Audits

It is important that money given to education be spent appropriately and lawfully for the specific educational purpose for which it was given. To ensure that, state and federal laws require that school districts and other organizations receiving public education funds have their finances looked at every year by a certified public accountant (CPA).

A written report of this examination must be prepared and submitted by the CPA firm to the district, the state, and the federal government. It is the Department of Education's responsibility, through the Audit Oversight process, to make sure that those yearly examinations are performed and to follow up with the district on any issues noted by the CPA firm in their report.

Grantee Audit Requirements

Per 2CFR200.501 – Audit requirements

Audit required. A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part.

Single audit. A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with § 200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) of this section.

Exemption when Federal awards expended are less than $750,000. A non-Federal entity that expends less than $750,000 during the non-Federal entity's fiscal year in Federal awards is exempt from Federal audit requirements for that year, except as noted in § 200.503, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and Government Accountability Office (GAO).

Per 2CFR200.508 – Auditee responsibilities

The auditee must:

• procure or otherwise arrange for the audit required by this part in accordance with 200.509;
• prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with 200.510;
• promptly follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective actions plan in accordance with 200.511;
• provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.

*For the complete 2CFR200 Subpart F – Audit Requirement section please use this link eCFR :: 2 CFR Part 200 Subpart F -- Audit Requirements.

Per 2CFR200.512 – Report submission

The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.

Unless restricted by Federal statutes or regulations, the auditee must make copies available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information.

Data collection. The (Federal Audit Clearinghouse) FAC is the repository of record for subpart F of this part reporting packages and the data collection form. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC.

The auditee must submit required data elements described in Appendix X to Part 200, which state whether the audit was completed in accordance with this part and provides information about the auditee, its Federal programs, and the results of the audit. The data must include information available from the audit required by this part that is necessary for Federal agencies to use the audit to ensure integrity for Federal programs. The data elements and format must be approved by OMB, available from the FAC, and include collections of information from the reporting package described in paragraph (c) of this section. A senior level representative of the auditee (e.g., state controller, director of finance, chief executive officer, or chief financial officer) must sign a statement to be included as part of the data collection that says that the auditee complied with the requirements of this part, the data were prepared in accordance with this part (and the instructions accompanying the form), the reporting package does not include protected personally identifiable information, the information included in its entirety is accurate and complete, and that the FAC is authorized to make the reporting package and the form publicly available on a website.

The Single Audit Act applies to state and local governments, non-profits, and higher education institutions that expend sufficient federal financial assistance to meet the minimum audit threshold.

Additional Information

Specifics of the applicable laws and regulations are detailed below:  

• Federal Financial Assistance is defined as assistance provided by the federal government in the form of grants, contracts, loans or cooperative agreements. It includes awards received directly from federal agencies or indirectly through units of state or local government. It does not include Medicare/Medicaid or contracted Child Care payments through the state or federal governments.
  
  Currently, the total of federal financial assistance expenditures from all sources combined must be at or above $750,000.
• Organizations that expend at least $750,000, but expend it all from one program may elect to audit only that program. However, they may do so only if the program’s regulations do not require an organization wide audit. Alternatively, they may audit their entire organization, even if only a program audit is required. If they are funded from more than one federal source and expenditures from all sources total more than $750,000, they must do a Single Audit of their entire organization.

If you have any questions regarding 2CFR200 Subpart F – Audit Requirements, please contact Crystal Martin, Senior Finance/Compliance Officer at 222-8482. You may also email her at the address listed below.

Federal Subrecipient Monitoring Policies and Procedures [PDF, 282 KB]

Contact

Crystal Martin, Senior Finance Officer

401-222-8482

crystal.martin@ride.ri.gov