Beginning with the Single Audit Act Amendments of 1996, the Office of Management and Budget (OMB) took a leading role in single audits. Single audits are required of any organization who expends more than $500,000 in federal assistance during the year. In June 2007 the President’s Council on Integrity & Efficiency (PCIE) issued a report to the Office of Management and Budget regarding the results of a study on the quality of single audits that were being performed. The study noted that there were several deficiencies in the quality of the audits being performed and as such the AICPA launched a series of task forces to address these deficiencies.
The responsibility of a quality single audit not only falls on the auditors performing the audit but also upon you, the auditee. As a result the AICPA’s Governmental Audit Quality Center has created a number of tools for you to assist in preparing for and achieving a quality single audit. It is important for you to have a quality single audit to assure the integrity of funded programs as well as help you fulfill your fiduciary responsibilities. Additionally, if you prepared for and participate in a quality single audit it will allow you to uncover any potential noncompliance early.
To help assist you the AICPA’s Governmental Audit Quality Center has created a website specifically for auditees of single audits and the information found there is free to you. Among the information there you can find a checklist to assist you in preparing your Schedule of Federal Expenditures (SEFA) which is a vital part of the planning of the single audit. It is important as a recipient of federal awards that you are aware of and report all expenditures properly on the SEFA.