Has your not-for-profit organization received federal funding or additional funding under the CARES Act? This informational session discussed audit requirements for organizations receiving federal funds (i.e. Single Audits), reporting considerations, and specific requirements relative to COVID-19 response funds, including Paycheck Protection Program loans, Economic Injury Disaster Loans, Provider Relief Funds, and more.

1. Understanding Single Audit Compliance Requirements
- It’s no Joke!
April 1, 2021

2. Introduction 2
John Eusanio,CPA
Partner and Not-For-Practice Leader
646.979.6091
jeusanio@citrincooperman.com

3. INTRODUCTION TO SINGLE AUDIT
Agenda
COVID-19 IMPACTS
CARES ACT FUNDING
3

4. Our Presenters 4
Amber Aubin, CPA
Director
401.567.2143
aaubin@citrincooperman.com
Gina Pellicano,CPA
Director
401.567.2169
gpellicano@citrincooperman.com

5. Welcome
5
• A Few Keys to Getting Started…
o The webinar is 1 hours and based on your participation, you can earn up to 1 CPE.
o You must reply to at least 3 polling questions to receive the full credit.
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into the questions pane of the control panel.
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o Please complete the electronic course evaluation that will be launch at the conclusion of the
webinar. A link will also be sent in a follow-up email tomorrow.

6. Will you require CPE for today's webinar?
a. Yes
b. No
Polling Question #1
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7. 7
Introduction to Single Audit

8. Introduction to Single Audit
8
A compliance audit of
federal awards for an entity
that expends $750,000or
more of federal funds in a
year
Includes further testing
of internal controls
over complianceand testing
of twelve possible aspects of
compliance requirements
Due within 30 daysof the
financialstatement audit
OR
Within 9 months after year end
Audit requirementsand responsibilitiesgoverned by
Subpart F of the OMB UniformGuidance

9. Introduction to Single Audit
9
What is the Purpose of Uniform Guidance?
To provide assurance to the US
Government that federal assistance
is being used appropriately and
there is proper management over
the funds
Single audits are submitted to
the Federal Audit
Clearinghouse with the "Data
Collection Form" at the end of the
audit
Curb waste, fraud, and abuse Strengthen oversight

10. Introduction to Single Audit
10
Type of Audit Reports issued
• Government Auditing Standards ("Yellow Book") Report
• Report on InternalControl Over FinancialReporting and on Complianceand Other
MattersBased on an Audit of FinancialStatementsPerformed in Accordance With
Government Auditing Standards
• Compliance Report
• Report on Compliancefor Each MajorFederal Program; Report on Internal Control
Over Compliance;and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance

11. Introduction to Single Audit
11
Program Specific Audits
• More limitedin scope than a Single Audit – only pertainsto the specific program
not the federal awardsand financialstatementsas a whole
• Consist of financialstatement(s) of the federal program, Yellow Book and
compliancereports, a summary schedule of prior audit findings, and a corrective
action plan
• ComplianceSupplement Part 8 – AppendixVI – Program Specific Audit Guides
• Same deadlinesas Single Audits

12. Introduction to Single Audit
12
What Are Internal Controls?

13. Introduction to Single Audit
13
Testing of Internal Controls
• Auditorsare required to test internalcontrolsas part of the Single Audit
• Auditeesmust:
• Provide evidence about the effectiveness of the design,
implementation,or operationof controlsand policies to prevent or
detect noncompliance
• Auditorwill review:
• Written policies and procedures
• Support for underlyingcosts charged to the federal award
• Approvedinvoices, copies of checks, signed timesheets

14. Polling Question #2
An organization is not required to have internal controls in order
to be in compliance with federal regulations?
a. True
b. False
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15. Introduction to Single Audit
15
Administrative Requirements
Implements administrativerequirementsfor recipient organizationssuch as:
• Disclosure of conflicts of interest related to awards
• Disclosure of violationsof Federal criminallaw involvingfraud, bribery, or
gratuity violationspotentiallyaffecting the Federalaward
• Establishand maintaineffective internalcontrols
• Evaluateand monitorcompliance

16. Introduction to Single Audit
16
Administrative Requirements (continued)
Adhere to strict Federal procurement standards
The non-Federalentity must maintain written
standards of conduct covering conflicts of interest
and governing the performance of its employees
engaged in the selection, award,and
administrationof contracts

17. Introduction to Single Audit
17
Cost Principles – Indirect Cost Rates
• Any non-Federalentity that has never received a negotiatedindirect cost
rate may elect to charge a de minimisindirect cost rate ("IDR") of 10% of
modified total direct costs ("MTDC") which may be used indefinitely.
• If chosen, this methodologyonce elected must be used consistentlyfor
all Federal awardsuntil such time as the entity choses to negotiate for a
rate, which the non-Federalentity may do at any time.
• Federal awardingagencies must accept a negotiatedIDR unless a
different rate is required by Federalstatute or regulation,or when
approvedby a Federal awardingagency head or delegatebased on
documented justification.
• Any non-Federalentity that has a FederallynegotiatedIDR may apply for
a one-time extension of a current negotiatedIDR for a period of up to
four years.

