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50.30 Compliance with Federal Single Audit Act |
50.30.10January 1, 2015 |
The purpose of these policies |
This section addresses the administrative requirements, cost principles and audit requirements related to federal assistance awards administered or expended by state agencies. It also contains state accounting and reporting policies related to administration and expenditure of federal assistance awards. |
50.30.15January 1, 2015 |
Authority for these policies |
This section is issued, as revised, pursuant to the authority granted to the Director of Financial Management to "...adopt and periodically update an accounting procedures manual" [RCW 43:88:160(1)]. |
50.30.20January 1, 2015 |
Applicability |
This part is applicable and binding on all agencies of the state of Washington administering or expending federal assistance, unless otherwise exempted by federal law or appropriate federal authority. The Budget and Accounting Act (RCW 43.88.020) defines the term “Agency” to mean “Every state office, officer, each institution, whether educational, correctional, or other, and every department, division, board, and commission, except as otherwise provided…” |
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Agencies may request a waiver from complying with specific requirements of this chapter. Refer to Subsection 1.10.40 for information on how to request a waiver. |
50.30.25
June 1, 2022 |
About the Single Audit Act requirements |
In 1984, Congress passed the Single Audit Act, which required most governmental recipients of federal assistance (e.g., state and local governments) to have organization-wide financial and compliance audits on an annual basis. Under provisions of the Single Audit Act, as amended, the state of Washington has opted to obtain a statewide Single Audit to meet the basic federal audit requirements for all federal assistance awards administered or expended by agencies of the State. Over the years, the federal Office of Management and Budget (OMB) issued several circulars to clarify administrative and audit requirements for various types of federal assistance recipients. In 2013, the OMB issued the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) to clarify and streamline all existing federal guidance. Effective December 26, 2014, the Uniform Guidance became the authoritative set of rules and requirements for Federal awards that consolidates and supersedes guidance from earlier OMB circulars. The Uniform Guidance contains major audit policy changes and audit requirements that target the risk of waste, fraud and abuse. The dollar threshold for the requirement of a Single Audit was increased to $750,000 or more in expenditures in an entity’s fiscal year. |
50.30.35
January 1, 2015 |
Responsibilities of the Office of Financial Management |
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50.30.40
June 1, 2022 |
Responsibilities of the Office of the State Auditor |
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50.30.45
January 1, 2015 |
Responsibilities of state agencies administering or expending federal awards |
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50.30.50
January 1, 2015 |
Basis of accounting to use with federal assistance transactions |
The fund type of the account in which the federal assistance transactions are recorded determines the basis of accounting. Transactions for governmental fund type accounts are recorded using the modified accrual basis. Proprietary and trust fund type accounts use the accrual basis. Refer to Subsection 80.30.20. |
50.30.60
January 1, 2015 |
When to recognize federal assistance revenue |
50.30.60.a |
Federal financial assistance revenue should be recorded using appropriate revenue source codes. Refer to Subsection 95.10.30. |
Governmental Fund Type Accounts. Federal financial assistance is recognized as revenue in governmental fund type accounts in the accounting period when all eligibility requirements are met and it becomes susceptible to accrual, that is, both measurable and available (modified accrual basis). In applying this definition, carefully review legal, contractual, and accounting policy requirements for guidance. |
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Revenue associated with federal assistance awards for which the eligibility requirements are met but which is not available, should be recorded as Unavailable Revenue, GL codes 5192 or 5292, and, subsequently, recorded as revenue when the availability criteria is met. |
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50.30.60.b | Proprietary and Trust Fund Type Accounts. Federal assistance revenue received in proprietary and trust fund type accounts is recognized as revenue in the accounting period in which it is earned and becomes measurable (accrual basis). |
50.30.60.c | Unearned Revenue. Receipts from federal assistance awards received before the applicable revenue recognition criteria is met are to be recorded as Unearned Revenue, GL codes 5190 or 5290, and, subsequently, recorded as revenue when the revenue recognition criteria is met. |
50.30.70
June 1, 2022 |
Use the Assistance Listing Number to record federal activity |
50.30.70.a |
