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!

Latest

innovation in sustainability
Closing the Loop: Our Sustainable Commitment to Circular Economy
December 6, 2023

This video focuses on EcoLOK4, a groundbreaking product by CONTROLTEK that exemplifies innovation in sustainability. It highlights the process of transforming landfill waste into new deposit bags, with 90% of each bag’s material being repurposed trash. This initiative not only reduces waste but also closes the sustainability loop, demonstrating CONTROLTEK’s commitment to environmentally friendly […]

Read More
digital media and skilled trades
From DJ to HVAC Digital Media Dynamo: Combining of Digital Media and Skilled Trades with Clifton Beck
December 6, 2023

Straight Outta Crumpton hosts Greg Crumpton and Gabrielle Bar delve into the evolving world of digital media skilled trades with Clifton Beck, Manager of Digital Media at the ESCO Institute. This episode offers a unique perspective on integrating digital media into traditional trades, highlighting the importance of adapting to technological advancements in the industry. […]

Read More
Ntracts Inc.’s David Paschall and Stephanie Haywood contract lifecycle management
Contract Life Cycle Management is Coming Out on Top, as Healthcare Providers Increasingly Rely on the Tool
December 6, 2023

The healthcare industry is undergoing a significant transformation, driven by the need to improve patient experiences, access, and outcomes. Amidst this shift, contract lifecycle management (CLM) is emerging as a critical tool for healthcare providers. With the increasing pressure on cost management and compliance, healthcare organizations are seeking solutions that streamline operations and enhance […]

Read More