Planning Ahead to Reduce Single Audit Stress
As an organization that receives federal funding, federal guidelines require that you comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) in order to maintain said funding. In a recent article published by AICPA Insights, Mary Foelster, Senior Director of Governmental Auditing and Accounting for the Association of International Certified Professional Accountants, offers guidelines for organizations as they approach their single audit. She suggests the following:
- Keep up-to-date on all the latest guidance and developments. Make sure you are regularly monitoring for any changes that are made to the Uniform Guidance—then adjusting accordingly. Consider availing yourself of the free Auditee Resource Center provided by the AICPA Governmental Audit Quality Center (GAQC).
- Get started on the right foot. The eventuality of this single audit is a sure thing—so don’t let it take you by surprise! Rather, establish organization from the get-go via internal controls and the sharing of preparation responsibilities.
- Offer targeted training to your staff. In order to avoid having to go back and correct mistakes, educate your staff to monitor their own work in order to ensure accuracy and plan for adjustments independently.
- Identify and address problem areas in advance. Singling out potential trouble spots in advance will allow you to monitor them more closely throughout the year—and potentially save you a big headache when the time for your audit rolls around. Consider both areas that have caused problems in the past and areas where compliance changes might signal problems in the future.
Proper prior planning is key in easing the stress of an audit. Take steps today to smooth the road before you tomorrow. Be sure to contact your Lewis, Hooper & Dick, LLC advisor for more information.
To read the article in full, visit AICPA Insights.