1 4 OMB Me mos OMB M-20-11da te d Ma rc h 9, 2020 Spe c ific to - - PDF document

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Pre se nte d b y: Ce nte r fo r Audit E xc e lle nc e

COVID 19 and Impac t on Single Audits

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• T

he infor mation in this slide show may be subje c t to c hange .

• Additional COVID guidanc e is be ing

pr

• vide d by F

e de r al and State Age nc ie s e ve r y day is an atte mpt to c lar ify r e quir e me nts and pr

• vide imple me ntation

guidanc e to pr ime r e c ipie nts and subr e c ipie nts.

AT T E NT ION!!!

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Co ro na virus Aid, Re lie f, a nd E c o no mic Se c urity Ac t (CARE S) H.R. 748 F a milie s F irst Co ro na virus Re spo nse Ac t—H.R. 6201 Co ro na virus Pre pa re dne ss a nd Re spo nse Supple me nta l Appro pria tio ns Ac t—H.R. 6074

ACT S

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OMB M-20-11da te d Ma rc h 9, 2020

• Spe c ific to e ntitie s dire c tly impa c te d b y COVID 19

OMB M-20-17 da te d Ma rc h 19, 2020

• E

xte nds to re c ipie nts a ffe c te d b y the lo ss o f o pe ra tio ns a nd inc re a se d c o sts

• Allo wa b ility o f sa la rie s a nd b e ne fits
• Allo wa b ility o f c o sts no rma lly no t c ha rg e a b le (c a nc e lla tio n fe e s, e tc )
• E

xte nds sing le a udit de a dline six mo nths b e yo nd the due da te fo r F YE up until June 30, 2020

OMB M-20-20 da te d April 9, 2020

• Ag e nc ie s MAY a llo w re c ipie nts to do na te me dic a l e q uipme nt

purc ha se d with fe de ra l funds to e ntitie s se rving the pub lic fo r COVID re spo nse

OMB Me mos

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Appro xima te ly $139 b illio n b e ing a llo c a te d to sta te g o ve rnme nts thro ug h CARE S Mo re tha n 90 fe de ra l pro g ra ms (a nd c o unting ) tha t this impa c ts Supple me nta l F unding , Ne w Pro g ra ms, Wa ive rs/ F le xib ilitie s

National COVID Ove r vie w

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E ntitie s with a po pula tio n

• ve r 500,000 re c e ive d the se

funds dire c t fro m the De pa rtme nt o f T re a sury City o f Cb us, Cuya ho g a Co , F ra nklin Co , Ha milto n Co , Mo ntg o me ry Co , & Summit Co . re c e iving dire c t pa yme nts fro m F e ds Re st o f mo ne y will flo w thro ug h the Sta te (H.B. 481) with sub g ra nts to c o untie s, to wnships, c itie s, a nd villa g e s (e xc e pt fo r 6 prime re c ipie nts)

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Pa yme nts fro m this fund c a n o nly b e use d fo r e xpe nse s tha t:

• Are ne c e ssa ry e xpe nditure s inc urre d due to the pub lic

he a lth e me rg e nc y (COVI D 19)

• We re NOT

a c c o unte d fo r the b udg e t mo st re c e ntly a ppro ve d a s o f Ma rc h 27, 2020

• We re inc urre d during the pe rio d tha t b e g ins Ma rc h 1, 2020

a nd e nds o f De c e mb e r 30, 2020 US T re a sury ha s issue d se ve ra l F AQs (mo st re c e nt Ma y 28th) https:/ / ho me .tre a sury.g o v/ syste m/ file s/ 136/ Co ro na virus- Re lie f-F und-F re q ue ntly-Aske d-Que stio ns.pdf

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• T

he six prime / dire c t lo c al g o ve rnme nt re c ipie nts c a n ma ke sub g ra nts to pub lic o r priva te e ntitie s, e sta b lishing g ra nt pro g ra ms tha t c o mply with the Ac t a nd US T re a sury’ s g uida nc e

• E

a c h a re like ly to lo o k a nd fe e l ve ry diffe re nt b a se d o n e a rly c o nve rsa tio ns with the m.

• T

he Sta te o f Ohio must ma ke its sub g ra nts pursua nt to the Ac t, g uida nc e o f US T re a sury a nd, upon passage , HB 481 re q uire me nts.

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• HB 481–
• T
• fund ne c e ssa ry COVI

D-19 pa nde mic -re la te d e xpe nse s

• Sub g ra nte e s will inc lude c o untie s,

munic ipa litie s, a nd to wnships.

• E

xc lude s the six lo c a l g o ve rnme nts re c e iving dire c t Co ro na virus Re lie f F und pa yme nts

• Distrib ute s funding b a se d o n pro po rtio n o f

L

• c a l Go ve rnme nt F

und re ve nue a llo c a te d to sub divisio ns in 2019.

