1 Planning Conside r ations F unding is c o ming o ut Co uld b - - PDF document

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Ce nte r fo r Audit E xc e lle nc e

Sc hool Single Audit Conside r ations

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he infor mation in this slide show may be subje c t to c hange .

• Additional COVID guidanc e is be ing pr
• vide d by

F e de r al and State Age nc ie s e ve r y day is an atte mpt to c lar ify r e quir e me nts and pr

• vide

imple me ntation guidanc e to pr ime r e c ipie nts and subr e c ipie nts.

AT T E NT ION!!!

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Pla nning c ha lle ng e s/ c o nside ra tio ns Risk Asse ssme nt Sc ho o l Pro g ra ms Re po rting

Age nda

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F unding is c o ming o ut q uic ke r tha n g uidanc e

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ntitie s c o uld ha ve e lig ib le e xpe nditure s prio r to re c e iving funding

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Y20 e xpe nditure s c ould be r e imbur se d in F Y21

Co uld b e re c e iving ne w funding , a dditio nal funding to e xisting pro g ra ms, a nd pro g ra ms with wa ive rs/ fle xibilitie s Go ing to b e c ruc ia l to ha ve c o nve rsa tio ns with c lie nts e a rly o n

Sc hools ne e d to make c ritic al de c isions

DOCUME NT , DOCUME NT , DOCUME NT

Planning Conside r ations

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E ntitie s tha t ha ve no t pr e viously be e n sing le a udits no w ma y ha ve a n inc re a se in e xpe nditure s. Ne c e ssita ting a sing le a udit Be a le rt to ne w funding stre a ms

• Co uld b e re c e iving sub a wa rds fro m va rio us e ntitie s (i.e . a City ma y pa ss funds

thro ug h to a sc ho o l)

• Se ve ra l ne w g ra nt pro g ra ms
• Critic a l to ma ke sure yo u ha ve a c o mple te SE

F A

• Re q uire d to se pa ra te COVID funds o ut o n the SE

F A

E ntitie s c o uld a lso b e se rving a s a pa ss-thro ug h (i.e . c re a ting sub a wa rds with o the r e ntitie s/ NF Ps/ e tc ) a nd ne e d to b e a wa re

• f the a sso c ia te d re quire me nts—2 CF

R 200.331

Planning Conside r ations

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Sc ho o ls ha ve thre e ne w la rg e COVI D-19 pro g ra ms: E SSE R (507), GE E R (508), a nd Co ro na virus Re lie f F und (510) All thre e pro g ra ms a llo w sc ho o ls to re imb urse e xpe nditure s sinc e the b e g inning o f the pa nde mic (e xa c t da te s va ry a mo ng e a c h pro g ra m) – fe de ra l pro g ra ms a llo w the se de c isio ns to b e ma de a t a ny time , a ltho ug h ODE ma y sho rte n the windo w due to CARE S Ac t q ua rte rly re po rting re q uire me nts.

• Sc ho o ls ne e d to fina lize de c isio ns to dra w do wn fe de ra l funds fro m the se pro g ra ms to re imb urse

e xpe nditure s inc urre d in F Y20 ASAP.

• SE

F A re po rting is b a se d upo n whe n e xpe nditure s a re inc urre d.

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he se de c isio ns will impa c t F Y20 Sing le Audit sta tus a nd ma jo r pro g ra m de te rminatio ns.

