| Dear Center Members: |
This GAQC Alert informs you about the following matters:
- The Office of Management and Budget (OMB) and the U.S. Department of Health and Human Services (HHS) have provided additional audit submission extensions for recipients in certain states affected by recent weather-related events;
- Registration information is now available for an upcoming GAQC live Web event, Hot Topics in Auditing Pandemic Funding, to be held on Tuesday, November 29, 2022; and
- New GAQC tools for auditees that we hope you will share with your clients.
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Weather-Related Extensions
As noted in GAQC Alert #446, OMB previously provided a 6-month single audit submission extension due to Hurricane Fiona for Puerto Rico non-federal entity recipients that have due dates between September 18, 2022, and December 31, 2022. OMB has just announced on the Federal Audit Clearinghouse Web site that this six-month single audit submission extension was expanded to include non-federal entity recipients in the states of Alaska, Florida, South Carolina, and North Carolina that have due dates between September 18, 2022, and December 31, 2022, due to the complications created by various weather-related events and declarations of significant areas of these states as major disaster areas under the Stafford Act. The GAQC confirmed with OMB staff that the extension is available to all recipients in each of the states and not just those located in certain areas of the states most significantly impacted. With that said, the OMB extension posting encourages recipients in the less affected areas to submit their reports as soon as possible.
As it relates to for-profit recipients, HHS has just informed the GAQC that the HHS Deputy Secretary of Grants has issued an internal memorandum to the 13 HHS awarding agencies (e.g., Health Resources and Services Administration (HRSA), National Institutes of Health, Centers for Disease Prevention and Control, etc.) extending the same 6-month extension as provided by OMB for single audits to HHS for-profit recipients. That is, the HHS extension applies to for-profit recipients in the same states as noted above with report due dates between September 18, 2022, and December 31, 2022. HHS awarding agencies are expected to communicate this development with their recipients directly and are also expected to encourage recipients in the less affected areas within each state to submit their audits as soon as possible. This should be of particular interest to for-profit recipients in the affected states with funding from the Provider Relief Fund program as September 30, 2022, was a significant audit submission deadline for many for-profit entities. Note that we are still waiting to hear from the U.S. Department of Housing and Urban Development about whether it will offer any similar extensions for their for-profit recipients in affected states.
Hot Topics Web Event
Register now for the next live GAQC Web event, Hot Topics in Auditing Pandemic Funding. It will be held on Tuesday, November 29, 2022, from 1:00 – 3:00 PM (Eastern Time). This Web event will delve into four important and highly relevant topics as follows:
- Program-specific audits. Pandemic funding has led to more program-specific audits than usual. The session will explain what a program-specific audit is, when it can be used and the related requirements.
- Using Part 7 of the Compliance Supplement. The pandemic has also increased situations where the auditor is auditing a federal program that is not included in the OMB Compliance Supplement. The presenters will cover what to do in this situation and how to use Part 7, Guidance for Auditing Programs Not in This Compliance Supplement.
- Audits of single financial statements and elements. The increase in program-specific audits, as well as the option for for-profit entities to have a financial audit of the Provider Relief Fund (PRF) program, has resulted in more audits being performed under AU-C Section 805, Special Considerations — Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement. The session will delve into the requirements of AU-C Section 805 including how to adapt and apply the general auditing standards to these engagements.
- Compliance Examination Engagements. Several federal agencies have offered alternatives to single audits for their programs (e.g., the Coronavirus State and Local Government Fiscal Recovery Fund and the Shuttered Venue Operators Grants). These engagements involve compliance examination engagements under the AICPA's Attestation Standards and Government Auditing Standards. Some auditors are less familiar with these AICPA standards and the provisions of Government Auditing Standards that are relevant to attestation engagements and this session will explain the basics of each.
The presenters for this event are: Amanda Ward, CPA, Plante Moran; Monique Booker, CPA, SB & Company; and Tammy Erickson, CPA, Moss Adams.
GAQC Member Registration with CPE (fee). Access the member CPE registration page.
GAQC Member Registration with no-CPE (free). Access the member no-CPE registration page.
New GAQC Resources for Auditees
Thousands of state and local governments, nonprofits and businesses that received federal pandemic funding have become subject to single audit or similar compliance audit rules for the first time. It is essential that leaders of such organizations understand their responsibilities for a quality audit and engage CPAs who have the appropriate specialized knowledge and experience to perform these services. To help further our goals for promoting the highest quality single audits, the GAQC has released several new and updated resources to help organizations subject to these types of audits, as follows:
These resources and others are free and available to the public. To access them, users must register for an online AICPA account, which anyone can establish. We encourage our members to make clients aware of these resources.
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Sincerely,
AICPA Governmental Audit Quality Center |
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| In This Alert |
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| New PRF FAQs |
| Three new questions were added to the Audit and Reporting Requirements section of the Provider Relief Fund Program frequently asked question document on October 19, 2022. Access the FAQs and search for 10/19/2022 to identify the new FAQs. |
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| Additional Resources |
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| Stay Informed |
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