Senate Bill 4006 Requires a “Report”- An engagement, such as AUP’s engagement or other...
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Transcript of Senate Bill 4006 Requires a “Report”- An engagement, such as AUP’s engagement or other...
![Page 1: Senate Bill 4006 Requires a “Report”- An engagement, such as AUP’s engagement or other attestation engagement.](https://reader034.fdocuments.in/reader034/viewer/2022051516/56649e755503460f94b76edd/html5/thumbnails/1.jpg)
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Senate Bill 4006
• Requires a “Report”- An engagement, such as AUP’s engagement or other attestation engagement
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Purpose
• To test whether state grants were spent as intended
• Must be performed and prepared by a CPA
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What It Doesn’t Mean
• Doesn’t require a full scope Audit or review
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Exempt Programs
• Most reimbursement programs
• However, Tourism grants are not exempt
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Who’s Affected
• Any person who receives one or more state grants of $ 50K or more, in the aggregate, in a state’s FY.
• Report is to be filed with Grantor.
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“Audits” In Lieu of “Reports”
Ok if following criteria are met:• Done by independent CPA• Conducted on grant funds• Done using GAGAS or OMB 133A• Available for public inspection
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Trigger Date
July 1, 2003
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Due Dates
• Reports and sworn statements due to grantor W/I two years of the end of the person’s FY in which the disbursement of state grant funds by the grantor was made.
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Due Date Example #1
• Received final funds on November 15, 04.
• FY ends on December 31, 04.
• Report due on December 31, 06.
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Due Date Example #2
• Received final funds on April 2, 05.
• FY ends on March 31, 05.
• Report due on March 31, 08.
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Who Pays for Report?• Applicant must bear the cost.• Tourism monies to be used for direct
advertising costs only, by statute.• No provision for administrative costs.
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“Audits” In Lieu of “Reports”
– OMB Circular A-133 audits may be substituted for the “Report”.
– Will only have to provide sworn statement of expenditures made under the grant.
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Less Than $50K Rec’d???
• File with grantor a sworn statement of expenditures made under the grant.
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Scope of Report
• Limited to showing that the state grant funds were spent for the purposes intended when the grant was made
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What If I Miss the Deadline?
• Will be barred from subsequently receiving state grants until the person has filed the report or sworn statement of expen’s.
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Fraudulent Sworn Statements
• Considered a felony• Upon conviction, shall be fined not
less than $ 1K, nor more than $5K, and/or shall be imprisoned for not less than 1 yr., nor more than 5 years
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Disclaimer• Information contained herein is my
opinion, is not to be considered legal advice, is subject to change as DOA is still working w/ agencies, and CPA firms to clarify certain issues.
Prepared by Eric J. Ayersman, CPA, MBA 11/4/05