Federal Audit Clearinghouse
Encyclopedia
The Federal Audit Clearinghouse, or FAC, is an office within the United States
Federal government
. In compliance with the U.S. Office of Management and Budget (OMB) Circular A-133 Revised, the FAC is in charge of receiving, processing and distributing to U.S. Federal agencies
the Single Audit reporting packages of thousands of recipients of Federal assistance. OMB designated the U.S. Census Bureau to serve as the Federal Audit Clearinghouse. It operates and maintains an online database of Single Audit information submitted by recipients going back to 1997.http://harvester.census.gov/sac/FAQ.htm
, cities and counties, non-profit organization
s, universities
and individuals
. In order to monitor the fair, legal, and correct use of these funds, the government created the Single Audit
. This annual audit
applies to any state and local government, non-profit entity, or Indian tribe that expended $500,000 or more of Federal assistance within one fiscal year. The Single Audit incorporates the auditing of the use and management of the Federal funds to verify if it complied with the laws and regulations applicable to that specific assistance.
When the Single Audit is complete, the recipient must send the auditor's report
s and other required documentation to the Federal Audit Clearinghouse (FAC). The FAC then enters the results of the audit into its electronic database and stores the data. The information included in the database is limited to the recipient’s basic information (including contact information, addresses, etc.), the auditor’s basic information, the types of Federal assistance received and audited (also known as Federal programs), and the type of auditor's findings, if any, detected in the Single Audit (e.g. situations of noncompliance, illegal acts, etc.). The online database can be accessed by Federal agencies and the general public to learn about a specific recipient’s Single Audit results, although it is limited to the information previously mentioned. Additionally, Federal agencies may request to see a recipient’s Single Audit reporting package to obtain more specific and detailed information about the audit results and about any findings encountered.
The Federal Audit Clearinghouse has four basic operating objectives:http://harvester.census.gov/fac
The first part of the data collection form requires the recipient and its auditor to provide basic contact information, including the person occupying the highest management position of the recipient (e.g. Governor, Mayor, Chancellor, President, CEO, etc.) and the auditor (usually a partner), addresses, telephone numbers, Employer Identification Number
(EIN), among other info.
The second part includes information about the Single Audit itself. The auditor must indicate the final results of the audit, provide information on several risk assessment
s performed on the recipient during the Single Audit, specify which federal assistance programs were actually audited, and indicate whether any findings were noted during the Single Audit, among other information.
The third and final part requires the recipient to list all the federal assistance received by program name, and include basic information about each program including the amount of assistance used, the type of assistance, whether or not any findings were encountered for each program, and, if encountered, the type of compliance requirement that the finding applies to.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Federal government
Federal government
The federal government is the common government of a federation. The structure of federal governments varies from institution to institution. Based on a broad definition of a basic federal political system, there are two or more levels of government that exist within an established territory and...
. In compliance with the U.S. Office of Management and Budget (OMB) Circular A-133 Revised, the FAC is in charge of receiving, processing and distributing to U.S. Federal agencies
United States Federal Executive Departments
The United States federal executive departments are among the oldest primary units of the executive branch of the federal government of the United States—the Departments of State, War, and the Treasury all being established within a few weeks of each other in 1789.Federal executive...
the Single Audit reporting packages of thousands of recipients of Federal assistance. OMB designated the U.S. Census Bureau to serve as the Federal Audit Clearinghouse. It operates and maintains an online database of Single Audit information submitted by recipients going back to 1997.http://harvester.census.gov/sac/FAQ.htm
Background
Each year the Federal government provides over $500 billion dollars in Federal assistance to all kinds of recipients, including StatesU.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
, cities and counties, non-profit organization
Non-profit organization
Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
s, universities
University
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...
and individuals
Person
A person is a human being, or an entity that has certain capacities or attributes strongly associated with being human , for example in a particular moral or legal context...
. In order to monitor the fair, legal, and correct use of these funds, the government created the Single Audit
Single Audit
In the United States, the Single Audit, also known as the OMB A-133 audit, is a rigorous, organization-wide audit or examination of an entity that expends $500,000 or more of Federal assistance received for its operations...
