| Dear Center Members: |
The purpose of this GAQC Alert is to inform you about the following:
- The issuance of a letter from the GAQC to the Office of Management and Budget (OMB) on the need for clear, timely, and easily accessible guidance regarding the impact of the Novel Coronavirus (COVID-19) outbreak on both compliance activity and future single audits;
- A summary table of COVID-related governmental audit submission extensions issued to date;
- The latest status of the OMB 2020 Compliance Supplement (2020 Supplement);
- New COVID-19 guidance from the Department of Education (ED) relating to the Student Financial Assistance (SFA) program and how to access an ED COVID-19 Web page;
- An "Emergency Toolbox" issued by the Governmental Accounting Standards Board (GASB) on COVID-19-related matters; and
- Other recent AICPA COVID-19 resources that should be of interest to those performing governmental audits.
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Letter to OMB on COVID-19 Implications
On April 10, 2020, the GAQC issued a comprehensive letter to OMB summarizing the various COVID-19 questions and issues that need to be addressed so that interim work on June 30, 2020, single audits can begin. We recommend you read through the letter to familiarize yourself with the various issues since they may be relevant for your audits. The most important areas raised relate to whether various emergency funds/programs are subject to the single audit, and if so, what CFDA numbers they are associated with. This information is critical to an entity's compliance and for single audit purposes. The letter also makes suggestions to OMB on how the 2020 OMB Compliance Supplement should be revised to address COVID-19 matters and reminds OMB of the future potential impacts on major program risk assessments, internal control testing and sample sizes.
COVID-19 Audit Extension Summary
For your convenience, the GAQC has summarized in one document all COVID-19 governmental audit submission deadlines that have been described in recent GAQC Alerts. The "at-a-glance" summary can be found on our Single Audit Resource Page.
2020 Supplement Status
Based on discussions with OMB staff, the 2020 Supplement was nearing the stage for submission to OMB's legal experts for a final clearance review when the COVID-19 pandemic started. Considering the massive federal outlays occurring daily, as well as the relaxation or revision of certain compliance requirements for existing federal programs, at least 4 federal agencies have requested additional time to add COVID-19-related information to their program sections. At this time, OMB has stated its goal is to issue the final Supplement by the end of June 2020. However, this date is a moving target with some amount of uncertainty due to the current COVID-19 situation. We will keep you apprised of 2020 Supplement developments in future GAQC Alerts and Web events.
New ED SFA Guidance and COVID-19 Web Page
As noted in GAQC Alert #398, ED previously issued guidance to address concerns that higher education leaders have expressed regarding how they should comply with Title IV, Higher Education Act policies for students whose activities are impacted by COVID-19. If you audit the SFA program, you should be aware that on March 20, 2020, ED updated the originally issued guidance to include an attachment titled "COVID-19 FAQs." Then, on April 3, 2020, ED issued a new Electronic Announcement "Updated: Guidance for Interruptions of Study related to Coronavirus (COVID-19)" which expands upon the March guidance and provides additional guidance and regulatory flexibilities. Finally, you may also want to visit ED's COVID-19 Web site for information and resources for schools and school personnel which covers elementary and secondary schools, as well as institutions of higher education.
GASB Toolbox
Among GASB's responses to the COVID-19 situation is the release of an "Emergency Toolbox." The purpose of this "toolbox" is to help stakeholders quickly identify the GASB's authoritative guidance that could be relevant to the current circumstances. Toolbox links have also been provided to identify additional professional organizations from which stakeholders may obtain nonauthoritative recommendations for financial reporting and other activities as government's deal with the effects of the pandemic.
Other AICPA COVID-19 Resources
If you have not recently visited the AICPA COVID-19 Resource Center, we wanted to make you aware of the following new items that should be of interest:
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Sincerely,
AICPA Governmental Audit Quality Center |
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| In This Alert |
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| GAQC COVID-19 Information |
| The GAQC is accumulating its single audit COVID-19-related resources on our Single Audit Resource Page. Access the page. |
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| Additional Resources |
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| Stay Informed |
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