The single audit, also known as the OMB A-133 audit, is a comprehensive examination of an organization that expends $500,000 or more of Federal assistance (funds, grants, or awards) received for its operations. Among other things, the Single Audit Act Amendments of 1996 are intended to promote sound financial management, including effective internal control, with respect to federal awards administered by state and local governments and nonprofit organizations.
Millan & Company is certified to conduct OMB Circular A-133 audits for organizations that receive federal and state grants.
Components of an A-133 Audit
The compliance component of a Single Audit covers the study and understanding (planning stage) as well as the testing and evaluation (exam stage) of the recipient with respect to federal assistance usage, operations and compliance with laws and regulations. The financial component is exactly like a financial audit of a non-federal entity which includes the audit of the financial statements and accompanying notes.
The audit includes an examination of the following:
- recipient’s financial records
- financial statements
- federal award transactions and expenditures
- general management of operations
- internal control systems
- federal assistance received during audit period
To find out whether your entity requires a single audit, contact Millan & Company.