Every entity submitting a single audit to the FAC will have either a cognizant (cog) or oversight (over) agency for their submission. These agency designations are necessary for the audit resolution process. The FAC makes this assignment before accepting submissions.
The total amount of federal awards spent in a fiscal period determines whether an entity has a cognizant or oversight agency. The following list outlines the distinctions between cognizant and oversight agencies.
Cognizant agencies are:
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assigned to entities that spend more than $50M in total federal awards in their fiscal period.
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the agency that provided the highest amount of direct awards to the receiving entity; or
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the agency that provided the highest amount of total funding if less than 25% of the entity's total spending came from direct awards.
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determined based on the submitting entity's 2019 fiscal year and revisited every 5 years (e.g., 2024, 2029, 2034).
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Example: The FAC assigned Entity A an oversight agency in 2019. In 2021, they spent more than $50M in federal awards. The FAC will use their 2019 audit submission to determine their cognizant agency.
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Oversight agencies are:
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assigned to entities that spend less than $50M in total federal awards in their fiscal period.
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the agency that provided the highest amount of direct awards listed on the receiving entity's Schedule of Expenditure of Federal Awards (SEFA); or
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the agency that provided the highest amount of total funding if less than 25% of the entity's total spending came from direct awards or there are no direct awards.
To change a cognizant or oversight assignment, both the old and new agency must request the change from the FAC. Both agencies must agree on the new assignment before engaging the FAC for reassignment.
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