What Is A Single Audit?

A single audit is an audit specific to an Organization’s federal and/or state programs, governed under the Office of Management and Budget (OMB)’s Uniform Guidance. The single audit is performed in addition to the Organization’s financial statement audit and is intended to provide assurance to the Government grantor that the entity has adequate internal controls in place, and is generally in compliance with program requirements.

When is a single audit required?

Single Audits are required for all recipients who expend $750,000 or more in aggregate federal financial assistance within their fiscal year and/or $500,000 in aggregate state financial assistance within their fiscal year.

Note, if an Organization meets both thresholds, federal and state single audits may be required.

Does a single audit change the audit process?

Yes! During a single audit, the audit firm must test a recipient’s compliance with the requirements of their federal and/or state awards and the Organization’s internal controls over compliance, which often assesses the effectiveness of award spending and evaluate performance progress.

How can an organization prepare for a single audit?

·         Read the grant agreement thoroughly and make sure you understand all compliance requirements

·         Track expenses by grant program to ensure they are properly reported

·         Ensure that your organization has strong policies in place to follow the terms of the grant and that staff are properly trained on the policies

·         Maintain all required documentation in an organized manner so that when your auditor asks for it, it is easy to find!

Do the results of a single audit get reported?

All federal single audits are required to submit the information from their financial statement audit and single audit to the Federal audit clearinghouse with a data collection form (SF-FAC). The form includes the entity information, information about the organization’s federal programs, the results of the financial statement audit, results of the compliance audit, and a copy of the audited financial statements.

Upcoming changes

The Office of Management and Budget (OMB) has revised guidance for federal financial assistance that will go into effect on October 1, 2024 with some of the highlighted changes as follows:

·         The threshold for a federal single audit changes from $750,000 to $1,000,000.

·         Updates to the procurement policies

·         Removal of some prior written approval requirements