GUIDE FOR DESK REVIEWS OF SINGLE AUDIT REPORTS Council



GUIDE FOR DESK REVIEWS OF

SINGLE AUDIT REPORTS

Council of Inspectors General on

Integrity & Efficiency (CIGIE)

2016 Edition

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2016 Uniform Guide for Desk Reviews of Single Audit Reports

Page i

References, Definitions and Acronyms

References included are current as of the date of publication of this guide. The reviewer should

identify and use the requirements and standards in effect for the audit being reviewed, and cite

them in any pertinent documentation and communications. The reviewer should also be familiar

with and have available the Office of Management and Budget (OMB) Compliance Supplement

in effect for the period audited. Below are abbreviations used to refer to the requirements and

standards referenced as applicable criteria in this Guide, as well as some definitions and

acronyms commonly found in Single Audit reports:

2 CFR 200: OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for

Federal Awards at 2 CFR Part 200 (2 CFR 200) as issued on December 19, 2014. The

Council on Financial Assistance Reform’s (COFAR) Frequently Asked Questions,

updated September 2015, provide additional information on applicability to awards,

subawards, and system changes.

AAG-GAS: “AICPA Audit Guide -- Government Auditing Standards and Single Audits,” with

conforming changes as of April 1, 2016

AICPA: American Institute of Certified Public Accountants

AU-C: Reference to section number for Statement on Auditing Standards in AICPA Professional

Standards

CFDA: Catalog of Federal Domestic Assistance

DR: Desk Review

FAC: Federal Audit Clearinghouse

GAAS: Generally Accepted Auditing Standards

GAGAS: Generally Accepted Government Auditing Standards

GAS: Government Auditing Standards (December 2011 Revision)

OCBOA: Other Comprehensive Basis of Accounting

OMB: Office of Management and Budget

QCR: Quality Control Review

Reporting

Package: Submission of single audits in accordance with 2 CFR 200.512(c)

SEFA: Schedule of Expenditures of Federal Awards

SF-SAC: Standard Form - Single Audit Collection (also known as the Data Collection Form)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports

Page ii

Objectives

The objectives of this desk review guide are to:

1. determine whether audit reports for audits performed under OMB Uniform

Administrative Requirements, Cost Principles, and Audit Requirements for Federal

Awards (Uniform Guidance) are acceptable under the reporting requirements of the

Uniform Guidance;

2. identify any quality issues that may warrant follow-up audit work and/or revisions to the

reporting package;

3. identify audits for potential Quality Control Reviews (QCR); and,

4. identify issues that may require appropriate management official

attention.

Applicability and Use

This guide is effective for desk reviews of reporting packages for audits of fiscal years beginning

on or after December 26, 2014. It is intended that this guide serve as the minimum

documentation to support the desk review.

A desk review should be performed whenever a QCR is performed. When this guide is used as

part of a QCR, reviewers should refer to the “Guide for Quality Control Reviews of Single

Audits” for further guidance.

This guide is designed for use by reviewers who are knowledgeable about single audit

requirements. Reviewers using this guide should have access to and be familiar with the contents

of the Uniform Guidance (including the COFAR Frequently Asked Questions and the

Compliance Supplement), GAGAS, and the American Institute of Certified Public Accountants

(AICPA) Audit Guide “Government Auditing Standards and Single Audits” (AAG-GAS.

Reviewers should update the guide to reflect any subsequent changes to the auditing standards

and AAG-GAS. Agencies may modify or supplement this guide to meet their needs. Reviewers

should use professional judgment in developing a review approach by adding or omitting

procedures as appropriate.

This guide does not contain information regarding performing an audit under OMB Circular

A-133. Auditors performing audits under OMB Circular A-133 must refer to the 2015 edition of

the guide for information and guidance.

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Appropriate management official could include auditee management, Federal program management, or other

grantors.

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2016 Uniform Guide for Desk Reviews of Single Audit Reports

Page iii

Guide Format and Instructions

The guide is generally organized by reporting standards and elements of a single audit. Questions

DR-1 through DR-15 and DR-27 relate to the information reported in a single audit, and have

been designed to show "Yes" or "N/A" (not applicable) answers as favorable responses.

Reviewers should use guide step C-3 to explain Unfavorable (“No”) responses. Questions DR-16

through DR-26 are designed for analysis of information contained in the reporting packages. A

“Yes” answer for questions DR-16 through DR-21 and a “No” answer for questions DR-22

through DR-26 may indicate the need for follow-up and should be fully explained in the notes.

Question DR-27 applies to "program-specific" audits. Significant quality deficiencies should be

brought forward to the Overall Conclusions section and cross-referenced to the reporting

package.

Reviewers may complete the "Major Federal Program Determination" worksheet (attached) to

determine the answers to Questions DR-23 and DR-24.

