Stay on the road to prosperity with our Single Audit Program for COVID-19 Relief Funding

If you received Provider Relief Funds (PRF), you might be required to undergo a Single Audit. PRF supports American families, workers, and healthcare providers against a COVID-19 outbreak. 

This may be the first audit your organization has ever been required to submit. Federal law requires governmental, not-for-profit and for-profit entities that expended COVID-19 relief funding over $750,000 to have a single audit be performed. The purpose of the audit is to review how you managed the funding you received to ensure you are compliant. Not only must you be following the regulations associated with the dollars you received, you must also have internal controls in place that meet federal requirements.

It can be mind-boggling. 

An audit that meets federal standards is complicated, no doubt. With LBG as your partner in the process, you can take comfort knowing you are in expert hands. Our single audit program eliminates the complexities of the process and ensures compliance. Plus, we will help you understand all the regulations and program requirements. 

What will this program do for you? 

  • Ensure the rules have been followed for dollars associated with the grant or award
  • Provide clear guidance that includes special terms, conditions, requirements and deadlines that must be met according to your grant agreement or award letter 
  • Help you establish internal controls that meet federal requirements, or correct any deficiencies in current controls
  • Give you visibility and confidence that your financial statements are true and reliable, which leads to the best decisions for continued positive corporate growth
  • Equip you with solutions for accounting related issues become evident through the process

Here’s how it works.

Provide the information specified below, and the LB Goodman team will conduct a detailed review of all your requirements and status of those requirements. The process typically takes 14 business days for calculations. An LB Goodman representative will contact you via telephone to schedule a Zoom or phone consultation to review your results.

Note: Documents may be uploaded here or emailed to solutions@LBGcpas.com. Once you submit this form with your esignature and retainer, a confirmation that includes the LB Goodman Engagement Letter will be sent to your email address.


LB Goodman & Company
32-16 Broadway (Route 4)
Fair Lawn, NJ 07410

Dear [name inserted here]:

You have requested that we audit the services provided by Organization name for the U.S. Department of Health and Human Services (HHS), for the year ended [on this date].

In addition, we will audit the entity’s compliance over major federal award programs for the period ended [on this date]. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance regarding the entity’s major federal award programs.

Schedule of Expenditures of Federal Awards

We will subject the schedule of expenditures of federal awards to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the schedule to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on whether the schedule of expenditures of federal awards is presented fairly in all material respects in relation to the financial statements as a whole.

Data Collection Form

Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management’s responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass-through entities.

The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors’ reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk.

Audit of Major Program Compliance

Our audit of Organization name’s major federal award program(s) compliance will be conducted in accordance with the requirements of the Single Audit Act, as amended; and the Uniform Guidance, and will include tests of accounting records, a determination of major programs in accordance with the Uniform Guidance and other procedures we consider necessary to enable us to express such an opinion on major federal award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement.

The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the entity has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major federal award programs. Our procedures will consist of determining major federal programs and performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity’s major programs. The purpose of those procedures will be to express an opinion on the entity’s compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.

Also, as required by the Uniform Guidance, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each of the entity’s major federal award programs. However, our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report.

We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the entity’s major federal award programs, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such report will not express an opinion on internal control.

Management’s Responsibilities

Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility:

-- For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America;
-- For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
-- For identifying, in its accounts, all federal awards received and expended during the period and the federal programs under which they were received, including federal awards and funding increments received, and those received in accordance with the Uniform Guidance;
-- For maintaining records that adequately identify the source and application of funds for federally funded activities;
-- For preparing the schedule of expenditures of federal awards (including notes and noncash assistance received) in accordance with the Uniform Guidance;
-- For the design, implementation, and maintenance of internal control over federal awards;
-- For establishing and maintaining effective internal control over federal awards that provides reasonable assurance that the nonfederal entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards;
-- For identifying and ensuring that the entity complies with federal statutes, regulations, and the terms and conditions of federal award programs and implementing systems designed to achieve compliance with applicable federal statutes, regulations, and the terms and conditions of federal award programs;
-- For disclosing accurately, currently, and completely the financial results of each federal award in accordance with the requirements of the award;
-- For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented;
-- For taking prompt action when instances of noncompliance are identified;
-- For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings;
-- For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings;
-- For submitting the reporting package and data collection form to the appropriate parties;
-- For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance;

