The Single Audit Act is a compliance and a financial-based audit in that the auditor is required to review the tribe’s financial records to ensure what is being reported is correct and financially sound, and to ensure the tribe has complied with all valid uses of Federal Emergency Relief Funds. The Single Audit Act applies to any entity that expends $750,000 or more in federal funds in a fiscal year. The U.S. Treasury has determined that Federal Emergency Relief Funds (CARES Act, ARPA, JJIA, etc.) are Federal Assistance Awards and are subject to the Single Audit Act. The OMB Uniform Administrative Requirements (2 CFR Part 200), at Subpart F – Audit Requirements, contain regulations that implement the Single Audit Act.
OMB publishes an annual OMB Audit Compliance Supplement to provide a roadmap that auditors must follow when performing audits under the Single Audit Act. The Audit Compliance Supplement can be used by tribes as a tool to better understand the audit process and what the auditors will be testing. Federal spending bills contain specific COVID-19 related requirements that must be audited to ensure tribal compliance. This required that OMB publish special Compliance Supplement Addenda to provide guidance for auditors to determine whether tribes are complying with the stringent requirements.
Preparing for audits is burdensome but very important to ensure that financial statements are accurate. This course will provide guidance on work that tribal governments must do to prepare for the audits. It will emphasize the importance of internal controls to avoid misuse of funds. It will also cover the unique PL 93-638 audit exceptions relating to collection of disallowed costs. This course will provide overall guidance on the Single Audit Act. It will cover Subpart F – Audit Requirements of the OMB Uniform Administrative Requirements; and will include coverage on the OMB Audit Compliance Supplements and Addenda.