I mpo rta nt to inc lude the to pic o f funding a nd e xpe nditure s during yo ur e ntra nc e c o nfe re nc e

Planning Conside r ations

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De te rmining wha t ne w pro g ra ms a c lie nt ha s re c e ive d is c ritic a l

• Co uld c ha ng e the A/ B ma jo r pro g ra m thre sho ld
• Ne w COVI

D-19 pro g ra ms will NOT ha ve b e e n a udite d b e fo re = po te ntia l Hig h Risk A

• E

xisting T ype A pro g ra ms c o uld b e c o me hig he rrisk if the re is a ma te ria l c ha ng e in pe rso nne l o r syste ms

• Ne w COVI

D pro g ra ms c o uld a lso b e T ype B pro g ra ms

• Ne e d to e va lua te the ne wne ss o f the pro g ra ms a lo ng

with o the r fa c to rs

• T

he re is c urre ntly NO re q uire me nt to se le c t B pro g ra ms with COVI D-19 funding a s ma jo r; ho we ve r, OMB CS g uida nc e is no t fina l ye t

R isk Asse ssme nt

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irst pa rt will be wha t we a re use d to se e ing a nd is e xpe c te d to be o ut in Aug ust

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he n the re will be a COVID spe c ific a dde ndum tha t c o me s o ut in the F a ll

OMB Co mplia nc e is g o ing to b e issue d in two pa rts

• Stro ng po ssibility tha t c o ntro ls will ha ve

c ha ng e d due to sta y a t ho me o rde rs, te le wo rk, e tc .

• F
• r e xample , building c losure s during

last quar te r

• f sc hool ye ar

I de ntifying a nd te sting c o ntro ls

Audit Challe nge s

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Clie nt do c ume nta tio n is g o ing to b e ke y

• Ho w did the ir

pro c e sse s c ha ng e ? What time pe rio ds?

Audito rs will ne e d to e va lua te tha t do c ume nta tio n

• Can yo u still re ly
• n/ te st c o ntro ls?
• Did the ke y c o ntro l

c hang e ?

Adjust a ttrib ute s in te sting fo r c e rta in pe rio ds

• f time

Audit Challe nge s

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Audit Challe nge s

Audito rs sho uld re fe r to this g uida nc e a s the y e va lua te distric t de c isio ns a bo ut va rio us to pic s re la te d to the se c lo sure s. ODE c re a te d F AQs to he lp sc ho o l a nd distric t le a de rs think thro ug h impo rta nt lo c a l-le ve l de c isio ns: http:/ / e duc a tio n.o hio .g o v/ T

• pic s/ Stude nt-

Suppo rts/ Co ro na virus/ Fre q ue ntly-Aske d-Que stio ns-Go ve rno r-De Wine ’ s-Sc ho On Ma rc h 12, 2020, Go ve rno r Mike De Wine ma de a n unpre c e de nte d a nno unc e me nt o rde ring a ll o f Ohio ’ s public , c ommunity a nd pr ivate K-12 sc hool buildings to b e c lo se d to stude nts due to the o ng o ing c o ro na virus he a lth c risis.

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ADM/ F T E T e sting

• Audito rs a re NOT

e xpe c te d to te st a tte nda nc e fo r the la st q ua rte r o f the ye a r whe n b uilding s we re c lo se d

• E

xc e ptio n wo uld b e a ny e -sc ho o ls

• Additio na l info rma tio n c a n b e fo und a t

http:/ / e duc a tio n.o hio .g o v/ T

• pic s/ Stude nt-

Suppo rts/ Co ro na virus/ Additio na l- I nfo rma tio n-o n-I nstruc tio na l-Ho urs-a nd

Audit Challe nge s

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Se par ate Ac c ountability

Ne w F unds must be c re ate d fo r ne w COVID-19 pro g rams. AOS and ODE have c re ate d ne w USAS F unds fo r the larg e r ne w pro g rams passing thro ug h ODE . Sc ho o ls sho uld use F und 599 fo r any o the r ne w COVID-19 F unds. COVID-19 funding in an e xisting fe de ral pro g ram must be trac ke d se parate ly (e .g ., SCC). Se e AOS g uida nc e a t: http:/ / www.o hio audito r.g o v/ re so urc e s/ c o vid19/ CARE S_g uidanc e _sc ho o l.pdf

