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Original air date: Jan. 17, 2014 Rebroadcast on Jan. 30, 2014 View at http://www.mhmcpa.com The Single Audit Data Collection Form has been overhauled. Auditors and not-for-profit organizations are about to encounter one of the biggest changes in federal reporting to happen in quite some time. The Data Collection Form (DCF) has undergone a significant overhaul as to the information required to be reported and the way in which the Federal Audit Clearinghouse (FAC) requires this information to be presented. The changes are applicable for audit periods ending in 2013, 2014 and 2015. The new DCF will be available for input on the FAC website soon after January 7. The deadline for 2013 single audits has been extended to February 28, 2014. If you are an auditor or are responsible for the federal reporting at a not-for-profit organization then you should not miss this course that will provide valuable information to you and your organization on the new changes and protocols as well as best practices in gathering information and preparing the DCF.
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MHM Executive Education Series: Major Changes in Federal Reporting by
Nonprofits Presented by:
Michelle Spriggs Brendan Donovan
January 17, 2014
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Before We Get Started…
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This webinar is eligible for CPE credit. To receive credit, you will need to answer periodic participation markers throughout the webinar.
External participants will receive their CPE certificate via email immediately following the webinar.
CPE Credit
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The information in this Executive Education Series
course is a brief summary and may not include all the details relevant to your situation.
Please contact your MHM service provider to further
discuss the impact on your financial statements.
Disclaimer
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Today’s Presenters
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Brendan P. Donovan, CPA, MSA Director, CBIZ Tofias; Principal, Mayer Hoffman McCann P.C. 401.626.3235 | [email protected] Brendan is a Director in CBIZ and MHM's Not-For-Profit & Education Audit Practice. Brendan has over 10 years of experience working with a number of not-for-profit organizations and institutions of higher education. He is experienced in managing financial statement audits, evaluating internal controls, and training the firm’s accounting and auditing personnel in the Not-For-Profit & Education Practice.
Michelle E. Spriggs, CPA, MBA Managing Director, CBIZ Tofias; Shareholder, Mayer Hoffman McCann P.C. 774.206.8336 | [email protected] Michelle is a member of MHM’s Professional Standards Group providing specialty expertise with respect to not-for-profit matters, in addition to her client service responsibilities in our New England offices. Michelle concentrates her efforts on matters impacting not-for-profit organizations and OMB Circular A-133 audits. She works with numerous not-for-profit and higher education organizations providing a broad array of financial statement and compliance audit services. Prior to joining the firm, she worked for a top ten accounting firm specializing in serving not-for-profit organizations.
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Today’s Agenda
1
2
Overview and Background
Changes to the Data Collection Form submission process
Changes to the Data Collection Form 3
4 Questions
OVERVIEW AND BACKGROUND
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The Data Collection Form (DCF) is updated periodically and filed with the Federal Audit Clearinghouse (FAC), which is the entity responsible for maintaining the database of completed audits.
For 2013, there have been changes to both the form as well as significant changes to the Federal Audit Clearinghouse system used to submit the DCF.
The new DCF and instructions will be applicable for audit periods ending in 2013, 2014, 2015.
The OMB has granted an extension until February 28, 2014. The extension is automatic and there is no approval required. The extension applies only to single audits for the fiscal periods ending in 2013.
Overview and Background
CHANGES TO DATA COLLECTION FORM SUBMISSION PROCESS
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Submission of the DCF to the FAC is done through the FAC Internet Data Entry System (IDES)
Historically, a report ID and password were shared among the groups responsible for filing the DCF. This will no longer be the case.
2013 Change – per the FAC website Every user must create an account in the new IDES. User
accounts will be based on an e-mail address and an individual password. IDES users may access previous submissions or start new submissions.
Changes to the DCF Submission Process
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Changes to the DCF Submission Process
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By filling out the form you will have created an account that will allow you access to all reports matching your ID.
Changes to the DCF Submission Process
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Once an account has been created you will receive an email with instructions on setting up a password.