. This annual audit
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
applies to any state and local government, non-profit entity, or Indian tribe that expended $500,000 or more of Federal assistance within one fiscal year. The Single Audit incorporates the auditing of the use and management of the Federal funds to verify if it complied with the laws and regulations applicable to that specific assistance.
When the Single Audit is complete, the recipient must send the auditor's report
Auditor's report
The auditor's report is a formal opinion, or disclaimer thereof, issued by either an internal auditor or an independent external auditor as a result of an internal or external audit or evaluation performed on a legal entity or subdivision thereof...
s and other required documentation to the Federal Audit Clearinghouse (FAC). The FAC then enters the results of the audit into its electronic database and stores the data. The information included in the database is limited to the recipient’s basic information (including contact information, addresses, etc.), the auditor’s basic information, the types of Federal assistance received and audited (also known as Federal programs), and the type of auditor's findings, if any, detected in the Single Audit (e.g. situations of noncompliance, illegal acts, etc.). The online database can be accessed by Federal agencies and the general public to learn about a specific recipient’s Single Audit results, although it is limited to the information previously mentioned. Additionally, Federal agencies may request to see a recipient’s Single Audit reporting package to obtain more specific and detailed information about the audit results and about any findings encountered.
The Federal Audit Clearinghouse has four basic operating objectives:http://harvester.census.gov/fac
- Distribute single audit information to Federal agencies and the American public.
- Support the OMB in oversight, monitoring, and assessment of U.S. Federal assistance.
- Assist Federal agencies in obtaining Single Audit data and reporting packages from its recipients.
- Help auditors and recipients minimize the reporting burden of complying with Single Audit requirements (e.g. recipients and auditors are not required to send a copy of the reporting packages to every single Federal government agency).
Data Collection Form
The Data Collection Form (Form SF-SAC) is a worksheet which recipients must complete online and include with the Single Audit reporting packages sent to the FAC. The worksheet is divided into three parts, and is an important tool for the FAC because it summarizes the entire Single Audit results of a recipient in a few pages, which allows for easier and faster sorting and categorizing. The Data Collection Form is created online and a physical copy is sent with the Single Audit reporting package to the FAC, certified by both the recipient and the auditor. Beginning with the submission of 2008 audit submissions, the entire audit package must be submitted electronically.The first part of the data collection form requires the recipient and its auditor to provide basic contact information, including the person occupying the highest management position of the recipient (e.g. Governor, Mayor, Chancellor, President, CEO, etc.) and the auditor (usually a partner), addresses, telephone numbers, Employer Identification Number
Employer identification number
Applicable to the United States, an Employer Identification Number or EIN is the corporate equivalent to a Social Security Number, although it is issued to anyone, including individuals, who has to pay withholding taxes on employees.-Other names:Also known as the Tax Identification Number ,...
(EIN), among other info.
The second part includes information about the Single Audit itself. The auditor must indicate the final results of the audit, provide information on several risk assessment
Risk assessment
Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat...
s performed on the recipient during the Single Audit, specify which federal assistance programs were actually audited, and indicate whether any findings were noted during the Single Audit, among other information.
The third and final part requires the recipient to list all the federal assistance received by program name, and include basic information about each program including the amount of assistance used, the type of assistance, whether or not any findings were encountered for each program, and, if encountered, the type of compliance requirement that the finding applies to.
See also
- U.S. Office of Management and Budget
- Single AuditSingle AuditIn the United States, the Single Audit, also known as the OMB A-133 audit, is a rigorous, organization-wide audit or examination of an entity that expends $500,000 or more of Federal assistance received for its operations...
- OMB A-133 Compliance SupplementOMB A-133 Compliance SupplementThe OMB A-133 Compliance Supplement is a large and extensive United States federal government guide created by the Office of Management and Budget and used in auditing federal assistance and federal grant programs, as well as their respective recipients...
- Compliance requirementsCompliance requirementsCompliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance...