Auditing and Reporting Requirements: A for-profit corporation had multiple subsidiaries that were consolidated for financial reporting purposes, and some of the subsidiaries also reported separately. Can the for-profit entity fulfill the 2 CFR 200.501 audit requirements by having one financial-related audit of all HHS awards in accordance with Government Auditing Standards that incorporates all entities that are consolidated under Generally Accepted Accounting Principles (GAAP)?

A for-profit corporation had multiple subsidiaries that were consolidated for financial reporting purposes, and some of the subsidiaries also reported separately. Can the for-profit entity fulfill the 2 CFR 200.501 audit requirements by having one financial-related audit of all HHS awards in accordance with Government Auditing Standards that incorporates all entities that are consolidated under Generally Accepted Accounting Principles (GAAP)?

Yes, the for-profit entity can have one financial-related audit of all HHS awards that incorporates all entities. 2 CFR 200.501(i) audit requirements permit this approach.

(Added 9/13/2021)

Auditing and Reporting Requirements
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