Subscribe to our Blog

Single Audits and Cost Accounting for Grants

Single Audits - formerly "A-133" - generally follow the same cost accounting guidelines as 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 traditional grant does not include a profit component, a common misconception is that only not-for-profit organizations are subject to a Single audit, when in fact any entity - including for profit government contractors - with  $750,000 or greater in awarded federally-funded grants during a fiscal year is subject to such an audit. These audits are most often performed by independent public accounting firms for a significant fee and only 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. Let's suppose your organization has been awarded a federal research grant in excess of $750,000 and therefore the grant is subject to audit scrutiny as to how the money is ultimately spent. As the funds are expended in pursuit of the grant's intended objective, you must account for every dime of the drawdown much as you would with a cost reimbursable contract. This can be a challenge if you are not equipped with a cost accounting system that can easily identify labor and other direct costs expended in relation to the funded amount, and then automatically allocate a pro-rata proportion of your total indirect costs to the grant. Whether your organization receives grants or contracts, SYMPAQ is structured to capture direct costs and allocate indirect costs by project and report on how those costs are expended against the overall budget ceiling. 

Recent Blogs

November, 30 2023

Are you ready for a DCAA Post Award Accounting System Audit?


Are you ready for a DCAA Post Award Accounting System Audit? Read the Blog

October, 24 2023

End-of-Year Tax Form Filing for 2023; Say Goodbye to Paper!

Accounting tax

As another calendar year-end draws closer here in Q4, you aren't likely thinking too seriously about filing your 2023 1099s and W2s come next year. Read the Blog

September, 28 2023

Does your software integrate with...???

Accounting Software Accounting

DCAA audit compliance has been at the top of the feature list in each and every meeting, but once that is addressed, things can get rather interesting! Read the Blog