GAQC Alert No. 229 


    GAQC Alert
     
    Effect of Federal Government Shutdown on Single Audit Related Matters and Other News
           
      AICPA
    October 4, 2013
    GAQC Alert #229
     
     
    In This Alert
       
    FAC Web Site Unavailable
    Status of 2013 DCF
    Concerns about Late DCF Filings
    Other Single Audit Related Matters
    Recent GAQC Web Event on FAC and DCF Available
    Register for GAQC Web Event on October 15
       
    Do you have clients that issue municipal securities? If so, attend the next GAQC Web event titled, Municipal Securities Offerings: Auditor Involvement and Other Key Considerations, to be held on Tuesday, October 15, 2013, from 1:00 PM - 3:00 PM (Eastern). Access GAQC Alert #228 for the member registration information. Do you have a client that would like to attend? If so, share the public registration page for this event with them.
    Tax-Related Government Shutdown FAQs
       
    Over 85,000 IRS employees are now furloughed, ceasing the majority of activities at the IRS. The AICPA Tax Section has developed a series of Questions and Answers to help practitioners working to complete tax returns by the Oct. 15 deadline. Access the Q&As.
    Additional Resources
       
    GAQC Alerts

    Archived GAQC Web Events

    Audit Practice Aids and Tools

    HUD Information
     
    Dear Center Members
    The federal government shutdown involves a large number of federal agencies and government functions. The Governmental Audit Quality Center (GAQC) has already received several member inquiries on the effect of shutdown on the expected launch of the new Federal Audit Clearinghouse (FAC) system that was expected on October 7, 2013, as well as the release of the 2013 Data Collection Form (DCF or the Form). While we have nothing official from the Office of Management and Budget (OMB) or the FAC at this point, we offer the following for your information. We will inform you via a future GAQC Alert as soon as we have any updated information to offer.
    Federal Audit Clearinghouse Web Site is Unavailable
    If you attempt to access the FAC Web site (https://harvester.census.gov/sac), you will be transferred to a generic Web page at the U.S. Census Bureau stating that all services and online survey collection requests will be unavailable until further notice. Therefore, no submissions to the FAC are able to be made at this time. The launch of the new FAC submission system was expected on October 7, 2013. Unless the federal government shutdown ends shortly, we believe it is unlikely that the October 7th launch date will be realistic.
    Status of New Data Collection Form for 2013 Single Audits

    The OMB had also been expected to issue a second Federal Register notice in mid-October, exposing a "near final" version of the DCF for a required 30-day comment period. The "near final" version would reflect changes made by OMB as a result of the comments received on the first Federal Register notice that proposed revisions to the Form.(See GAQC Alert #225, GAQC Alert #222, and GAQC Alert #221 for more on the history of the Form revision process and related GAQC comments). It was our understanding that OMB had expected to issue the final Form in late November (i.e., shortly after the 30-day comment period expired).

    We are aware that before the government shutdown, the draft Federal Register notice and "near final" DCF were in the clearance process at OMB. In light of the shutdown, the timing of the Federal Register notice and issuance of the final Form will likely be delayed. In the meantime, if you have 2013 single audits that are complete you (and your clients) will have to wait until the final 2013 Form is issued to submit them to the FAC.

    Concerns about Late DCF Filings
    We have heard from several members with continued concerns about whether auditees will ultimately be considered to have late DCF filings due to the delay of the 2013 Form, especially now in light of the government shutdown. As noted in the side box in GAQC Alert #226, OMB and the FAC had already provided an updated automatic extension on the FAC Web site that stated the following:

    "If a single audit for a fiscal period ending in 2013 is due before the 2013 Form is available, auditees will not be able to meet the thirty day deadline for submission prescribed by OMB Circular A-133 §_.320(a). Therefore, OMB has granted an extension until December 31, 2013, for reporting packages due to the Clearinghouse before that date. The extension is automatic and there is no approval required. The extension applies only to single audits for the fiscal periods ending in 2013."

    In a recent GAQC Web event that covered the new FAC system and upcoming 2013 DCF, a representative of the FAC indicated that the automatic extension language above may need to be revisited, depending on when the final Form is issued. Once the federal government reopens, we will make OMB aware of member concerns and provide encouragement that the extension language on the FAC Web site be reconsidered once the ultimate timing of the final Form's issuance is known. Based on OMB's willingness to provide extensions relating to this topic prior to the government shutdown, we are hopeful that it will be open to revisiting the extension language to ensure that it is realistic in light of the circumstances.
    Other Single Audit Related Matters

    We are also aware that many program-related federal agency representatives, as well as federal Office of Inspector General staff have been affected by the shutdown. Therefore, you (and your clients) will not likely be successful in reaching out to those individuals with programmatic and/or audit questions until the government reopens.

    Recent GAQC Web Event on FAC and DCF Available
    The GAQC held a Web event last week titled, The New Data Collection Form and Important Clearinghouse System Changes. Presenters included staff from the FAC and two audit practitioners who spoke in detail about the upcoming changes in the FAC system, expected changes to the Form, and best practices and tips for getting ready for these changes. Almost 800 members participated and the event was very well received. We have recently posted an archive of the event on the GAQC Web site. If you missed the live event, we would encourage you and your staff to listen to it to find out more about the changes that will be coming your way in the upcoming months. Access the archive of the event.

    Because of continued interest in the topic of this Web event, we will be rebroadcasting it in the November timeframe. Therefore, if you are interested in receiving continuing professional education for participating in the event, you should be on the lookout for a future GAQC Alert with the rebroadcast date and registration information.
     
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    Sincerely,

    AICPA Governmental Audit Quality Center

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