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 1

GENERAL INFORMATION

G-1

Auditee

G-2

Audit Period

G-3

Auditor(s) or Audit

Organization(s) (primary

and secondary auditors, if

applicable) and location

G-4

Date of Compliance

Report (and date of

financial statement report,

if different)

G-5

“FAC Accepted Date”

for

use in answering question

DR-26

G-6

Federal funding agencies

with Direct Expenditures

G-7

Personnel Contacted

during Review (including

contact information,

reasons contacted, and

results)

OVERALL CONCLUSIONS

C-1. Based on our

review, the rating

assigned to the

auditor’s report(s),

including the

Schedule of

Findings and

Questioned Costs,

is:

[ ]

Pass

Reporting package contains no quality

deficiencies or only minor quality

deficiencies that do not require corrective

action.

[ ]

Pass with

Deficiencies

Reporting package contains quality

deficiencies that should be brought to the

attention of the auditor (and auditee, where

appropriate) for correction in future audits.

[ ]

Fail

Reporting package contains quality

deficiencies that may affect the reliability of

the audit and which must be corrected in the

audit/reporting package under review.

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“FAC Accepted Date” available on the FAC website.

When the overall conclusion is “fail” and additional work is necessary to support one or more of the opinions

expressed in the audit report(s), auditors should be advised to follow AU-C 585, Consideration of Omitted

Procedures After the Report Release Date and AU-C 935.43, Compliance Audits with respect to reissuance of the

audit report(s).

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 2

C-2. Based on our review, the

auditee’s Schedule of

Expenditures of Federal Awards,

Corrective Action Plan, and

Summary Schedule of Prior Audit

Findings appropriately present the

elements required by the Uniform

Guidance, and Form SF-SAC

accurately reflects the results of

the audit:

Section Yes No N/A

Schedule of Expenditures of

Federal Awards

[ ] [ ] [ ]

Corrective Action Plan [ ] [ ] [ ]

Summary Schedule of Prior Audit

Findings

[ ] [ ] [ ]

Form SF-SAC [ ] [ ] [ ]

C-3. Describe any quality

deficiencies that were identified

during the review (with reference

to applicable DR question) and the

reviewer’s recommendations.

C-4. If applicable, describe any

reasons why a quality control

review should be considered.

C-5. There [ ] are or [ ] are not

issues (e.g., audit quality issues,

findings, management letter

observations) that should be

brought to the attention of

appropriate management officials.

(Describe issues.)

Reviewer Signature and Date:

Reviewer Name and Title:

Supervisor Signature and

Date:

Supervisor Name and Title:

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 3

Question Criteria Yes No N/A

Report

Reference

QUALIFICATIONS AND INDEPENDENCE

DR-1

Is the report free of indications that the auditor is

not independent or is not qualified to perform the

audit? [Note: Reviewers may wish to answer this

question after completion of the checklist. If a

question arises concerning the licensing of a public

accountant, State licensing authorities should be

able to provide the necessary information.]

GAS 3.02-.59,

3.69-.75;

AU-C 200.15

REPORTING

Opinion on the Financial Statements and Schedule of Expenditures of Federal Awards

DR-2

Did the auditor determine whether management

properly defined the entity to be audited?

AAG-GAS

6.15

DR-3

Do the financial statements reflect the financial

position, results of operations or changes in net

position (or equivalent), and, where appropriate,

the cash flows of the entity for the fiscal year

audited, or was the auditor’s report appropriately

modified?

2 CFR

200.510(a)

DR-4

Does the Independent Auditor’s Report contain the

following required elements:

2 CFR

200.515(a)

DR-4a

A statement that the financial statements

identified in the report were audited?

AU-C

700.25(b)

DR-4b

A statement that management is

responsible for the preparation and fair

presentation of the financial statements

in accordance with accounting

principles generally accepted in the

United States of America; this includes

the design, implementation, and

maintenance of internal control relevant

to the preparation and fair presentation

of financial statements that are free from

material misstatement, whether due to

fraud or error?

AU-C 700.27;

AAG-GAS

4.48(f)

DR-4c

A statement that the audit was

conducted in accordance with auditing

standards generally accepted in the

United States of America and the

standards applicable to financial audits

contained in Government Auditing

Standards, issued by the Comptroller

General of the United States?

GAS 2.23-2.24,

4.18;

AU-C 700

.31, .42;

AAG-GAS

4.48(i)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 4

Question Criteria Yes No N/A

Report

Reference

DR-4d

An opinion (or disclaimer of opinion)

regarding whether the financial

statements are fairly presented, in all

material respects, in accordance with the

applicable reporting framework?

AU-C 700

.34-.36

DR-4e

Identification of the applicable reporting

framework and its origin (for example,

accounting principles generally accepted

in the United States of America)?

AU-C 700.36,

800.15, .18

DR-4f

A reference to the separate report on

internal control over financial reporting

and on compliance with certain

provisions of laws, regulations,

contracts, and grant agreements and

other matters prepared in accordance

with GAGAS?

GAS 4.22

DR-4g

The manual or printed signature of the

primary auditor or audit organization?