Record federal assistance program revenues and expenditures by the unique assistance listing number (ALN) assigned to each federal financial assistance program. Agencies can utilize the ALN field (currently labeled CFDA) in AFRS to track expenditures by ALN. This may also be accomplished by maintaining a crosswalk of federal programs to ALNs. |
50.30.70.b |
When assistance listing numbers are not provided in the federal grant contract and cannot reasonably be determined by other means, agencies should:
Note: The XX.000 and XX.999 ALNs are temporary numbers which will be assigned a different number (i.e. XX.UXX or XX.RD) after Phase 2 close. If these numbers are used, an OFM accounting consultant will contact you with further instructions. Refer to general disclosure form instructions in Section 95.20.10.b. |
50.30.80
June 1, 2022 |
Accounting for federal expenditures |
50.30.80.a |
Federal Expenditure. In appropriated accounts, federal expenditures should be recorded using federal expenditure authority codes. Each agency is responsible for maintaining a system for tracking federal expenditures by the unique assistance listing number assigned to each federal financial assistance program, as listed in SAM.gov. |
50.30.80.b |
Cost of Administering Nonfinancial Programs. When allowable by the federal assistance program, administration costs for nonfinancial federal programs are recorded as federal revenues and expenditures under the applicable assistance listing number and reported at year-end on the Federal Financial Assistance - Direct form in OFM's electronic disclosure form reporting system. |
50.30.80.c | Donated Inventory Programs. Agencies of the state of Washington receive federal nonfinancial assistance in the form of donated inventories (primarily food commodities and immunization supplies). Such assistance may be received directly from a federal agency or indirectly from another state agency. Donated inventories are recorded as consumable inventories offset by unearned revenue in accordance with Subsection 85.56.40. Except as noted below, as donated inventories are consumed/distributed, revenues and expenditures should be recognized using GL Codes 3225 “Revenue Adjustment/Elimination (GAAP)” and 6525 “Expenditure/Expense Adjustment/Elimination (GAAP).” State agencies must report the fair value of inventory consumed/distributed during the year on the Nonfinancial Assistance form in OFM's electronic disclosure form reporting system. Agencies distributing donated inventories to other governments, such as school districts, local health districts, and food banks, are to report the amount distributed in the pass through column on the Nonfinancial Assistance disclosure form. Consistent with 50.30.85, state agencies transferring federally provided inventories to other agencies are to report the revenue and expenditure. The agency actually using/distributing the commodities is to report the receipt of nonfinancial assistance as an expenditure recovery offsetting the associated nonfinancial expenditure/expense in its accounting records. For food commodities, use the commodity list prepared by the Food and Nutrition Service of the U.S. Department of Agriculture to determine the fair value of the nonfinancial assistance. |
50.30.80.d | Federal Surplus Property. Do not record the value of federal surplus property received by a state agency or institution as revenue in the official state financial accounting records. Maintain the property in appropriate subsidiary ledgers for proper control of the assets. Report federal surplus property on the Nonfinancial Assistance form in OFM's electronic disclosure form reporting system under the applicable assistance listing number. It is to be valued at acquisition value if it is capitalized. If it is not capitalized, it is to be valued at its fair value at the time of receipt or the assessed value provided by the federal agency donating the property. As part of the year-end reporting process, the Surplus Property Program within the Department of Enterprise Services will provide each agency with a summary report of the value of federal surplus property received by that agency during the reporting year. |
50.30.85
January 1, 2015 |
Accounting for federal assistance activity between state agencies |
Unless directed otherwise by federal law, regulation or federal awarding agency directive, record federal revenue and expenditure/expense activity between state agencies or institutions such that the activity is not duplicated either for accounting or reporting purposes. |
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State agencies involved in inter-agency federal assistance activity should use the following accounting procedures:
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50.30.90January 1, 2015 |
Accounting for federal assistance received from another nonfederal entity, other than another Washington State agency (pass-through) |
Record federal assistance received indirectly from another state (e.g. Oregon), local government, or private entity as federal pass-through revenue (Revenue Source Code 0546). There are additional year-end financial reporting requirements specific to federal pass-through revenue and expenditures found in Subsection 95.20.70. |