Weaver Beyond the Numbers: Business of Government

Jennifer Ripka, CPA, Partner at Weaver, and Jackie Gonzales, CPA, Partner at Weaver, discuss single audits and the challenges many government entities face with the influx of federal financial assistance over the last two years. Adam Jones, Stage Government Practice Leader at Weaver, points out, “There’s never been a year quite like the last couple of years in government assurance. We’ve seen a deluge of federal funds that don’t stop, and it’s put a lot of government and nonprofit agencies in a category they haven’t been in before – a single audit.”

The Single Audit Act was passed in 1984. It’s essentially a mini audit of federal financial assistance. The audit is triggered by spending $750,000 or more on federal awards in a single year.

The Journal of Accountancy reports, “More than 30,000 entities — primarily state, local, and tribal governments — have received funding as part of Treasury’s $350 billion Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. Recipients that spend $750,000 or more in such aid in a given year are normally subject to a single audit. However, many CSLFRF funding recipients are very small local governments that may previously have had little to no experience with single audits.”

Ripka advises that identifying grants and federal funding is key to understanding if they have to adhere to single-audit rules. Some federal funds are exempt. “That identification piece is really, really important,” Ripka urges. It can be challenging to understand the agreements, and Gonzales encourages clients to reach out with questions. “That’s what we’re here for. We could talk about single audits for days,” says Gonzales.

Finally, accepting funding from grants also means that the entity must execute clear communication and transparency within its agency. Ripka warns that without it, entities could end up in “a situation where you are spending funds that finance doesn’t know about, and revenue recognition isn’t lining up.”

For the longevity of the entity, funding needs to be optimized between what’s allowable and the entity’s needs. This requires strategy and understanding of where the funds can be spent. Weaver can help ensure you remain in good standing with single audit rules wherever you find your entity this year. Visit weaver.com for more information.

Follow us on social media for the latest updates in B2B!

Image

Latest

blue collar
Building Efficient and Engaged Blue-Collar Workforces Begins with Leadership Rooted in Personal Development
November 20, 2024

According to a study by Deloitte and The Manufacturing Institute, over 2.1 million manufacturing jobs could remain unfilled by 2030 due to a lack of skilled talent. This workforce shortage reveals a critical gap in leadership within blue-collar industries. Without strong leadership to develop teams and foster growth, businesses face inefficiencies, low morale, and…

Read More
Paying it Forward: Empowering Career Migration Journeys | Sinead Carbery and Gillian Williams | EP05
Paying it Forward: Empowering Career Migration Journeys
November 20, 2024

On the latest episode of Care Anywhere: The Global Health Workforce Podcast, host Lea Sims sits down with Sinead Carberry, President of International Staffing Solutions, and Gillian Williams, MSN, BS, RN, Senior Director of Clinical Operations, both from AMN Healthcare. The episode delves into the complexities of global career mobility for healthcare professionals, with…

Read More
Healthcare access
Improving Healthcare Access Through Nontraditional Benefits and Discount Plans
November 19, 2024

Healthcare costs are rising steadily, while insurance benefits struggle to offer sufficient coverage, driving demand for practical solutions like nontraditional benefits and discount plans. As premiums rise and coverage limits remain stagnant, many individuals and employers seek alternative ways to manage costs and improve healthcare access. With chronic conditions on the rise, the stakes…

Read More
CSR with Kelem Butts
Leading the Change in Corporate Social Responsibility with Kelem Butts: Tackling Health & Educational Challenges in a Disrupted World
November 19, 2024

In an era where corporate social responsibility (CSR) strategies are rapidly evolving, adapting to new challenges is paramount. As digital transformation accelerates societal shifts, organizations like United Way of Metropolitan Dallas are at the forefront of addressing critical issues, from education to economic mobility. This episode of DisruptED dives into the dynamic world of…

Read More