Biennial and Annual Audits
FEMA considers a variety of factors when making capitalization grant awards. Some of these factors include considering the number of entities applying, total amount of funding each entity indicates they need, cost to the entity for management and oversight of the program, and to what degree the entity's Intended Use Plan emphasizes equity.
FEMA anticipates making capitalization grant awards in late summer of 2023. Awards depend on the availability of funds, quality of the grant applications received, and other applicable considerations. Funding will be issued to entities at the time of award and upon establishment of the entity loan fund. FEMA will not retain the funds until loans are ready to be issued.
FEMA uses the Payment and Reporting System (PARS) for financial reporting, which includes the annual submission of the SF-425 Federal Financial Report.
All other reporting requirements and attachments will be submitted in ND Grants System.
The entity must publish information about all projects receiving funding. The statutory requirement creates flexibility in the frequency (“periodically”) and the location (“publish”) for the publication of information requirements.
To ensure the easiest approach, FEMA requires entities publish and update information publicly on a preferred platform and at intervals during and after the period of performance most suitable to the entity. The objective of the publication of the information reporting process is to provide the public with knowledge of funded project activities.
FEMA’s verification of the publication of information statutory requirement will be reviewed during quarterly progress reports and or other annual requirements.
FEMA will begin monitoring project implementation through quarterly progress reports (QPR). Entities, as part of a FEMA project management best practice, are to monitor and evaluate the progress of the loan fund and project implementation per the Intended Use Plan through the submission of quarterly reports.
These quarterly performance measures will be evaluated with participating entities in this first year to learn more about funds are being used.
FEMA will update performance measures once there is more data on the project types from the Project Proposal List.
Checklist for the Quarterly Performance Report
- Recipients must report on the grant’s progress quarterly using the Quarterly Performance Report spreadsheet and upload it to ND Grants System. Information includes partial calendar quarters and periods when no grant award activity occurs. Reports are due within 30 days from the end of the first federal quarter following the initial grant award.
- FEMA will provide participating entities with Quarterly Performance Report templates. During the Period of Performance, FEMA may make recommendations for or require specific changes to an entity loan fund to improve the effectiveness of the fund.
- These progress reports are only required to be submitted to FEMA during the Period of Performance.
- FEMA will evaluate progress of the loan fund administration, project effectiveness, and equity promotion through its established performance measures.
- In closeout agreements, details on measuring and reporting on the performance of the program past the Period of Performance, including metrics captured in the Quarterly Performance Report template and frequency of submission, will be established.
Biennial and Annual Audits
Audits are undertaken to report on the financial performance of the program and to determine whether funds were properly used and distributed over the course of a year. The audit is conducted to evaluate the financial statements of a loan fund and determine whether those statements adhere to generally accepted accounting principles (GAAP) and are aligned with the intent of the program. Section 200.328 in Title 2 of the Code of Federal Regulations requires an annual audit.
The Biennial Audit is conducted to evaluate the financial statements of a loan fund and determine whether those statements adhere to generally accepted accounting principles (GAAP) and align with the intent of the program. Section 205(h)(1) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act require biennial audits.
Learn more about the processes and requirements of these two audits.
The annual audit will include an audit report containing an audit opinion, as well as any findings.
In general, the audit report will contain the following information:
An opinion on whether the financial statements are fairly presented in accordance with GAAP;
- A description and assessment of internal controls relative to the financial statements and other entity loan fund management processes.
- An assessment of entity compliance with laws, regulations, and terms of the grant award;
- General findings and questioned costs.
Entities will arrange for an independent, annual audit of program operations to document compliance with all necessary authorities, internal controls on loan and program management, and GAAP.
Every other year reports will include a review of how effective the entity loan fund was with respect to meeting the goals and intended benefits described in the intended use plan. The Biennial Audit report contains the following information:
- An opinion on whether the financial statements are fairly presented in accordance with GAAP;
- Description and assessment of internal controls relative to the financial statements and other entity loan fund management processes
- Assessment of entity compliance with laws, regulations, and terms of the grant award
- General findings and questioned costs
- Alignment of outputs and outcomes of projects with the goals and objectives stated in the Intended Use Plan