Many of the local government agencies and quasi-public organizations (local auditees) that report to the Louisiana Legislative Auditor (LLA) receive and expend grants from the federal government. Some federal funds are sent to the local auditee directly from the federal government; others are passed through to the local auditee from a Louisiana state or local government agency or quasi-public organization.
If a local auditee expends $750,000 or more in federal funds, an audit must be performed in accordance with the US Office of Management and Budget publication Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Additional procedures are performed by the auditor during a Uniform Guidance audit to determine whether the local auditee expended the federal funds in accordance with federal law. The auditor reports on the results of these tests in the Independent Auditor’s Report on Compliance for Each Major Program and On Internal Control Over Compliance Required by the Uniform Guidance (the Single Audit report).
If a local auditee expends $750,000 or more in federal funds, their audit report must also include a schedule of federal expenditures (also referred to as the SEFA). The Single Audit report or auditor's opinion includes the auditor’s in-relation-to opinion on the SEFA.
- Do audits that are performed under Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards also include the Independent Auditor’s 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 or Yellow Book report?
- Are federal funds considered in determining the type of report a local auditee must submit to LLA?
- The federal government requires submission of the Single Audit report within the earlier of 30 calendar days after receipt of the auditor's report(s) or nine months after the agency’s fiscal year end. The Louisiana audit law requires submission of reports within six months after the end of the audit period. Will LLA accept local auditee reports that include Single Audits nine months after the local auditee’s fiscal year end, without a late report finding?
- Are loans made to the local auditee by the federal government subject to audit under Uniform Guidance?