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Single Audit Requirements for Provider Relief Funds

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Single Audit Requirements for Provider Relief Funds

By: Dean Dorton | July 30, 2020

We have important information regarding single audit requirements for both non-for-profit and for-profit entities who have received and expended more than $750,000 in Provider Relief Funds through the CARES Act.

COVID-19 Audit & Assurance | COVID-19 Business

The President signed the bipartisan CARES Act on March 27, 2020, providing $100 billion in relief funds to America’s healthcare providers and facilities in response to COVID-19.  On July 22, 2020, the Department of Health and Human Services (HHS) updated their Frequently Asked Questions (FAQ) page with important information regarding the applicability of Single Audit requirements for entities receiving Provider Relief Funds under the CARES Act.

Both non-for-profit and for-profit entities who have received and expended more than $750,000 in Provider Relief Funds (CFDA 93.498) within a fiscal year will be required to have a single audit completed on these funds.

See below for frequently asked questions:

Does this apply to me?2020-07-30T12:04:59-04:00

Are you a for-profit or not-for-profit healthcare organization of any type who has received and expended more than $750,000 in Provider Relief Funds? If yes, this applies to you.

What does this mean for your non-profit organization?2020-07-30T12:05:43-04:00

In addition to a financial statement audit, you will need to have a single audit which requires special testing around grant expenditures and related internal controls.

What does this mean for your for-profit organization?2020-07-30T12:46:35-04:00

A for-profit has two options, as detailed in 45 CFR 75.216.

Option 1: A financial audit of a particular award in accordance with Generally Accepted Government Auditing Standards.  This is also known as a program specific audit.  Program specific requirements are detailed at 45 CFR 75.507.

Option 2: A single audit.

What compliance areas should we be considering?2020-07-30T12:07:43-04:00

The applicable compliance areas and requirements are typically detailed within the annual compliance supplement. This year, the Compliance Supplement is being released in two parts. The specific testing procedures for the CARES Act requirements will be available within the second release of the 2020 Compliance Supplement that is expected to be issued in September 2020.

What is the timeline for completion of these audits?2020-07-30T12:11:56-04:00

Single audits are required to be submitted within nine months of the end of the fiscal year.

How do we prepare?2020-07-30T12:12:42-04:00

Start by reading reviewing terms and conditions of provider relief funds along with FAQ’s from HHS, your individual award notifications, and applicable grant agreements. Procedures in the 2020 Compliance Supplement will likely follow requirements already detailed within these documents. Next, consult your audit/accounting firm to discuss and plan your single audit. At Dean Dorton, we will begin strategizing and predicting what we believe will be subject to audit, discuss these areas with you, and commence testing.

Our team of experts hosted a webinar on August 13, 2020 to provide more information about the Single Audit process and walk through these new requirements. If your organization is new to Single Audits, we highly recommend that you watch the webinar recording.

In addition, we will inform you of a follow-up webinar later in the coming months after the 2020 Compliance Supplement that includes CARES Act procedures is released.

Watch the Webinar

For more information on Provider Relief Funds follow the link below:

More Information

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