Local Government : Single Audit

What is a single audit in local government?

Local governments that spend $750,000 or more in federal financial assistance annually are required to obtain an audit pursuant to the federal Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). We provide that service on behalf of the federal grantor agencies. These audits are performed in accordance with Generally Accepted Government Auditing Standards and are an assessment of internal controls over federal programs, tests of how those controls are working and tests of compliance with federal requirements.

Our objective is to determine whether a local government complied with federal compliance requirements that could have a direct and material effect on a major federal program and to report on noncompliance.

When is a local government required to have a single audit?

Recipients of federal assistance must prepare a Schedule of Expenditures of Federal Awards and arrange for an audit of their federal assistance in accordance with federal law (2 CFR 200) when they spend $750,000 or more in federal awards in a year. See the BARS Manual or more information on preparing a Schedule of Expenditures of Federal Awards.

Single audits must be completed and submitted to the Federal Audit Clearinghouse within nine months following the fiscal year end being reported on.

Contact your Local Audit Team to address your questions and discuss your local government's audit requirements. 

How to prepare for a single audit

Non-federal entities are required to provide a separate accounting for receipts and expenditures of federal financial assistance in their financial records.  As described in the BARS Manual, management is responsible for preparing a Schedule of Expenditures of Federal Awards (Schedule 16), which is used to determine whether the threshold for a single audit has been met. If it has, local governments will be required to provide detailed information on transactions involving federal money and other evidence to show compliance with federal grant requirements.

If you need more information on single audits, visit Auditing Resources : Single audits.

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