Changes to the DCF Submission Process
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Password requirements Password email received from [email protected] Password cannot be re-used Expires every 60 days, or after 30 days of no activity Easy process to reset
Enter email address and follow link on updated email sent Only one password reset allowed per day
Changes to the DCF Submission Process
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Password requirements (continued) At least 12 characters long Must contain at least one of each of the following categories
Upper case letters Lower case letters Numbers Special characters from !@#$%^&*() No character repeated more than four times
Changes to the DCF Submission Process
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Best Practices • Email your client to inform them that you have included
their email address on the DCF to ensure they register and that the email received from the FAC is not deleted as junk mail when received. For 2014, include on your audit timeline the anticipated timing for filing of the DCF to ensure the client is on the lookout for emails from the FAC.
• Designate one individual (with a back-up) in your office to be responsible for creating and maintaining an account.
• Keep password on the network and make sure it is updated by the designated individual.
Changes to the DCF Submission Process
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Changes to the DCF Submission Process
Account home screen after successful login
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Changes to the DCF Submission Process
Verify that filing is required
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Changes to the DCF Submission Process
Once it has been determined that you are required to file, you start a filing by completing this information.
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Changes to the DCF Submission Process
As noted previously, filings will be linked to email addresses which are input here.
In addition to the certification officials required for the auditor and auditee up to five additional contacts can be entered for each.
John Doe [email protected]
Michelle Spriggs
Michelle Spriggs
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Best Practices All: May want to limit adding too many people.
Anyone added here can make changes to the form, and there is no tracking, so it will be impossible to keep track of changes made by others.
Certifying Auditor: Add name of certifying official, use designated email address so designated DCF person can certify form once they have received proper sign off/notification from certifying official.
Auditor: Add name and email address of certifying official.
Changes to the DCF Submission Process
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Changes to the DCF Submission Process
Easy view of current status
Only the designated “certifying official”
can click certification buttons. No more signature codes.
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Other enhancements to the process Elimination of security questions and answers as your email
address is entered to reset your password Downloadable list of error messages provides for better
trouble shooting The DCF must be complete before uploading of the audited
financial statements can occur, which reduced errors Spreadsheet templates are available for all pages where
data upload is possible to streamline the reporting process
Changes to the DCF Submission Process
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Best Practice Drafting Process: Create a PDF of the data collection form
Helpful hint: In order to print the DCF, you must first finalize the form. If changes need to be made, unlock the form and make changes.
Sync into the engagement binder Email securely to client/put on portal To ensure integrity, a final proof should be done to be sure
the approved draft is the same as that on the website.
Changes to the DCF Submission Process
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Certification changes No longer use signature codes Access for certification is restricted to the email accounts initially
set-up with the ability to certify For better tracking to completion each step in the process now
includes a “completed by” column to identify the individual, date and time the step was completed
PDF Requirements All FY2014 audits must be unlocked, unencrypted and 85% of
pages text searchable Advance pass fail notices with all current submissions Detailed instructions on compliant PDF Single Audit Report can
be found at https://harvester.census.gov/fac/create_pdf.pdf
Changes to the DCF Submission Process
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Changes to the DCF submission process
Clients: select resume when certifying form.
CHANGES TO THE DATA COLLECTION FORM
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Employer Identification Numbers (EIN) – Part I Beginning in 2013, all audit firms must report their EIN Secondary auditors must also report their EIN on the
secondary auditor contact information page. See Tech Bulletin 2013-02 for MHM’s EIN#.
Changes to the Data Collection Form
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Federal Programs – Part III Identify Loan/Loan Guarantee
Yes/No response Expenditure detail for each component listed on separate lines
when CFDAs have multiple components Standardized Audit Finding Reference Numbers
Not required for 2013 but will be required for 2014 Reference numbers should match Schedule of Findings and
Questioned Costs and audit reports List the number of audit findings on each Federal award
Changes to the Data Collection Form
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Highlighted sections above show the changes previously described.
Changes to the Data Collection Form
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Federal Award Findings Summary – Part III, Item 7 Columns (a)-(c) automatically populated based on
responses to Part III, Item 6 (k) Each federal award finding separately described Type of compliance requirements to be indicated
(i.e. compliance, internal control, other) Yes or No question on questioned costs related to the
finding There are 9 combinations of “Compliance Findings,”
“Internal Control Findings,” and “Other Findings” for each Federal program with findings.
Changes to the Data Collection Form
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Changes to the Data Collection Form
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Questions?
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View these previously recorded EES courses: New and Emerging Business Risks for Not-for-Profit and Educational
Organizations What's New in Not-for-Profit Accounting and Auditing Standards?
Sign up for our Not-for-Profit Viewpoint newsletter
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