GAQC Alert No. 310

GAQC Alert
Final DCF Issued; FAC Further Extends Submission Deadline
AICPA
July 18, 2016
GAQC Alert #310
In This Alert
Changes to the DCF and Access Instructions
DCF Submission Extension
Public Availability of Reporting Packages
Hold the Date for DCF Web Event
Key AICPA Guides Issued
The 2016 Audit Guide, Government Auditing Standards and Single Audits, is now available and is fully updated for the Uniform Guidance. The 2016 Audit and Accounting Guide, State and Local Governments, is also available and includes significant new guidance on accounting for and auditing fair value measurements, as well as updates for various other new governmental accounting standards.
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Another additional CPE rebroadcast of the 2016 GAQC Annual Update Webcast will be held from 1:00 PM – 3:00 PM (Eastern) on Friday, August 12th. Register now. Don't need CPE? View the archived no-CPE version.
Additional Resources
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HUD Information
Dear Center Members
Late on Friday, July 15, 2016, the Federal Audit Clearinghouse (FAC) issued the updated Data Collection Form (DCF or Form) and related instructions. The new Form is to be used for fiscal periods beginning on or after December 26, 2014, and can be accessed on the FAC Web site. This GAQC Alert is intended to:
Provide you with a high-level summary of the changes made to the DCF and access information;
Inform you about a further extension of the timeframe being provided to make certain FAC submissions through September 19, 2016;
Remind you that the FAC will soon begin posting auditee reporting packages; and
Give you information about an upcoming GAQC Web event on the new DCF so you can hold the date on your calendar.
Changes to the DCF and Access Instructions

After several rounds of due process (see GAQC Alert #296 and GAQC Alert #306) the FAC has issued an updated DCF and related instructions. It can be found by going to the FAC Web site and clicking on the Quick Link titled, "Instructions and Documents."

The vast majority of the changes made to the Form are to address new requirements in OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance). Keep in mind that the new Form is only to be used for audits of fiscal periods beginning on or after December 26, 2014 (generally December 31, 2015, and later year-end single audits). If you are still working on single audits under OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, the previous version of the DCF should be used.

With any new Form and system launch, there are bound to be bugs that need to be worked out. If you are having any problem with the system or making submissions, contact the FAC staff using the FAC contact information provided on the FAC Web site.

The first thing members should do is to print the new Form and instructions to begin getting familiar with them. Some key changes you will note include the following:
The Form and instructions have been revised to clarify the Catalog of Federal Domestic Assistance (CFDA) field, including defined numbering protocols for how to address situations when a CFDA three-digit extension is unknown both for the Research and Development program and other programs.
The Form and instructions have been updated to add (or describe) fields related to new Uniform Guidance requirements. For example, the following are now included:

o Name of pass-through entity and pass-through identifying number field.
o Fields noting whether federal awards are passed through to subrecipients and, if so, the amount passed through.
o Fields to identify whether there are repeat audit findings and to provide prior year finding reference numbers.
o End of audit period loan balance outstanding field.
o New fields that will apply when the auditee uses a special-purpose framework (e.g., cash, regulatory, etc.).
The instruction for the Types of Compliance Requirement field that the auditor completes to note which compliance requirements apply to an audit finding has been clarified to state that the Type of Compliance Requirement is the requirement the auditor was testing which generated the audit finding.
A new field will be used to identify whether an award is part of a cluster of programs, and if so, the name of the cluster.
Both the auditee and auditor statements have been updated. The auditee statement was expanded to address new Uniform Guidance requirements and to provide a separate certification statement for Indian Tribe or Tribal Organizations. The auditor statement was also updated and streamlined.
More auto-generated fields have been incorporated into the Form. For example, the field for "name of federal program" will be auto-generated once the CFDA number is entered. Additionally, federal program totals and cluster totals will be auto-generated.
More edit checks have been incorporated into the FAC system. For example, the system will only permit a 3-digit CFDA extension.
Several formatting and ordering changes were also made.
Members should also note several other items under the "Instructions and Documents" Quick Link as follows:

    Updated Data Entry Instructions. An updated version of the instructions for the FAC Internet Data Entry System (IDES) has been posted. The updates were needed to address certain nuances of the new Form and the related submission process.

    Updated Upload Worksheets
    . Two updated worksheets (i.e., the Federal Awards Worksheet and the Federal Awards Audit Finding Worksheet) used to upload certain information into the Form have been updated to address changes to the Form. Additionally, the Federal Awards Worksheet has some new features. For example, it will now auto-generate federal program and cluster totals and allow those completing the worksheet to select the federal program name from a drop down list.

    Components Checklist
    . The PDF version of the Form includes a Single Audit Components Checklist which is intended to help preparers ensure all required parts of the reporting package are being included in the FAC submission, as well as provide space to identify the page number for each item within the PDF file to be submitted.

    Older Versions of Form and Instructions
    . You can also access older versions of the Form, instructions, and the IDES instruction document in the event you are working on audits of periods prior to the effective date of the new Form
.
DCF Submission Extension

Due to the prior unavailability of an updated DCF for submissions of completed Uniform Guidance single audits, an extension was previously posted to the FAC Web site through July 31, 2016. That extension has now been extended to September 19, 2016, and relates solely to single audits performed under the Uniform Guidance (i.e., for fiscal periods beginning on or after December 26, 2014). Please note that this extension is for the submission of the DCF only. The audit must be completed within the timeframe specified in the Uniform Guidance. Also the extension has no relevance to single audits performed under OMB Circular A-133. The following is the new extension language provided by the FAC on its Web site.

"The Office of Management and Budget (OMB) has determined that any Uniform Guidance single audit submissions due prior to September 19, 2016, will now be due to the FAC on September 19, 2016. This extension only applies to the actual submission to the FAC. The audit itself must be completed and reports issued within the timeframe specified in the Uniform Guidance. Submissions of single audits performed under OMB Circular A-133 must continue to follow the deadlines prescribed in OMB Circular A-133."
Public Availability of Reporting Packages
Under 2 CFR 200.512, auditees are required to authorize the FAC to make reporting packages publicly available (note that there is an exception to this requirement for Indian Tribes and Tribal Organizations further described in 2 CFR 200.512). Per the FAC staff, the reporting packages will likely begin being posted to the FAC Web site within several weeks after the receipt of the first submissions of the new Form. Members are reminded that reporting packages include the auditor's schedule of findings and questioned costs and audit reports. Therefore, as always, auditors and auditees should carefully review all documents that will be made publicly available before finalizing them and also ensure they do not include any protected personally identifiable information.
Hold the Date for DCF Web Event
The GAQC has scheduled a Web event on Thursday, September 15, 2016, from 1:00 PM to 3:00 PM (Eastern) on the new DCF, as well as the latest updates from the FAC. The presenters will include a representative from the FAC and a practitioner. Hold the date and time on your calendar now. Watch for a future GAQC Alert with registration information. Remember that saving this event to your calendar does not mean you are registered. You must register using the future GAQC Alert registration information to participate.
* * * * *
Sincerely,

AICPA Governmental Audit Quality Center
Stay Informed

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