Does your organization receive government funding?
You may be required to have a Single Audit which can be done by DWD’s Nonprofit Team. Not all auditors are able to perform this special type of audit as it requires additional continuing professional education (CPE) required by Government Auditing Standards. Our team members receive this training annually and are knowledgeable about the additional requirements for nonprofits that receive government funding.
What You Should Know About Single Audits
Organizations that expend $750,000 or more in federal funds in one year are subject to a Single Audit. (Federal funds include pass through funding from state and local governments or other organizations, not just direct awards from the Federal government.) A Single Audit is done to ensure that an organization is using its federal funds correctly and follows all applicable compliance requirements and regulations.
A Single Audit includes two components. A financial statement audit and a compliance audit. The financial statement audit is performed in accordance with generally accepted accounting standards (GAAS) just as a standard financial audit but also includes Government Auditing Standards (GAS) requirements. GAS includes reporting on internal controls over financial reporting and on compliance with provisions of laws, regulations, contracts, and grant agreements. The compliance component of the audit determines whether the organization is following the requirements associated with the organization’s federal programs and the corresponding internal controls over those compliance requirements.
Each federal award is identified by its Assistance Listing number. The Office of Management and Budget (OMB) provides an annual Compliance Supplement that identifies each federal award by this number, the specific compliance requirements of the award, the audit objective, and audit procedures. Depending on the award, some of the compliance requirements that may apply are activities allowed or unallowed, allowable costs/cost principles, eligibility, and reporting. The auditor uses the Compliance Supplement to determine which compliance requirements are subject to audit for each award received.
Nonprofit organizations are normally required to submit a Single Audit reporting package to the Federal Audit Clearinghouse (FAC) utilizing the Data Collection Form (DCF) within 30 calendar days after receiving the auditors’ report or nine months after the organization’s fiscal year end, whichever comes first.