Grant Funding & the Benefit of Single Audits - Part II
Article | August 29, 2023 | Atchley & Associates LLP
Austin has a growing population of non-profit organizations that receive grant funds, which can be federal or state-sourced and can come in many different sources: Grants, Loans, usages of land, and food / other commodities. While the receipt of these funds helps organizations meet the needs of the community and reach their missions/goals, there are a number of other requirements that organizations may face.
Benefits of a Single Audit
If an organization is subject to a Uniform Guidance audit, then it would be required to go under a full financial and Uniform Guidance audit, also known as a Single Audit. The term “Single Audit” is used to refer to the idea that an organization would only have to go through one audit versus multiple monitoring by different grantors and could meet any requirements from outside lenders. The benefits of having a Single Audit performed are:
- Your organization will have met the requirements of receiving federal or state funding
- Having an objective view of your organization’s internal controls over both financial and grant programs,
- Your organization will have audited financial statements that they can use to obtain future funding from both public sources and if necessary from financial institutions.
- Make sure that your organization is using industry best practices across all aspects of the organization, not just grant or financial reporting
- Grantors may choose to rely on the results of the Single Audit, and the organization may save time by going through additional monitoring.
- Since one firm can perform a Single Audit, it can be performed in conjunction with your financial audit, there is some dual-purpose testing that can be performed that would bring efficiencies to the entire Single Audit process.
- Finally, all Single Audits are uploaded to the Federal Audit Clearinghouse (https://harvester.census.gov/facweb/) and organizations fulfill the requirements of making their financial statements available to the public and to their current and future grantors.
To learn more about grant monitoring, non-grant funding, and Uniform Guidance audits, read Part I of this article.
If you have any additional questions about Single Audits or requirements under Uniform Guidance, please feel free to reach out to Jeremy Myers (JMyers@atchleycpas.com).
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