The compliance requirements related to federal grants and loans can be complex and the audit process confusing. Here are a few tips in preparing for a Single Audit.
Stay (or get) organized!
Ideally, at the beginning of the fiscal year, the business department, grant coordinators, and program managers should be in communication regarding grant applications, federal awards, budgets, reporting requirements, responsibilities, and timelines. Checklists are a good tool for staying on top of compliance requirements and responsibilities.
Accumulate and document key information related to each federal award:
- Federal agency name
- Program name and CFDA number(s)
- Award number
- Award period
- Award amount
- Pass-through entity (if applicable)
- Non-cash assistance (if applicable)
Maintain grant agreements, loan agreements, expenditure receipts and support by award number, subrecipient monitoring efforts and reporting related to federal expenditures.
Prepare, or update, written policies and procedures related to grant accounting and compliance.
The Office of Management and Budget (OMB), which issues the Uniform Guidance, now requires written policies and procedures related to internal control over federal awards. Compliance areas such as cash management, procurement, subrecipient monitoring, eligibility, equipment and property, allowable costs, as well as other requirements, need to be understood and internal control documented.
Stay up to date with compliance requirements from the most current OMB Compliance Supplement and grant agreements.
There are new procurement requirements effective for fiscal years beginning after December 26, 2017. Be sure and update your written policies and procedures to reflect the changes.
Lindquist is available to assist in creating policies and procedures related to maintenance of grants, as well as to provide sample checklists for the preparation of your entity’s Schedule of Expenditures of Federal Awards.