audit reporting (on the Schedule of Expenditures for Federal Awards and the Data Collection Form). The requirements extend to subrecipients.
All single audits will be displayed on the Federal Audit Clearinghouse public website
2009 Compliance Supplement, Appendix VII (5/09)
Require that a type A program receiving Recovery dollars should be listed as a “high risk” program for single audit purpose and should be included as a major program to be reviewed. (Type A program is program that is material in dollar expenditures for a particular grantee --$300 k or 3% of total Federal awards expenditures for grantees with $300K - $100 Million Federal expenditures)
Require that any cluster with a new Recovery program should be considered as a new program and would not qualify as “a low risk Type A program.”
Include a guide to auditors performing single audits to highlight the new requirements for Recovery funds.
Appendix VII Addendum (planned for July 2009)
Add more instructions regarding the testing of internal controls and new reporting requirement for Recovery programs.
Encourage auditors to report the result of its internal control review early to recipient’s management
List the new clusters with Recovery programs
Add compliance requirements for 20+ Recovery programs including the Department of Education’s State Fiscal Stabilization Fund ($150 Billion budget)
Evaluating alternatives to provide auditors some relief in light of the expanded scope for Recovery programs. 11

9. Addendum #1 to CS -- 08/05 Overview—Purpose of the addendum
Part 2 matrix for added programs (41 new ARRA programs)
Part 3 additions to-- (A) Allowable Activities, (D)Davis-Bacon, (I) Procurement, (L) Reporting , (M) Subrecipient Monitoring, (N) Special Tests and Provisions
Part 4- Program additions (43 programs including 14 clusters)
CFDA ,
HHS Programs
Part 5- Updated and New clusters
Part 6- Internal Control 11

10. Single Audit Pilot Project
Early Communication on Internal Controls of ARRA programs
Timely & useful information for management and Federal agencies on ARRA Programs
Early corrections & Resolution of deficiencies
Volunteer States and selected ARRA Programs
Selected areas of internal controls
Timeframe and Status