• Co untie s will b e middle me n fo r lo c a l g o vt.

distrib utio n b ut no t re spo nsib le fo r a ny c o mplia nc e re q uire me nts b e yo nd the ir o wn c o unty-a wa rd

Ne w Cor

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us Re lie f F und

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• HB481–
• Re q uire s sub divisio n, b e fo re re c e iving a

pa yme nt, to a do pt a re so lutio n a ffirming it will spe nd o nly o n pa nde mic -re la te d e xpe nse s.

• Ohio Offic e o f Budg e t a nd Ma na g e me nt

(OBM) will a dministe r the pro g ra m a nd is de ve lo ping a te mpla te re so lutio n/ o rdina nc e .

• Re q uire s lo c a l funds unspe nt a s o f Oc to b e r 15,

2020, to b e re distrib ute d to lo c a l g o ve rnme nts tha t ha ve spe nt the ir full a llo c a tio n.

• Re q uire s sub divisio ns to re turn unspe nt

Co ro na virus Re lie f F und do lla r to the sta te b y De c e mb e r 28, 2020.

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us Re lie f F und

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• US T

re a sury re c e ntly a nno unc e d tha t UG will a pply to this pro g ra m.

• CRFis c o nside re d to b e a payme nt (no t a

g ra nt) within the de finitio n o f F e de ra l F ina nc ia l Assista nc e .

• CF

DA No . is 21.019

• Sub je c t to Sing le Audit a nd re la te d

pro visio ns o f UG, inc luding inte rnal c o ntro ls (2 CF R 200.303) a nd subre c ipie nt mo nito ring (2 CF R 200.330-332).

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• AOS de ve lo pe d a fe de ra l pro g ra m listing

b a se d upo n re a ding the a c ts a nd lo o king a t the fe de ra l/ sta te a g e nc y we b site s o n wha t impa c ts the ir c o uld b e to Ohio

• T

his ra ng e s fro m supple me nta l funding to e xisting pro g ra m, ne w g ra nt pro g ra ms to wa ive rs a nd fle xib ilitie s in e xisting re q uire me nts

• Ma ny q ue stio ns re g a rding funding still e xist
• Are a ll pro g ra ms sub je c t to Unifo rm Guida nc e ?
• CF

DA numb e rs? Ne w o r pre -e xisting ?

• SE

F A Re po rting ? Cluste rs?

AOS COVID- 19 F e de r al Pr

• gr

am Spr e adshe e t / T r ac ke r

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• T

he a pplic a tio n pe rio d fo r so me o f the pro g ra ms ide ntifie d o n o ur spre a dshe e t runs thro ug h the e nd o f June 2020 o r la te r.

• I

t’ s no t to o la te fo r lo c a l g o ve rnme nts lo o king fo r mo re a ssista nc e ! T he y must g o a pply fo r it tho ug h!

• T

he COVI D-19 funding a utho rize d unde r the se thre e a c ts is no t “stimulus”/ ”b udg e t sta b iliza tio n” mo ne y -- in mo st c a se s, it is no t a llo we d to b e use d fo r re ve nue re pla c e me nt.

He r e ’s What We Know So F ar

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• F

e de ra l pro g ra ms unde r the CARE S Ac t will ha ve spe c ia l q ua rte rly re po rting re q uire me nts re g a rding the use o f funds pursua nt to Se c . 15011 o f the Ac t.

• Applie s to “c o ve re d re c ipie nts” – inc lude s

sta te s a nd a ny e ntity re c e iving mo re tha n $150,000

• Be g inning with the q ua rte r e nde d Se pt 2020
• Due within te n da ys a fte r the e nd o f e a c h

q ua rte r a n

• Ag g re g a te d a g e nc y re po rts will b e po ste d o n

PRAC we b site within 30 da ys a fte r the e nd o f e a c h q ua rte r

He r e ’s What We Know So F ar

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• CARE

S Ac t c ha rg e s the fo llo wing b o die s with o ve rsig ht o f COVI D-19 funding / pro g ra ms:

• Pa nde mic Re spo nse Ac c o unta b ility

Co mmitte e (c re a te d b y Se c . 15010 o f the CARE S Ac t) https:/ / pa nde mic .o ve rsig ht.g o v/

• Go ve rnme nt Ac c o unta b ility Offic e (GAO)
• F

e de ra l Offic e s o f I nspe c to rs Ge ne ra l

• Se c . 15010 re q uire s PRAC to c o o rdina te its o ve rsig ht

with GAO, I G’ s a nd Sta te a udito rs.

