May 11, 2020

Uniform Grant Guidance: Are You Prepared for an Audit?

Megan N. Thompson, CPAChristopher M. Turtell, CPABy Megan N. Thompson, CPA, and Christopher M. Turtell, CPA

Uniform Grant Guidance can be a complicated area to navigate, even more so given the current economic and social distancing conditions we all face. However, there are simple steps that can be taken throughout the year and during audit planning stages that can lead to better efficiency and overall results for everyone. In this blog we offer a preview of our session at the PICPA’s Pennsylvania School District Conference on May 28. 

Changes to Uniform Grant Guidance

Even before the global COVID-19 pandemic, there had been important changes to Uniform Grant Guidance with the issuance of the 2019 Compliance Supplement. Notably, each agency was required to select no more than six compliance requirements subject to audit for each program. In addition, there were revisions to the internal control section and significant changes to the data collection form. Our session at the School District Conference will look back on these changes and the impact they have had on both auditees and auditors.

The session will then consider what changes may be on the horizon as a result of the COVID-19 pandemic. We’ll review considerations surrounding stimulus funds, deadline extensions, and changes or waivers to certain requirements.

How Auditees Can Prepare

A single audit is one of the only times when audit procedures are known by the auditee in advance. Our session will outline how auditees can access and use the compliance supplement to best prepare for a single audit.

A successful single audit for both the auditee and auditor always begins with a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). We’ll review best practices not only for developing a SEFA, but also for establishing controls over compliance and documentation that should be maintained by the auditee as funds are spent.

Doing paperwork preparing for an auditAuditor Considerations

Auditors repeatedly hear the cautionary mantra “documentation, documentation, documentation.” What other considerations, though, are key to a successful audit from the auditor perspective? What steps should be taken during planning to avoid over- or under-testing programs? In addition to addressing these questions, our session will cover the effective use of dual-purpose tests and how to link testing to final reports, including elements of a finding if deficiencies or noncompliance are identified.

5 Tips for Success

Our session will conclude with five tips for success, applicable to both auditees and auditors, when navigating single audits for the upcoming year. The tips will help ensure an efficient single audit from beginning (preparation of the SEFA) to end (filing of the data collection form).

Megan N. Thompson, CPA, is a manager with Herbein + Company Inc. in Reading. She can be reached at mnthompson@herbein.com.

Christopher M. Turtell, CPA, is a partner, accounting and auditing services, with Herbein + Company Inc. in Reading. He can be reached at cmturtell@herbein.com.

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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.