ETA Highlights Single Audit Extension in Certain Circumstances
Sometimes circumstances have a nasty way of making it difficult for us to get things done in time. In such cases, it’s good to know that others understand our plight and can offer us more time.
Such is the message that the Department of Labor’s Employment and Training Administration (ETA) aims to get across in a recent notice to state workforce agencies and other ETA financial assistance recipients. Citing the Office of Management and Budget’s (OMB) recent revisions to Title 2 of the Code of Federal Register, including the uniform guidance (2 C.F.R. Part 200), which became effective for new awards as of Oct. 1, ETA is allowing for an extension of the deadline for recipients to submit their single audit reports “in instances where it causes undue burden on these auditees.”
Along with raising the single audit threshold from $750,000 in federal awards expended annually to $1 million for auditee fiscal years beginning on or after Oct. 1, OMB updated the uniform guidance to allow for a federal agency to grant a report submission extension when the nine-month timeframe for submitting a single audit causes and undue burden on the auditee. Although ETA notes that timely single audit reports are necessary for proper program oversight, it realizes that extensions may be necessary in some cases.
The agency explains that ETA recipients experiencing such undue burdens may submit a written request with justification for an extension to their assigned federal project officer. The extension must be received at least 60 days prior to the submission deadline created by the nine-month timeframe to allow time for review and for a decision to be rendered. The request must include recipient name, award number, recipient audit period, justification for the extension, new proposed date for the report submission and a corrective action plan to ensure future reports will be filed timely.
The justification may explain how external events (e.g., natural disasters such as hurricanes, earthquakes, wildfires or pandemics) significantly hinder their ability to meet the deadline, as well as when the recipient anticipates resuming the submission of the single audit report. ETA management will review the request and file a written response. However, if the extension is denied, the recipient must still meet the nine-month deadline.
Hopefully, auditees will not be in situations where they need to file such a request, but at least, an extension is a possibility.
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