01/11/2024

Federal Grants and New Audit Requirements

Understand the funds' sources

There may be nuances and other options depending on the grant award and federal agency, but generally, a single audit is required if $750,000 (or more) of federal awards are spent during your fiscal year. A single audit is a comprehensive audit of not only financial statements but grant compliance and controls over compliance as well. 

It's important to note that the threshold is generally dependent on expenditures, and therefore, it is possible to receive more than $750,000 and not have a single audit requirement.

Understand the Source of the Funds

It's also important to note that not all grant agreements will readily identify themselves as being federal, especially when the funds are being passed through intermediaries such as state and local governments. Further, it's always a good idea to check with the grantor on the source of the funds. Note that this also includes federal non-cash assistance (donated food, property, etc.), as well.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).