Dear Center Members: |
The purpose of this GAQC Alert is to inform you of the following important developments: |
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SLG COVID-19 FAQs
The AICPA staff to the AICPA State and Local Government Expert Panel (SLGEP) has developed a frequently asked question (FAQ) document, FAQs – State and Local Government Financial Statement Accounting and Auditing Matters and Auditor Reporting Issues Related to COVID-19. The FAQs provide nonauthoritative guidance on SLG-specific accounting and auditing considerations that many SLG auditors and financial statement preparers are facing as a result of the COVID-19 pandemic. Among the topics covered in the FAQ document are the following:
- Subsequent Events
- Management's Discussion and Analysis
- Going Concern
- Operating Versus Nonoperating for Proprietary Funds
- Tax Revenue and Delayed Due Dates
- Internal Control Over Financial Reporting
- Other Audit-Specific and Auditor Reporting Considerations (e.g., fraud, risk assessment, management representations)
If you audit state and local governments, we encourage you to review the document. Please also make your state and local government clients aware of it too. The staff would like to thank the members of the AICPA SLGEP for providing their perspectives and experiences and for reviewing the FAQs.
GASB TB
On June 9, 2020, GASB issued a proposed TB with a comment deadline of June 25, 2020. The proposal addressed six pandemic-related questions, including revenue recognition questions related to certain CARES Act resources and extraordinary and special items. The SLGEP expressed their views in a comment letter on the proposal. GASB discussed the feedback received on the proposed TB during a June 30, 2020, public meeting (access a recording of the meeting) and has released final GASBTB 2020-1, Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020 and Coronavirus Diseases. The requirements of the TB are effective immediately.
Audit Extension Table Update
The GAQC Summary of COVID-19 Related Deadline Extensions of Audited Financial Statements and Other Reports (Audit Extension Table) has been updated to reflect revisions made to certain audit deadlines by several federal agencies. The date on the document is now updated to June 29, 2020. The following revisions were made:
- Single audit submission deadline changes due to the issuance of Office of Management and Budget (OMB) Memo M-20-26, which significantly reduced the previous audit extensions provided by OMB and a related new attachment which illustrates the revised deadlines for various fiscal year ends between and including June 30, 2019, and June 30, 2020. See GAQC Alert #409 for more details about the OMB memo.
- An update to acknowledge an additional blanket extension of unaudited and audited U.S. Department of Housing and Urban Development (HUD) multifamily Real Estate Assessment Center submissions with due dates before September 30, 2020. The revised deadline is now September 30, 2020.
- An update to reflect the expiration of several HUD extensions and to note that although the U.S. Department of Agriculture (USDA) multifamily housing extension has expired, USDA has indicated that State Program Directors are able to extend the deadline for specific projects out to June 30, 2020.
- A further due date extension to August 31, 2020, by USDA for financial statement audits of electric and telecommunications borrowers that were previously due between March 2020 and July 2020.
Review the Audit Extension Table for complete details. If you are uncertain about a specific submission deadline, contact the federal agency National Single Audit Coordinator for advice and clarification.
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Sincerely,
AICPA Governmental Audit Quality Center
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