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13 USDEGo ve rno r’ s E me rg e nc y E duc a tio n Re lie f F und (GE E R)— 84.425C (F und 507) USDEE le me nta ry a nd Se c o nda ry Sc ho o l E me rg e nc y Re lie f F und (E SSE R)—84.425D (F und 508) USDEHig he r E duc a tio n E me rg e nc y Re lie f F und (HE E RF )—84.425E &F (F und 599) T r e asur y Co ro na virus Re lie f F und— 21.019 (F und 510)

T r aditional Sc hool Pr

• gr

ams

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Nutr ition Cluste r

T he re are many diffe re nt waive rs/ o ptio ns that we re g rante d—sc ho o ls c o uld be utilizing the standard re imburse me nt pro c e ss, Se amle ss Summe r Optio n, o r the Summe r F

• o d Se rvic e Pro g ra ms.

T

• he lp maintain me al se rvic e s, o n Marc h 12, 2020, the U.S. De partme nt
• f Ag ric ulture g rante d Ohio a waive r e nabling Summe r F
• o d Se rvic e

Pro g ram a nd Natio nal Sc ho o l L unc h Pro g ram Se amle ss Summe r Optio n spo nso rs “to pro vide me als during an unantic ipate d sc ho o l c lo sure due to the no ve l c o ro na virus at b o th sc ho o land no n-sc ho o lsite s and in a no n- c o ng re g ate se tting .” T his waive r allo ws fo r the distributio n o f me als while maintaining so c ia l distanc ing . http:/ / e duc atio n.o hio .g o v/ T

• pic s/ Stude nt-

Suppo rts/ Co ro navirus/ Suppo rting -Who le -Child-Nutritio n/ Summe r-Nutritio n- Pro g ram-Ope ratio ns-during -Co ro nav

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USDEGo ve rno r’ s E me rg e nc y E duc atio n Re lie f F und (GE E R)— 84.425C UG Applie s USDEE le me ntary and Se c o ndary Sc ho o l E me rg e nc y Re lie f F und (E SSE R)—84.425D UG Applie s USDEHig he r E duc atio n E me rg e nc y Re lie f F und (HE E RF )—84.425E &F UG Applie s T r e asur y Co ro na virus Re lie f F und— 21.019 UG Applie s Payc he c k Pro te c tio n Pro g ra m (59.073) UG DOE S NOT APPL Y

Community Sc hool/ ST E M Sc hool Pr

• gr

ams

ODE F AQ fo r c o mmunity sc ho o ls is a va ila b le a t: http:/ / e duc a tio n.o hio .g o v/ T

• pic s/ Stude nt-

Suppo rts/ Co ro na virus/ Co nside ra tio ns-fo r-Co mmunity-Sc ho o ls- a nd-Spo ns-1

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E duc ational Se r vic e Ce nte r s (E SCs)

E SCs a re no t dire c tly re c e iving COVID-19 fe de ra l funding (e xc e pt fo r po ssib le o ne -o ff situa tio ns)

• T

he y will no t re c e ive the E SSE R, GE E R, o r CRF fe de ra l a ssista nc e tha t tra ditio na l a nd c o mmunity sc ho o l a re re c e iving

• Ho we ve r, it is po ssib le tha t sc ho o ls ma y find a llo wa ble use s to pa y fo r c e rta in E

SC c o sts utilizing the se pro g ra ms

T he E SC Asso c ia tio n e xpre sse d c o nc e rn to AOS in April a b o ut sc ho o ls no t pa ying E SC c o ntra c ts b e c a use o f b udg e t sho rtfa lls

• AOS inc lude d the fo llo wing in o ur F

AQs:

• Can sc hool distr

ic ts te r minate c ontr ac ts with E duc ational Se r vic e Ce nte r s (E SCs) dur ing the pande mic due to the building c losur e s and an inability for the E SC to pr

