Coronavirus State and Local Fiscal Recovery Funds Update

The $350 billion U.S. Treasury Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program has an estimated 30,000 recipients. Many of the recipients, comprised primarily of state, local, and tribal governments, are small entities that have not previously been required to undergo a single audit.

For several months, the U.S. Treasury and Office of Management and Budget (OMB) have discussed reducing the audit burden on these small entities and addressing concerns about the capacity of qualified auditors available to perform these audits. Collaborally, alongside GAQC and the NASACT, they developed an alternative to a full Single Audit or Program-Specific Audit under the Uniform Guidance for certain recipients that would be less burdensome but still uphold the Treasury's responsibility to be good stewards of federal funds. 


The alternative is a compliance examination engagement that is to be performed in accordance with the AICPA Statements on Standards for Attestation Engagements and Government Auditing Standards. The engagement will focus on two narrowly scoped compliance requirements related to Activities Allowed and Unallowed & Allowable Cost/Cost Principles. It is important to note that this alternative is only available to eligible recipients as follows: 


CSLFRF recipients that expend $750,000 or more during the recipient's fiscal year in Federal awards and who meet both criteria listed below have the option to follow the alternative CSLFRF compliance examination engagement: 

  • The recipient's total CSLFRF award received directly from Treasury or received through states as a non-entitlement unit of local government is at or below $10 million; and 
  • Other Federal award funds the recipient expended (not including their CSLFRF award funds) are less than $750,000 during the recipient's fiscal year.


The Governmental Audit Quality Center (GAQC) will hold a webinar event titled, Auditor Considerations: The Coronavirus State and Local Fiscal Recovery Funds Program on April 21, 2022, from 1:00 PM – 3:00 PM (Eastern Time). The webinar will cover auditing this program in a single audit and considerations when performing the alternative compliance examination engagement. Due to its importance, the GAQC has also opened this event to the public. If you are interested in learning more about what auditors will be focusing on in audits of this program, you can register here

Please complete the form below for questions or assistance with Coronavirus State and Local Fiscal Recovery Funds.


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