Are you a governmental recipient of stimulus money under the 2009 American Recovery and Reinvestment Act?  How will this affect your Single Audit?  The Office of Management Budget (OMB) has issued Addendum #1 to the March 2009 Compliance Supplement which focuses on the effect these funds will have on your June 30, 2009 compliance audits under OMB A-133.  Here are some key factors to consider when determining the Single Audit Major Programs for 2009:  

• ARRA Award with existing CFDA number:  Due to the inherent risk with the new transparency and accountability requirements over expenditures of ARRA awards, the auditee should consider all Federal programs with expenditures of ARRA awards to be programs of higher risk.  
  
• ARRA Award with new CFDA number:  If your funding is associated with a new CFDA number, is identified as part of a cluster, and the cluster is "Type A", it should be considered a new program and would not qualify as a "low-risk" Type A program.  Therefore, since the ARRA did not exist in earlier years, the cluster will not meet the requirement of having been audited as a major program in at least one of the two most recent audit periods.

OMB is in the process of issuing Addendum #2 to the March 2009 Compliance Supplement in order to clarify when an auditee should consider ARRA funding a Type A high risk program.  It is their opinion that all ARRA funding reported under an existing CFDA number or reported as a part of an existing cluster that is considered a Type A program should be considered high-risk.  Auditees should be aware that any ARRA funds considered low-risk will be subject to a review by Federal auditors and the General Accounting Office (GAO).