Federal awards to state and local governments and nonprofit organizations have grown from a few billion dollars to hundreds of billions of dollars annually. Along with these funds come certain restrictions and requirements that must be adhered to by the recipient organization. To ensure compliance with these requirements, the federal government relies on financial and compliance audits of the federal programs. In the beginning, the audits were performed on a grant-by-grant basis; however, the approach proved to be ineffective as well as inefficient. Today, The Uniform Guidance superseded OMB Circular A-133 effective for audits of periods beginning on or after December 26, 2014 (periods ending December 25, 2015, or later).
A single audit consists of two main parts: an audit conducted on the financial statements and a compliance audit of the entity’s major federal award programs. If you are a nonfederal entity that has expensed more than $750,000 in federal awards during the fiscal year you received the federal grant, you are susceptible to a single audit requirement for that year.
LNB Accounting is experienced to conduct such audits for you. Contact us today to get started.