Single audits are required for all non-federal entities that expend $750,000 or more in federal awards. Single audit engagements can be complex and may involve a number of unusual audit requirements, so being prepared for your single audit plays a vital part in the single audit process. Here are some things to consider if you’re preparing for a single audit.
Get and stay organized
Maintain grant agreements, loan agreements, expenditure receipts and support by grant number, and document key information related to each federal award including:
- Federal agency name
- Program name and CFDA number(s)
- Award number
- Award period
- Award amount
- Pass-through entity (if applicable)
- Non-cash assistance (if applicable)
This information will be necessary in preparing the Schedule of Expenditures of Federal Awards (SEFA) that your auditor will need to begin the single audit process.
Review of Uniform Guidance
For non-federal entities that have not expended over $750,000 in federal awards since the implementation of Uniform Guidance, which became effective December 26, 2014, a review of the requirements should be completed. Becoming familiar with the rules and regulations set forth in the Uniform Guidance is a critical step in preparing for a single audit as well as to ensure that your organization is adhering to requirements over federal grants prior to the performance of the single audit.
In addition, for non-federal entities with fiscal years ending June 30, 2019, there are new procurement requirements effective for fiscal years beginning after December 26, 2017. Be sure to update your written policies and procedures over procurement to reflect the changes under Uniform Guidance.
The Uniform Guidance is available here.
Review Compliance Supplement
While the Compliance Supplement is a tool primarily used by auditors, reviewing the compliance supplement related to each federal award received during the year will help you stay up to date with the federal requirements applicable to the award and will aid in the preparation of the documents and tasks that will be requested by the auditor. Click here for the Compliance Supplement.
Preparing for a single audit can be a time-consuming endeavor; however, the proper preparation can also substantially reduce the complexity and time required during the annual audit process.
Aaron Funk, CPA