Single Audit Training
California State University
AUDIT
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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Agenda
Module I
• Introduction
• Overview of the A-133 Audit
• Schedule of Expenditures of Federal Awards
• Authoritative Literature and Resources
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International, a Swiss cooperative. All rights reserved.
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Module I
Single Audit
Overview
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International, a Swiss cooperative. All rights reserved.
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Reports Issued in Connection with a A-133
Audit
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Types of Federal Awards
Project grants
Funding for fixed periods of specific
projects. Examples include
fellowships, scholarships,
research grants, training grants,
etc.
Cost-reimbursement contracts
Entities provide goods or services to
the federal government on a costreimbursement basis.
Formula grants
Allocations of money made in
accordance with a distribution
formula prescribed by law.
Direct loans
Financial assistance provided
through the lending of federal
monies for a specific period of time,
with a reasonable expectation of
repayment.
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International, a Swiss cooperative. All rights reserved.
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Entities Subject to A-133 Audit
• An entity is subject to the A-133 Audit if it spends
US$500,000 or more in federal awards
 States and local governments
 Non-profit organizations
 Higher education institutions
 Hospitals
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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Determining When a Federal Award Is
Expended
• Amount of federal awards expended is the basis for
determining if A-133 audit is required
 Based on when the activities that require compliance with laws,
regulations and the provisions of the contracts or grant agreement
takes place
 Definition of expenditure may differ from GAAP
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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Determining When a Federal Award Is
Expended (Continued)
Grants, cost-reimbursement
contracts, cooperative agreements,
and direct appropriations
When the expenditure/expense
transaction occurs.
Loans and loan guarantees
Generally, when the loan proceeds
are disbursed (lender) or received
(borrower), plus any interest subsidy,
cash, or administrative cost
allowance received.
Property, including donated surplus
property
When the property is received. The
amount considered to be expended
is the fair market value of the
donated property at the time of
receipt or the assessed value
provided by the federal agency.
Amounts passed through to
subrecipients
When the disbursement is made by
the pass-through entity.
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International, a Swiss cooperative. All rights reserved.
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Schedule of Expenditures of Federal Awards
(SEFA)
• Auditee’s responsibility to prepare
• List of individual federal programs by federal agency
• Federal awards received as a subrecipient
 Name of pass-through entity
 Identifying number assigned by the pass-through entity
• Total federal awards expended by program
 Catalog of Federal Domestic Assistance (CFDA) number or other identifying
number
• Amount of pass-through awards from each federal program
• Noncash awards in either the schedule or a note to the schedule
• Include notes that describe the significant accounting policies
used in preparing the schedule
• Accrual or other disclosed basis of accounting
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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SEFA Example
XYZ Foundation/Campus
Schedule of Expenditure of Federal Awards
For the Fiscal Year Ended June 30, 2008
CFDA # Pass-Through Id# Expenditure
U.S. Department of Agriculture
Direct Programs:
Food Donation
Passed through the State Department of Education:
Child and Adult Care Food Program
Total U.S. Department of Agriculture
U.S. Department of Justice
Passed through the State Department of Corrections:
Juvenile Accountability Incentive Block Grant
Local Law Enforcement Block Grants
Total U.S. Department of Justice
10.550
$1,000,000
10.558
C-104622
$ 500,000
$1,700,000
16.523
16.592
2007TFEKI8954 $ 100,000
2006SHWX0688 $2,000,000
$2,100,000
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SEFA – YES Reporting Package
Schedule of Expenditure of Federal Awards
For the Fiscal Year Ended June 30, 2008
1)
2)
Student Financial Assistance Cluster
Additional Programs

For #1 and 2 above, each entity is Required to list:

CFDA #,

Federal Expenditures,

Federal Grantor Agency,

Pass-Through Agency,

Pass-Through Entity Identifying Number and

Amounts Provided to Subrecipients
3)
Federal Perkins Loan Program Information (e.g., Total borrowers not in repayment status,
borrows on schedule in repayment status, borrowers in default, etc.)
4) Administrative Cost Allowances

Federal Perkins Loan Program


Federal Supplemental Educational Grant Program
Federal Work-Study Program
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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Authoritative Literature
• Office of Management and Budget (OMB)
Circular A-133
• The OMB can be obtained through the Internet at
http://www.whitehouse.gov/omb/circulars/index.html
• Cost Principles
 OMB Circular A-21—Higher Educational Institutions
 OMB Circular A-87—State & Local Governments
 OMB Circular A-122—Non-Profit Organizations
 Health and Human Services at 45 CFR Part 74 Appendix E - Hospitals
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International, a Swiss cooperative. All rights reserved.
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Authoritative Literature (Continued)
• Administrative Requirements
 OMB Circular A-110 – Non-Profit, Higher Education & Hospitals
 A-102 Common Rule – State and Local Government
 CFR references for specific agency A-102 requirements in OMB A-
133 Compliance Supplement (Appendix 2)
 Education 34 CFR 80
 Health and Human Services 45 CFR 92
 Agriculture 7 CFR 3016
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International, a Swiss cooperative. All rights reserved.
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Other Program Information CFDA
 The Catalog of Federal Domestic Assistance (CFDA) contains background
information and a brief description of some of the major requirements for each
federal program.
 Each program in the CFDA has a federally assigned index number (CFDA
number) to identify itself.
 Among other things, each program listing includes:

•
Name of the federal awarding agency
 Statutory and regulatory cites
 Program objectives (usually derived from legislative language)
 Type of assistance (financial, non-financial)
 Use and use restrictions
 Eligibility requirements and the methods used to ensure they are met
 Formula and matching requirements
 Reporting and recordkeeping requirements
The CFDA can be found through the Internet at http://www.cfda.gov/.
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International, a Swiss cooperative. All rights reserved.
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Other Program Information CFR
 The Code of Federal Regulations (CFR) is a multivolume manual which
represents the actual laws placed in effect by the federal government
related to each program.
 CFRs are referenced throughout the OMB Circular A-133 Compliance
Supplement as the authoritative literature for the various requirements
that are being tested.
 The CFR can be obtained through the Internet at
http://www.gpoaccess.gov/nara/index.html.
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International, a Swiss cooperative. All rights reserved.
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Other Program Information USC
 The United States Code (USC) is the codification by subject matter of the
general and permanent laws of the United States.
 It is divided by broad subjects into 50 titles and published by the Office
of the Law Revision Counsel of the U.S. House of Representatives.
 It is published every six years. In between editions, annual cumulative
supplements are published in order to present the most current
information.
 USCs are also referenced throughout the OMB Circular A-133
Compliance Supplement as the authoritative literature for the various
requirements that are being tested.
 The USC can be obtained through the Internet at
http://www.gpoaccess.gov/uscode/index.html
©2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG
International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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Questions?
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International, a Swiss cooperative. All rights reserved.
FOR INTERNAL USE ONLY.
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