Single Audits
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Each year, the government awards billions of dollars in grants, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, food commodities, and direct appropriations and federal cost reimbursements which are subject to audit requirements.
Under the Single Audit Act Amendments of 1996 and OMB Circular A-133, Not-for-Profit entities whose total federal expenditures equal or exceed $500,000 annually, require a Single Audit, also known as the A-133 audit.
The purpose – to ensure that the recipient of federal funds is financially sound, responsible, and in compliance with federal program requirements for the use of federal funds.
Examples of Federal Assistance include:
- Grants
- Contracts
- Cooperative Agreements
- Loans
- Loan Guarantees
- Property
- Interest Subsidies
- Insurance
- Direct Appropriations
- Endowments
- Other Non-Cash Assistance
- Indirect State or Local Government Transfers of Federal Funds
A Federal Award is defined as Federal financial assistance and Federal costreimbursement contracts that non-Federal entities receive directly from Federal awarding agencies or indirectly from pass-through entities.
This rigorous organization-wide audit is usually performed every year, and requires two stages:
A planning stage and an exam stage.
During the planning stage, the auditor studies the recipient’s internal controls to determine whether there is a high or low risk that the organization’s financial statements are materially misstated and do not comply with laws and regulations. The auditor also identifies and evaluates federal programs. The second stage is the exam stage, where the auditor actually audits the financial statements, federal assistance and programs. The planning stage is an integral part of the Single Audit because it allows the auditor to design and perform the audit based on the qualities, characteristics and needs of the recipient to be audited.
When choosing an auditor for a Single Audit, consider the following factors:
- Relevant experience and demonstration of qualifications
- Availability of staff with appropriate technical abilities
- Results of the external peer review
- Participation in quality improvement programs like the GAQC
Performing many single audit engagements, as well as other compliance audits and attestation engagements required by federal, state, or local laws and regulations – covering millions in federal award expenditures – has made us intimately acquainted with every nuance and compliance issue involved.
Our firm is a member of the American Institute of Certified Public Accountants (AICPA) and its Governmental Audit Quality Center, which ensures that our auditors are kept up-to-date on the latest audit requirements.
As you make a difference in your community with your distinctive vision, we will assist you in optimizing your funds while meeting the demand for accountability and transparency.
During the audit period, Roth & Company will scrutinize your financial records, financial statements, federal award transactions and expenditures, internal control systems, and the federal assistance received and expended.
Roth & Company takes pride in maintaining the highest levels of client service, and we will ensure that all of your questions are answered quickly and professionally.
Benefits of a Quality Single Audit
- Helps assure the integrity of federally funded programs
- Allows you to uncover noncompliance early
- Helps you fulfill your fiduciary responsibility
Our membership in the BDO Seidman Alliance places a wealth of valuable resources at our fingertips and enables us to access the BDO Nonprofit Center for Excellence. The Center serves as a hub of innovative and practical solutions for the Not-for-Profit sector.