The 2023 Compliance Supplement was released, which did not classify E-rate as a federal program subject to Single Audit. The Supplement is effective for audits of fiscal years beginning after June 30, 2022. Therefore, for the 2023 fiscal year, E-Rate reimbursement dollars:
- will not be included on the Schedule of Expenditures of Federal Awards (SEFA);
- will not apply to the single audit; and
- will not be included in total federal awards to determine thresholds for Single Audit and major program calculations.
The above is the final guidance related to fiscal year 2023. The Audit Risk Alert issued by the Michigan Department of Education (MDE) will also be updated to reflect this change. This guidance may change for the 2024 fiscal year, and we will inform you if it does.
For more information, refer to the 2023 Compliance Supplement. Contact Yeo & Yeo if you need assistance.