• vide the c ontr

ac te d se r vic e s? Pre se ntly the la w pro vide s tha t c ity, e xe mpte d villa g e a nd lo c a l sc ho o l distric ts with a n a ve ra g e da ily e nro llme nt o f 16,000 o r le ss must e nte r into a n a g re e me nt with a n E SC unde r ORC Se c tio n 3313.843. In a dditio n to se rvic e c o ntra c ts unde r ORC Se c tio n 3313.843, c ity, e xe mpte d villa ge , lo c a la nd jo int vo c a tio na l sc ho o l distric ts ma y se t up c o ntra c ts with E SCs fo r va rio us se rvic e s b a se d o n a g re e d upo n fe e s b e yo nd tho se c o ve re d b y ORC Se c tio n 3313.843 c o ntra c ts. E SC c o ntra c ts c a nno t b e b ro ke n, unle ss it is within the pa ra me te rs pro vide d b y Ohio la w. Be c a use the pa nde mic de c la ra tio n is o utside the windo w to c a nc e l a n E SC c o ntra c t, fe de ra l funds c o uld b e use d to sub sidize the c o st o f the c o ntra c ts so lo ng a s it is a n a llo wa ble e xpe nse o f the funds. T he la ng ua g e in c e rta in F e de ra l COVID pro g ra ms ma y ma ke use o f the COVID funds a llo wa ble fo r sub sidizing the c o st o f the se c o ntra c ts.

ODE ha s e nc o ura g e d sc ho o ls to wo rk with the ir lo c a l E SCs a nd Info rma tio n T e c hno lo g y Ce nte rs to find wa ys to pro mo te / e nha nc e re mo te le a rning , pa rtic ula rly fo r tho se tha t do no t ha ve inte rne t se rvic e . ODE is a lso e nc o ura g ing sc ho o ls to utilize E SCs to he lp pro vide spe c ia lize d se rvic e s in a c hild’ s ho me if tha t is the sa fe st e nviro nme nt fo r the c hild b a se d upo n c o nsulta tio n b e twe e n the sc ho o l o ffic ia ls, E SC pro vide r, a nd pa re nt. AOS is pre pa re d a nd re a dy to a ssist c lie nts in na vig a ting this c ha ng ing e nviro nme nt. We will b e fle xib le whe n it c o me s to o ur duty to a udit a nd will ta ke into a c c o unt the g uida nc e tha t e xiste d a t the time sc ho o ls a nd E SCs ma de c ritic a l de c isio ns a b o ut se rvic e s a nd o pe ra tio ns. We a re a sking e ve ryo ne to do the ir pa rt to he lp o ur a udit te a m b y do c ume nting a nd re c e iving c le a r le g isla tive a utho rity fo r a lle xpe nditure s.

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OMB Me mo 20-26 c ha ng e d the e xte nsio n re q uire me nt re g a rding filing sing le a udits No w is b a se d upo n the DUE da te no t fisc a l ye a r e nd As o f rig ht no w the re 6-30-20 e ntitie s will ne e d to file o n time (Ma rc h 31,2021)

R e por ting

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F inding s re la te d to COVI D funding a re re q uire d to b e se pa ra te ly ide ntifie d COVI D finding s ma y b e unde r hig he r sc rutiny fro m a g e nc ie s Ma ke sure a ll re q uire d e le me nts a re b e ing inc lude d

R e por ting

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19 What is the allowability of salar ie s and othe r pr

• je c t ac tivitie s c har

ge d to F e de r al Awar ds dur ing the Pande mic ?

• Re fe r to yo ur F

e de ra l Awa rding o r Sta te Pa ss-T hro ug h Ag e nc y fo r g uida nc e . As

• f Ma rc h 19, 2020, OMB issue d Me mo 20-17 indic a ting F

e de ra l a wa rding a g e nc ie s a re a utho rize d to ta ke the fo llo wing a c tio ns, a s the y de e m a ppro pria te a nd to the e xte nt pe rmitte d b y la w, with re spe c t to the a dministra tive pro visio ns tha t a pply to re c ipie nts g ra nte e s a ffe c te d b y the COVID-19 (fo r b o th re c ipie nts with COVID-19 re la te d g ra nts a nd o the r type s o f F e de ra l g ra nts).

