A-133 Audit Concepts

A-133 Audits roughly follow the same accounting and cost recovery guidelines as do federal contract awards that are governed by the FAR.  OMB Circular A-122 "Cost Principles for Non-Profit Organizations" covers project cost accounting topics familiar to most government contractors such as the recovery of direct costs, indirect costs, allocation of costs and the allowability of costs. While a grant does not include a profit component, a common misconception is that only NFP's are subject to an A-133 audit, when in fact any entity - including for profit government contractors - with  $500,000 or greater in awarded grants during a fiscal year are eligible for such an audit. Also known as a "Single Audit", these audits are typically performed by independent public accounting firms and occasionally by DCAA, and the focus is not only on the application of costs to federal grants, but also on an organizations' compliance with laws and regulations and the recipient's internal controls. Whether your organization receives grants or contracts, SYMPAQ is structured to apply direct costs and allocate indirect costs by project, and to provide a clear audit trail on how those costs are expended against the budget ceiling.

Written by G. Chris Brown

View all posts by: G. Chris Brown

Subscribe to our Blog