Current through Register Vol. 48, No. 38, September 20, 2024
Following UR section
200.501 (Audit
Requirements):
a) Awardees, excluding
for-profits, that expend $750,000 or more during the non-federal entity's
fiscal year in federal awards (federal pass-through and direct federal funds)
must have a single audit conducted in accordance with UR section
200.514. Awardees meeting
certain requirements may elect to have a program-specific audit conducted in
accordance with UR section
200.507. (See Section
7000.90(d) for
audit requirements for for-profit subrecipients.)
b) Awardees that expend less than $750,000
during the non-federal entity's fiscal year in federal awards (federal
pass-through and direct federal funds) from all sources are exempt from federal
audit requirements for that year. These non-federal entities are not subject to
the single audit requirements.
c)
Awardees that expend less than $750,000 in direct federal and federal
pass-through funds from all sources are subject to the following audit
requirements:
1) Awardees that expend
$500,000 or more in State-issued awards, singularly or in any combination and
are not subject to the single audit:
A) Must
have a financial statement audit conducted in accordance with GAGAS;
and
B) If deemed to be high risk
based on the grantee's overall risk profile (obtained from the Financial and
Administrative Risk Assessment, the Merit Review, or the Programmatic Risk
Assessment mandated by UR section
200.331 (see Section
7000.340)):
i) Must have an audit conducted in accordance
with GAGAS; and
ii) Are required to
undergo either an on-site review conducted by the State Cognizant Agency or an
agreed-upon procedures engagement, paid for and arranged by the pass-through
entity or pass-through entities in accordance with UR section
200.425.
2) Awardees that do not meet the
requirements in subsection (c)(1) but expend $300,000 or more in State-issued
awards, singularly or in any combination, from a State awarding agency, during
the awardee's fiscal year must have a financial statement audit conducted in
accordance with GAAS.
3) If the
grantee is a Local Education Agency (as defined in
34 CFR
77.1), it must have a financial statement
audit conducted in accordance with GAGAS, as required by 23 Ill. Admin. Code
100.110, regardless of the
dollar amount of expenditures of federal pass-through and State-Issued Awards
from a State awarding agency.
4) If
the grantee does not meet the requirements in subsections (a) and (c)(1)
through (c)(3) but is required to have a financial statement audit conducted
based on other regulatory requirements, it must submit those audits for
review.
d) For-profit
Awardees. The pass-through entities are responsible for ensuring awardee
compliance with established requirements. Methods to ensure compliance for
State-issued awards to for-profit subrecipients may include pre-award audits,
monitoring during the agreement period of performance, and post-award audits.
See also UR section 200.331 (Requirements for
Pass-through Entities).
1) For-profit
Awardees Audit Requirements. For-profit awardees who expend $750,000 or more in
federal pass-through funds from a State awarding agency during the awardee's
fiscal year must have a program-specific audit conducted in accordance with UR
section 200.507 (Program-specific
Audits).
A) State awarding agencies must
provide the awardee the program-specific audit guide, when available.
B) If a program-specific guide is not
available, the auditor and auditee have the same responsibilities for the
program as they would have for a major program in a single audit.
2) For-profit awardees who expend
less than $750,000 in federal pass-through funds from a State awarding agency
during the awardee's fiscal year must follow the audit requirements in
subsections (c)(1) through (c)(4).
e) Awardees who do not meet the requirements
in subsection (c) or (d) but have audits conducted based on other regulatory
requirements must submit those audits for review.
f) Single Audit and Program Specific Audit
Report Submission. Single audits conducted in accordance with this Section,
including any program or regulatory audit requirements, must be completed and
the reporting package described in subsection (g) must be submitted by the
awardee to the Federal Audit Clearinghouse, as required by UR section
200.512 and the Grantee Portal,
within the earlier of 30 calendar days after receipt of the auditor's reports
or 9 months after the end of the awardee's audit period. If the due date falls
on a Saturday, Sunday or State/federal holiday, the reporting package is due
the next business day.
g) Financial
Statement Audits conducted in accordance with this Section must be completed
and the reporting package described in subsection (h) must be submitted by the
awardee using the Grantee Portal within the earlier of 30 calendar days after
receipt of the auditor's reports or 6 months after the end of the awardee's
audit period. If the due date falls on a Saturday, Sunday or State/federal
holiday, the reporting package is due the next business day.
h) Reporting package submissions must
include:
1) For Single Audit and Program
Specific Audit submissions:
A) All items
identified in UR section
200.512(c);
B) Management letters issued by the auditors,
and their respective corrective action plans if significant deficiencies or
material weaknesses are identified; and
C) Consolidated Year-end Financial Report
with an "in relation to opinion".
D) A copy of the results of the most recent
peer review of the audit firm.
2) For Financial Statement Audit submissions:
A) Financial Statements;
B) Summary schedule of Prior Audit Findings,
when applicable;
C) Auditor's
report;
D) Corrective Action Plan
(when Audit Report identifies findings);
E) Management letters issued by the auditors,
and their respective corrective action plans if significant deficiencies or
material weaknesses are identified; and
F) Consolidated Year-end Financial Report
with an "in relation to opinion";
G) A copy of the results of the most recent
peer review of the audit firm.
3) Awardees that are not required to have an
audit conducted must submit a Consolidated Year-end Financial Report using the
Grantee Portal.