AU-C 700.39;

AAG-GAS

4.48(x)

DR-4h

The city and state where the primary

auditor or audit organization practices?

[Note: It is sufficient if city and state are

included in auditor’s letterhead.]

AU-C 700.40;

AAG-GAS

4.48(y)

DR-4i The date of the audit report?

AU-C 700.41;

AAG-GAS

4.48(z)

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an

Audit of Financial Statements Performed in Accordance with Government Auditing Standards

DR-5

Do(es) the report(s) on compliance and internal

control over financial reporting contain the

following required elements:

2 CFR

200.515(b)

DR-5a

A statement that the audit was

conducted in accordance with auditing

standards generally accepted in the

United States of America and with the

standards applicable to financial audits

contained in Government Auditing

Standards issued by the Comptroller

General of the United States?

GAS 4.18;

AAG-GAS

4.54(d)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 5

Question Criteria Yes No N/A

Report

Reference

DR-5b

A statement that the auditor considered

the entity’s internal control over

financial reporting to determine the

audit procedures that are appropriate in

the circumstances for expressing an

opinion on the financial statements, but

not for the purpose of expressing an

opinion on the effectiveness of internal

control?

AU-C 265

.14(c)(i)-(iii);

AAG-GAS

4.54(f)

DR-5c

The definition of the term “material

weakness,” and, when relevant, the

definition of the term “significant

deficiency”?

AU-C 265

.14(a);

AAG-GAS

4.54(g)

DR-5d

A statement that explains the auditor's

consideration of the internal control was

not designed to identify all deficiencies

in internal control that might be material

weaknesses or significant deficiencies,

and therefore, material weaknesses or

significant deficiencies may exist that

were not identified?

AU-C 265

.14(c)(iv);

AAG-GAS

4.54(h-j)

DR-5e

If applicable, a description of the

significant deficiencies and material

weaknesses and an explanation of their

potential effects or a reference to the

applicable schedule of findings and

questioned costs?

AU-C 265

.14(b);

AAG-GAS

4.54(i-j)

DR-5f

If no material weaknesses were

identified, a statement that given the

limitations described in DR-5d the

auditor did not identify any deficiencies

in internal control that are considered to

be material weaknesses, although

material weaknesses may exist that have

not been identified? [Note: If no

significant deficiencies or material

weaknesses were identified, the sentence

above would be combined into a

paragraph with DR-5d.]

AAG-GAS

4.54(h-i)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 6

Question Criteria Yes No N/A

Report

Reference

DR-5g

A statement that, as part of obtaining

reasonable assurance about whether the

entity's financial statements are free

from material misstatement, the auditor

performed tests of its compliance with

certain provisions of laws, regulations,

contracts, and grant agreements,

noncompliance with which would have

a direct and material effect on the

determination of financial statement

amounts and a statement that providing

an opinion on compliance with those

provisions was not an objective of the

audit, and accordingly, the auditor does

not express such an opinion?

GAS 4.20;

AAG-GAS

4.54(l)

DR-5h

A statement (1) whether the results of

tests disclosed instances of

noncompliance or other matters that are

required to be reported under

Government Auditing Standards, and, if

they are, (2) a reference to the schedule

of findings and questioned costs?

GAS 4.23;

AAG-GAS

4.54(m-n)

DR-5i

If applicable, a statement that the

audited entity's response to the findings

identified in the audit are described in

the accompanying schedule and the

response was not subjected to the

auditing procedures applied in the audit

of the financial statements, and

accordingly, the auditor does not

express an opinion on it?

AU-C

265.A33;

AAG-GAS

4.54(q-r)

DR-5j

A statement that (1) the purpose of the

report is solely to describe the scope of

the testing of internal control and

compliance and the result of that testing,

and not to provide an opinion on the

effectiveness of the entity's internal

control or on compliance, (2) this report

is an integral part of an audit performed

in accordance with Government

Auditing Standards in considering the

entity's internal control and compliance,

and (3) accordingly, this communication

is not suitable for any other purpose?

AU-C 905.11;

AAG-GAS

4.54(t)

DR-5k

The manual or printed signature of the

primary auditor or audit organization?

AU-C 700.39;

AAG-GAS

4.54(u)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 7

Question Criteria Yes No N/A

Report

Reference

DR-5l

The city and state where the primary

auditor or audit organization practices?

[Note: It is sufficient if city and state are

included in auditor’s letterhead.]

AU-C 700.40;

AAG-GAS

4.54(v)

DR-5m The date of the auditor’s report?

AU-C 700.41;

AAG-GAS

4.54(w)

Report on Compliance for Each Major Federal Program and Report on Internal Control Over

Compliance Required by the Uniform Guidance

DR-6

Do(es) the report(s) on compliance and internal

control over each major Federal programs contain

the following required elements:

2 CFR

200.515(c)

DR-6a

An introductory paragraph that includes

the following: (1) identification of the

one or more government programs

covered by the compliance audit or

reference to a separate schedule

containing that information,

(2) identification of the applicable

compliance requirements or a reference

to where they can be found, and

(3) identification of the period covered

by the report?

