If your organization is the recipient of $750,000 or more of federal financial assistance within the fiscal year, you are likely subject to a single audit to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, collectively known as the Uniform Guidance.
Being well prepared for the single audit can help the process be more efficient. It’s a great idea to outsource the audit preparation/readiness responsibilities to a firm such as W.A. Anderson CPA. This will ensure that the audit process is stress free and efficient. In the event that your organization decides to undertake the responsibility of preparing for the audit, below are some valuable best practices that can minimize your headaches and put your organization on the road to success:
Offer targeted training to your staff. It is very important that all staff members are properly trained in their areas of responsibility. One key area to train staff in is identifying allowable costs under the grant agreement. This helps to reduce the risk of errors and non compliance with the grant agreement.
Get started on the right foot. The organization should ensure that appropriate internal controls over the relevant compliance requirements are in place. For example, there should be separation of duties/responsibilities between completing grant applications, approving applications and revisions, entering the budgets and approving expenditures to ensure compliance.
Identify and address problem areas in advance. The staff should spend significant time reviewing those areas that have been a source of problems and non compliance in the past, to prevent issues from reoccurring.
Keep up to date on all of the latest guidance and developments. The AICPA’s Governmental Audit Quality Center (GAQC) provides numerous free tools related to the Uniform Guidance to auditees in its Auditee Resource Center. These single audit tools include articles, web events, practice aids and useful links. With the massive outlay of government spending in the wake of the Covid-19 pandemic, there have been numerous changes and developments over the past year. Auditee organizations need to be aware of the changes impacting them and ensure that they are properly accounted for.