What is the only audit?
The only audit is an audit performed in all aspects of an organization that receives more than $ 500,000 USD (USD) Federal Funds from the United States government in a single year. These institutions eligible to the audit include states and cities, universities and non -profit organizations. By performing such an audit, the US government can monitor how its funds are managed and ensure that they are not unnecessary or abused in any way. This audit occurred when the US Congress passed a law on a single audit in 1984.
Every year, the Federal Government of the United States is worth the assistance of millions of dollars to state and local governments, public universities and some non -profit organizations. Following all this money is a task whose scope increases every year when the amount of money is increased. For this reason, the US Congress has entered the 1984 Audit Act, an attempt to ensure that accepting the largest amount of these funds are financially responsible andin accordance with the law.
Before the only audit law, the process of federal aid audit was much less effective. Depending on how many different federal agencies were involved in the issue of money, the organization could be exposed to more audits in one year. It turned out that this is a loss of resources, both in terms of a government that hires more independent accountants in order to perform audits and in terms of organizations that have to be prepared for them.
According to the Act on the only audit, the authorization to oversee the annual audit of these organizations that receive more than $ 500,000 in federal funds, falls into the Office for Administration and Budget or OMB. The instructions for the annual audit are set in a document known as the Omb Circular A-133, so the audit is known as the Audit Omb A-133. This document states what the entity must receive means to comply.
In general, the only audit is composed oftwo components. First, there is an audit of financial reports provided by the organizations concerned. The second part is a thorough examination of how the organization manages the money provided by and whether it takes the right steps to ensure that these funds are redistributed in accordance with federal law. Any type of fraud or abuse of funds must be properly and immediately solved by the organization to prevent further involvement of the Federal Government.