Section 3.1 for testing awards subject to the “old” OMB Circulars (still in effect for 2015 Single Audits) Section 3.2 for testing awards subject to the new uniform Guidance administrative and cost principle regulations (see below) for transitional grants. Requirements with more substantive changes include the following: B. Allowable Principles C. Cash Management F. Equipment and Real Property Management H. Period of Performance I. Procurement and Suspension and debarment J. Program Income M. Sub-recipient Monitoring Part 5 – Clusters of Programs – updated the list of clusters Part 6 – Internal Control has been removed and auditors are directed to refer to COSO or the Green Book for best practices Future Considerations: Office of Management and Budget (OMB)– Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule (Located in the Federal Register – Vol. 78, No. 248) Consolidates eight (8) OMB Circulars into one Circular dubbed the “Uniform Guidance” Imposes common requirements for both administrative and accounting functions. Therefore, impacts more than the Business Office. Reforms impact; Internal Controls, Procurement, Sub-Recipient Monitoring, Allocating Indirect Costs and Time and Effort Reporting among other areas. The revised Standards will be effective December 26, 2014 impacting grant awards on or after that date. Will apply to audits of fiscal years beginning on or after December 26, 2014, thus impacting School/BOCES audits for July 1, 2015 to June 30, 2016, Increases the Audit threshold to $750,000 from $500,000 of Federal awards per year. Education and planning are necessary now to be prepared for the revisions required by standards effective the end of this year. ADDITIONAL GUIDANCE • Governmental Accounting Standards Board (GASB) may be contacted by calling GASB at (203) 847- 0700, ext. 555; or writing GASB at 401 Merritt 7, PO Box 5116, Norwalk CT or visiting the GASB Web Page at GASB offers a technical inquiry system at GASB Pronouncements may also be viewed or downloaded from the following website: . • Financial Accounting Standards Board (FASB) may be contacted by calling FASB at (203) 847-0700, ext. 10; or writing FASB at 401 Merritt 7, PO Box 5116, Norwalk CT 06856-5116; or visiting the FASB Web Page at
must meet the Circular A-87 requirements. SUSPENSION AND DEBARMENT In administering federal funds, districts are prohibited from contracting with, or making sub-awards under covered transactions to parties that are suspended or debarred, or whose principals are suspended or debarred, under rules that were revised in November 2003. Verification of whether a party is suspended or debarred can be accomplished by reviewing the System for Award Management (SAM) at . Section VIII - Common Mistakes, Errors or Omissions in the Preparation of Financial Statements and Single Audits FINANCIAL STATEMENTS The following are common errors and omissions that the SED State Education Department's Office of Audit Services (OAS) has observed while reviewing financial statements: Management letter: Not submitted by the district. The corrective action plan for the issues noted in the management letter was not included or did not provide a specific plan to address these issues. The corrective action plan for issues noted in the "report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with government auditing standards" was not included or did not provide a specific plan to address these issues. Management Discussion and Analysis (MD&A): Did not include all elements required by GASB-34. Significant discrepancies in information between the MD&A and the other sections of the current and/or prior year's financial statements. Insufficient analysis of the changes in net assets, fund balances, or budget. Appears to have been prepared by the independent auditors. Did not include the name of a contact person. Statement of Net Assets: Long-term liability balances differing from balances shown in the notes to the financial statements. Investment in capital assets, net of related debt balance did not with the balance shown in the supplemental schedules. Statement of Activities: