Gilbert TranSenior Technical Manager

Office of Management & Budget

TopicsRecovery Act and Its Impact & Coverage in Single Audits

2009 Compliance Supplement Appendix VII Addendum # 1

Single Audit Internal Control Project

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$787,000,000,000

“Spending Stimulus take Money”

“We’re going to operate in a transparent fashion so that taxpayers know this money is not being wasted on a bunch of boondoggles”

President Obama, Washington Post, June 12, 2009

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OMB Guidance -- 02/18, 04/03, 06/22 Agency use SA for program risk assessment Agency use SA for program monitor

Separate ARRA CFDA, separate reporting on SEFA and DCF (including subrecipients)

Federal Audit Clearinghouse to display all single audits

New Appendix VII of 2009 Compliance Supplement - 05/06 highlights audit requirements for ARRA programs

Addendum to the CS -- 08/05 More detail requirements on ARRA programs Guidance on Internal Control Review New Cluster Listing ARRA program compliance requirements in Part 4

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Key Guidance in Appendix VII relates to:

• CFDA Numbers / Identifying Recovery Act programs

• Effect of Expenditures of Recovery Act Awards onMajor Program Determination

• Award Terms and Conditions and ComplianceRequirements

• Schedule of Expenditures of Federal Awards(SEFA)

New Appendix VII of 2009 Compliance Supplement - 05/06 highlights audit requirements for ARRA programs

Require that a type A program receiving Recovery dollars should be listed as a “high risk” program for single audit purpose and should be included as a major program to be reviewed

Require that any cluster with a new Recovery program should be considered as a new program and would not qualify as “a low risk Type A program.”

Include a guide to auditors performing single audits to highlight the new requirements for Recovery funds.

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Addendum #1 to CS -- 08/05Overview—Purpose of the addendum

Part 2 matrix for added programs (41 new ARRA programs)

Part 3 additions to-- (A) Allowable Activities, (D)Davis-Bacon, (I) Procurement, (L) Reporting , (M) Subrecipient Monitoring, (N) Special Tests and Provisions

Part 4- Program additions (43 programs including 14 clusters)CFDA 84.394, 84.397 HHS Programs

Part 5- Updated and New clusters

Part 6- Internal Control

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Early Communication on Internal Controls of ARRA programsTimely & useful information for management and Federal agencies on ARRA ProgramsEarly corrections & Resolution of deficienciesVolunteer States and selected ARRA ProgramsSelected areas of internal controlsTimeframe and Status