RFP 2015-32 Financial Statement and Single Audit

​As set forth in 45 CFR Part 155 Exchange Establishment Standards and Other Related Standards under the Affordable Care Act, Subpart M-Oversight and Program Integrity Standards for State Exchanges, § 155.1200(c) External Audits, the Exchange must engage an independent qualified auditing entity which follows generally accepted governmental auditing standard (GAGAS) to perform an annual independent external financial and programmatic audit and must make such information available to the Department of Health and Human Services (HHS) for review.

In addition, 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F – Audit Requirements, § 200.501(a) and (b) requires a non-federal entity that expends $750,000 or more during the non-federal entity’s fiscal year must have single or program specific audit conducted for that year in accordance with § 200.514 Scope of audit except when elected to have a program-specific audit.

As summarized, 2 CFR § 200.514 Scope of Audit, encompasses an audit of Covered California’s financial statements in accordance with GAGAS and generally accepted accounting principles (GAAP); an assessment of internal control over Federal programs; compliance with Federal statues, regulations, and the terms and conditions of Federal awards that may have a direct and material effect; follow-up procedures on prior audit findings for reasonableness; and completion of the data collection form as part of the report submission.

According to 2 CFR § 200.512 Report Submission, the Single Audit must be submitted by the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC).  Covered California must electronically submit to the FAC the data collection form and the reporting package must include the following:

  • Financial statements and schedule of expenditures of Federal awards
  • Summary schedule of prior audit findings
  • Auditor’s report(s)
  • Corrective action plan
  • A copy of any management letters issued by the auditor

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