|
Section 215.97, Florida Statutes,
Florida Single Audit Act
- The purposes of the section are to:
- Definitions; as used in this section, the term:
- The Executive Office of the Governor shall:
- The Comptroller shall:
- Each state awarding agency shall:
- As a condition of receiving state financial assistance, each recipient that provides state financial assistance to a subrecipient shall:
- Each recipient or subrecipient of state financial assistance shall comply with the following:
- The independent auditor when conducting a state single audit of recipients or subrecipients shall:
- The independent auditor, when conducting a state project-specific audit of recipients or subrecipients, shall:
- The Auditor General shall:
Note: HB 2377, effective July 1, 2000, revised and renumbered the Florida Single Audit
Act from Section 216.3491, Florida Statutes, to Section 215.97, Florida Statutes. Whereas
the 2000 Florida Statutes have not yet been published, the following version is prepared
from HB 2377. This webpage will be updated as necessary when the 2000 Florida Statutes
are published.
215.97 Florida Single Audit Act.--
- The purposes of the section are to:
- Establish uniform state audit requirements for state financial assistance
provided by state agencies to nonstate entities to carry out state projects.
- Promote sound financial management, including effective internal controls, with
respect to state financial assistance administered by nonstate entities.
- Promote audit economy and efficiency by relying to the extent possible on
already required audits of federal financial assistance provided to nonstate
entities.
- Provide for identification of state financial assistance transactions in the
appropriations act, state accounting records, and recipient organization records.
- Promote improved coordination and cooperation within and between affected state
agencies providing state financial assistance and nonstate entities receiving state
financial assistance.
- Ensure, to the maximum extent possible, that state agencies monitor, use, and
followup on audits of state financial assistance provided to nonstate entities.
Return to top
- Definitions; as used in this section, the term:
- "Audit threshold" means the amount to use in determining when a state single
audit of a nonstate entity shall be conducted in accordance with this section. Each
nonstate entity that expends a total amount of state financial assistance equal to
or in excess of $300,000 in any fiscal year of such nonstate entity shall be required
to have a state single audit for such fiscal year in accordance with the requirements
of this section. Every 2 years the Auditor General, after consulting with the
Executive Office of the Governor, the Comptroller, and all state agencies that
provide state financial assistance to nonstate entities, shall review the amount for
requiring audits under this section and may adjust such dollar amount consistent with
the purpose of this section.
- "Auditing standards" means the auditing standards as stated in the rules of
the Auditor General as applicable to for-profit organizations, nonprofit
organizations, or local governmental entities.
- "Catalog of State Financial Assistance" means a comprehensive listing of state
projects. The Catalog of State Financial Assistance shall be issued by the Executive
Office of the Governor after conferring with the Comptroller and all state agencies
that provide state financial assistance to nonstate entities. The Catalog of State
Financial Assistance shall include for each listed state project: the responsible
state agency; standard state project number identifier; official title; legal
authorization; and description of the state project, including objectives,
restrictions, application and awarding procedures, and other relevant information
determined necessary.
- "Financial reporting package" means the nonstate entities' financial
statements, Schedule of State Financial Assistance, auditor's reports, management
letter, auditee's written responses or corrective action plan, correspondence on
followup of prior years' corrective actions taken, and such other information
determined by the Auditor General to be necessary and consistent with the purposes of
this section.
- "Federal financial assistance" means financial assistance from federal sources
passed through the state and provided to nonstate entities to carry out a federal
program. "Federal financial assistance" includes all types of federal assistance as
defined in applicable United States Office of Management and Budget circulars.
- "For-profit organization" means any organization or sole-proprietor but is not
a local governmental entity or a nonprofit organization.
- "Independent auditor" means an external state or local government auditor or a
certified public accountant who meets the independence standards.
- "Internal control over state projects" means a process, effected by an
entity's management and other personnel, designed to provide reasonable assurance
regarding the achievement of objectives in the following categories:
- Effectiveness and efficiency of operations.
