Recipients of COVID Relief Could Run into Surprise Audits
Recipients of COVID Relief Could Run into Surprise Audits
The Paycheck Protection Program (PPP), which has offered 100% forgivable loans to eligible organizations, has provided critical support during the pandemic. But Accounting Today warns that nonprofit borrowers could unexpectedly find themselves undergoing “single audits” of their compliance with the federal program’s requirements. So could organizations that receive assistance under the recent American Rescue Plan Act (ARPA).
The Small Business Administration (SBA), which administers the PPP, has stated that PPP loans won’t count toward the $750,000 threshold. However, many PPP borrowers also received SBA COVID-19 Economic Injury Disaster Loans, and those are subject to single audit requirements.
Also, the SBA has said it plans to audit any PPP loan greater than $2 million as if the SBA were a federal funding program — suggesting it will apply single audit standards. And the federal Office of Management and Budget, which gives auditors guidance on how to conduct single audits, has directed federal agencies to analyze ARPA-related programs to determine if their risk level requires single audit oversight.
For questions about The Paycheck Protection Program, call MBK at (413) 536-8510 or contact us online.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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