Form E-1, Entity Annual Report
Posted on Wednesday, August 10, 2016
The Indiana State Board of Accounts is responsible for the examination of the records and accounts of entities receiving financial assistance from governmental sources. This includes making sure all entities receiving financial assistance from state or local government sources have an audit performed in accordance with agency guidelines.
Indiana Code 5-11-1-9 requires the audit of an entity when the public funds disbursed are equal to or greater than 50% if the entity’s total disbursements. The State Examiner may waive the audit requirement if the public funds disbursed are less than 50% of the total disbursements, or at least 50%, but less than $200,000 if the entity is organized as a nonprofit corporation. The audit requirement may also be waived if the State Examiner determines in writing that all disbursements of public funds appear to be made for the purposes for which the funds were received. It is important to remember that this waiver is only for the Indiana State audit requirement, it does not waive any audit requirement under the Uniform Guidance (formerly OMB Circular A-133).
Entities subject to Indiana Code 5-11-1-9 are required to file an E-1 (Entity Annual Report) with the State Board of Accounts annually, due within sixty days of the entity’s fiscal year end. Starting with 2015 reporting, Form E-1 should be filed online through the Indiana Gateway. Form E-1 is used by the State Board of Accounts to determine whether the organization is required to undergo an audit. The form asks for basic information about the organization (year end, EIN, address, phone, officer, type of organization and legal status). It also requires details of the government funds received and disbursed during the year, as well as total disbursements for the year.
Government funds include all cash received (grants, contracts, subsidies, contributions, reimbursements, loans, etc.) from the Federal government and any state or local government. Government funds are required to be reported as one of four categories.
1. Direct Federal Grant – Federal funds received directly from a federal agency.
2. Federal Grant passed through State or Local Government – The federal grant was first received by a state agency or local unit of government, and was then sub-granted to your organization.
3. Fee for Service – Or Purchase of Service Agreements, are when a government agency reimburses your organization based on a specified “per diem” or “per unit” rate for services provided. Contracts to provide services for a flat fee or contract amount are not fee for service and should be reported as State and Local.
4. State and Local – All non federal funds received from a state agency or local unit of government.
After the E-1 has been submitted, you will receive an email noting whether your organization is required to undergo an audit or if the audit has been waived. If an audit is needed, you will be required to submit a copy of the auditor’s contract to the State Board of Accounts for approval. Upon completion of the audit, you will also be required to notify the State Board of Accounts the date, time and location of the audit exit conference and submit a copy of the final audit report. If your organization is granted a waiver, you will be required to submit financial information supporting the amounts reported on the E-1 to the State Board of Accounts.
Since the E-1 is used to determine your organization’s audit requirements, it is extremely important that you correctly complete the form.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.