- Reliability of financial operations.
- Compliance with applicable laws and regulations.
- "Local governmental entity" means a county agency, municipality, or special
district or any other entity (other than a district school board or community
college), however styled, which independently exercises any type of governmental
function.
- "Major state project" means any state project meeting the criteria as stated
in the rules of the Executive Office of the Governor. Such criteria shall be
established after consultation with the Comptroller and appropriate state agencies
that provide state financial assistance and shall consider the amount of state
project expenditures or expenses or inherent risks. Each major state project shall
be audited in accordance with the requirements of this section.
- "Nonprofit organization" means any corporation, trust, association,
cooperative, or other organization that:
- Is operated primarily for scientific, educational service, charitable, or
similar purpose in the public interest;
- Is not organized primarily for profit;
- Uses net proceeds to maintain, improve, or expand the operations of the organization;
and
- Has no part of its income or profit distributable to its members, directors, or officers.
- "Nonstate entity" means a local governmental entity, nonprofit organization,
or for-profit organization that receives state resources.
- "Recipient" means a nonstate entity that receives state financial assistance
directly from a state awarding agency.
- "Schedule of State Financial Assistance" means a document prepared in
accordance with the rules of the Comptroller and included in each financial reporting
package required by this section.
- "State awarding agency" means the state agency that provided state financial
assistance to the nonstate entity.
- "State financial assistance" means financial assistance from state resources,
not including federal financial assistance and state matching, provided to nonstate
entities to carry out a state project. "State financial assistance" includes all
types of state assistance as stated in the rules of the Executive Office of the
Governor established in consultation with the Comptroller and appropriate state
agencies that provide state financial assistance. It includes state financial
assistance provided directly by state awarding agencies or indirectly by recipients
of state awards or subrecipients. It does not include procurement contracts, used to
buy goods or services from vendors. Audits of such procurement contracts with vendors
are outside of the scope of this section. Also, audits of contracts to operate
state-government-owned and contractor-operated facilities are excluded from the audit
requirements of this section.
- "State matching" means state resources provided to nonstate entities to be
used to meet federal financial participation matching requirements of federal
programs.
- "State project" means all state financial assistance to a nonstate entity
assigned a single state project number identifier in the Catalog of State Financial
Assistance.
- "State Projects Compliance Supplement" means a document issued by the Executive
Office of the Governor, in consultation with the Comptroller and all state agencies
that provide state financial assistance. The State Projects Compliance Supplement
shall identify state projects, the significant compliance requirements, eligibility
requirements, matching requirements, suggested audit procedures, and other relevant
information determined necessary.
- "State project-specific audit" means an audit of one state project performed in
accordance with the requirements of subsection (9).
- "State single audit" means an audit of a nonstate entity's financial statements
and state financial assistance. Such audits shall be conducted in accordance with the
auditing standards as stated in the rules of the Auditor General.
- "Subrecipient" means a nonstate entity that receives state financial assistance
through another nonstate entity.
- "Vendor" means a dealer, distributor, merchant, or other seller providing goods
or services that are required for the conduct of a state project. These goods or
services may be for an organization's own use or for the use of beneficiaries of the
state project.
Return to top
- The Executive Office of the Governor shall:
- Upon conferring with the Comptroller and all state awarding agencies,
adopt rules necessary to provide appropriate guidance to state awarding agencies,
recipients and subrecipients, and independent auditors of state financial
assistance relating to the requirements of this section, including:
- The types or classes of financial assistance considered to be
state financial assistance which would be subject to the requirements
of this section. This would include guidance to assist in identifying
when the state agency or recipient has contracted with a vendor rather
than with a recipient or subrecipient.
- The criteria for identifying a major state project.
- The criteria for selecting state projects for audits based on inherent risk.
