All entities that expend $750,000 or more annually in federal awards must perform a Single Audit and complete Form SF-SAC (the Form) for every fiscal period during which they meet the reporting dollar threshold. The Federal Auditing Clearinghouse is the federal entity that collects the forms and reporting packages and maintains a database of completed single audits. There are a number of changes to the Form for fiscal years ending 2019. The new Form will include all the information included in the Auditor’s Single Audit reports. Some of the key changes to the Form are as follows:

• Notes to the Schedule of Expenditures of Federal Awards (SEFA)
  Auditees are required to disclose their significant accounting policies, election of 10% de minimis cost rate and any additional notes in the reporting package, such as information on subrecipients, noncash transactions, loan information and federal insurance. There are text limits on each note, and if there are charts and tables, the auditee should write, “See Notes to the SEFA for charts and tables.”
• Text of the Audit Findings
  Auditees are required to disclose the full text of the audit findings as it appears in the Schedule of Findings and Questioned Costs. If there are charts and tables, the auditee should write “See Notes to the SEFA for charts and tables.”
• Text of the Corrective Action Plan
  The text is from the Corrective Action Plan as it appears in the Schedule of Findings and Questioned Costs, and address each audit finding included in the current year’s auditor’s report. The Corrective Action Plan is prepared by the auditee in a document separate from the auditor’s findings. The Text of the Audit Findings, and the Corrective Action Plan relate only to Federal award audit findings.
• Cluster Drop-Down With Other Clusters
  When updating the Schedule of Expenditures of Federal Award, the option for “other cluster” in only used when the name of the cluster does not appear in the drop-down list. This should be used in rare circumstances, as clusters from the Compliance Supplement would be included in the Federal Auditing Clearinghouse.
• System-Generated SEFA
  For auditees, instead of using their Federal award data to create their SEFA and then enter the data into the Federal Audit Clearinghouse-Internet Data Entry System (IDES), auditees can now enter their data into IDES and have the SEFA generated for them.
• Auditee and Auditor Statement Re-Formatted
  The auditee must check eight boxes to certify the report, while the auditor must check five boxes.

For more information, contact Marva Flanagan or your ORBA advisor at 312.670.7444. Visit ORBA.com to learn more about our Not-For-Profit Group.