Presenting a live 110 ‐ minute teleconference with interactive Q&A Circular A ‐ 133 Audits for Non ‐ Profit Clients: Protecting Grant Eligibility Successful Audit Tactics Based on Latest Guidance and Standards TUES DAY, JANUARY 31, 2012 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: John Eusanio, S John Eusanio S enior Manager KPMG New Y enior Manager, KPMG , New Y ork ork Ryan Gough, Audit Manager, Berry Dunn , Manchester, N.H. For this program, attendees must listen to the audio over the telephone. Please refer to the instructions emailed to the registrant for the dial-in information. Attendees can still view the presentation slides online. If you have any questions, please contact Customer Service at1-800-926-7926 ext. 10 .
Conference Materials If you have not printed the conference materials for this program, please complete the following steps: • Click on the + sign next to “ Conference Materials” in the middle of the left- hand column on your screen hand column on your screen. • Click on the tab labeled “ Handouts” that appears, and there you will see a PDF of the slides for today's program. • Double click on the PDF and a separate page will open. Double click on the PDF and a separate page will open. • Print the slides by clicking on the printer icon.
Continuing Education Credits FOR LIVE EVENT ONLY Attendees must listen to the audio over the telephone . Attendees can still view the presentation slides online but there is no online audio for this program. Attendees must stay on the line for at least 100 minutes in order to qualify for a full 2 credits of CPE. Attendance is monitored as required by NAS BA. Please refer to the instructions emailed to the registrant for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 . at 1 800 926 7926 ext. 10 .
Tips for Optimal Quality S S ound Qualit y d Q lit For this program, you must listen via the telephone by dialing 1-866-873-1442 and entering your PIN when prompted. There will be no sound over the web co connection. ect o . If you dialed in and have any difficulties during the call, press *0 for assistance. Y ou may also send us a chat or e-mail sound@straffordpub.com immediately so we can address the problem. Viewing Qualit y To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again press the F11 key again.
Circular A ‐ 133 Audits for Non ‐ Profit Cli Clients: Protecting Grant Eligibility t P t ti G t Eli ibilit Seminar Jan. 31, 2012 John Eusanio, KPMG , Ryan Gough, BerryDunn y g , y jeusanio@kpmg.com rgough@berrydunn.com
Today’s Program Review Of Circular A-133 And Related Guidance S lide 7 – S lide 29 [John Eusanio] S ingle Audits, And What To Expect From Auditors S lide 30 – S lide 37 [Ryan Gough] Experiences With, Recommendations For Circular A-133 Audits S lide 38 – S lide 45 [Ryan Gough]
John Eusanio, KPMG REVIEW OF CIRCULAR A 133 REVIEW OF CIRCULAR A ‐ 133 AND RELATED GUIDANCE
Si Single Audit Act l A di A 1. S ingle Audit Act (S AA) – 1984 • Created a single, organization-wide financial and compliance audit for state and local entities receiving in excess of $100,000 a year in federal funds • The S AA had four maj or purposes: • Promote efficient and effective use of audit resources • Establish uniform requirements for audits of federal funds Establish uniform requirements for audits of federal funds • Ensure that federal funds are audited in accordance with the S AA • • Improve S Improve S &L financial management of federally funded &L financial management of federally funded programs • The 1984 S AA did not include colleges, universities and other not- for-profit organizations receiving federal funds. for profit organizations receiving federal funds. 8
Si Single Audit Act (Cont.) l A di A (C ) 1. S ingle Audit Act Amendment – 1996 • In July 1996, Congress enacted the S ingle Audit Act amendments of 1996, which replaced the S ingle Audit Act of 1984. • S treamline and improve the effectiveness of audits of federal awards and simplify reporting requirements • These goals were achieved, in part, by increasing the dollar threshold for performing a single or program-specific audit and introducing risk-based program selection criteria for maj or program program selection criteria for maj or program. 2. S ingle Audit Act amendment - 2003 • Raised the dollar threshold for requirement of a single audit to $500,000 or more in expenditures in an entity s fiscal year or more in expenditures in an entity’s fiscal year • Raised the dollar threshold for OMB designation of a federal cognizant agency from $25 million to $50 million in expenditures per entity fiscal year • Allowed federal agencies flexibility to exchange federal oversight agency responsibilities 9
A di Auditee Responsibilities R ibili i I. Identify, in its accounts, all federal awards received and expended and the federal programs under which they were received. Federal program and award identification shall include, as applicable, the CFDA title and number, award number and year, name of the federal agency, and name of the pass-through entity. II II. Maintain internal control over federal programs that provides reasonable assurance Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs III. Comply with laws, regulations and the provisions of contracts or grant agreements related to each of its federal programs IV. Prepare appropriate financial statements, including the schedule of expenditures of federal awards f f d l d V. Ensure that the audits required are properly performed and submitted when due VI. Follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action plan summary schedule of prior audit findings and a corrective action plan 10
A di Auditor Responsibilities R ibili i I I. The auditor shall determine whether the financial statements of the The auditor shall determine whether the financial statements of the auditee are presented fairly in all material respects and in conformity with generally accepted accounting principles. II II. The auditor shall also determine whether the schedule of The auditor shall also determine whether the schedule of expenditures of federal awards is presented fairly in all material respects, in relation to the auditee's financial statements taken as a whole whole. III. The auditor shall perform procedures to obtain an understanding of internal control over federal programs sufficient to plan the audit to support a low assessed level of control risk for maj or programs support a low assessed level of control risk for maj or programs. IV. The auditor shall determine whether the auditee has complied with laws, regulations and the provisions of contracts or grant agreements that may have a direct and material effect on each of its maj or th t h di t d t i l ff t h f it j programs. 11
E Entities Subject To A ‐ 133 Audit i i S bj T A A di A. An entity is subj ect to an A-133 Audit if it spends U.S . $500,000 or more in federal awards • S S tates and local governments tates and local governments • Non-profit organizations • Higher education institutions g • Hospitals B. Amount of federal awards expended is the basis for determining if A-133 audit is required 12
Determining When A Federal Award Is Expended g p Grants, cost ‐ reimbursement contracts, cooperative agreements and direct appropriations When the expenditure/expense transaction occurs Loans and loan guarantees Generally, when the loan proceeds are disbursed (lender) or received (borrower), plus any interest subsidy, cash or administrative cost allowance received Property, including donated surplus property • When the property is received. The amount considered to be expended is the fair market value of the donated property at the time of receipt or the assessed value provided by the federal agency. Amounts passed through to sub ‐ recipients When the disbursement is made by the pass ‐ through entity 13
OMB 2011 Compliance Supplement l l 1. Updated Part 3 I, Procurement and S p , uspension and p Debarment, to include additional information on international agreements and the Buy-American Act 2. 2. Updated Part 3 L, Reporting to: Updated Part 3 L, Reporting to: a. Add Federal Funding Accountability and Transparency Act (FF ATA) b. Provide transitional guidance for moving from use of S F 269, Financial S t at us Report , and S F 272, Federal Cash Transact ions Report , to use of S F-425, Federal Financial Report R t c. Clarify 1512 reporting issue i. Using estimates okay; must make corrections g y; ii. Using lag methodology is not appropriate. 14
Recommend
More recommend