- Be responsible for coordinating the initial preparation and subsequent
revisions of the Catalog of State Financial Assistance after consultation with
the Comptroller and all state awarding agencies.
- Be responsible for coordinating the initial preparation and subsequent
revisions of the State Projects Compliance Supplement, after consultation with
the Comptroller and all state awarding agencies.
Return to top
- The Comptroller shall:
- Make enhancements to the state's accounting system to provide for the:
- Recording of state financial assistance and federal financial assistance
appropriations and expenditures within the state awarding agencies' operating funds.
- Recording of state project number identifiers, as provided in
the Catalog of State Financial Assistance, for state financial
assistance.
- Establishment and recording of an identification code for
each financial transaction, including state agencies'
disbursements of state financial assistance and federal financial
assistance, as to the corresponding type or organization that is
party to the transaction (e.g., other governmental agencies,
nonprofit organizations, and for-profit organizations), and
disbursements of federal financial assistance, as to whether the
party to the transaction is or is not a recipient or
subrecipient.
- Upon conferring with the Executive Office of the Governor and all state
awarding agencies, adopt rules necessary to provide appropriate guidance to state
awarding agencies, recipients and subrecipients, and independent auditors of
state financial assistance relating to the format for the Schedule of State
Financial Assistance.
- Perform any inspections, reviews, investigations, or audits of state
financial assistance considered necessary in carrying out the Comptroller's legal
responsibilities for state financial assistance or to comply with the
requirements of this section.
Return to top
- Each state awarding agency shall:
- Provide to a recipient information needed by the recipient to comply with the
requirements of this section, including:
- The audit and accountability requirements for state projects as
stated in this section and applicable rules of the Executive Office of
the Governor, rules of the Comptroller, and rules of the Auditor
General.
- Information from the Catalog of State Financial Assistance, including
the standard state project number identifier; official title; legal
authorization; and description of the state project including objectives,
restrictions, and other relevant information determined necessary.
- Information from the State Projects Compliance Supplement, including
the significant compliance requirements, eligibility requirements,
matching requirements, suggested audit procedures, and other relevant
information determined necessary.
- Require the recipient, as a condition of receiving state financial
assistance, to allow the state awarding agency, the Comptroller, and the Auditor
General access to the recipient's records and the recipient's independent
auditor's working papers as necessary for complying with the requirements of this
section.
- Notify the recipient that this section does not limit the authority of the
state awarding agency to conduct or arrange for the conduct of additional audits
or evaluations of state financial assistance or limit the authority of any state
agency inspector general, the Auditor General, or any other state official.
- Be provided one copy of each financial reporting package prepared in
accordance with the requirement of this section.
- Review the recipient financial reporting package, including the management
letters and corrective action plans, to the extent necessary to determine whether
timely and appropriate corrective action has been taken with respect to audit
findings and recommendations pertaining to state financial assistance provided by
the state agency.
Return to top
- As a condition of receiving state financial assistance, each recipient that provides
state financial assistance to a subrecipient shall:
- Provide to a subrecipient information needed by the subrecipient to
comply with the requirements of this section, including:
- Identification of the state awarding agency.
- The audit and accountability requirements for state projects as
stated in this section and applicable rules of the Executive Office
of the Governor, rules of the Comptroller, and rules of the Auditor
General.
- Information from the Catalog of State Financial Assistance,
including the standard state project number identifier; official
title; legal authorization; and description of the state project,
including objectives, restrictions, and other relevant information.
- Information from the State Projects Compliance Supplement
including the significant compliance requirements, eligibility
requirements, matching requirements, and suggested audit procedures,
and other relevant information determined necessary.
- Review the subrecipient audit reports, including the management
letters, to the extent necessary to determine whether timely and appropriate
corrective action has been taken with respect to audit findings and
recommendations pertaining to state financial assistance provided by the
state agency.
- Perform such other procedures as specified in terms and conditions of
the written agreement with the state awarding agency including any required
monitoring of the subrecipient's use of state financial assistance through
onsite visits, limited scope audits, or other specified procedures.