He r e ’s What We Know So F ar

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• De c e ntr

alize d Pr

• c e ss - I

t is up to e a c h F e de ra l Awa rding Ag e nc y to de te rmine UG a pplic a b ility, a ssig n CF DA numb e rs to ne w pro g ra ms, inte rpre t the le g isla tive re q uire me nts a nd c o mmunic a te the lo g istic s

• f ho w to c o lle c t a nd a c c umula te c o ve re d

re c ipie nts’ re q uire d re po rting info rma tio n

• Pr

ime r e c ipie nts – tho se re c ipie nts re c e iving

dire c t pa yme nts in fe de ra l pro g ra m a ssista nc e – must de te rmine whe the r/ ho w to sub g ra nt a ssista nc e to o the rs.

• E

xa mple : Sta te o f Ohio is a prime re c ipie nt fo r ma ny pro g ra ms a nd will ne e d to c o lle c t de ta ile d info rmatio n fro m the ir sub g ra nte e s in o rde r to c o mple te Se c . 15011 q ua rte rly re po rting

He r e ’s What We Know So F ar

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• Ohio Re v. Co de Se c . 5705.09 re q uire s a

se pa ra te fund b e e sta b lishe d fo r ne w g ra nts/ fe de ra l pro g ra ms.

• T

ha t is, a spe c ia l fund must b e e sta b lishe d fo r e a c h c la ss o f re ve nue s de rive d fro m a so urc e o the r tha n the g e ne ra l pro pe rty ta x, whic h the la w re q uire s to b e use d fo r a pa rtic ula r purpo se .

• AOS a ppro va l fo r ne w fund e sta b lishme nt is no t

re q uire d in this insta nc e .

• Altho ug h still unc le a r, AOS hig hly e nc o ura g e s

se pa ra te a c c o unta b ility fo r COVI D-19 funding in pre -e xisting fe de ra l pro g ra m due to the spe c ia l re po rting re q uire me nts.

He r e ’s What We Know So F ar

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• I

n ma ny pro g ra ms, g o ve rnme nts will ne e d to do c ume nt ho w the y de te rmine d tha t e xpe nditure s ma de we re ne c e ssa ry a nd re la te d to the pub lic he a lth e me rg e nc y.

• Altho ug h no t re q uire d, we a re e nc o ura g ing

g o ve rning b o a rd me mb e rs to a do pt, a s a b e st pra c tic e , a re so lutio n to do c ume nt whic h e mplo ye e s sho uld b e pa id a nd wha t do c ume nta tio n sho uld b e ke pt fo r wo rk c o nduc te d during this time .

• I

f UG a pplie s, a dditio na l T ime & E ffo rt, e tc . re q uire me nts ma y b e a pplic a b le

He r e ’s What We Know So F ar

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• I

n ma ny c a se s, unuse d COVI D-19 funding a t the e nd o f c a le nda r ye a r 2020 will ne e d re turne d to the a wa rding a g e nc y

• Ano the r re a so n we hig hly sug g e st se pa ra te

a c c o unta b ility o f COVI D-19 funds, e ve n in a n e xisting fe de ra l pro g ra m.

• A fe w wo rds a b o ut sc ho o ls
• USAS numb e rs ha ve b e e n se t up fo r the

E le me nta ry a nd Se c o nda ry E me rg e nc y Re lie f F und (E SE RF ) a nd Sc ho o l Go ve rno r’ s E me rg e nc y E duc a tio n Re lie f (GE E R)

• AOS ha s put o ut g uida nc e re g a rding this

He r e ’s What We Know So F ar

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• COVI

D-19 implic a tio ns:

• Sig nific a nt influx o f

fe de ra l funds

• L

a c k o f c la rity a ro und whe the r sub je c t to sing le a udit

• Cha lle ng e s with ne w
• r re vise d c o mplia nc e

re q uire me nts

• Po te ntia l fo r sig nific a nt

c ha ng e s in pro c e sse s a nd c o ntro ls during the ye a r

• Audit e xte nsio ns

He r e ’s What We Know So F ar

2020 OMB Complianc e Supple me nt without COVID- 19 update s e xpe c te d late June Possible follow- up adde ndum addre ssing COVID- 19 matte rs in F all 2020

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• We re c e ntly ha ve la unc he d a we b pa g e

c o nta ining COVI D spe c ific info rma tio n

AOS Re sour c e s

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• We b pa g e inc lude s
• COVI

D F e de ra l Assista nc e Spre a dshe e t a nd a tuto ria l fo r it

• De a dline E

xte nsio ns tha t ha ve b e e n g ra nte d a t b o th the sta te a nd fe de ra l le ve l

• Pub lic Me e ting Guide line s
• F

re q ue ntly Aske d Que stio ns

• F

re e tra ining re so urc e s

• Adviso ry a nd Po lic y Upda te s
• Ho w to re a c h AOS a nd o the r o ffic e s

AOS Re sour c e s

Center for Audit Excellence 88 E. Broad St. Columbus, Ohio 43215 Presenter phone: (800) 282-0370 FACCR@ohioauditor.gov

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88 E. Broad St. Columbus, Ohio 43215 Phone: (800) 282-0370 www.OhioAuditor.gov