Audit Requirements

A financial statement review is conducted by an independent auditor, but is narrower in scope and less rigorous with respect to the level of examination and analysis than a financial statement audit. The auditor examines the organization’s financial statements and determines whether they are consistent with generally accepted accounting principles.  The auditor’s report is intended to provide a limited level of assurance that the financial statements are free of misrepresentations.

Single audits serve multiple purposes.  In general, besides reporting on the fair representation of the financial statements, they are implemented to determine if the entity has complied with direct and material compliance requirements for each major federal program. They are used as a report card by federal funding agencies and pass-through entities to address problems and also used to provide assurance regarding compliance and information about a non-federal entity’s internal control over compliance.

If the sub-grantee is a local government or non-profit organization and expends $750,000 or more in federal awards (from all sources) during its fiscal year, the sub-grantee is required to submit the appropriate single or program specific audit in accordance with the provisions outlined in 2CFR Part 200 Subpart F.  The subgrantee agrees to forward a copy to DCJS of the subgrantee’s scheduled financial statement audit for the fiscal year that covers the grant award period.