| Dear Center Members: |
| The purpose of this GAQC Alert provides information on the following important matters:
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Register for Single Audit Fundamentals Series
We know there will be many new single audits this year due to the significant influx of federal funding related to the COVID-19 pandemic. Therefore, the GAQC has refreshed its single audit fundamentals series and will offer it live on August 25-26, 2020. We will also rebroadcast the events several times later this year. This training is intended for staff new to performing single audits or those that just need a refresher. It will provide a strong foundation on what a single audit is and the basics of performance without delving into the nuances of the COVID-19 funding. Once staff are trained at a basic level, they can take advantage of other more advanced training that introduce COVID-19 concepts offered by the GAQC (e.g., archived no-CPE GAQC events or other live events described below).
GAQC Member Registration. Staff can sign up for all 4 parts or pick and choose what they need. See registration links below. The CPE option is the only option available for these events and group registration is not available. Staff will also need to enter the GAQC discount code of "GAQC" upon checkout to receive the discounted price of $79.20 for each event. See also the section below of this alert "Important GAQC Web Event Information."
Single Audit Fundamental Series. See specific dates and times below. Use this link to register for all 4 parts.
Part 1: What is a Single Audit? A Basic Background and Overview. Wednesday, August 26, 2020, from 11:00 AM – 1:00 PM. Use this link to register for Part 1 only.
Part 2: Major Program Determination. Wednesday, August 26, 2020, from 1:00 PM – 3:00 PM. Use this link to register for Part 2 only.
Part 3: Understanding and Testing Compliance Requirements and Internal Control over Compliance. Thursday, August 27, 2020, from 11:00 AM – 1:00 PM. Use this link to register for Part 3 only.
Part 4: Overview of Sampling and Single Audit Reporting Requirements. Thursday, August 27, 2020, from 1:00 PM – 3:00 PM. Use this link to register for Part 4 only.
Register for New GAQC Single Audit Event
As noted in the section below "Compliance Supplement Status," the first release of the 2020 Compliance Supplement is expected any day. This GAQC Web event, 2020 Supplement and COVID-19 Single Audit Implications, will be held on September 9, 2020, from 1:00 PM – 3:00 PM (Eastern Time) to update you on what the final Supplement includes. While the first release will not address the COVID-19 pandemic in a significant way, we are aware that Appendix VII will delve into the impact at a high level. This session will cover:
- What the Supplement says about pandemic implications;
- Other updates you should be aware of since our June Web event on this topic;
- The latest COVID-19 matters the GAQC has on its radar; and
- Commonly asked questions.
GAQC Member Registration. Access the registration page. The CPE option is the only option available for this event and group registration is not available. You will also need to enter the GAQC discount code of "GAQC" upon checkout to receive the discounted price of $79.20 for the event. See also the section below of this alert "Important GAQC Web Event Information."
Other GAQC COVID-19 Related Events
In addition to the above events, we also have the following events coming up. Registration information will follow in future GAQC Alerts.
Preparing for your First Single Audit: An Auditee Perspective - September 14, 2020, from 1:00 PM – 3:00 PM (Eastern Time). This event will help auditees that have never had a single audit before, which will be more common this year due to federal COVID-19-related funding. Please alert your clients that this event is coming and ask them to hold the date.
Supplement Addendum and COVID-19 Implications – October 2020 (date not final yet). This event will be a follow-on to the September 9th event above and will cover OMB's Fall addendum to the Supplement, as well as the latest COVID-19 implications.
An Audit Primer for Auditors of For-Profit Entities Receiving HHS Provider Relief Funds - October 2020 (date not final yet). Many for-profit entities will be subject to Health and Human Services (HHS) audit requirements for the first time (see GAQC Alert #411). This event will provide auditors with information and best practices about these engagements.
Important GAQC Web Event Changes
The AICPA has recently moved to a new technology platform for all AICPA Web events which includes improved functionality to enhance member experience. The new platform does not currently allow for Web event sponsors, including the GAQC, to offer both paid CPE and free, no-CPE options for the same live event. Therefore, the Web events in this GAQC Alert offer only the paid CPE registration option. The GAQC team is working to determine if there is another way to provide the free, no-CPE option for live events held later in the year. In the meantime, members will continue to receive the Web event archive links within a few days after each event which will allow for viewing the event without CPE credit (NASBA rules do not allow CPE credit for watching an archived event). In addition, members can always visit our archived member Web event page. We apologize for any inconvenience this may cause.
There are two additional changes you will note due to a change in the AICPA's Web event registration system. First, GAQC members will now have to enter a code to receive the discounted GAQC price when registering for GAQC Web events. Our discount code is "GAQC" which should be used at checkout. The discounted price remains $79.20 for a 2-hour CPE event. Second, for now, you will not be able to register groups as has been permitted in the past. Again, we will be working with the AICPA team involved in this area to determine if these enhancements can be built into the system on a future release.
OMB Issues Updates to Uniform Guidance
Today, Final Guidance was issued in the Federal Register titled, Guidance for Grants and Agreements, which is the culmination of a required 5-year review by OMB of the Uniform Guidance. You can read more about the original proposed revision in GAQC Alert #395, and the GAQC comment letter on that proposal in GAQC Alert #402. In addition to the Final Guidance, OMB is also expected to post in the coming days a marked version of the Uniform Guidance showing changes on https://www.performance.gov, under the section of the site for grants (Grants CAP Goal) at: https://www.performance.gov/CAP/grants.
Most of the revisions relate to areas of the Uniform Guidance outside of the auditor requirements in Subpart F. For example, updates have been made to the procurement requirements, use of the 10% de minimis rate, definitions of period of performance, budget period, and renewal, and pass-through entity requirements. There are also other definitional changes that have been made.
OMB revised the regulation's provisions for a government-wide study of single audit quality in section 200.503. The regulation no longer requires a specific year for the study to be performed, but it does require it to be performed every 6 years. It also clarifies that for purposes of the study, the federal agencies can rely on current and ongoing quality control review work performed by the agencies, state auditors, and professional audit associations (which would include the AICPA and its peer review program). The GAQC will be performing a comprehensive review of all changes to the regulation, especially those in Subpart F, and will provide more detail to members in future GAQC Alerts and Web events.
The revisions are generally effective on November 13, 2020, although 2 sections are effective immediately (those relate to termination of federal awards and new prohibitions on certain telecommunication and video surveillance services or equipment). In response to our query about how the effective date would be implemented, OMB staff explained that the revised Uniform Guidance will apply to new awards issued on or after the effective date. Note also that federal agencies may also have to take action to adopt the updated regulation in their individual agency regulations.
Compliance Supplement Status
We are aware that the 2020 Compliance Supplement is expected to be issued by next week at the latest. Once it is issued, we will send a GAQC Alert to inform you. OMB is expected to post one large PDF file to its Web site. The GAQC will then work to break the Supplement down by section and post it to our Web site. Remember that this is the first expected release by OMB. An addendum is expected in the Fall that will include sections for certain new COVID-19-related programs. * * * * *
Sincerely,
AICPA Governmental Audit Quality Center |
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| In This Alert |
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| A Reminder |
| Be sure to periodically check the GAQC COVID-19 Web page to see the latest information issued including links to GAQC Alerts, Web events, and information to assist you with understanding new COVID-19 programs and relevant audit extension deadlines. |
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| Additional Resources |
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| Stay Informed |
We welcome any suggestions or questions - please send them by e-mail at GAQC@aicpa.org.
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