COMPTROLLER'S MEMORANDUM NO. 03 (1999-2000)
SUBJECT: FLORIDA SINGLE AUDIT ACT IMPLEMENTATION
Effective July 1, 2000, Section 216.3491, Florida Statutes (F.S.), establishes the Florida Single Audit Act. The Act is applicable to any nonstate entity with a fiscal year beginning on or after the effective date. Section 216.349, F.S., regarding grants and aids appropriations remains in effect for fiscal years beginning prior to July1, 2000.
Under the Florida Single Audit Act, any nonstate entity that expends $300,000 or more of state financial assistance in any fiscal year is subject to a state single audit. The Act also requires uniform state audit requirements for state financial assistance and requires the identification of state and federal financial assistance transactions in the state accounting records.
To assist state agencies, as defined in Chapter 216, F.S., in their implementation of the Act and to ensure consistency among state agencies, the Governor's Office, Auditor General's Office, Comptroller's Office, along with other state agencies, developed the following documents: Checklist for Nonstate Organizations, Contract Language, and Notification to Organizations with Existing Agreements. These documents are to be used by all state agencies and are available on the Comptroller's website at www.dbf.state.fl.us.
The Checklist for Nonstate Organizations was developed to assist state agencies in evaluating the applicability of the Florida Single Audit Act to local governments (excluding district school boards and community colleges) and nonprofit organizations with which the agency has contracts/agreements. The checklist should be completed for any new contract and the following existing contracts: contracts/agreements pertaining to state projects that have been identified as state financial assistance; contracts/agreements that are being charged to 7XXXXX object codes; and contracts/agreements which expire after June 30, 2000. The checklist is to be filed with the contract/agreement. The Comptroller's Office will monitor agency compliance on a sample basis.
The Contract Language was developed to ensure that state financial assistance recipients and auditors are informed of the Federal and Florida Single Audit Act requirements in an adequate and consistent manner. It is therefore essential that state agencies awarding state financial assistance utilize this contractual language or similar language that, at a minimum, includes the same information. Although the Act is not effective until July 1, state agencies should begin to incorporate this language into any new agreements as well as any existing agreements for state financial assistance. The Comptroller's Office will monitor agency compliance on a sample basis.
The Notification to Organizations with Existing Agreements was developed to provide guidance to the state agencies as to the type of notice to be given. An agency may develop an alternate form as long as it includes the same information.
In order to record state and federal financial assistance transactions to the state's accounting records, two new fields have been added to the Contract and Grant information file in FLAIR and a new object code created. Object code 7500 has been established and titled State Financial Assistance. The new fields in FLAIR are the Catalog of State Financial Assistance (CSFA) number and the recipient type. The CSFA number is the 5 digit number assigned by the Governor's Office for each state project identified by a state agency. If a CSFA number is entered in the information record, then a recipient type must also be entered and object code 7500 will be required at transaction time. Likewise, if object code 7500 is used, system edits will require that a contract or grant be entered with a CSFA number and recipient type in the information record. Additionally, if a Catalog of Federal Domestic Assistance (CFDA) number is entered, then a recipient type must also be entered. The following recipient type codes have been established to identify the type of recipient for both state and federal financial assistance:
|B||For profit Corporation|
|D||State Community Colleges|
|E||District School Boards|
|F||Another State Agency (excluding State Universities)|
|I*||Mixed Subrecipients (federal assistance only)|
If you have any questions regarding this memorandum or the documents referenced herein, please contact Cheri Greene at (850) 410-9313 or SUNCOM 210-9313 or e-mail at Cheri_R_Greene@mail.dnf.state.fl.us.