Planning Federal Materiality by Compliance Requirement (6) CFAE included the typical monetary vs. nonmonetary determinations for each compliance requirement in this program. However, auditors should tailor these assessments as appropriate based on the facts and circumstances of their entity’s operations. See further guidance below. (1) (2) (6) (6) (3) (4) (5) (5) (6) If monetary, population subject to Direct & require. Applicable material Final Overall Federal per to Monetary or Inherent control Detection audit risk materiality by Compl. program risk (IR) risk (CR) risk of of compl. Suppl. / entity assess. assess. noncompl. noncompl. requirement typically 5% of population subject to Compliance Requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) requirement A Activities Allowed or Unallowed Yes M 5% B Allowable Costs/Cost Principles No C Cash Management Yes N 5% D RESERVED E Eligibility Yes M/N 5% F Equipment & Real Property No Mgmt G Matching, Level of Effort, Yes M 5% Earmark H Period of Availability Yes M 5% (Performance) I Procurement & Sus. & No Debarment J Program Income Yes M 5% K RESERVED L Reporting Yes N 5% M Subrecipient Monitoring No N Special Tests & Provisions - Yes N 5% Verification N Special Tests & Provisions - Yes M 5% Disbursements to or on Behalf of Students
Planning Federal Materiality by Compliance Requirement (6) CFAE included the typical monetary vs. nonmonetary determinations for each compliance requirement in this program. However, auditors should tailor these assessments as appropriate based on the facts and circumstances of their entity’s operations. See further guidance below. (1) (2) (6) (6) (3) (4) (5) (5) (6) Compliance Requirement Applicable per Compl. Suppl. Direct & material to program / entity Monetary or If monetary, population subject to require. Inherent risk (IR) assess. Final control risk (CR) assess. Detection risk of noncompl. Overall audit risk of noncompl. Federal materiality by compl. requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) typically 5% of population subject to requirement A Activities Allowed or Unallowed Yes M 5% B Allowable Costs/Cost Principles No C Cash Management Yes N 5% D RESERVED E Eligibility Yes M/N 5% F Equipment & Real Property Mgmt No G Matching, Level of Effort, Earmark Yes M 5% H Period of Availability (Performance) Yes M 5% I Procurement & Sus. & Debarment No J Program Income Yes M 5% K RESERVED L Reporting Yes N 5% M Subrecipient Monitoring No N Special Tests & Provisions - Verification Yes N 5% N Special Tests & Provisions - Disbursements to or on Behalf of Students Yes M 5%
A133%20FACCR%20SFA%20Cluster%202015%20(non-ARRA,%20non-UG)%20Aug15.docx