[Federal Register Volume 65, Number 222 (Thursday, November 16, 2000)]
[Notices]
[Pages 69346-69348]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29296]


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OFFICE OF MANAGEMENT AND BUDGET


OMB Circular A-133 Information Collection Under OMB Review

AGENCY: Office of Management and Budget, Executive Office of the 
President.

ACTION: Notice of Submission for OMB Review, Comment Request.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1980, as 
amended (44 U.S.C. 3501 et seq.), this notice announces that an 
information collection request was submitted to the Office of 
Management and Budget's (OMB) Office of Information and Regulatory 
Affairs for processing under 5 CFR 1320.10. The first notice of this 
information collection request, as required by the Paperwork Reduction 
Act, was published in the Federal Register on July 11, 2000 (65 FR 
42735). The information collection request involves two proposed 
information collections from two types of entities: (1) Reports from 
auditors to auditees concerning audit results, audit findings, and 
questioned costs; and, (2) reports from auditees to the Federal 
Government providing information about the auditees, the awards they 
administer, and the audit results. These

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collection efforts are required by the Single Audit Act Amendments of 
1996 (31 U.S.C. 7501 et seq.) and OMB Circular A-133, ``Audits of 
States, Local Governments, and Non-Profit Organizations.'' Circular A-
133's information collection requirements apply to approximately 30,000 
States, local governments, and non-profit organizations on an annual 
basis.

DATES: Submit comments on or before December 18, 2000. Late comments 
will be considered to the extent practicable.

ADDRESSES: Written comments should be sent to: Edward Springer, Office 
of Information and Regulatory Affairs, OMB, 725 17th Street NW., Room 
10236, Washington, DC 20503. Electronic mail comments may be submitted 
via the Internet to [email protected]. Please include the full body 
of the comments in the text of the message and not as an attachment. 
Please include the name, title, organization, postal address, and E-
mail address in the text of the message as well as the name and phone 
number of a contact person.

FOR FURTHER INFORMATION CONTACT: For further information, contact 
Terrill W. Ramsey, Office of Federal Financial Management, OMB, 725 
17th Street NW., Room 6025, Washington, DC 20503 (202-395-3993). The 
proposed data collection form and its instructions can be obtained by 
contacting the Office of Federal Financial Management, as indicated 
above or by download from the OMB Grants Management home page on the 
Internet at http://www.whitehouse.gov/OMB/grants.

SUPPLEMENTARY INFORMATION:

A. Background

    Control No.: 0348-0057.
    Title: Data Collection Form.
    Form No: SF-SAC.
    Type of Review: Revision of a currently approved collection.
    Respondents: States, local governments, and non-profit 
organizations (Non-Federal entities).
    Estimated Number of Respondents: 60,000.
    Estimated Time per Respondent: 59 hours for each of 400 large 
respondents and 17 hours for each of 59,600 small respondents for 
estimated annual burden hours of 1,036,800.
    Estimated Number of Responses per Respondent: 1.
    Frequency of Response: Annually.
    Needs and Uses: Reports from auditors to auditees and reports from 
auditees to the Federal government are used by non-Federal entities, 
pass-through entities, and Federal agencies to ensure that Federal 
awards are expended in accordance with applicable laws and regulations. 
The Federal Audit Clearinghouse (FAC) (maintained by the U.S. Bureau of 
the Census) uses the information on the SF-SAC to ensure proper 
distribution of audit reports to Federal agencies and identify non-
Federal entities who have not filed the required reports. The FAC also 
uses the information on the SF-FAC to create a governmentwide database 
which contains information on audit results. This database is publicly 
accessible on the Internet at http://harvester.census.gov/sac/. It is 
used by Federal agencies, pass-through entities, non-Federal entities, 
auditors, the General Accounting Office, OMB, and the general public 
for management and information about Federal awards and the results of 
audits.

B. Public Comments and Responses

    Pursuant to the July 11, 2000, Federal Register notice, OMB 
received 27 comment letters relating to the proposed revision to the 
information collection. Six of the letters had no suggested changes. 
General comments included that the changes seemed reasonable, would 
provide additional information at little additional costs, and the 
clarity of the instructions was improved. Letters came from Federal 
agencies (including Offices of Inspectors General), State governments 
(including State auditors), certified public accountants (CPAs), non-
profit organizations (including colleges and universities), 
professional organizations, and others. The comments received relating 
to the information collection and OMB's responses are summarized below.

Reporting Burden

    Comments: Two comments were received relating to the reporting 
burden. One State auditor commented that although more work will be 
required by non-Federal entities for the first year the amendments are 
in effect, they believed that in the long run the changes have the 
potential to lessen burdens on non-Federal entities. Another State 
auditor commented that the estimate to prepare the Data Collection Form 
seemed to be about right, maybe a little high.
    Response: The Office of Management and Budget (OMB) in conjunction 
with the Federal awarding agencies, the National State Auditors 
Association (NSAA), the American Institute of Certified Public 
Accountants (AICPA), the General Accounting Office (GAO), and the 
Federal Audit Clearinghouse (FAC) assembled a task force to redesign 
the Data Collection Form. The primary goal of the task force was to 
make improvements to the form that would increase the Federal awarding 
agencies ability to monitor their grants, while minimizing the 
potential for increased reporting burden. Based on the comments 
received, it appears this goal was achieved.

Research and Development

    Comment: The NSAA and a state auditor suggested only requiring 
entities to check the ``Yes'' box in Part III, Item 11b for Research 
and Development (R&D) programs rather than a positive answer of either 
``Yes'' or ``No.''
    Response: The requirement to check the ``No'' box in Part III, Item 
11b for non-R&D programs was not changed. Respondents are required to 
provide an positive answer for every question on the Data Collection 
Form (with the exception of fax numbers and email addresses) for the 
purpose of maintaining database integrity. If Part III, Item 11b is 
left blank to mean ``No,'' it would be unclear whether the form 
preparer may have overlooked the item or meant ``No.''

