A8 Single Audits

Question 1

Sub Recipient

Answer 1

A nonfederal entity that expends federal financial assistance administered by another entity. Title 2 of the code of federal regulations define this well.

Question 2

Single Audit Act

Answer 2

The act allows for single audits or program specific audits, and is designed to improve the effectiveness of audits of federal awards & reduce the burden of federal audit requirements of recipients of the federal financial assistance.

Entities subject to the single audit act are grouped as Type A ($750,000 or more) & Type B ($750,000 or less) for federal assistance.

Question 3

Program Specific Audit

Answer 3

These are available only to certain grant recipients that meet highly restrictive criteria. This includes those that receives awards that are expected under a single federal program & no financial statement audit would be required.

This does not include reports on FS taken as a whole.

Question 4

Uniform Grant Guidance

Answer 4

Provides guidance on applying the risk based approach to program selection , as materiality for Type A & B programs require evaluation even if they don’t meet monetary thresholds.

Question 5

Single Audit Reports

Answer 5

These must be submitted within 30 days or 9 months after the end of the audit period. Reports must be retained for 3 years from the submission date & copies must be available for public inspection (unless government restricted).

Question 6

Single Audit Act Requirements

Answer 6

The act also requires the auditor to design and test transactions of federal awards for compliance with law regulations, and other terms and conditions of the federal award. The audit must be planned to support a low assessed level of control risk of noncompliance for major programs.

As a general rule, effective controls we test, ineffective controls we report.