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.
Single Audit Requirements for Provider Relief Funds
By: Dean Dorton | July 30, 2020
Question? Contact Us
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:
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.
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.
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.
Single audits are required to be submitted within nine months of the end of the fiscal year.
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 are hosting a webinar on Thursday, August 13 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 join us.
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.
For more information and to register for the webinar follow the link below:
For more information on Provider Relief Funds follow the link below:
Have a question? Click here to contact this representative.
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