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Jan. l4 ZUUS 8:51RM t~~estry No. 9940 P 3/3 <br /> Page 2 <br /> OVERVIEW OF FEDERAL AUDIT REQI:TIRElviEN'T~ <br /> FOR STATES, LOCAL GOVERNNIE~ITS AND NON-PROFFI` ORGAbl~IZA'1'IpNS <br /> (For Fiscal years beginning on or aftez July 1, 1996) <br /> The following are highlights from 7 CFR 3016, 3019 and Ofixce o£ Management revised Budget Circular <br /> A-133. Tf~ese highlights are NOT all inclusive; therefore, it is recommended that you read each of the ~'eferences <br /> above in their entirety. <br /> The audit must be performed. by an independent auditor who has been selected by following the procurement <br /> standards found in 7 CFR 30a 6.36 a~ad 3019.40-48. <br /> There are two types of audits that nosy be required: <br /> 1. The Program-SpeciFc Audit is performed when the grantee has expended Federal ,funds in excess of $3U0,000 <br /> ($500,000 for fiscal ears endin after December 31 2003 amd had onl one Federal assistance ro d ' <br /> Y g > ) Y P ~'am urmg <br /> the grantee's previous fiscal year. It must conform to the reporting required by Government~Auditing Standards. <br /> Tt will normally include an opinion on the financial statements of the Federal assistance program, a report on the <br /> program's internal controls, and a report on program compliance with laws and regulations. A schedule of <br /> ~adings and questioned costs, management later, or report on illegal acts may also be required when these fiscal <br /> irregularities occur. Please submit a copy of the audit report to: <br /> Grants Manager <br /> USDA Forest Service <br /> Acquisition Management <br /> P.O. Box 3623 <br /> Portland, OR 97208-3623 <br /> 2. The Single Audit may be performed. if the grazltee has expended Federal. fiords in excess of $300,000 <br /> ($500,000 for fiscal years ending after December 31, 2003) and had more than one Federal assistance program <br /> during the grantee's previous fiscal year (the grantee may elect to perform Program-Specific audits for ALL <br /> required programs instead of using The Single Audit). The Si~tgle Audit z~equires the auditor to report on (1) the <br /> general purpose or basic financial statements, {2) the Supplementary Schedule of Federal Awards, (3) the entity- <br /> wide internal control matters, (4) internal controls.(accounting and administrative) designed to provide reasonable <br /> assurance of compliance with laws and'regulations applicable to Federal. awards, and (5) compliance which may <br /> be material to the ~ financial statements. The auditor must. develop an opinion on compliance with laws and <br /> regulations applicable to each major Federal program and a statement of positive assurance on those items that <br /> were tested and negative assurance on those items not tested A major program is defined as any program for <br /> which Federal expenditures during the applicable year exceed the larger of $300,000 or 3 percent of such total <br /> expenditures. A schedule of findings and questioned costs, management letter, or report on illegal acts may also <br /> be required when these fiscal irregularities occur. <br /> Please submit a copy of the audit report to: ~ . <br /> Greats Manager The audit report forte SF-SAC may be completed online at: <br /> USDA Forest Service http://harvester.census.gov/fac/collectlddeindex.html. <br /> Acquisition Management <br /> P. O. Box 3623 <br /> Portland, OR 97208-3623 <br /> T'he appropriate audit report is required to be completed within 9 months following the end of the grantee's fiscal <br /> <br /> yem'• <br /> _ <br /> <br />