Commonwealth of Virginia Single Audit Report for the Year Ended ...

COMMONWEALTH OF VIRGINIA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2011
1. PURPOSE OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Office of Management and Budget (OMB) Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, requires a schedule of expenditures of federal
awards showing total federal expenditures for each federal financial assistance program as
identified in the Catalog of Federal Domestic Assistance (CFDA). The accompanying
schedule includes all expenditures of federal awards of the Commonwealth of Virginia’s
departments, institutions, authorities, and component units except for the entities that were
not audited by the Auditor of Public Accounts. Other auditors issued reports for the
following organizations within the Commonwealth: Virginia Commonwealth University
Health System Authority, Institute for Advanced Learning and Research, Virginia Housing
Development Authority, Virginia Resources Authority, Virginia Outdoors Foundation, Fort
Monroe Authority, Science Museum of Virginia Foundation, Library of Virginia Foundation,
Virginia Sesquicentennial of the American Civil War Commission, Virginia State Crime
Commission and the Commission on Virginia Alcohol Safety Action Program.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The information in the accompanying “Schedule of Expenditures of Federal
Awards” is presented in accordance with OMB Circular A-133. The schedule
presents a summary of direct and indirect federal financial assistance by federal
department and CFDA Number.
Federal Financial Assistance – The Single Audit Act Amendments of 1996
(Public Law 104-156) and OMB Circular A-133 define federal financial
assistance as grants, loans, loan guarantees, property (including donated
surplus property), cooperative agreements, interest subsidies, insurance, food
commodities, direct appropriations, or other assistance. Nonmonetary federal
assistance including food stamps, food commodities, and surplus property, is
considered federal assistance and, therefore, is reported on the “Schedule of
Expenditures of Federal Awards.” Federal financial assistance does not
include direct federal cash assistance to individuals. Solicited contracts in a
vendor relationship between the Commonwealth of Virginia and the federal
government for which the federal government procures tangible goods or
services are not considered to be federal financial assistance.
Direct Federal Assistance – Assistance received directly from the Federal
government or received in a pass-through relationship from other State entities
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