Certain organizations need to go beyond the financial statement audit and have specific elements looked at in greater detail. Besides expressing an opinion on the financial statements, the independent auditor also expresses an opinion on compliance and internal controls for those organizations expending more than $750,000 in federally sourced grant funds during the year (threshold for audit requirements increased from $500,000 for fiscal years beginning on or after December 26, 2014). Specifically, the auditor tests compliance with the requirements of the federal grant program(s), and with general rules and regulations. Internal controls are the policies and procedures that an organization has in place to ensure that the occurrence of errors, mistakes or fraud are prevented, detected and corrected on a timely basis.
In a single audit, the auditor evaluates whether the organization has controls in place to assure compliance with federal rules and regulations, as well as the required controls to ensure the financial statements are not materially misstated. At Selden Fox, our audit team participates in additional continuing education that specifically addresses the unique requirements associated with conducting single audits. We apply the annual guidance provided in the OMB Circular A-133/Uniform Guidance Compliance Supplement to the specific grant program(s) present in your organization, to properly identify and evaluate which of the compliance requirements are applicable to your federal dollars. With this approach, the audit work is focused on those compliance requirements that could have a direct and material impact on the major federal programs. This enables us to work efficiently, while obtaining a solid basis for reporting on your compliance with, and controls over, your federal grant programs.
In addition to ensuring that your organization complies with applicable single audit requirements, we actively communicate with you throughout the audit process. We offer advice on areas where cost savings could be realized, and make suggestions to improve the effectiveness of existing procedures and strengthen your controls.
