TEN 11-24 (Accessible PDF).pdf

ETA Advisory File Text

TRAINING AND EMPLOYMENT NOTICE NO. 11-24 DATE October 30 2024 EMPLOYMENT AND TRAINING ADMINISTRATION U.S. DEPARTMENT OF LABOR WASHINGTON D.C. 20210 TO ALL EMPLOYMENT AND TRAINING ADMINISTRATION FEDERAL FINANCIAL ASSISTANCE RECIPIENTS STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE LIAISONS FROM JOS JAVIER RODR GUEZ s Assistant Secretary SUBJECT Single Audit Report Submission Extension Requests 1.Purpose. To inform Employment and Training Administration ETA federal financial assistance recipients of an update to Part 200 Subpart F of title 2 of the Code of Federal Regulations CFR which allows for an extension of the deadline to submit the Single Audit report in instances where it causes undue burden on the auditee s . 2.Action Requested. Please disseminate this information to all staff directly or indirectly responsible for single audit-related activities. 3.Summary and Background. a.Summary This Training and Employment Notice TEN informs federal financial assistance recipients that for grants issued on or after October 1 2024 their cognizant agency for audit or oversight agency for audit in the absence of a cognizant agency for audit may authorize an extension of the Single Audit report submission deadline in instances where the nine-month timeframe causes an undue burden on the auditee. b.Background The Office of Management and Budget OMB revised the guidance for Grants and Agreements now referred to as OMB Guidance for Federal Financial Assistance located in subtitle A of title 2 of the CFR. The revised guidance supports OMB and federal grant-making agencies commitment to improving federal financial assistance management transparency and oversight through more accessible and readily comprehensible guidance while reducing agency and recipient burden. In 2 CFR part 200 Subpart F Audit Requirements OMB raised the threshold from 750 000 to 1 000 000 for when a non-federal entity must conduct a single audit or program-specific audit for fiscal years beginning on or after October 1 2024. This means that a non-federal entity expending less than 1 000 000 in federal assistance awards within its fiscal year is no longer required to undergo a Single Audit. Additionally OMB updated guidance regarding the submission of the Single Audit report that allows 2 the oversight award-making agency to grant a report submission extension when the nine- month timeframe causes an undue burden on the auditee. 4. Single Audit Report Submission Extension. In accordance with the OMB guidance the audit the data collection form and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor s report s or nine months after the end of the audit period whichever is earlier . Timely Single Audit reports are necessary for proper program oversight. Nevertheless the OMB guidance recognizes that in cases of undue burden on a non-federal entity an extension of the reporting deadline may be necessary. Effective October 1 2024 ETA federal financial assistance recipients experiencing an undue burden and unable to meet the nine-month Single Audit report submission deadline may submit a written request with justification for an extension to their assigned Federal Project Officer FPO . The extension request must be received at least 60 days prior to the submission deadline created by the nine-month timeframe to allow time for adequate review and for a decision to be rendered. The written request for an extension must include the following information Recipient name Award number Recipient audit period Justification for the extension New proposed date for the report submission and A corrective action plan to ensure that future reports will be filed timely. ETA will consider whether the federal financial assistance recipient s justification for the extension demonstrates that timely submission of the Single Audit report would place an undue burden on the recipient. A recipient s justification should clearly explain how external events significantly hinder their ability to meet the deadline e.g. natural disasters such as hurricanes earthquakes wildfires or pandemics such as COVID-19 and when the recipient anticipates resuming its submission of the Single Audit report. ETA management will review the request and provide a written response. If the request for an extension is denied the recipient must file the Single Audit report by the nine-month deadline. 5. Inquiries. Please direct any questions regarding this TEN to your assigned FPO. 6. References. 31 U.S.C. 7502 h Audit requirements exemptions https www.govinfo.gov content pkg USCODE-2023-title31 pdf USCODE-2023-title31- subtitleV-chap75-sec7502.pdf 2 CFR Part 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards 2 CFR Part 200 -- Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards and 3 89 Fed. Reg. 30046 Guidance for Federal Financial Assistance published April 22 2024 https www.federalregister.gov documents 2024 04 22 2024- 07496 guidance-for-federal-financial-assistance. 7. Attachment s . N A.