State Government : Single Audits

Federal assistance can take many forms including grants, loans, and non-cash awards such as supplies and equipment.   Recipients of federal assistance must comply with requirements that govern the allowable uses of the funding and many administrative areas such as cash management, matching, supplanting, procurement, and reporting.  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.

The purpose of a single audit

The purpose of the single audit is to provide a format for (1) an audit of expenditures of federal awards by non-federal entities and (2) an audit of their financial statements. The audit of federal expenditures focuses on both compliance with federal requirements and internal controls over compliance. The auditing requirements, passed by Congress as part of the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507) and administered by the federal Office of Management and Budget (OMB), are recognized by federal agencies as the framework for monitoring the use of federal money.

The value of a single audit

As with local and state dollars, government officials are responsible for oversight of expenditures of federal resources on federally-funded projects. Single audits evaluate the ability of non-federal entities to ensure that federal guidelines will be followed, as well as demonstrating the extent to which those entities actually did follow the guidelines when spending federal-source money. 

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