Florida Single Audit Act
The Basics of Internal Auditing
October 9‐10, 2014
Teresa Weeks
Financial Administrator
Department of Financial Services
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Agenda
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History
Purpose
Authority
State Financial Assistance
Project Determination
Catalog of State Financial Assistance
Vendor vs. Recipient Determination
Mechanics
Resources
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History of the Florida Single Audit Act
 Enacted in 1998
 Effective July 1, 2000
 Legislative Intent
 Establish state audit and accountability requirements for state financial assistance
 Parallel Federal Single Audit Act
 Promote audit economy and efficiency
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Purpose of the Florida Single Audit Act
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Establish uniform state audit requirements
Promote sound financial management
Promote audit economy and efficiency Enhance adequate monitoring by state agencies
Provide for identification of state financial assistance in accounting records
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Authority
 Chapter 215.97, Florida Statutes
 Chapter 69I‐5, Florida Administrative Code
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State Financial Assistance
§215.97(2)(q), Florida Statutes
"State financial assistance" • means state resources, not including federal financial assistance and state matching on federal programs, provided to a nonstate entity to carry out a state project. • includes the types of state resources stated in the rules of the Department of Financial Services established in consultation with all state awarding agencies. • does not include procurement contracts used to buy goods or services from vendors and contracts to operate state‐owned and contractor‐operated facilities.” TALLAHASSEE CHAPTER
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State Financial Assistance
"State financial assistance" means state resources, not including federal financial assistance and state matching on federal programs, provided to a nonstate entity to carry out a state project. TALLAHASSEE CHAPTER
State Financial Assistance
"State financial assistance" means state resources, not including federal financial assistance and state matching on federal programs, provided to a nonstate entity to carry out a state project. TALLAHASSEE CHAPTER
State Financial Assistance
"State financial assistance" means state resources, not including federal financial assistance and state matching on federal programs, provided to a nonstate entity to carry out a state project. TALLAHASSEE CHAPTER
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State Project Determination Checklist
 Does the program meet the definition of a state project?
 What is the source of funds?
 Who will the state resources be provided to?
 Are activities undertaken to realize identifiable goals and objectives in order to achieve a state agency's mission and legislative intent requiring accountability for state funds?
 If the program meets the definition of a state project, the project determination checklist is submitted to DFS along with a request for a Catalog of State Financial Assistance number.
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Catalog of State Financial Assistance
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Comprehensive listing of state projects
Maintained by the Department of Financial Services (DFS)
Catalog of State Financial Assistance numbers issued by DFS
Agencies certifies annually that the state projects included in the catalog are correct and up to date
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Types of State Financial Assistance
Chapter 69I‐5 F.A.C
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Cooperative Agreements
Direct Appropriations
Food Commodities
Grants
Insurance
Investments
Loans
Loan Guarantees
Property
Tax Credits
Tax Refunds
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Types of State Financial Assistance
Chapter 69I‐5 F.A.C
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Cooperative Agreements
Direct Appropriations
Food Commodities
Grants
Insurance
Investments
Loans
Loan Guarantees
Property
Tax Credits
Tax Refunds
What two types of financial assistance is responsible for 90% of all funds provided to nonstate
entities?
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Types of State Financial Assistance
Chapter 69I‐5 F.A.C
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Cooperative Agreements
Direct Appropriations
Food Commodities
Grants
Insurance
Investments
Loans
Loan Guarantees
Property
Tax Credits
Tax Refunds
What two types of financial assistance is responsible for 90% of all funds provided to nonstate
entities?
Grants & Direct Appropriations
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State Financial Assistance
"State financial assistance “ does not include procurement contracts used to buy goods or services from vendors and contracts to operate state‐owned and contractor‐operated facilities.” TALLAHASSEE CHAPTER
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Vendor vs. Recipient/Subrecipient
Checklist
 Is the entity who is to receive state funds a vendor or a recipient?
 Does the entity make programmatic decisions?
 Does statute create the entity that is to carry out the state project?
 Is the entity required to provide matching resources not related to federal funds?  Is the entity required to comply with state project requirements in order to receive funds?
 Is the entity’s performance measured against whether state project objectives are met?
 This checklist is to be maintained in the agency’s contract file
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Mechanics
• State Agency identifies a state project and requests a CSFA number from the Department of Financial Services (DFS).
• State Agency submits a compliance supplement to DFS for inclusion in the Catalog of State Financial Assistance. The compliance supplement is designed to provide program information and guidance to any CPA who may perform the single audit on the entity on behalf of the agency.
• State Agency procures services and determines if the contractor is a recipient or a vendor prior to entering into the agreement.
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Mechanics
• If the contractor is deemed to be a recipient relationship, the entity is subject to the Florida Single Audit Act and may be required to have a single audit performed by a CPA if $500,000 or more in state financial assistance is expended within their fiscal year.
• A copy of the Florida Single Audit is provided to both the state agency who awarded the funds and to the Florida Auditor General.
• The awarding state agency reviews the audit as a monitoring tool and takes appropriate action if necessary.
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Resources
• Section 215.97, F.S.
• DFS Rule 69I‐5, F.A.C.
• FSAA website: https://apps.fldfs.com/fsaa
• Auditor General Q&A: http://www.myflorida.com/audgen/pages/flsaa.htm
• FSAA Line: (850) 413‐3060 TALLAHASSEE CHAPTER
Teresa Weeks
Financial Administrator
Department of Financial Services
Bureau of Auditing
850‐413‐5679
[email protected]
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