A-133 Single Audit
Not-for-profits find federal funds come with increased compliance requirements
When your not-for-profit organization receives a grant, it is important to ask if the award includes federal monies, because if your organization expends $500,000 or more in federal funds, you’ll have to file a single audit according to the guidelines developed by the Office of Management and Budget (OMB) in its Circular A-133.
Single audits tell the public how you spend federal money
There is increasing demand for accountability and transparency in not-for-profit financial reporting. Like a regular financial statement audit, an A-133 single audit validates financial statement information but it also takes a close look at how the organization complies with the federal regulations associated with each federal grant.
These regulations are very complex and are updated frequently in the case of ARRA (American Recovery and Reinvestment Act) grants. Because of this additional scrutiny it is important to have proper internal controls in place and to identify changes that might be required in your accounting system to properly track the federal grant activity.
The information in your A-133 single audit will also be available to the public. The OMB requires the Federal Audit Clearinghouse (FAC) to make single audit reports available to the general public for fiscal years ending September 30, 2009, and later. Why is this important to you? Research finds that grantors, both public and private, are looking at these kinds of reports to assess the effectiveness of not-for-profits and could use the information to evaluate your requests for funding in the future.
Experience with single audits
If you are looking for assistance with A-133 single audit compliance, Plante Moran can help. We have a practice group dedicated to serving the not-for-profit industry. Our single audit team is second in the nation in terms of single audits performed. Plus, a member of the single audit team sits on the executive board of the AICPA Government Audit Quality Center.