Pub. 3 2021 Issue 2

M A R C H / A P R I L 2 0 2 1 22 nebraska cpas Sage Intacct customers achieve an average 250% ROI and payback in less than 6 months: • Reduce time to close by as much as 79% • See real-time reporting across hundreds of consolidated entities • Put finance leaders in a position to drive more growth Enter code FREE20 at Altavistatech.com/consult to claim your FREE CLOUD-ACCOUNTING CONSULTATION. Alta Vista Technology is now in Lincoln! Are your customers using the only cloud accounting software recommended by the AICPA? www.altavistatech.com | 1.855.913.3228 | info@altavistatech.com to the COVID-19 pandemic, the effective date of those standards has been delayed and wi l l now take effect for audits of financial statements for periods ending on or after December 15, 2021, with early implementation permitted. These revisions are primarily related to changes in the auditor’s report. Federal Agency Oversight Federal agencies have responsibi l ities related to ensuring the quality of single audits through the Inspector General Act of 1978, as amended, and the Uniform Guidance. To help assess the quality of single audits, agencies conduct quality control reviews of audit documentation prepared in support of single audits and per form desk reviews of single audit reporting packages. Due to the impact of COVID-19 on the single audit, federal agencies will likely be paying particular attention to several areas during quality control reviews and desk reviews: • Was the report package and data collection form submitted timely? Based on the fiscal year covered by the audit, and whether the auditee received COVID-19 funding, did an extension apply? • Were COVID-19 expendi t ures separately identified on the SEFA and Data Collection Form? Were findings applicable to COVID-19 programs identified as such? • Were all programs with a single A s s i s t a nc e L i s t i n g Numb e r considered one program for purposes ofmajor programdetermination? (i.e., 84.425—Education Stabilization Fund is evaluated in its entirety and not by separate alpha code) • For audits with reports issued prior to publication of the addendum, did the auditor use Part 7 to determine which compliance requirements to test for new COVID-19 programs? • For audit s with repor t s i ssued after publication of the addendum, did the auditor comply with the requirements in the addendum? Although for-profit and foreign entities are not considered non-federal entities subject to single audit requirements, auditors of these entities should be aware that federal agencies may impose audit requirements on them as well. Summary New federal funding will make single audits more prevalent in the coming months and years, but also more complicated. The best advice that can be given is for the auditor and grantee to closely read the 2020 Compliance Supplement addendum and the 2021 Compliance Supplement, once it is available. Both auditors and grantees should monitor federal agency webpages for information related to COVID-19 programs and should document any guidance that was relied upon in making decisions about how to comply and applying professional judgement. t Mark Priebe is director of the Non-Federal Audit Team and Amy Bales is senior auditor of the Non-Federal Audit Team for the U.S. Department of Education Office of Inspector General. In these roles, Priebe and Bales are charged with assuring the quality of audits completed by external auditors for Department of Education programs. Priebe is located in the Washington, D.C., office and may be reached at (202) 245-8255 or mark.priebe@ed.gov. Bales is in the Kansas City Regional Office and may be reached at (816) 268-0502 or amy.bales@ed.gov. Priebe is scheduled to speak at the Nebraska Society of CPAs’ 25th Annual Not-For-Profit Conference, which will be held June 7-8, 2021, via live webcast. Register today at http://bit.ly/Not-For-Profit-Conf2021. Disclaimer: The views expressed in the above article do not necessarily represent the views of the agency or the United States.