Download - 1 Single Audit Update Gilbert Tran Executive Office of the President Office of Management and Budget
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Single Audit Update
Gilbert Tran
Executive Office of the President
Office of Management and Budget
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Agenda
The Big Grant Picture Single Audit
Requirements National Single Audit
Sampling Project Federal Single Audit
Workgroups
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“…You know, we spend a lot of time and a lot of effort collecting your money, and we should show the same amount of effort in reporting how we spend it. Every year, the federal government issues more than $400 billion in grants, and more than $300 billion in contracts to corporations, associations, and state and local governments. Taxpayers have a right to know where that money is going, and you have a right to know whether or not you're getting value for your money…”
President Bush, signing the Federal Funding Accountability and Transparency Act of 2006, September 26, 2006.
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The Garden of Grants
PART
OMB A-123SAS 112
Single AuditsGAO
IPIA 2002
GMLoB
PL 106=-1-7Grants.gov
FFATAS.2590
Grant Requirements
GRANTS
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Distribution of Federal Grants
4%
1%
80%
8%
7%
States
Locals
Universities
Non-Profits
Tribes, For-Profit, Others
2009 US BUDGET - $3.1 TRILLION GRANTS- $500 BILLION
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Steep Rise in Federal Grants
0
50
100
150
200
250
300
350
400
450
1960 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006
$7B$24B
$91B
$200B
$450B
CFDA lists more than 1000 Federal grant programs
In Billion of $
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$$$$ #Programs
Department of Agriculture …………………………………… $25.7 68 Department of Commerce ...................................... 0.6 40Department of Education ........................................ 40.1 124Department of Energy ............................................. 0.3 4Department of Health and Human Services .....256.6 169Department of Homeland Security……………………………. .9.1 32Department of Housing and Urban Development .........34.8 31Department of the Interior ........................................ 4.1 66Department of Justice ................................................ 3.8 60Department of Labor ................................................. 7.1 22Department of Transportation .................................... 46.8 20Department of the Treasury ....................................... 0.3 1Department of Veterans Affairs ................................. 0.3 6
Environmental Protection Agency ................................ 3.8 44Other agencies ......................................................... 2.2 --
Total .....................................................................435.7 Billion
FY 2006 Budgeted Grants to State & Local FY 2006 Budgeted Grants to State & Local Governments by AgencyGovernments by Agency
I’m DHHS, Hear me roar,
RAA!!
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Medicaid 177.2 Highway Planning & Const. 35.8 TANF - HHS 19.2 Section 8 Housing Choice Vouchers 14.7 Title I –Education 12.3 Special Education to States 10.1 Head Start 6.8 National School Lunch Program 6.8 Foster Care 4.7 Nutrition Program for WIC 4.6
Total: $292.2 Billion
(IN $ BILLION)(IN $ BILLION)
TOP 10 FEDERAL PROGRAMSTOP 10 FEDERAL PROGRAMS
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OMB Grants Management Circulars
Cost Principles (Gilbert Tran) A-21- Colleges & Universities A-87- Governments A-122- Non-Profits
Administrative Requirements (Marguerite Pridgen) A-102- Governments A-110- Everyone Else
Audit Requirements (Gilbert Tran) A-133- Everyone
Compliance Supplement
What’s the LAW ?
$500 B
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National Single Audit Sampling Project
Final Report Issued June 2007http://www.ignet.gov/pande/audit/NatSamProjRptFINAL2.pdf
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Sample Design
208 single audits from universe of 38,523 audits successfully submitted to clearinghouse April 1, 2003 to March 31, 2004
96 of 208 were from 852 audits of entities that expended Federal Awards of 50 million or more (Stratum I)
112 of 208 were from 37,671 entities that expended less than 50 million in Federal Awards (Stratum II)
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Classification of Audits
Acceptable
Limited reliability because of significant deficiencies
Unacceptable
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Summary Results
Acceptable - 115 (49%) Large – 61 (63.5%) , Smaller – 54 (48.2%)
Limited reliability because of significant deficiencies – 30 (16%) Large – 12 (12.5%), Smaller – 18 (16.1%)
Unacceptable – 63 (35%) Large – 23 (24%), Smaller – 40 (35.7%)
Fed Awards Reported $53/57 billion (93%) Acceptable
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Deficiencies
Audit Documentation did not evidence auditor understanding of the 5 elements of internal control and testing of internal controls for many or all applicable compliance requirements. However, documentation did evidence that most required compliance testing was performed
Audit documentation did not evidence internal control testing and/or compliance testing for more than a few compliance requirements, or did not explain why they were not applicable for the auditee
Audit documentation did not evidence that audit work relating to the SEFA was adequately performed, or did not evidence that audit programs were used for auditing internal controls, compliance and/or the SEFA
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Single Audit Improvement Process
PCIE Recommendations
Federal Workgroups
Recommended ChangesBetter Auditors
Better Protection of Federal $
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Single Audit Improvement Process
System Support
Incentives
Good RulesGuidance
Training
Good Auditor
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Federal Workgroups
Good Rules & Guidance Revisions to A-133 and AICPA Guidelines to report audit
findings Revisions to A-133, AICPA Audit Guide and OMB
Compliance Supplement to document the required compliance testing
Revisions to A-133 and AICPA for audit testing and
sampling Training
Revisions to A-133 to require SA training. Development of
training curriculum
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Federal Workgroups
Incentives Review of suspension & debarment process and identify
alternative methods to address unacceptable audits Coordination with other SA constituencies for sanctions
and punitive actions for substandard audits. Revisions to A-133 to any proposed sanction language
System Support Coordination with PCIE to issue uniform standards on
QCRs The New and Improved Single Audit Process