Organizations that expend more than $750,000 in federal funds in a single fiscal year are required to have an independent financial audit referred to as a Single Audit, in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Organizations that expend more than $750,000 in state funds are also required to have a Single Audit, in accordance with the State of Texas Audit Circular.
Among other things, the Single Audit Act Amendments of 1996 and Uniform Guidance 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.
With our understanding of Single Audit requirements, we can help you determine if you need a Single Audit and help you through the process. Millan & Company performs most of its financial audits using AICPA generally accepted auditing standards (GAAS) and, for Single Audits, we also ensure that our audits that meet governmental (“Yellow Book”) standards.
Components of a Single Audit
The financial component is like a regular financial audit, which includes the audit of the financial statements and accompanying notes. The compliance component includes assessing which Federal grant programs are major and then obtaining an understanding of the Federal program’s objectives, procedures, and compliance requirements. The Office of Management and Budget publishes a Compliance Supplement annually to assist with the compliance component.
Contact us to help you determine if your organization needs a Single Audit.