What is a Single Audit?
A single audit is a financial and compliance audit of recipients of Federal funds, such as States, local governments, universities, and non-profit organizations. A single audit is generally conducted by an independent certified public accountant or State auditor and is intended to assess whether the recipient spends Federal funds properly.
When are Single Audits required?
In general, any non-Federal entity that expends $750,000 or more of Federal grants or awards in a year is subject to a single audit. Recipients of Federal funds are required to submit their single audit reports to the Federal Audit Clearinghouse, along with corrective action plans (if applicable).
What is DOT's role with regard to Single Audits?
DOT is required to assess the quality of recipients’ single audit reports, issue management decisions on single audit recommendations, and ensure that grantees take appropriate and timely corrective actions.
What is OIG's role with regard to Single Audits?
DOT OIG conducts quality control reviews of selected single audit reports that are conducted by non-Federal auditors (generally, independent certified public accountants) to determine whether (1) audits comply with Federal requirements (such as the Single Audit Act, as amended, and the Uniform Grant Guidance) and (2) if there are quality deficiencies in the non-Federal auditors’ work that require correction and/or affect the reliability of audit results. Non-Federal auditors can receive a rating of pass, pass with deficiency(ies), or fail.
In addition, DOT OIG queries the Federal Audit Clearinghouse to identify single audit reports that contain DOT findings affecting DOT programs and disseminates these reports to the Department. DOT OIG evaluates the findings contained in these reports and requires the Department to document its management decisions as well as the corrective action taken by recipients. DOT OIG also reviews DOT’s actions for selected single audit findings and evaluates the closure of recommendations to ensure recipients implemented corrective actions.