The State Comptroller has issued a change in the State's accounting and financial reporting policy with regard to the State's Single Audit Report requirement.  Effective for the fiscal year ended June 30, 2010, the State's Single Audit Report will be issued on a state-wide basis (One State Single Audit Report) and not by State departments or agencies (Many Single Audit Reports) as it has been since 1985.  The effect on State departments and agencies that receive federal financial assistance is that these State departments or agencies are not required to prepare annual US GAAP financial statements and will not have an annual audit.  Nothing changes regarding doing business concerning federal funds.  Program requirements and internal controls over federal funds does not change.  The departments and agencies are still responsible.  At the end of the fiscal year, DAGS will coordinate gathering the departments and agencies' Schedule of Federal Expenditures for the fiscal year.  Depending of the auditor's sample selection, State departments or agencies' programs will be audited for compliance.  This policy change does not affect State departments and agencies that do not receive federal funds.  See Comptroller's Memorandum No. 2009-17 for more detail.