On December 22, 2020, the Office of Management and Budget issued the OMB Compliance Supplement Addendum. Though it did clarify certain things, there does not appear to be direct guidance as it relates to auditing the use of funds. Here are a few of the key aspects:
- Provider Relief Fund (PRF) expenditures and lost revenue are not to be included on the schedule of expenditures of federal awards (SEFA) until December 31, 2020, year-end financial statements and thereafter
- Organizations with balance sheet dates prior to December 31, 2020, that expended PRF funds will report all PRF expenditures on their 2021 SEFA
- Uniform Guidance (UG) Requirements considered direct and material to the PRF program include:
- Activities allowed or disallowed
- Allowable costs/cost principles (refers auditors to the Department of Health and Human Services website to review PRF general information, terms and conditions, and FAQs)
- Reporting
- Special reporting requirement - auditors will be required to test compliance with the General and Targeted Distribution Post-Payment Notice of Reporting Requirements
- Coronavirus Relief Fund (CRF) expenditures are required to be included on the SEFA for audits prior to December 31, 2020
- 3-month extension for audits with original due dates from October 1, 2020, through June 30, 2021, (if no COVID-19 funding was received, an extension is not provided)
To review the Addendum in its entirety, please click here.
