Single Audit Implications on Your Audit

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Single Audit Implications on Your Audit

By Kevin Peters

Oftentimes in audit engagements, the requirements of the Single Audit Act are applicable.  Currently, as a general rule, once a non-profit or governmental entity expends at least $500,000 of Federal grant funds, the requirements of the Single Audit Act apply.   In these instances, there are numerous compliance and audit requirements detailed by the Office of Management and Budget (OMB).

There are several tasks the client (auditee) can perform to facilitate the overall audit engagement.

Some of these items are as follows:

  • OMB Circular A-133, Section 300 specifically addresses the auditee’s responsibilities.   Section 300(a) requires the auditee to identify Federal awards received and expended and the related Federal program which made the award (this includes the CFDA number, contract number, name of the Federal agency and grant term). CFDA numbers can be obtained either from the following website: or by contacting the grantor agencies.  Often the CFDA number is included on the grant contract.
  • OMB Circular A-133, Section 300(d), requires the auditee to prepare appropriate financial statements, including a Schedule of Expenditures of Federal Awards (SEFA). The SEFA is a schedule which lists the CFDA number, grantor agency and grant name and current expenditures.  For Tennessee counties and municipalities, the State Comptroller’s office requires additional information on the SEFA including the beginning balance, cash receipts, expenditures and ending balance.  As part of the planning process, the auditee should provide the auditor with the SEFA as well as a reconciliation of the amounts reported to the related general ledger accounts.
  • Sections 300(f) and 315(a) of OMB Circular A-133 require the auditee to prepare a summary schedule of prior audit findings.

The client should also provide the following:

  • Copies of contracts, original budgets and any approved revisions, correspondence with grantor agencies, and audit results performed by grantor agencies.
  • Documentation of any specific audit and reporting requirements for each grant.
  • Specific compliance requirements for federal programs.  The OMB issues a Compliance Supplement each year which can be accessed online.  This supplement will detail specific compliance requirements.

Due to these and other increased audit requirements, it is important for the client to assemble this information early in the audit process.  Not only will the client gain a better understanding of some of the complexities of the Single Audit but this should also help to reduce some audit staff hours. A website for additional information is:

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