- Require subrecipients, as a condition of receiving state financial
assistance, to permit the independent auditor of the recipient, the state
awarding agency, the Comptroller, and the Auditor General access to the
subrecipient's records and the subrecipient's independent auditor's working
papers as necessary to comply with the requirements of this section.
Return to top
- Each recipient or subrecipient of state financial assistance shall comply with the
following:
- Each nonstate entity that receives state financial assistance and meets
audit threshold requirements, in any fiscal year of the nonstate entity, as
stated in the rules of the Auditor General, shall have a state single audit
conducted for such fiscal year in accordance with the requirements of this
act and with additional requirements established in rules of the Executive
Office of the Governor, rules of the Comptroller, and rules of the Auditor
General. If only one state project is involved in a nonstate entity's fiscal
year, the nonstate entity may elect to have only a state project-specific
audit of the state project for that fiscal year.
- Each nonstate entity that receives state financial assistance and
does not meet the threshold requirements, in any fiscal year of the nonstate
entity, as stated in this law or the rules of the Auditor General is exempt
for such fiscal year from the state single audit requirements of this
section. However, such nonstate entity must meet terms and conditions
specified in the written agreement with the state awarding agency.
- Regardless of the amount of the state financial assistance, the
provisions of this section do not exempt a nonstate entity from compliance
with provisions of law relating to maintaining records concerning state
financial assistance to such nonstate entity or allowing access and
examination of those records by the state awarding agency, the Comptroller,
or the Auditor General.
- Audits conducted pursuant to this section shall be performed annually.
- Audits conducted pursuant to this section shall be conducted by
independent auditors in accordance with auditing standards as stated in rules
of the Auditor General.
- Upon completion of the audit as required by this section, a copy of
the recipient's financial reporting package shall be filed with the state
awarding agency and the Auditor General. Upon completion of the audit as
required by this section, a copy of the subrecipient's financial reporting
package shall be filed with the recipient that provided the state financial
assistance. The financial reporting package shall be filed in accordance with
the rules of the Auditor General.
- All financial reporting packages prepared pursuant to the requirements
of this section shall be available for public inspection.
- If an audit conducted pursuant to this section discloses any
significant audit findings relating to state financial assistance, including
material noncompliance with individual state project compliance requirements
or reportable conditions in internal controls of the nonstate entity, the
nonstate entity shall submit as part of the audit package to the state
awarding agency a plan for corrective action to eliminate such audit findings
or a statement describing the reasons that corrective action is not
necessary.
- An audit conducted in accordance with this section is in addition to
any audit of federal awards required by the Federal Single Audit Act and
other federal laws and regulations. To the extent that such federally
required audits provide the state awarding agency with information it
requires to carry out its responsibilities under state law or other
guidance, a state agency shall rely upon and use that information.
- Unless prohibited by law, the cost of audits pursuant to this section
are allowable charges to state projects. However, any charges to state
projects should be limited to those incremental costs incurred as a result of
the audit requirements of this section in relation to other audit
requirements. The nonstate entity should allocate such incremental costs to
all state projects for which it expended state financial assistance.
- Audit costs may not be charged to state projects when audits required
by this section have not been made or have been made but not in accordance
with this section. If a nonstate entity fails to have an audit conducted
consistent with this section, state awarding agencies may take appropriate
corrective action to enforce compliance.
- This section does not prohibit the state awarding agency from
including terms and conditions in the written agreement which require
additional assurances that state financial assistance meets the applicable
requirements of laws, regulations, and other compliance rules.
- A state awarding agency that provides state financial assistance to
nonstate entities and conducts or arranges for audits of state financial
assistance that are in addition to the audits conducted under this act
shall, consistent with other applicable law, arrange for funding the full
cost of such additional audits.
