SEFA Tutorial
Lesson 1: Federal Reporting Requirements – Background
SEFA and Single Audit Package
Subpart F of the Uniform Guidance includes the audit requirements for a state agency that receives federal awards. This section includes the SEFA, which is required by 2 CFR 200.507. A state agency that receives federal awards above the defined annual threshold must submit a single audit package to the Federal Audit Clearinghouse (FAC). The defined annual threshold is $750,000 as of federal fiscal year 2020 per 2 CFR 200.501. The single audit package includes a SEFA, which lists all direct and pass-through federal expenditure activity for a non-federal entity (such as the state of Texas). The SEFA also includes notes that disclose relevant accounting principles and events that occurred during the state agency’s fiscal year.
The state of Texas submits one statewide SEFA as part of the single audit package each fiscal year. Agencies submit SEFA data though the SEFA web application. This data is reviewed and compiled by the Comptroller’s Financial Reporting section and sent to the State Auditor’s Office (SAO). The SAO and the statewide independent auditor over federal programs review and audit this federal reporting process. The statewide independent auditor over federal programs issues an opinion on the SEFA. The SAO and the state independent auditor submit the single audit package, which includes the SEFA and opinion letter, to the FAC.