18. Introduction to Single Audit
18
Schedule of Expenditures of Federal Awards (“SEFA”)
• Prepared by auditee
• Lists expenditures of individual federal programs by federal agency (“CFDA” number), including
grouping a cluster of programs
• Identify pass-through funds
• Identify amounts passed to subrecipients
• Total federal awards expended for loan or loan guarantee programs
• Required footnotes:
• Accounting principles used in SEFA preparation
• Election of de-minimis indirect rate (whether used or not)

19. Introduction to Single Audit
19
Major Program Determination
Total Federal AwardsExpended (includes
both cash and noncash awards)
Type A/B Threshold
Equal to $750,000 but < $25 million $750,000
> $25 million but < $100 million .03 times total federal awards expended
>$100 million but < $1 billion $3 million
>$1 billion but < $10 billion .003 times total federal awards expended
>$10 billion but < $20 billion $30 million
>$20 billion .0015 times total federal awards expended
Type A = programs above the thresholds noted above
Type B = programs below the thresholdsnoted above

20. Introduction to Single Audit
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OMB Compliance Supplement
• Issued annually by the Office of Management and Budget ("OMB")
• Contains guidance on compliance requirements for many federal
programs
• Consists of 8 parts:
Part 1 – Background, Purpose and Applicability
Part 2 – Matrix of Compliance Requirements
Part 3 – Compliance Requirements
Part 4 – Agency Program Requirements
Part 5 – Cluster of Programs
Part 6 – Internal Control
Part 7 – Guidance for Auditing Programs Not Included in Supplement
Part 8 – Appendices

21. Introduction to Single Audit
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Compliance Requirements
A. Activities Allowedor Unallowed H. Period of Performance
B. AllowableCosts/Cost Principles I. Procurement
C. Cash Management J. Program Income
D. Reserved K. Reserved
E. Eligibility L. Reporting
F. Equipmentand Real Property
Management
M. SubrecipientMonitoring
G. Matching,Level of Effort, Earmarking N. Special Tests and Provisions
2020 Compliance Supplement

22. Introduction to Single Audit
22
Schedule of Findings and Questioned Costs
• Prepared by the auditor
• Summarizes the results of the Single Audit
• Lists the major federal programs that were tested
• Must indicate whether material weaknesses and/or significant deficiencies
over financial reporting and over federal programs were identified
• Must report on whether or not there were any findings or questioned costs

23. Introduction to Single Audit
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Summary Schedule of Prior Audit Findings
• Prepared by auditee
• Must report the status of all audit findings included in the prior audit's schedule
of findings and questioned costs
• Must include the reference numbers the auditor assigns to audit findings
• Must include the fiscal year in which the finding initially occurred
• When audit findings are fully corrected, the schedule need only list the audit
findings and state that corrective action was taken.

24. Introduction to Single Audit
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Corrective Action Plan
• Required if findings are identified, and prepared by auditee
• Addresses each audit finding included in the current year auditor's reports
• Provides the name(s) of the contact person(s) responsible for corrective
action, the corrective action planned, and the anticipated completion date
• Includes an explanation and specific reasons if the auditee does not agree
with the audit findings or believes corrective action is not required

25. Introduction to Single Audit
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Risks of Non-Compliance
• Failure to submit a Single Audit by the deadline, or having a Single Audit
with significant, material deficiencies may result in any of the following:
• Repaymentof grant funds
• Suspension of payments
• Termination of contract
• Loss of future funding
• Single Audits are public information - reputational harm and negative
publicity could arise if there are significant findings
• External agencies mayalso come in and perform their own audit
• Corrective Action Plan provides managementwith the opportunity to
address and comment on the findings

26. Polling Question #3
The preparation of the Schedule of Expenditures of Federal
Awards, the Summary Schedule of Prior Audit Findings, and the
Corrective Action Plan are management's responsibility?
a. True
b. False
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27. COVID-19 Impacts on Single Audit
27
2020 Compliance Supplement Addendum
• Addendum to the 2020 Compliance Supplement specific to impacts of COVID-19
• Identifies new audit requirements related to COVID-19 specific programs
• New reporting requirements under the Federal Funding Accountability and Transparency Act
(FFATA) for subawards $25,000 or more
• Additional SEFA disclosure – footnote regarding fair market value of donated Personal Protective
Equipment (PPE) received
• Donated PPE is excluded from the SEFA
• Purchased PPE is included in the SEFA
• New footnote can be marked “unaudited”

