OMB Circular A-133: Common Audit Trouble Spots (Part 1 of 3)

If your not-for-profit organization receives federal grants, you already know that your organization might require a compliance audit in accordance with OMB Circular A-133.  As the not-for-profit team at EisnerAmper LLP gears up for this year’s A-133 audits, we thought a review of some of the most common audit trouble spots might help our clients better prepare.

  • When it comes to federal dollars, although a not-for-profit organization may be able to show that it met or exceeded the anticipated program outcomes, this will not relieve the organization of its requirement to maintain supporting documentation in accordance with A-133 requirements.  If the supporting documentation is not in order, and all required policies and procedures are not followed, great outcomes will not be enough to prevent A-133 audit findings.
  • Spreadsheets can be a great tool, but be aware of the risks that come with the sometimes significant and complex calculations that are being maintained outside of your general ledger system.  A single formula error could lead to a range of issues from wasted time to materially misstated financials.  Review the controls surrounding your spreadsheets.  Be sure that they are password-protected and located on a drive with restricted access.  You may also want to make it a step in your monthly closing procedures to print any spreadsheets that support a significant financial statement item to paper or create a PDF, in order to minimize the chance that the supporting schedule no longer exists or has been overwritten when you (or your auditor) need.

To see part 2 of this series, please click here.  

To see part 3 of this series, please click here.

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