AU-C 935

.30(c);

AAG-GAS

13.26(d)

DR-6b

A statement that the compliance audit

was conducted in accordance with

auditing standards generally accepted in

the United States of America, the

standards applicable to financial audits

contained in Government Auditing

Standards issued by the Comptroller

General of the United States, and the

governmental audit requirement (audit

requirements of the Title 2 U.S. CFR

Part 200, Uniform Administrative

requirements, Cost Principles, and

Audit Requirements for Federal

Awards)?

2 CFR

200.514(a);

AU-C 935

.30(e)(ii);

AAG-GAS

13.26 (f)(ii)

DR-6c

If noncompliance results in a modified

opinion, a section with an appropriate

subheading, indicating the basis for the

modified opinion that includes a

description of such noncompliance, or a

reference to a description of such

noncompliance in an accompanying

schedule?

AU-C 935

.30(f);

AAG-GAS

13.26 (h)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 8

Question Criteria Yes No N/A

Report

Reference

DR-6d

An opinion on whether the entity

complied, in all material respects, with

the types of compliance requirements

that could have a direct and material

effect on each of its major Federal

programs?

AU-C 935

.30(g);

AAG-GAS

13.26 (g-i)

DR-6e

If other noncompliance is identified that

does not result in a modified opinion but

that is required to be reported by the

governmental audit requirement

(Uniform Guidance), an other-matter

paragraph that includes a description of

such noncompliance or a reference to an

accompanying schedule?

AU-C 935

.30(h);

AAG-GAS

13.26 (j)

DR-6f

A statement that the auditee’s

management is responsible for

establishing and maintaining effective

internal control over compliance with

the types of compliance requirements.

AAG-GAS

13.26(k)(i)

DR-6g

A statement that in planning and

performing the compliance audit, the

auditor considered the auditee's internal

control over compliance with the types

of requirements that could have a direct

and material effect on each major

Federal program to determine the

auditing procedures that are appropriate

in the circumstances for the purpose of

expressing an opinion on compliance for

each major program, but not for the

purpose of expressing an opinion on the

effectiveness of internal control over

compliance?

AU-C 935

.31(b);

AAG-GAS

13.26 (k)(ii)

DR-6h

A definition of deficiency in internal

control over compliance and material

weakness in internal control over

compliance?

AU-C

935.31(e);

AAG-GAS

13.26 (k)(iv)

DR-6i

A statement that the auditor's

consideration of the internal control

over compliance was not designed to

identify all deficiencies in internal

control that might be significant

deficiencies or material weaknesses in

internal control over compliance?

AU-C 935

.31(d);

AAG-GAS

13.26 (k)(v)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 9

Question Criteria Yes No N/A

Report

Reference

DR-6j

If no material weaknesses in internal

control over compliance were identified,

a statement to that effect?

AU-C 935

.31(h);

AAG-GAS

13.26 (k)(vi-

vii)

DR-6k

A description of any identified material

weaknesses in internal control over

compliance or a reference to an

accompanying schedule containing such

a description?

AU-C 935

.31(f);

AAG-GAS

13.26 (k)(ix)

DR-6l

If significant deficiencies in internal

control over compliance were identified,

(1) the definition of significant

deficiency in internal control over

compliance and (2) a description of the

deficiencies or a reference to the

accompanying schedule containing such

a description?

AU-C 935

.31(g);

AAG-GAS

13.26 (k)(viii)

DR-6m

Statement that (1) the purpose of the

report on internal control over

compliance is solely to describe the

scope of the testing of internal control

over compliance and the result of that

testing based on the requirements of the

Uniform Guidance and 2) accordingly,

this report is not suitable for any other

purpose?

AU-C 935

.30(i), .31(i) );

AAG-GAS

13.26(k)(xi)

DR-6n

The manual or printed signature of the

primary auditor or audit organization?

AU-C 935

.30(j)

DR-6o

The city and state where the primary

auditor or audit organization practices?

[Note: It is sufficient if city and state are

included in auditor’s letterhead.]

AU-C 935

.30(k)

DR-6p The date of the auditor’s report?

AU-C 935

.30(l)

Schedule of Expenditures of Federal Awards (SEFA) [Note: Preparation of the SEFA is the responsibility of

the auditee.]

DR-7

Did the auditor, in either an other-matter paragraph

or a separate report on the supplementary

information, issue an opinion (or disclaimer of

opinion) on whether the SEFA is fairly stated, in

all material respects, in relation to the financial

statements as a whole?

AU-C

725.09(e)-(f),

725.11

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 10

Question Criteria Yes No N/A

Report

Reference

DR-8 Does the reporting package contain a SEFA that:

DR-8a

Lists individual Federal programs by

Federal agency and, for a cluster of

programs (as defined in 2 CFR 200.17),

lists individual Federal programs within

the cluster? For R&D, awards expended

shall be shown either by individual

award or by Federal agency and major

subdivision?

