Posted by Matthew Frost
In March of 2020, we discussed M-20-17, Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations in our blog titled, COVID-19 Relief: Single Audit Extension. The good news is a similar extension has been granted for 2021.
On March 19, 2021, the U.S. Office of Management and Budget (OMB) released memorandum M-21-20, Promoting Public Trust in the Federal Government through Effective Implementation of the American Rescue Plan Act and Stewardship of the Taxpayer Resources. The memo provides for a 6-month single audit extension beyond the normal due date. As a reminder, the original due date is 30 days after receipt of the auditors’ report, or 9 months after the end of the fiscal year, whichever comes first. Nonprofits that have not yet filed their single audit reporting package with the Federal Audit Clearinghouse and have fiscal year-ends through June 30, 2021, will have an additional 6 months to do so. Similar to last year’s extension, Nonprofits do not need to seek approval for this extension or perform any action on their part, it is automatic. However, nonprofits should maintain documentation to support the reason for any delayed filing. Should a nonprofit choose to take advantage of this extension, it will not affect their status as a “low-risk auditee,” if they previously qualified as a “low-risk auditee” under the normal criteria.