GAQC Provides Definitive Answer Regarding Applicability of Single Audit Requirements to PPP and EIDL
The recent Government Audit Quality Center (“GAQC”) Alert No. 404 stated that Paycheck Protection Program (“PPP”) loans made to NFPs are not subject to the Uniform Guidance single audit requirements. However, loans made to NFPs under the Economic Injury Disaster Loan (“EIDL”) program are considered a direct loan program disbursed. Therefore, these loans are considered federal financial assistance and are subject to the Uniform Guidance single audit requirements.
If you have any questions or concerns on these regulations, contact a member of our Not-for-Profit team.