Audits of State and Local Governments

Chapter 11 FEDERAL GOVERNMENT ACTIVITIES

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

• Identify the guidance and requirements found in the Uniform Guidance.
• Recognize how the effective dates of the guidance will affect various stakeholders.
• Identify key changes for auditors in a single audit.
• Identify key revisions regarding determining major programs.
• Identify key revisions to reporting requirements.

INTRODUCTION

This chapter discusses recent and ongoing developments relating to audits of entities expending federal financial assistance. Included in this discussion are the revisions based on the Uniform Guidance and an update on the U.S. Department of Housing and Urban Development (HUD) consolidated audit guide.

OMB REFORMS RELATING TO FEDERAL AWARDS

On December 26, 2013, the Office of Management and Budget (OMB) issued Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) that establishes uniform cost principles and audit requirements for federal awards to nonfederal entities and administrative requirements for all federal grants and cooperative agreements.

The Uniform Guidance supersedes guidance in eight circulars and revises and consolidates the guidance found in those superseded circulars. As it relates to the existing cost principles, the Uniform Guidance consolidates the cost principles (other ...