As of March 13, 2020, we were notified that all schools would be closed as a preventative measure due to the COVID-19 outbreak. This has resulted in multiple effects in our general community among other things. From a business perspective, new questions have surfaced for the March 31 deadline.
Most school districts have a reporting deadline, depending on debt requirements, for March 31. The three reports they are required to submit to the state by the end of March include:
- Audited Annual Financial Report
- Single Audit report submitted to the Federal Clearinghouse – OMB
- Uniform System of Financial Records Compliance Questionnaire (USFR CQ)
Arizona legislature introduced a bill, SB 1693, as of March 19 to potentially extend these deadlines. There is no definite date established, the bill states “to establish modified timelines for financial and performance data reporting”. Similarly, the bill indicates schools are not required to extend the length of the school year due to the closure. The bill can be found online.
The US Office of Management and Budget (OMB) came out with a memo dated 3/9/2020 indicating that “…awarding agencies are authorized to take the following actions, as they deem appropriate, with respect to the administrative provisions that apply to this class of Federal awards. These exceptions are time limited and are only applicable for those awards that support the continued research and services necessary to carry out the emergency response related to COIVD-19 during the period formally declared by the Department of Health and Human Services through the 90 Day Public Health Emergency Declaration (Public Health Emergency Period)…”
There are ten exceptions mentioned in the memo and one of them include an Extension of Single Audit submission. It states –
“Awarding agencies should allow grantees to delay the completion and submission of the Single Audit report as required under Subpart F of 2 CFR 200, Audit Requirements, to twelve (12) months beyond the normal due date. The delayed completion and submission would still qualify the grantee as a “low-risk auditee” under the criteria of 2 CFR § 200.520.(a), Criteria for a low-risk auditee.
Questions regarding the above administrative relief provisions should be directed to Office of Federal Financial Management- Gilbert Tran at (202) 395-3052 or Rhea Hubbard at (202) 395-2743.”
With that said, your auditors are still working. We are diligently preparing all reports and ensuring that these deadlines can be met. As part of the Henry+Horne mentality, we are available for our clients, even in the most extreme times of need.
For more information and resources on COVID-19, see our coronavirus page. Feel free to contact your Henry+Horne tax adviser with any questions. For more on how Henry+Horne can help with your audit, check out our Audit Services page.
Noemi Barter, Supervisor