2 CFR 200.510

(b)(1)

DR-8b

Identifies, for Federal awards received

as a subrecipient, the name of the pass-

through entity and the identifying

number assigned by the pass-through

entity?

2 CFR 200.510

(b)(2)

DR-8c

Provides the total Federal awards

expended for each individual Federal

program as defined by 2 CFR 200.502

and the CFDA number or other

identifying number when the CFDA

number is not available? For a cluster of

programs, also provides the total for the

cluster?

2 CFR 200.510

(b)(3)

DR-8d

Includes the total amount provided to

subrecipients from each Federal

program?

2 CFR 200.510

(b)(4)

DR-8e

Identifies the total Federal awards

expended for the loan or loan guarantee

programs in the schedule?

2 CFR 200.510

(b)(5)

DR-8f

Includes notes that describe

(1) significant accounting policies used

in preparing the schedule, (2) whether or

not the auditee elected to use the 10%

de minimis cost rate as covered in

2 CFR 200.414, and (3) the balances of

loan or loan guarantees outstanding at

the end of the audit period?

2 CFR 200.510

(b)(5-6)

Schedule of Findings and Questioned Costs

Section 1 – Summary of Auditor’s Results

DR-9

Does the schedule of findings and questioned costs include a

summary of auditor’s results section containing the following

elements, and are these elements accurately reported based on the

contents of the reporting package:

DR-9a

Type of opinion(s) issued on whether

the financial statements audited were

prepared in accordance with GAAP?

2 CFR 200.515

(d)(1)(i)

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Question Criteria Yes No N/A

Report

Reference

DR-9b

A statement whether the audit disclosed

any significant deficiencies or material

weaknesses in internal control over

financial reporting?

2 CFR 200.515

(d)(1)(ii)

DR-9c

A statement whether the audit disclosed

any noncompliance that is material to

the auditee’s financial statements?

2 CFR 200.515

(d)(1)(iii)

DR-9d

Type of report the auditor issued on the

auditee’s compliance for major

programs?

2 CFR 200.515

(d)(1)(v)

DR-9e

A statement whether the audit disclosed

any significant deficiencies or material

weaknesses in internal controls over

major programs?

2 CFR 200.515

(d)(1)(iv)

DR-9f

A statement whether the audit disclosed

any audit findings which the auditor is

required to report under 2 CFR

200.516(a)?

2 CFR 200.515

(d)(1)(vi)

DR-9g

Identification of major programs by

listing each individual major program;

however in the case of a cluster of

programs only the cluster name as

shown on the SEFA is required?

2 CFR 200.515

(d)(1)(vii)

DR-9h

Dollar threshold used to distinguish

between Type A and Type B programs

as described in 2 CFR 200.518(b)(1) or

(b)(3) when a recalculation of the Type

A threshold is required for large loan or

loan guarantees?

2 CFR 200.515

(d)(1)(viii)

DR-9i

A statement whether the auditee

qualified as a low-risk auditee?

2 CFR 200.515

(d)(1)(ix)

Section 2 – Findings related to the financial statements

DR-10

Does the schedule of findings and questioned costs

contain the findings relating to the financial

statements which are required to be reported in

accordance with GAGAS? If so, were the elements

of the findings presented in accordance with

GAGAS?

2 CFR 200.515

(d)(2); GAS

4.10-.14, 4.23-

.29

Section 3 – Findings and questioned costs for Federal awards

DR-11

Is the reporting package free of indications that the

schedule of findings and questioned costs is

missing any of the findings related to Federal

awards which are required to be reported in

accordance with 2 CFR 200.516(a)?

2 CFR 200.515

(d)(3)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 12

Question Criteria Yes No N/A

Report

Reference

DR-12

Are internal control deficiencies, instances of

noncompliance, questioned costs, or suspected

fraud which relate to the same issue presented as

one audit finding?

2 CFR 200.515

(d)(3)(i)

DR-13

Are audit findings which relate to both the

financial statements and Federal awards reported in

both the financial statement and Federal award

sections of the schedule? [Note: One section may

simply refer to the other section, as long as the

referred section contains all of the information

identified in DR-14.]

2 CFR 200.515

(d)(3)(ii)

Presentation of the Audit Findings

DR-14

Are the Federal findings presented in sufficient detail with the

following information:

DR-14a

A reference number for each finding in

the format meeting the requirements of

the data collection form submission?

2 CFR

200.516(c)

DR-14b

Federal program and specific Federal

award identification, including the

CFDA title and number, Federal award

identification number and year, name of

Federal agency, and name of applicable

pass-through entity. When information

such as the CFDA title and number or

Federal award identification number is

not available, the auditor must provide

the best information available to

describe the Federal award. [Note: The

finding may refer to the award

information presented in the SEFA, as

long as the SEFA contains all of the

information identified in DR-8.]

2 CFR 200.516

(b)(1)

DR-14c

The criteria or specific requirement

upon which the audit finding is based,

including the Federal statutes,

regulations, or the terms and conditions

of the Federal awards?

2 CFR 200.516

(b)(2);

GAS 4.11

DR-14d

The condition found, including facts

that support the deficiency identified in

the audit finding?

2 CFR 200.516

(b)(3);

GAS 4.12

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 13

Question Criteria Yes No N/A

Report

Reference

DR-14e

A statement of cause that identifies the

reason or explanation for the condition

or the factors responsible for the

difference between the situation that

exists (condition) and the required or

desired state (criteria), which may also

serve as a basis for recommendations

for corrective action.

2 CFR 200.516

(b)(4); GAS

4.13

DR-14f

The possible asserted effect to provide

sufficient information to the auditee and

Federal agency, or pass-through entity

in the case of a subrecipient, to permit

them to determine the cause and effect

to facilitate prompt and proper

corrective action?

2 CFR 200.516

(b)(5);GAS

4.13 - 4.14

DR-14g

The identification of questioned costs

and how the questioned costs were

computed? Known questioned costs

must be identified by applicable CFDA

and award numbers.

2 CFR 200.516

(b)(6)

DR-14h

Information to provide proper

perspective for judging the prevalence

and consequences of the audit findings,

such as whether the finding represents

an isolated instance or a systemic

problem?

2 CFR 200.516

(b)(7);

GAS 4.29

DR-14i

The identification of whether the audit

finding was a repeat of a finding in the

immediately prior audit and if so any

applicable prior year audit finding

numbers.

2 CFR 200.516

(b)(8);

DR-14j

Recommendations to prevent future

occurrences of the deficiency identified

in the audit finding?

2 CFR 200.516

(b)(9);

GAS 4.28

DR-14k

Views of responsible officials of the

auditee?

2 CFR 200.516

(b)(10);GAS

4.33-4.39

Corrective Action Plan [Note: Preparation of the corrective action plan is the responsibility of the auditee.]

DR-15

Was the corrective action plan prepared by the

auditee and presented separately from the auditor’s

findings described in 2 CFR 200.516?

2 CFR

200.511(c)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 14

Question Criteria Yes No N/A

Report

Reference

DR-16

Does the corrective action plan include the following for each

finding:

DR-16a

Corrective action planned or

explanation and specific reasons that the

auditee does not agree with the audit

findings or believes corrective action is

not required?

2 CFR

200.511(c)

DR-16b

Anticipated completion date(s) for

corrective action?

2 CFR

200.511(c)

DR-16c

The auditee contact person(s)

responsible for corrective action?

2 CFR

200.511(c)

Summary Schedule of Prior Audit Findings [Note: Preparation of the Schedule is the responsibility of the

auditee]

DR-17

If applicable, does the reporting package contain a

summary schedule of prior audit findings? [Note:

Reviewer should review prior year audit report to

verify audit findings are appropriately included.]

2 CFR

200.511(b)

ANALYSIS OF INFORMATION

[Questions DR-16 through DR-26 are designed for analysis of information

contained in the reporting packages. A “Yes” answer for questions DR-16

through DR-21 and a “No” answer for questions DR-22 through DR-26 may

indicate the need for follow-up and should be fully explained in the notes.

Significant quality issues should be brought forward to the Overall Conclusion

section.]

DR-18

Was a management letter or other “correspondence

with those charged with governance” issued by the

auditors? [Note: Request a copy if not included in

the reporting package.]

2 CFR

200.512(e);

AU-C 260.16,

265.12b

DR-19

If a management letter or other correspondence

was issued, does the correspondence identify

conditions, not reported in the audit report, which

met the reporting requirements identified in

2 CFR 200.516(a)? If yes, consider whether the

condition(s) need to be forwarded to program

management for follow-up action.

2 CFR

200.516(a)

DR-20

Do(es) the report(s) contain indications of

fraudulent or illegal acts or other sensitive matters

affecting Federal awards? If yes, consider

communicating information with other interested

parties.

GAS 4.25-4.29

DR-21

Do the financial statements and/or the notes to the

financial statements or SEFA indicate any

conditions that negatively affect Federal awards or

that should be reported to Federal officials?

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 15

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Question Criteria Yes No N/A

Report

Reference

DR-22 Are any of the auditor’s opinions other than unmodified?

DR-22a

If the opinion on the financial statement

was modified, consider communicating

information with other interested

parties.

DR-22b

If the opinion on compliance was

modified for any major Federal

program, was a corresponding audit

finding disclosed?

2 CFR 200.516

(a)(2 & 5)

DR-23

Does the summary schedule of prior audit findings

indicate any issues which remain uncorrected from

the prior year and that need to be brought to the

attention of stakeholders?

DR-24

Do(es) the report(s) reflect the proper

determination of low-risk auditee status? [Note:

Reviewer should answer this based on a review of

the reporting packages for each of the preceding 2

audit periods.]

