Section 7000.90 Auditing Requirements

Section 7000.90  Auditing Requirements

Following UR section 200.501 (Audit Requirements):

a)         Awardees,

excluding for-profits, that expend $1,000,000 or more during the non-federal

entity's fiscal year in federal awards (federal pass-through and direct federal

funds) must have a single audit conducted in accordance with UR section 200.514.

Awardees meeting certain requirements may elect to have a program-specific

audit conducted in accordance with UR section 200.507.  (See Section 7000.90(d)

for audit requirements for for-profit subrecipients.)

b)         Awardees

that expend less than $1,000,000 during the non-federal entity's fiscal year in

federal awards (federal pass-through and direct federal funds) from all sources

are exempt from federal audit requirements for that year.  These non-federal

entities are not subject to the single audit requirements.

c)         Awardees

that expend less than $1,000,000 in direct federal and federal pass-through

funds from all sources are subject to the following audit requirements:

1)         Awardees

that expend $750,000 or more in State-issued awards, singularly or in any

combination and are not subject to the single audit:

A)        Must

have a financial statement audit conducted in accordance with GAGAS; and

B)        If

deemed to be high risk based on the grantee's overall risk profile (obtained

from the Financial and Administrative Risk Assessment, the Merit Review, or the

Programmatic Risk Assessment mandated by UR section 200.332 (see Section

7000.340)):

i)          Must

have an audit conducted in accordance with GAGAS; and

ii)         Are

required to undergo either an on-site review conducted by the State Cognizant

Agency or an agreed-upon procedures engagement, paid for and arranged by the pass-through

entity or pass-through entities in accordance with UR section 200.425

isk Assessment mandated by UR section 200.332 (see Section

7000.340)):

i)          Must

have an audit conducted in accordance with GAGAS; and

ii)         Are

required to undergo either an on-site review conducted by the State Cognizant

Agency or an agreed-upon procedures engagement, paid for and arranged by the pass-through

entity or pass-through entities in accordance with UR section 200.425.

2)         Awardees

that do not meet the requirements in subsection (c)(1) but expend $500,000 or

more in State-issued awards, singularly or in any combination, from a State

awarding agency, during the awardee's fiscal year must have a financial

statement audit conducted in accordance with GAAS.

3)         If the

grantee is a Local Education Agency (as defined in 34 CFR 77.1), it must have a

financial statement audit conducted in accordance with GAGAS, as required by 23

Ill. Admin. Code 100.110, regardless of the dollar amount of expenditures of federal

pass-through and State-Issued Awards from a State awarding agency.

4)         If the

grantee does not meet the requirements in subsections (a) and (c)(1) through

(c)(3) but has a financial statement audit conducted voluntarily or based on

other regulatory requirements, it must submit those audits for review.

5)         Non-federal

entities that are not required to have an audit conducted must submit a

Consolidated Year-end Financial Report using the Grantee Portal.

d)         For-profit

Awardees. The pass-through entities are responsible for ensuring awardee

compliance with established requirements. Methods to ensure compliance for State-issued

awards to for-profit subrecipients may include pre-award audits, monitoring

during the agreement period of performance, and post-award audits. See also UR section

200.332 (Requirements for Pass-through Entities).

1)         For-profit

Awardees Audit Requirements

ntities are responsible for ensuring awardee

compliance with established requirements. Methods to ensure compliance for State-issued

awards to for-profit subrecipients may include pre-award audits, monitoring

during the agreement period of performance, and post-award audits. See also UR section

200.332 (Requirements for Pass-through Entities).

1)         For-profit

Awardees Audit Requirements. For-profit awardees who expend $1,000,000 or more

in federal pass-through funds from a State awarding agency during the awardee's

fiscal year must have a program-specific audit conducted in accordance with UR section

200.507 (Program-specific Audits).

A)        State awarding

agencies must provide the awardee the program-specific audit guide, when

available.

B)        If a

program-specific guide is not available, the auditor and auditee have the same

responsibilities for the program as they would have for a major program in a

single audit.

2)         For-profit

awardees who expend less than $1,000,000 in federal pass-through funds from a

State awarding agency during the awardee's fiscal year must follow the audit

requirements in subsections (c)(1) through (c)(4).

e)         Awardees

who do not meet the requirements in subsection (c) or (d) but have audits

conducted based on other regulatory requirements must submit those audits for review.

f)         Single

Audit and Program Specific Audit Report Submission.  Single audits conducted in

accordance with this Section, including any program or regulatory audit

requirements, must be completed and the reporting package described in subsection

the requirements in subsection (c) or (d) but have audits

conducted based on other regulatory requirements must submit those audits for review.

f)         Single

Audit and Program Specific Audit Report Submission.  Single audits conducted in

accordance with this Section, including any program or regulatory audit

requirements, must be completed and the reporting package described in subsection

(g) must be submitted by the awardee to the Federal Audit Clearinghouse, as

required by UR section 200.512 and the Grantee Portal, within the earlier of 30

calendar days after receipt of the auditor's reports or 9 months after the end

of the awardee's audit period.  If the due date falls on a Saturday, Sunday or

State/federal holiday, the reporting package is due the next business day.

g)         Financial

Statement Audits conducted in accordance with this Section must be completed

and the reporting package described in subsection (h) must be submitted by the awardee

using the Grantee Portal within the earlier of 30 calendar days after receipt

of the auditor's reports or 6 months after the end of the awardee's audit

period.  If the due date falls on a Saturday, Sunday or State/federal holiday,

the reporting package is due the next business day.

h)         Reporting

package submissions must include:

1)         For

Single Audit and Program Specific Audit submissions:

A)        All

items identified in UR section 200.512(c);

B)        Management

letters issued by the auditors, and their respective corrective action plans if

significant deficiencies or material weaknesses are identified; and

C)        Consolidated

Year-end Financial Report with an "in relation to opinion".

D)        A copy

of the results of the most recent peer review of the audit firm

ions:

A)        All

items identified in UR section 200.512(c);

B)        Management

letters issued by the auditors, and their respective corrective action plans if

significant deficiencies or material weaknesses are identified; and

C)        Consolidated

Year-end Financial Report with an "in relation to opinion".

D)        A copy

of the results of the most recent peer review of the audit firm.

2)         For

Financial Statement Audit submissions:

A)        Financial

Statements;

B)        Summary

schedule of Prior Audit Findings, when applicable;

C)        Auditor's

report;

D)        Corrective

Action Plan (when Audit Report identifies findings);

E)        Management

letters issued by the auditors, and their respective corrective action plans if

significant deficiencies or material weaknesses are identified; and

F)         Consolidated

Year-end Financial Report with an "in relation to opinion";

G)        A copy

of the results of the most recent peer review of the audit firm.