28. Latest updates from GAQC (Governmental Audit
Quality Center)
• OMB Memo M-20-21 was issued on March 19, 2021.Key points include:
o Single Audit submissionextension – Organizations thathave not filed
their signed audits with the Federal Audit Clearinghouse as of March
19, 2021, and that have fiscal year-ends through June 30, 2021, may
extend their filing deadline by an additional six months beyond the
normal due date (9 months after fiscal year end).
o Documentation should be maintained on the reason for the delayed
filing.
o Extension is longer than the previous extension of 3 months and is NOT
linked to the receipt of COVID-19 funding.
o Note – last year OMB originally allowed for a 6-month extension that
was later reduced to 3 months, so there is a precedent for OMB to
revise its current position.
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29. 29
CARES Act Funding

30. Has your organization received any CARES Act funding?
a. Yes
b. No
Polling Question #4
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31. Compliance Requirements Related to the CARES Act
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•Certain federal funds providedunder the CARES Act must be includedon the SEFA.
•Four of the largest programs include:
•Click here for a complete listing of COVID-relatedprograms.
Program Federal Agency CFDA # Include on the SEFA?
Paycheck Protection
Program
Small Business
Administration
59.073 NO
Provider Relief Fund Health and Human
Services (HHS)
93.498 YES
CoronavirusRelief
Fund
Treasury 21.019 YES
Education
StabilizationFund
Education 84.425 YES

32. What is the Paycheck Protection Program?
• The Paycheck Protection Program (“PPP”) was established in March 2020 as
part of the CARES Act
• Provides loans to help businesses and organizations keep their workforce
employed during the coronavirus (“COVID-19”) pandemic
• Five-year term with an interest rate of 1%
• Borrowers may be eligible for forgiveness under certain conditions
• In December 2020, Congress passed the Consolidated Appropriations Act of
2021, which modified some of the CARES Act provisions, and provided
significant changes to the PPP
• Expenditures related to the PPP loan are not included on the SEFA, and are
therefore not subject to Single Audit
• Organizations that receive federal funding and have received a PPP loan
must be careful not to "double dip" - expenditures paid for by the PPP loan
cannot also be reimbursed by a government grant
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33. What is the Provider Relief Fund?
• The Provider Relief Fund ("PRF") was created through the CARES Act to
provide much-needed financial assistanceto healthcare providers in order
to support them in responding to the COVID-19 public health emergency
• PRF payments were to be used to help providers prevent, prepare for, or
respond to coronavirus.
• The payments were intended to reimburse providers for healthcare-related
expenses and lost revenue attributable to coronavirus.
• Payments were made through targeted distributions or phases of general
distributions
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34. When do I report PRF funds on the SEFA?
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35. What is the Coronavirus Relief Fund?
• The CARES Act established the $150 billion Coronavirus Relief Fund ("CRF")
to provide payments to States, eligible local governments, the District of
Columbia, U.S. territories and Tribal governments navigating the impact of
the COVID-19 pandemic
• States received a minimum of $1.25 billion with a reduction for payments
made to local governments with populations exceeding 500,000
• The CRF is designed to provide funding to address unforeseen financial needs and
risks created by the COVID-19 public healthemergency. Governments may use CRF
paymentsto cover costs that are:
o Necessary expenditures incurred due to the public health emergency with
respect to COVID-19
o Not accountedfor in the government’smost recently approvedbudget as of
March 27, 2020
o Incurred during the period that begins on March 1, 2020 and ends
on December 31, 2021
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36. What is the Education StabilizationFund?
• The CARES Act includes $30.75 billion for an Education Stabilization Fund
("ESF") to prevent, prepare for, and respond to coronavirus, domestically or
internationally
• Qualifying entities may receive ESF payments to cover any costs incurred to
prevent, prepare for, and respond to the coronavirus pandemic, including
costs associated with significant changes to the delivery of instructions,
capital acquisitions and improvements to prevent the spread of COVID-19
and emergency aid to students to help cover expenses incurred due to the
disruption of campus operations
• Expenditures under CFDA 84.425B and 84.425Gare NOT subject to audit
this year
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37. Questions?
37

38. Citrin Cooperman’s dedicated Not-For-ProfitPractice forms collaborative
partnerships with not-for-profitorganizations to gain a deep understanding
of their missions and drive creative solutions tailored to their unique needs.
Our team members are active on boards of local not-for-profit
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To learn more about our Not-For-ProfitGroup and the services we
provide, as well as to access articles and other resources,please click the
following link: https://www.citrincooperman.com/industries/not-for-profit.
38
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39. Thank You
For Participating