Agenda - Council Work Session - 06/28/2016

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Among Other Matters Specifically Applicable to Auditors, Changes to the Uniform Guidance Include: • Raising both the threshold that triggers a Single Audit and the threshold for Type A/B program determination to $750,000. • Changing the high-risk program criteria for Type A programs. • Reducing the number of high-risk Type B programs that must be tested as major programs. • Revising the Type B small program floor. • Reducing the percentage of coverage requirement to 40 percent for normal auditees and 20 percent for low-risk auditees. • Revising the criteria for low-risk auditee status. • Increasing the threshold for reporting findings to $25,000 in questioned costs and requiring more detailed information to be reported. Effective Dates: Year beginning January 1, 2015— • All administrative requirements and cost principles will apply to new awards made after December 26, 2014. • Governmental entities are required to comply with the Uniform Guidance once the new regulations are in effect at the Federal government level(December 26,2014). • Any funding drawdowns made after January 1, 2015 must comply with the Uniform Guidance. • Must document whether the entity is in compliance with the old or new procurement standards listed in Subpart D, Sections 200.317-200.326. The federal government has provided a two-year grace period for implementing the new procurement standards. Year beginning January 1,2016— • All administrative requirements and cost principles will apply to new awards made after December 26, 2014. • Subpart F—Audit Requirements are applicable. Year beginning January 1, 2017— • Must have implemented the new procurement standards of the Uniform Guidance, if the government initially elected the two-year grace beginning January 1,2015. • At this point, all of the new Uniform Guidance at Title 2 CFR 200 is applicable. Recommended Action Items: We recommend that award recipients familiarize themselves with the new requirements contained in the Uniform Guidance and develop a plan to become compliant with the new regulations. Consider the following— • Attend training on the new uniform administrative requirements. • Identify needed policy and procedure changes, especially in the areas o£ o Financial management o Payment o Procurement o Compensation o Travel costs • Identify internal controls that might need to be established or modified. • Determine who within your organization is responsible for each action item. • Determine the timing of each action item. • Determine when you will implement the new procurement standards and document in writing. -23-