Section 69I-5.008 - Criteria for Identifying Major State Projects(1) The independent auditor must use a risk-based approach to determine which state projects are major state projects. This risk-based approach must include consideration of the amount of state project expenditures and the inherent risk of the state project. The process as determined in accordance with section 215.97(2)(a), F.S., and enumerated in subsections (2) through (6) below must be followed.(2) The independent auditor must identify the larger state projects as Type A Projects according to the following criteria:(a) For auditees with expenditures of state awards between $750,000 and $2,500,000, Type A Projects are defined as the larger of $300,000 or thirty percent (30%) of total state awards expended.(b) For auditees with expenditures of state awards exceeding $2,500,000, Type A Projects are defined as the larger of $750,000 or three percent (3%) of total state awards expended.(3) State projects not identified as Type A Projects must be considered Type B Projects.(4) The independent auditor must identify Type A Projects which are low-risk. For a Type A Project to be considered low-risk, it should have been audited as a major state project in at least one of the two most recent audit periods and, in the most recent audit period, it should have had no reportable audit findings. The auditor must consider the criteria enumerated in Rule 69I-5.009, F.A.C., the results of audit follow-up, and any significant changes in personnel or systems affecting a Type A Project, in applying professional judgment in determining whether a Type A Project is low-risk.(5) The independent auditor must identify Type B Projects which are high-risk. The auditor must consider the criteria enumerated in Rule 69I-5.009, F.A.C., in applying professional judgment in determining whether a Type B Project is high-risk. However, the independent auditor is not expected to perform risk assessments on relatively small state projects. Therefore, the auditor is only required to perform risk assessments on Type B Projects as follows: (a) For auditees with expenditures of state awards of $750,000 to $2,500,000, risk assessments will be required for Type B Projects that exceed the larger of $100,000 or ten percent (10%) of total state awards expended.(b) For auditees with expenditures of state awards that exceed $2,500,000, risk assessments will be required for Type B Projects that exceed the larger of $250,000 or one percent (1%) of total state awards expended.(6) At a minimum, the independent auditor must audit all of the following as major projects: (a) All Type A Projects, except the auditor may exclude any low-risk Type A Projects.(b) At least one half of the Type B Projects identified as high-risk, except the auditor is not required to audit more high-risk Type B Projects than the number of low-risk Type A Projects; or one high-risk Type B Project for each low-risk Type A Project identified. The auditor is encouraged to use an approach which provides an opportunity for different high-risk Type B Projects to be audited as a major project over a period of time.(c) Additional projects as may be necessary to provide audit coverage of at least fifty percent (50%) of the auditee's expenditures of state awards. Wherever practicable, additional projects should be selected in accordance with the criteria enumerated in Rule 69I-5.009, F.A.C.Fla. Admin. Code Ann. R. 69I-5.008
Rulemaking Authority 215.97(4) FS. Law Implemented 215.97 FS.
New 11-1-05, Amended by Florida Register Volume 45, Number 029, February 12, 2019 effective 2/25/2019.New 11-1-05, Amended 2-25-19.