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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.

Recent Blogs

November, 19 2021

Handling Unallowable Costs in your Accounting Books of Record

SYMPAQ Benefits Business Tips Indirect Costs

Do you have the systems in place to identify and record 'unrecoverable' costs in a segregated way so that they do not become co-mingled with allowable costs that can be recovered? Read the Blog

October, 14 2021

October is Cybersecurity Awareness Month but We're "Aware" Year-round

Government Contractor SYMPAQ Benefits Business Tips

You can't let your guard down when it comes to cybersecurity. Cyberattacks take place every eleven seconds on average, so you need to be sure your software works around the clock to stay secure. Read the Blog

September, 23 2021

Labor Distribution 101

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If you have a fully functioning labor distribution system that enables the accurate recording of both direct and indirect labor charges and can also accommodate uncompensated overtime for salaried sta[...] Read the Blog