Top Ten Things you Should Know about Addendum 3 to the 2021 Single Audit Compliance Supplement
- If you are eligible, you should discuss this with your Auditor
- This is an addendum to the 2021 Single Audit Compliance Supplement and, specifically, the revision is Addendum 3
- Addendum 3 includes a simplified Single Audit process (an “Attestation”) for those direct recipients that are considered exempt from the Single Audit if it was not for the expenditures of SLFRF funds
- This alternative is intended to reduce the burden of a full Single Audit or Program-Specific Audit on eligible recipients (estimated at more than 10,000 entities) and practitioners
- This alternative applies to fiscal year audits beginning after June 30, 2020
- Attestation would result in an auditor’s opinion on compliance which includes an assessment of two activities, specifically “activities allowed” and “unallowed/allowable cost”
- Attestation is optional – any SLFRF direct recipient can decide to perform a Single Audit instead even if they are eligible for attestation
- Eligibility is limited:
a. Attestation (instead of SA) eligibility would only apply to direct recipients either from Treasury or from the States (NEUs) receiving under $10M in total
b. Attestation (instead of SA) eligibility would apply to direct recipients only if other Federal award funds the recipient expended are less than $750,000 during the recipient’s fiscal year – not including their SLFRF award funds - Single Audit would still apply if the recipient spends over $750K in ANY OTHER federal funds
- Uniform Guidance (UG) still applies to ALL expended funds, whether the recipient performs an Attestation or a Single Audit