• F

e de ra l Awa rding a g e nc ie s ma y a llo w re c ipie nts to c o ntinue to c ha rg e sa la rie s a nd b e ne fits to c urre ntly a c tive F e de ra l a wa rds c o nsiste nt with the re c ipie nts' po lic y o f pa ying sa la rie s (unde r une xpe c te d o r e xtra o rdina ry c irc umsta nc e s) fro m a ll funding so urc e s, F e de ra l a nd no n-F e de ra l. F e de ra l Awa rding a g e nc ie s ma y a llo w o the r c o sts to b e c ha rg e d to F e de ra l a wa rds ne c e ssa ry to re sume a c tivitie s suppo rte d b y the a wa rd, c o nsiste nt with a pplic a b le F e de ra l c o st princ iple s a nd the b e ne fit to the pro je c t.

• On June 18, 2020, OBM issue d Me mo 20-26 whic h re sc inde d Me mo 20-17,

ho we ve r, App e ndix A Me mo 20-26 pe rmits sa la rie s to c o ntinue to b e c ha rg e d using the g uida nc e liste d a b o ve . Unde r this fle xib ility, pa yro ll c o sts pa id with the Pa yro ll Pro te c tio n Pro g ra m lo a ns o r o the r F e de ra l CARE S Ac t pro g ra ms must no t b e c ha rg e d to c urre nt F e de ra l a wa rds. F e de ra l Awa rding a g e nc ie s must info rm re c ipie nts to e xha ust o the r a va ila b le funding so urc e s to susta in its wo rkfo rc e a nd imple me nt ne c e ssa ry ste ps to sa ve o ve ra ll o pe ra tio na l c o sts a nd do c ume nt tho se e ffo rts. T he fle xib ility pro vide d b y OMB’ s Me mo 20-26 will e xpire o n Se pte mb e r 30, 2020.

F r e que ntly Aske d Que stions

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• Will the fe de r

al funding to be distr ibute d by the Ohio De par tme nt of E duc ation (ODE ) to Kinde r gar te n to 12th gr ade ne e d to be ac c ounte d for in a spe c ial r e ve nue fund?

• Ye s, if yo u re c e ive COVI

D-19 re la te d funding thro ug h o the r F e de ra l pro g ra ms unde r the CARE S Ac t o r o the r F a milie s F irst Co ro na virus Re lie f F unding Ac t, the se a mo unts c a n b e a c c o unte d fo r thro ug h a se pa ra te spe c ia l c o st c e nte r o f a n e xisting F e de ra l F und (if the COVI D-19 funding is re la te d to a pre -e xisting pro g ra m) o r thro ug h a se pa ra te spe c ia l c o st c e nte r in fund 599 (if the COVI D-19 funding is re la te d to a ne w F e de ra l pro g ra m). While the se COVI D-19 funds must b e se pa ra te ly a c c o unte d fo r, sc ho o ls do no t ne e d to se e k Audito r o f Sta te a ppro va l to e sta b lish the ne w funds/ SCCs.

F r e que ntly Aske d Que stions

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• Auditor
• f State COVID Page --

http:/ / www.o hio a udito r.g o v/ re so urc e s/ CO VI D19_a ssista nc e .html

• Ohio De par

tme nt of E duc ation COVID Page –

http:/ / e duc a tio n.o hio .g o v/ T

• pic s/ Stude nt-

Suppo rts/ Co ro na virus

• AICPA Gove r

nme nt Audit Quality Ce nte r

• -

https:/ / www.a ic pa .o rg / inte re sta re a s/ g o ve r nme nta la uditq ua lity.html

R e sour c e s

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Center for Audit Excellence 88 E. Broad St. Columbus, Ohio 43215 Courtney S. Shalosky Presenter phone: (330)471-0011 FACCR@ohioauditor.gov

88 E. Broad St. Columbus, Ohio 43215 Phone: (800) 282-0370 www.OhioAuditor.gov