On July 5, 2022, the U.S. Department of Treasury issued updated guidance that confirmed that Alaska Native Corporations are subject to the requirements of the Single Audit Act and its implementing regulations (2 Code of Federal Regulations Part 200, Subpart F) with respect to Coronavirus Relief Fund (CRF) payments received as a result of the CARES (Coronavirus Aid, Relief, and Economic Security) Act and related Supreme Court litigation.     

As noted by the Treasury, the Single Audit Act requires non-federal entities (such as Alaska Native Corporations) that expend $750,000 or more in federal awards in their fiscal year to conduct a single audit or program-specific audit. The Single Audit Act is intended to provide assurance to the federal government that a non-federal entity has adequate internal controls in place and is generally in compliance with program requirements. The federal government issues a Compliance Supplement each year that contains program-specific provisions regarding Single Audit Act requirements. The 2021 supplement is available here. There were also two addenda to the 2021 supplement, available here and here. For the CRF payments, the 2021 supplement states:

• The CFR is “considered a ‘higher risk’ program for 2021”;

• “Auditors must use Treasury’s guidance and Frequently Asked Questions (FAQ) in final form as published in the Federal Register on January 15, 2021, at 86 FR 4182 and Treasury’s Office of Inspector General (OIG) guidance on reporting and record retention, including related FAQs at https://oig.treasury.gov/cares-act-reporting-and-record-keeping-information, as the criteria when auditing use of payments from the Fund, as well as when reporting findings”; and

• “Fund payments provided to beneficiaries are not subject to audit per 2 CFR Part 200, Subpart F.”

The Treasury has also extended the deadline for Native Corporations to complete and submit their audits. For Native Corporations whose fiscal year ended December 31, 2021, the deadline to submit their audit is now March 31, 2023. Below is a chart of the extended deadlines.