Multiple Employer Identification Numbers (EINs)

    Comment: Three State auditors commented on the new requirement to 
capture the multiple Employer Identification Numbers (EINs) covered by 
the single report. All three comments recognized the additional effort 
the States will have to put forward the first year to capture this 
information, but none felt the new requirement placed an undue burden. 
The commenters also recognized the Federal agencies need this 
information to help ensure that all single audit reports were filed.
    Response: No change was made. The multiple EINs covered by the 
single audit report will improve the ability to identify entities who 
did not file the audits required by Circular A-133.

Cognizant Agency Determination

    Comment: Three State auditors, a Federal awarding agency 
representative, and two CPAs submitted comments questioning the 
instructions relating to the cognizant agency determination. The 
current Data Collection Form requires entities to identify if they have 
a cognizant or oversight agency for audit, and the name of Federal 
cognizant or oversight agency. Research has shown that responses to 
these questions have not been completely accurate, and the FAC believes 
that much of the misreporting has resulted from a lack of understanding 
by the non-Federal entity. To simplify reporting and improve the 
accuracy of responses, two actions were taken in the

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proposed revision. First the identification of Oversight agency will be 
performed by the FAC. This determination will be made after the Data 
Collection Form is entered into the FAC database and will be available 
on the FAC website. Second, the questions related to Cognizant agency 
have been reworded for clarity.
    Response: Further clarification has been made to the instructions 
for determining the cognizant agency.
    Comment: A Federal awarding agency representative asked whether the 
FAC could computer generate the cognizant agency for audit assignments 
the same as the oversight.
    Response: Sec. __.400(a) of the Circular provides the criteria used 
to make the cognizant agency determination. It explains that to provide 
for continuity of cognizance, the determination of the predominant 
amount of direct funding shall be based upon direct Federal awards 
expended in the recipient's fiscal years ending in 1995, 2000, 2005, 
and every fifth year thereafter. Since the revised Data Collection Form 
will apply to entities with fiscal end dates on or after January 1, 
2001, and since the current Data Collection Form does not distinguish 
between direct and indirect awards, it is not possible to use fiscal 
year 2000 data to computer generate the cognizant agency assignments.

Questioned Costs Detail

    Comment: Two Federal awarding agency responses stated their 
objections to the elimination of questioned costs detail by program.
    Response: Questioned costs detail by program will not be collected 
because of inconsistencies in the amounts identified by the auditor as 
questioned costs and Federal agencies need to consider questioned costs 
in the context of the complete audit finding. Normally auditors only 
report as questioned costs the exceptions specifically identified 
during testing (e.g., Circular A-133 does not require the auditor to 
provide a statistical projection of all questioned costs). Auditors 
application of judgment in determining the amounts to question varies 
significantly. The amounts sustained by Federal agencies as part of 
audit resolution varies significantly with the amounts questioned by 
the auditor and the amount of questioned costs is only meaningful when 
considered in the context of the complete audit finding. As proposed in 
the July 11 Federal Register Notice, the revised Data Collection Form 
will identify if the audit disclosed any questioned costs related to 
Federal awards. Federal awarding agencies receive a copy of the 
reporting package, including audit findings, which provides the more 
complete information needed in resolving audit findings with questioned 
costs.

Internal Control Detail

    Comment: The NSAA and two State auditors questioned the proposed 
removal of collecting internal control detail by program.
    Response: The current Data Collection Form captures internal 
control detail by program. FAC research has shown that reporting in 
this area is inconsistent. As proposed in the July 11 Federal Register 
Notice, the revised Data Collection Form will identify if the audit 
disclosed any reportable conditions and material weaknesses related to 
the Federal awards. Federal awarding agencies receive a copy of the 
reporting package, including audit findings, which provides the more 
complete information needed in resolving the audit finding concerning 
internal control.

Electronic Submission of the Data Collection Form

    Comment: Two State auditors, the NSAA, the AGA, and two CPAs 
commented on the online Internet submission process for filing the Data 
Collection Form and the use of electronic signatures.
    Response: The online Internet submission process does not capture 
electronic signatures. Currently, the Data Collection Form can be 
entered, edited, and submitted via the Internet. The respondents are 
required to print a copy of the edited form for signature by the 
auditor and auditee. The signed copy is then attached to the reporting 
package and mailed to the Federal Audit Clearinghouse. Since only the 
Data Collection Form can be filed electronically, and non-Federal 
entities are required to mail the reporting package, the capability to 
capture electronic signatures has not been built into the online 
Internet submission process. During the next year, the FAC, in 
conjunction with the Federal awarding agencies and other single audit 
stakeholders, will explore the possibility of electronic submission of 
the reporting package.

Type of Entity

    Comment: One State government suggested capturing the type of 
entity (nonprofit, government, hospital, school, etc.) on the Data 
Collection Form.
    Response: The revised Data Collection Form will not capture the 
type of entity. The FAC will review the Data Collection Form and 
identify the type of entity. This information will be accessible on the 
FAC website. The FAC was chosen to make this determination based on 
their experience classifying governmental entities. Also, the FAC will 
use a predetermined list which should provide for consistency within 
the classifications. The FAC website will clearly note that this 
determination was made by the FAC.

Joshua Gotbaum,
Executive Associate Director and Controller.
[FR Doc. 00-29296 Filed 11-15-00; 8:45 am]
BILLING CODE 3110-01-P