Single Audit Act

Workshop 2002:Single Audit in Europe

November 26, 2002

General Topics of Discussion

• Background and Key Single Audit Act Provisions

• Identification of legislation with provisions that conflict with the Single Audit Act

History

• 1979 “Inconsistency, gaps and duplication• 1984 Single Audit Act• Office of Management and Budget Involvement• 1994 Major GAO report• 1996 Single Audit Act Amendments

Key Amendments

• Law extended to all recipients• More cost-beneficial audit thresholds• Broader risk-based audit focus• More timely reporting• Better basis for analysis• Pilot projects

Law Extended to All Recipients

• 1996 Amendments consolidated audit requirements for State and local governments and nonprofit organizations

• As a result of the amendments, OMB consolidated A-128 and A-133 into a revised A-133

More Cost-Beneficial Threshold

• Threshold for audit requirement raised from $100,000 to $300,000

• OMB evaluation of threshold every 2 years

Broader Risk-Based Focus

• Select programs to audit

• identify large dollar programs

• identify risk at large dollar programs

• identify high-risk smaller dollar programs

• audit high-risk large dollar and selected smaller dollar programs

Broader Risk-Based Focus

• Risk factors now considered in determining programs audited

• recipient’s current and prior audit experience with federal programs

• results of recent oversight visits

• program inherent risk

Broader Risk-Based Focus

• Many programs that would have been audited are not audited

• Many programs that would not have been audited in the past are audited

Better Basis for Analysis

• Clearinghouse database accessible through the internet (http://harvester.census.gov/sac)

• Clearinghouse database query options

More Timely Reporting

• Organizations with fiscal years beginning after 6/30/98 must submit their audit reports no later than 9 months after their fiscal year-end

• Clearinghouse receives about 34,000 reports annually

Pilot Projects

• Purpose and objectives of pilot projects

• One pilot project approved (Washington state audits of education programs)

Legislation Monitoring

• Single Audit Act requires GAO monitoring of all proposed legislation for conflicts with Single Audit Act provisions

Barriers/Issues

• How do you know if all required single audits are conducted?

• Are auditors following applicable standards when conducting the audits?

• Is adequate monitoring occurring to ensure that recipients of federal funds correct findings reported in single audit reports?