To provide us with:

-- Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements, and relevant to federal award programs, such as records, documentation, and other matters;
-- Additional information that we may request from management for the purpose of the audit;
-- Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence.
-- For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole;
-- For acceptance of nonattest services, including identifying the proper party to oversee nonattest work;
-- For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets;
-- For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance;
-- For the accuracy and completeness of all information provided;
-- For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and
-- For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter.

With regard to the schedule of expenditures of federal awards referred to above, you acknowledge and understand your responsibility (a) for the preparation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance, (b) to provide us with the appropriate written representations regarding the schedule of expenditures of federal awards, (c) to include our report on the schedule of expenditures of federal awards in any document that contains the schedule of expenditures of federal awards and that indicates that we have reported on such schedule, and (d) to present the schedule of expenditures of federal awards with the audited financial statements, or if the schedule will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards no later than the date of issuance by you of the schedule and our report thereon.

As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit.

We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing.

If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you agree to provide us with printers’ proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed.

Catherine Marotta is the engagement director for the audit services specified in this letter. Her responsibilities include supervising LB Goodman & Co’s services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report.

Our fees are based on the amount of time required at various levels of responsibility, plus actual out-of-pocket expenses. Invoices will be rendered every two weeks and are payable upon presentation. Below is an ESTIMATED fee range based on revenue. These are preliminary estimates based on revenue and can be subject to change based on the size of the entity and the required audit testing for the financial statement balances.

Revenue RangesESTIMATED Fee
$500,000 – $10 Million $10,000 – $25,000
$10 Million – $30 Million $25,000 – $50,000
$30 Million – $100 Million $50,000 – $80,000

We will notify you immediately of any circumstances we encounter that could significantly affect this initial fee estimate. Whenever possible, we will attempt to use Organization name’s personnel to assist in the preparation of schedules and analyses of accounts. This effort could substantially reduce our time requirements and facilitate the timely conclusion of the audit.

During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications.

Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.

Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non-financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete.

The audit documentation for this engagement is the property of LB Goodman & Co and constitutes confidential information. However, we may be requested to make certain audit documentation available to regulators and federal agencies and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision of LB Goodman & Co’s personnel. Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and regulators. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report.

Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature.

During the course of the audit, we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing.

We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report.

You agree to inform us of facts that may affect the financial statements of which you may become aware during the period from the date of the auditor’s report to the date the financial statements are issued.
At the conclusion of our audit engagement, we will communicate to those charged with governance the following significant findings from the audit:

-- Our view about the qualitative aspects of the entity’s significant accounting practices;
-- Significant difficulties, if any, encountered during the audit;
-- Uncorrected misstatements, other than those we believe are trivial, if any;
-- Disagreements with management, if any;
-- Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process;
-- Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures;
-- Representations we requested from management;
-- Management’s consultations with other accountants, if any; and
-- Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management.

Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements compliance over major federal award programs including our respective responsibilities.

We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff.

Respectfully,

LB Goodman & Co
32-16 Broadway
Fair Lawn, NJ 07410

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Click or drag files to this area to upload. You can upload up to 4 files.
• Two years of financial statements (Balance Sheet and Income Statement)
• Grant agreement or award letter

You may also choose to email your files to solutions@LBGcpas.com
Revenue RangesESTIMATED Fee
$500,000 – $10 Million $10,000 – $25,000
$10 Million – $30 Million $25,000 – $50,000
$30 Million – $100 Million $50,000 – $80,000
LB Goodman & Co.