2 CFR 200.520

DR-25

Did the auditors properly calculate the Type A/B

threshold for determination of major Federal

programs?

2 CFR

200.518(b)

DR-26

Did the auditors properly identify the major

Federal programs? [Note: All awards within a

single CFDA number or within a cluster should be

grouped as one program.]

2 CFR 200.42,

.518(e-f)

DR-27

Based on the information contained in the audit

report, did the auditee and auditor properly

complete the Data Collection Form (SF-SAC)?

2 CFR

200.512(b),

.514(f)

DR-28

Did the auditee submit the Data Collection Form

(SF-SAC) and the reporting package on time?

2 CFR

200.512(a)

PROGRAM-SPECIFIC AUDIT

DR-29

If the auditor did not use a program-specific guide because one was

not available or not current, were the following issued for the

program and found to be acceptable by the reviewer:

DR-29a

A SEFA for the program and notes that

describe the significant accounting

policies used in preparing the schedule,

a summary schedule of prior audit

findings, and a corrective action plan?

2 CFR 200.

507 (b)(2)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 16

Question Criteria Yes No N/A

Report

Reference

DR-29b

An opinion (or disclaimer of opinion) as

to whether the financial statement(s) of

the Federal program is presented fairly

in all material respects in conformity

with stated accounting policies?

2 CFR 200.507

(b)(4)(i)

DR-29c

A report on internal control related to

the Federal program, which must

describe the scope of the testing of

internal controls and the results of the

tests? [Note: The report on internal

control and the report on compliance

(DR-29d) may be combined into one

report.]

2 CFR 200.

507 (b)(4)(ii)

DR-29d

A report on compliance, including an

opinion (or disclaimer of opinion) as to

whether the auditee complied with laws,

regulations, and the terms and

conditions of Federal awards which

could have a direct and material effect

on the Federal program? [Note: The

report on compliance and the report on

internal control (DR-29c) may be

combined into one report.]

2 CFR 200.

507 (b)(4)(iii)

DR-29e

A schedule of findings and questioned

costs for the federal program, which

includes a summary of auditor’s results

relative to the audit of the federal

program and findings and questioned

costs?

2 CFR 200.

507 (b)(4)(iv)

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 17

Reference Notes

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ATTACHMENT 1

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 18

Major Federal Program Determination Worksheet

Instructions for Completing Major Federal Program Determination Worksheet

The purpose of this worksheet is to determine whether the auditors properly identified the

major Federal programs (DR-26) and Type A/B threshold (DR-25). If the SEFA and/or

notes to the SEFA include Federal loan and loan guarantee programs as identified in 2 CFR

200.

502(b) through (d) use the guidance in 2 CFR 200.518(b)(3) to determine whether these

are “large” loan or loan guarantee programs that must be excluded from the determination

of the Type A/B threshold.

2 CFR 200.518(b)(3) states that the inclusion of large loan and loan guarantees (loans) must

not result in the exclusion of other programs as Type A programs. When a Federal program

providing loans exceeds four times the largest non-loan program it is considered a large

loan program, the auditor must consider this Federal program as a Type A program and

exclude its values in determining other Type A programs. This recalculation of the Type A

program is performed after removing the total of all large loan programs. A program is only

considered to be a Federal program providing loans if the value of Federal awards expended

for loans within the program comprises fifty percent or more of the total Federal awards

expended for the program. A cluster of programs is treated as one program and the value of

Federal awards expended under a loan program is determined as described in §200.502

Basis for determining Federal awards expended.

Note: The OMB issues advisories for unique circumstances, such as ARRA and large-scale

natural disasters, which are incorporated into Appendix VII of the Compliance Supplement.

Reviewers should ensure that the guidance in the Appendix VII in effect for the year under

review was incorporated into the auditors’ determination of major Federal programs.

Step 1. Calculate the Type A/B threshold and the impact of large loan or loan

guarantee programs:

Review the SEFA, including its related notes, for any Federal loan and loan guarantee

programs identified, then apply the requirement in 2 CFR 200.518(b)(3) to determine

whether any of the loans or loan guarantees are considered “large” and therefore must be

excluded from the Type A program threshold calculation. Using this information complete

Rows (A) through (D) of the worksheet.

 Row (A): Enter the total Federal expenditures, including all loan and loan guarantee

programs (determine if any of the programs that include loans are considered loans if

the loan portion of the Federal program or cluster is 50% or more of the total

expenditures of the program or cluster), as reported in the SEFA.

 Row (B): Enter the amount of any “large” loan and loan guarantee programs, as

determined by applying 2 CFR 200.518(b)(3). If there are no large loans/loan guarantee

programs enter “0.”

ATTACHMENT 1

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 19

 Row (C): Subtract row (B) from row (A) and enter the difference.

 Row (D): Calculate the Type A program threshold by applying the criteria at 2

CFR 200.

