This document offers an in-depth overview of recent developments in the landscape of Single Audits and federal oversight, particularly as they relate to institutional compliance during the COVID-19 pandemic. The presenters highlight how federal audits for fiscal years 2020 and 2021 are especially complex due to the infusion of emergency pandemic funding and corresponding special provisions. They stress that while institutions contend with unique pandemic-related funding streams—often challenging to identify and track—standard federal requirements concerning research compliance, security, foreign influence, and faculty disclosures remain in force. The FY20 Compliance Supplement expands to cover COVID-19 expenditures, necessitating careful identification, reporting, and notification to subrecipients; a Compliance Supplement Addendum is anticipated to address new and evolving requirements.
The summary details operational challenges institutions face in identifying and tracking COVID-19 designated funding, given its diverse sources and sometimes ambiguous documentation. Tools such as USAspending.gov are recommended to aid in tracking these funds. Other audit considerations include accommodating new "Type A" emergency programs, accurate reporting of lost revenue, pandemic-related disruptions to routine processes such as equipment inventories, and responding to evolving audit guidance—sometimes after fieldwork is completed. Enhanced federal oversight is noted, with the CARES Act’s Pandemic Response Accountability Committee and recent Department of Justice enforcement actions scrutinizing institutional practices around salary charging, grant administration, and foreign influence. The document underscores the need for institutions to remain vigilant, ensure robust compliance, and maintain open communication with their auditors as federal expectations and enforcement activities evolve.