Return to top
- The independent auditor when conducting a state single audit of recipients or subrecipients
shall:
- Determine whether the nonstate entity's financial statements are
presented fairly in all material respects in conformity with generally
accepted accounting principles.
- Determine whether state financial assistance shown on the Schedule of
State Financial Assistance is presented fairly in all material respects in
relation to the nonstate entity's financial statements taken as a whole.
- With respect to internal controls pertaining to each major state project:
- Obtain an understanding of internal controls;
- Assess control risk;
- Perform tests of controls unless the controls are deemed to be ineffective; and
- Determine whether the nonstate entity has internal controls in
place to provide reasonable assurance of compliance with the
provisions of laws and rules pertaining to state financial
assistance that have a material effect on each major state project.
- Determine whether each major state project complied with the
provisions of laws, rules, and guidelines as identified in the State Projects
Compliance Supplement, or otherwise identified by the state awarding agency,
which have a material effect on each major state project. When major state
projects are less than 50 percent of the nonstate entity's total expenditures
for all state financial assistance, the auditor shall select and test
additional state projects as major state projects as necessary to achieve
audit coverage of at least 50 percent of the expenditures for all state
financial assistance provided to the nonstate entity. Additional state
projects needed to meet the 50-percent requirement may be selected on an
inherent risk basis as stated in the rules of the Executive Office of the
Governor.
- Report on the results of any audit conducted pursuant to this section
in accordance with the rules of the Executive Office of the Governor, rules
of the Comptroller, and rules of the Auditor General. Audit reports shall
include summaries of the auditor's results regarding the nonstate entity's
financial statements; Schedule of State Financial Assistance; internal
controls; and compliance with laws, rules, and guidelines.
- Issue a management letter as prescribed in the rules of the Auditor General.
- Upon notification by the nonstate entity, make available the working
papers relating to the audit conducted pursuant to the requirements of this
section to the state awarding agency, the Comptroller, or the Auditor General
for review or copying.
Return to top
- The independent auditor, when conducting a state project-specific audit of recipients
or subrecipients, shall:
- Determine whether the nonstate entity's schedule of state financial
assistance is presented fairly in all material respects in conformity with
stated accounting policies.
- Obtain an understanding of internal control and perform tests of
internal control over the state project consistent with the requirements of a
major state project.
- Determine whether the auditee has complied with applicable provisions
of laws, rules, and guidelines as identified in the State Projects Compliance
Supplement, or otherwise identified by the state awarding agency, which could
have a direct and material effect on the state project.
- Report on the results of state project-specific audit consistent with
the requirements of the state single audit and issue a management letter as
prescribed in the rules of the Auditor General.
- Upon notification by the nonstate entity, make available the working
papers relating to the audit conducted pursuant to the requirements of this
section to the state awarding agency, the Comptroller, or the Auditor General
for review or copying.
Return to top
- The Auditor General shall:
- Have the authority to audit state financial assistance provided to any
nonstate entity when determined necessary by the Auditor General or when
directed by the Legislative Auditing Committee.
- Adopt rules that state the auditing standards that independent
auditors are to follow for audits of nonstate entities required by this
section.
- Adopt rules that describe the contents and the filing deadlines for
the financial reporting package.
- Provide technical advice upon request of the Comptroller, Executive Office
of the Governor, and state awarding agencies relating to financial reporting and
audit responsibilities contained in this section.
- Be provided one copy of each financial reporting package prepared in
accordance with the requirements of this section.
- Perform ongoing reviews of a sample of financial reporting packages filed
pursuant to the requirements of this section to determine compliance with the
reporting requirements of this section and applicable rules of the Executive
Office of the Governor, rules of the Comptroller, and rules of the Auditor
General.
History.--s. 2, ch. 98-91; s. 58, ch. ____.
A. Effective July 1, 2000.
B. Section 5, ch. 98-91, provides that "[t]his act applies to any nonstate entity fiscal
year beginning on or after July 1, 2000."
|