518(b)(1) to the Federal expenditures recorded on row (C) then enter the result

on row (D):

o If row (C) is equal to or exceeds $750,000 but less than or equal to $25 million:

$750,000.

o If row (C) exceeds $25 million but less than or equal to $100 million: Multiply

row (C) by .03.

o If row (C) exceeds $100 million but less than or equal to $1 billion: $3 million.

o If row (C) exceeds $1 billion but less than or equal to $10 billion: Multiply row

o If row (C) exceeds $10 billion but less than or equal to $20 billion: $30 million.

o If row (C) exceeds $20 billion: Multiply row (C) by .0015.

Step 2. Identify Type A programs.

 Column (E) and (F): List the Type A programs and clusters in column (E), and record

their related expenditures in column (F). Type A programs are those programs included

in the SEFA with expenditures that exceed the Type A threshold computed in Step 1

above.

Step 3. Record the auditor’s identification of major Federal programs.

 Column (G) and (H): Identify the major Federal programs listed in the Summary of

Auditor’s Results and place an “X” in column (H) for each Type A program that was

identified by the auditor as a major Federal program. Enter each program’s total

expenditures in the corresponding line in column (G).

 Column (K): In column (K) list each Type B program identified as a major Federal

program in the Summary of Auditor’s Results, and record the related expenditures in

column (G).

Step 4. Determine whether the Type A programs identified in the year under audit

were audited in either of the last two audit periods.

 Column (I) and (J): Place an “X” in Columns (I) and (J), as appropriate, for each

program listed in column (E), that was identified as a major Federal program in the

Summary of Auditor’s Results in the prior two audit reports. Column (I) refers to the

prior year audited (the current year minus 1, or CY-1). Column (J) refers to the audit

performed 2 years prior (the current year minus 2, or CY-2).

Step 5. Calculate the total expenditures audited in the FY under audit.

 Row (L): In Column (G), enter the total amount audited for the current year by adding

ATTACHMENT 1

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 20

all expenditures recorded in Column (G) for Type A and Type B programs identified as

major programs.

Step 6. Record the auditor’s determination of low-risk auditee status.

 Row (M): Record the auditor’s determination of low risk auditee status, as reported in

the Summary of Auditor’s Results.

Step 7. Determine percentage of required audit coverage.

 Row (N): Based on the determination of low-risk auditee status, enter the percentage of

total expenditures required for audit coverage (20% for low-risk auditee (Y); 40% for

non-low-risk auditee (N)).

Step 8. Determine whether the auditor’s selected major programs met the required

percentage of coverage.

 Row (O): Enter the percentage of audit coverage achieved by dividing row (L) by row

(A).

 Compare the achieved percentage of audit coverage recorded on row (O) to the required

percentage of audit coverage recorded on row (N) to answer Conclusion question (c).

Step 9. Conclusions.

 After completing the attached worksheet, complete conclusion questions (A) through

(D) below. Document (at guide step C-3) any exceptions and disposition of potential

review findings.

A. The Type A threshold in the report [ ] was or [ ] was not correct.

B. All high-risk Type A programs [ ] were or [ ] were not identified as major Federal

programs in year under review. For each Type A program identified in Column (F)

of this worksheet that was not audited in the CY, apply the low risk program criteria

identified in 2 CFR 200.520 and document your conclusions for any exceptions.

C. The percentage of coverage [ ] was or [ ] was not met.

D. Did the auditors take into account guidance provided by OMB in Appendix VII of

the Compliance Supplement when determining the major Federal programs?

ATTACHMENT 1

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2016 Uniform Guide for Desk Reviews of Single Audit Reports Page 21

MAJOR FEDERAL PROGRAM DETERMINATION

Review the SEFA to complete this worksheet

Expenditures per

SEFA

(A)

Enter total Federal expenditures, including large loan and loan guarantee

programs.

(B)

Enter expenditures for large loans/loan guarantee programs.

(C)

Subtract (B) from (A) to calculate the total Federal expenditures excluding

any large loan or loan guarantee programs.

(D)

Enter the Type A program threshold applying the criteria at

2 CFR

200.

518(b) to the amount in Row (C).

Year under audit (CY): (F) (G) (H)* (I)* (J)*

(E) Type A Programs

dentified by the reviewer for year under

review (Current Year [CY])

Program

Expenditures

[Reviewer

identified]

Program

Expenditures

[Included in CY

Audit as a major

Federal program]

(CY) (CY-1) (CY-2)

Audited

Type A

rograms

Major Federal

Programs

audited in prior

ears

20 20 20

$ $

(K) Type B Programs audited in CY

(L)

Total Federal Expenditures of Programs Audited as

Major Federal Program (Sum of expenditures in column

(M)

Considered a Low Risk Auditee? (Yes/No)

(N)

Percentage of Audit Coverage Required %

Y = 20%, N = 40%

(O)

Percentage of Expenditures Audited %

(L) divided by (A)

* Mark

or Federal pro

rams with an