The report on compliance should include: 13. Item a: 17-03, para a report of noncompliance with provisions of applicable laws, regulations, contracts, and grant 7.21 agreements identified in the audit, except for those instances of noncompliance that, in the judgement, are clearly inconsequential, with a list of the provisions of those laws, auditors’ regulations, contracts, and grant agreements that tests disclosed are reportable instances of non-compliance; and a description of the scope of the testing of compliance with provisions of laws, regulations, contracts, and grant agreements, and whether the tests performed provided sufficient, appropriate evidence to support an opinion on compliance with provisions of applicable laws, regulations, contracts, and grant agreements., a statement that either the objective was not to provide an opinion on compliance with provisions of applicable laws, regulations, contracts, and grant agreements and therefore the Item b: 17-03, para auditor does not express an opinion, or the objective was to provide an opinion and a reference 7.23 to the separate audit opinion. 14. The report on compliance should also reflect instances in which the financial management 17-03, para 7.24 entity’s systems did not substantially comply with the 1) Federal financial management system requirements, 2) Federal accounting standards, or 3) United States Standard General Ledger at the transaction level requirements of the FFMIA; or state that the audit disclosed no instances in which the entity’s financial management systems did not substantially comply. Where tests disclose that the reporting systems did not comply substantially with one entity’s or more of the three requirements, the report on compliance, (or an accompanying auditors’ schedule that is referenced in the compliance report) should disclose which of the three requirements for which the reporting systems did not substantially comply and group entity’s findings together based on the requirement they relate to; When tests disclosed that the systems did not substantially comply with one or more entity’s of the three previously mentioned requirements, the report should identify: the entity or organization responsible for the system(s) found not to comply substantially;
13. The report on compliance should include: a report of noncompliance with provisions of applicable laws, regulations, contracts, and grant agreements identified in the audit, except for those instances of noncompliance that, in the auditors’ judgement, are clearly inconsequential, with a list of the provisions of those laws, regulations, contracts, and grant agreements that tests disclosed are reportable instances of non-compliance; and a description of the scope of the testing of compliance with provisions of laws, regulations, contracts, and grant agreements, and whether the tests performed provided sufficient, appropriate evidence to support an opinion on compliance with provisions of applicable laws, regulations, contracts, and grant agreements., a statement that either the objective was not to provide an opinion on compliance with provisions of applicable laws, regulations, contracts, and grant agreements and therefore the auditor does not express an opinion, or the objective was to provide an opinion and a reference to the separate audit opinion. Item a: 17-03, para 7.21 Item b: 17-03, para 7.23 14. The report on compliance should also reflect instances in which the entity’s financial management systems did not substantially comply with the 1) Federal financial management system requirements, 2) Federal accounting standards, or 3) United States Standard General Ledger at the transaction level requirements of the FFMIA; or state that the audit disclosed no instances in which the entity’s financial management systems did not substantially comply. Where tests disclose that the reporting entity’s systems did not comply substantially with one or more of the three requirements, the auditors’ report on compliance, (or an accompanying schedule that is referenced in the compliance report) should disclose which of the three requirements for which the reporting entity’s systems did not substantially comply and group findings together based on the requirement they relate to; When tests disclosed that the entity’s systems did not substantially comply with one or more of the three previously mentioned requirements, the report should identify: the entity or organization responsible for the system(s) found not to comply substantially; 17-03, para 7.24
FY18-CEAR-Guidelines_Final_1.docx