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AASC Form Instructions

Annual Audit Status Certification (AASC) form instructions.

Name, Address, or Employer Identification Number Changes

Changes to your agency name, address, or employer identification number should be made through the program division from which you receive funding.

Funding from the California Department of Education

Child Care and Development

State and federal financial assistance received from the California Department of Education’s (CDE) Child Development Division.

Nutrition and Food Commodities

Federal financial assistance received from CDE’s Nutrition Services Division, including:

Adult Education

Federal financial assistance received from CDE’s Adult Education Office includes seven adult education programs under Federal Catalog Number 84.002:

No Child Left Behind

Any financial assistance under the No Child Left Behind Act.

Other

List any other sources of federal financial assistance.

Total Federal Financial Assistance

The term “federal financial assistance” means assistance provided by a federal agency in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, or direct appropriations. On this form, federal financial assistance does not include federal cash assistance to individual persons.

To determine your organization’s annual total federal financial assistance, the following sources must be included (excluding Medicare, Medicaid, Medi-Cal, HUD, Section 8, and food stamps):

Audit Requirements

Your agency’s audit requirement is based on the total annual funding received from the CDE and the total annual federal and state financial assistance expended during the fiscal year. Completed audits should be sent to the Audits and Investigations Division (A&I). Agencies expending $500,000 or more of total federal financial assistance must submit their audits to the Federal Audit Clearinghouse and A&I. Use the tables below to find your audit requirement:

Total Federal and State Financial Assistance

Funding Received

Nutrition and Commodities

Child Care and Development

Adult Education

No Child Left Behind

Less than $25,000

No CDE audit requirement

Biennial Contractor Audit
due on the 15th day of the 5th month following the agency's fiscal year end date

No CDE audit requirement

No CDE audit requirement

$25,000 - $499,999

No CDE audit requirement

Contractor Audit
due on the 15th day of the 5th month following the agency's fiscal year end date

No CDE audit requirement

No CDE audit requirement

Total Federal Financial Assistance

 Funding Expended 

Nutrition and Commodities

Child Care and Development

Adult Education

No Child Left Behind

   $500,000 or more

Single or Program-Specific Audit Report due 9 months following the agency’s fiscal year end date

Single Audit Report
due on the 15th day of the 5th month following the agency's fiscal year end date

Single or Program-
Specific Audit Report due 6 months following the agency’s fiscal year end date

Single or Program-
Specific Audit Report due 9 months following the agency’s fiscal year end date

Audit Types

Single Audit Report

An audit report of the entire legal entity, the audit report includes the entity's financial statements, schedule of federal awards, and schedule of findings and questioned costs, in accordance with Office of Management Budget (OMB) Circular A-133.

Program-Specific Audit Report

A financial and program compliance audit report covering one specific program, in accordance with OMB Circular A-133.

Contractor Audit Report

An independent financial and compliance audit report of the entire organization, rather than of individual contracts or programs, in accordance with California Education Code, Section 8448 (g).

Additional Information

For additional information about audit requirements, visit Contracting Agencies Audit Guidelines on CDE’s Web site. Please send your Annual Audit Status Certification (AASC) form and audit report to:

California Department of Education
Audits & Investigations Division
1430 N Street, Suite 5319
Sacramento, CA 95814
Attention: Robert Hoyer

Frequently Asked Questions

Must our organization complete and return the AASC form?

Yes. In accordance with Office of Management Budget (OMB) Circular A-133, the California Department of Education (CDE) is required to ensure that sub recipients expending $500,000 or more in total federal financial assistance during the sub recipients’ fiscal years have met the audit requirements for that fiscal year. Additionally, in accordance with California Education Code, Section 8448(g), the CDE has the responsibility to obtain the required financial and compliance audits of sub recipients of child development funds. The AASC form assists the CDE in determining whether your organization must provide the Audits and Investigations Division (A&I) with a federal or state required audit report for the fiscal year.

Do I have to return this form if my organization no longer participates in Child Care and Development, Nutrition, Adult Education, or No Child Left Behind programs administered by the CDE?

Yes. If your organization is no longer participating in the above CDE programs for reasons such as cancellation, termination, or voluntary discontinuation, the year after discontinuing the program you must sign, date, and return the form with a notation stating the reason.

How do I complete the AASC form?

Instructions are included with the form to assist your organization in completing the form.

What does "federal and state financial assistance" mean?

"Federal and state financial assistance" is assistance provided by a federal and state agency in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, or direct appropriations.

Are Women, Infants, and Children (WIC) program funds considered federal financial assistance?

Yes. Title 7 of the Code of Federal Regulations (CFR) Section 3016.3 defines a “subgrant” as “an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee.”

Are court-mandated funds paid to my agency for group home care considered federal financial assistance?

Yes. Court-mandated funds are considered federal financial assistance if paid to the agency, but not if paid to a person.

Are Title IV-E Foster Care funds provided by the California Department of Health and Human Services (DHHS) considered federal financial assistance?

Yes. The DHHS determined that Title IV-E Foster Care funding is federal financial assistance. The CDE will require agencies to include Title IV-E Foster Care funds in their calculation of total federal financial assistance expended when determining the type of annual audit report that must be submitted to the CDE.

How do I know what type of audit report I should submit to A&I?

The type of audit report you need to submit depends on the amount of federal and state financial assistance expenditures your agency received over the past fiscal year. For example, agencies expending $500,000 or more in federal financial assistance must submit an organization-wide audit (OWA) or a single audit report of the entire agency. Please see the Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations” or the Guide for Auditing Child Development, Nutrition, and Adult Education Programs for audit requirements. 

What is the annual audit requirement for my agency?

Please see the Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations” or the Guide for Auditing Child Development, Nutrition, and Adult Education Programs for audit requirements..

Does a for-profit agency have to complete the AASC form and submit an audit report?

Yes. An AASC form must be completed and returned. For-profit agencies receiving $25,000 or more in State funds must submit a contractor audit report. An agency expending $500,000 or more in federal financial assistance during its fiscal year must submit a contractor audit report to the A&I office.

Can I submit a biennial (every two years) audit report?

For nutrition programs, a biennial audit report is allowed only if the “auditee” had biennial audit reports for all biennial periods ending between July 1, 1992, and January 1, 1995. For child development programs, biennial audit reports may be submitted if your organization received federal or state child development funds of less than $25,000 for each of the two consecutive years. For qualifying organizations, financial statements for both fiscal years must be included in the audit report.

If I submit my single audit report to the Audits and Investigations Division, do I still have to submit an audit report to the Federal Audit Clearinghouse?

Yes. According to OMB Circular A-133, all auditees that are required to submit Single Audit Reports must submit the reports to the Federal Audit Clearinghouse (FAC) in addition to the pass-through entity (CDE). Instructions for submitting audit reports to the FAC may be obtained on the FAC Web site External link opens in new window or tab. , or by contacting the FAC toll-free at 800-253-0696.

Questions: Robert Hoyer | rhoyer@cde.ca.gov | 916-445-6776 
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