Top Ten Things you Should Know about Addendum 3 to the 2021 Single Audit Compliance Supplement

  1. If you are eligible, you should discuss this with your Auditor
  2. This is an addendum to the 2021 Single Audit Compliance Supplement and, specifically, the revision is Addendum 3
  3. Addendum 3 includes a simplified Single Audit process (an “Attestation”) for those direct recipients that are considered exempt from the Single Audit if it was not for the expenditures of SLFRF funds
  4. This alternative is intended to reduce the burden of a full Single Audit or Program-Specific Audit on eligible recipients (estimated at more than 10,000 entities) and practitioners
  5. This alternative applies to fiscal year audits beginning after June 30, 2020
  6. Attestation would result in an auditor’s opinion on compliance which includes an assessment of two activities, specifically “activities allowed” and “unallowed/allowable cost”
  7. Attestation is optional – any SLFRF direct recipient can decide to perform a Single Audit instead even if they are eligible for attestation
  8. Eligibility is limited:
    a. Attestation (instead of SA) eligibility would only apply to direct recipients either from Treasury or from the States (NEUs) receiving under $10M in total
    b. Attestation (instead of SA) eligibility would apply to direct recipients only if other Federal award funds the recipient expended are less than $750,000 during the recipient’s fiscal year – not including their SLFRF award funds
  9. Single Audit would still apply if the recipient spends over $750K in ANY OTHER federal funds
  10. Uniform Guidance (UG) still applies to ALL expended funds, whether the recipient performs an Attestation or a Single Audit