Hearing the word ‘audit’ will cause most of us to feel a level of panic and anxiety about what they will find. As a grant professional, there are two types of grant audits that we work to ensure our organizations are prepared to handle. The first kind of audit is our grantmaker audits. These funder audits usually start with a call from the funding agency informing the organization that your organization, grant program, and grant management will be audited.
The second kind of audit is an OMB A-133 single audit, a federal requirement for ensuring that funds are expended properly. A single audit is intended to provide a cost-effective audit for non-Federal entities in that one audit is conducted instead of multiple audits of individual programs.Each year, the Federal Government provides over $400 billion in grants to State, local and tribal governments, colleges, universities and other non-profit organizations (non-Federal entities). The threshold that triggers an audit for all non-Federal entities is expenditure of $500,000 or more of Federal awards in a year ($300,000 for fiscal year ending on or before December 30, 2003) are required to obtain an annual audit in accordance with the Single Audit Act Amendments of 1996 (pdf), OMB Circular A-133, the OMB Circular Compliance Supplement and Government Auditing Standards.
This week on GrantChat we are talking about preparing these two types of audits.
Q1: What is a Grant Audit? #grantchat
Q2: Have you ever been part of a grant audit by a funder? #grantchat