The AICPA’s Governmental Audit Quality Center (GAQC) launched a series of task forces to address deficiencies that were noted in a June 2007 federal study on the quality of audits performed under Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133)—also referred to as single audits.  The study results are detailed in a report titled, Report on National Single Audit Sampling Project (the PCIE report), that was issued by the President’s Council on Integrity and Efficiency (PCIE) and can be accessed in its entirety by clicking here.  Practice Aids developed by the task forces are described below.  These Practice Aids are nonauthoritative and their use is not required. However, they may help you, as an auditor, understand and apply certain auditing standards.  The GAQC believes that audit quality will be further enhanced by their use.  Auditors that already have their own internal guidance in these areas and do not wish to use the GAQC Practice Aids are encouraged to compare them to such internal guidance to ensure that there are not any areas that are lacking or need to be enhanced.

Schedule of Expenditures of Federal Awards (SEFA) Practice Aids

The GAQC established a SEFA Task Force (TF) in response to audit quality issues identified in the PCIE report that relate to the auditor’s procedures and reporting on the SEFA.  As a result, the SEFA Task Force developed two Practice Aids to assist auditors in determining whether the SEFA includes all required elements, is accurate and complete, and that the auditor’s procedures relating to the SEFA are appropriately documented. Further, because preparation of the SEFA is an auditee responsibility, the TF also developed two Practice Aids intended to assist auditees in their important role of ensuring that the SEFA is prepared accurately and completely.  Note that auditors should refer to Chapter 7, Schedule of Expenditures of Federal Awards, of the AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits, for a description of the various requirements relating to the SEFA for both the auditor and the auditee, as well as for additional guidance.  The GAQC also hosted a member conference call titled, Schedule of Expenditures of Federal Awards – Reporting Improvements & Suggested Procedures, to point out the unique aspects of auditing and reporting on the SEFA.  To access this archived conference call, click here.

The two Practice Aids developed as auditor tools by the SEFA TF are as follows: