SINGLE AUDIT CONCEPT - ISSUES IN IMPLEMENTATION

• NCJ Number: 69032
• Journal: GOVERNMENT ACCOUNTANTS JOURNAL Volume: 29 Issue: 1 Dated: (SPRING 1980) Pages: 29-35
• Author(s): T F MCBRIDE
• Date Published: 1980
• Length: 7 pages
• Publication Format: Article
• Language: English
• Country: United States of America
• Note: THIS ARTICLE IS ADAPTED FROM REMARKS MADE BY INSPECTOR GENERAL MCBRIDE AT A RECENT MEETING OF THE WESTERN AND MID-AMERICA INTERGOVERNMENTAL AUDIT FORUMS

Annotation

ANTICIPATED DIFFICULTIES IN IMPLEMENTING THE 'SINGLE AUDIT' CONCEPT FOR FEDERAL GRANTS ARE IDENTIFIED, AND AN IMPLEMENTATION PLAN DESIGNED TO CURTAIL THESE POTENTIAL DIFFICULTIES IS PROPOSED.

Abstract

ATTACHMENT P TO OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULAR A-102, ISSUED IN OCTOBER 1979, REQUIRES THAT ALL STATE AND LOCAL GOVERNMENT RECIPIENTS OF FEDERAL ASSISTANCE HAVE A FINANCIAL AND COMPLIANCE AUDIT AT LEAST EVERY TWO YEARS. THE AUDITS ARE TO BE PERFORMED IN ACCORDANCE WITH A STANDARD FINANCIAL AUDIT GUIDE PUBLISHED BY THE GENERAL ACCOUNTING OFFICE AND COMPLIANCE SUPPLEMENTS APPROVED AND PUBLISHED BY OMB. THIS IS A LOGICAL FIRST STEP IN ATTEMPTING TO BRING ORDER TO THE GRANT AUDITING CHAOS. WHILE ATTACHMENT P HAS GREAT PROMISE, ITS IMPLEMENTATION MUST DEAL WITH A NUMBER OF ISSUES THAT COULD UNDERMINE SUCCESS. SOME OF THE PROBLEMS THAT MUST BE SOLVED ARE A LACK OF RELIABLE DATA ON THE NUMBERS AND DOLLAR AMOUNT OF FEDERAL GRANTS, THE POPULATION OF GRANTEE AND SUBGRANTEE ENTITIES, AND FUNDING ROUTES; DIFFICULTY IN ASSIGNING AUDIT COGNIZANCE (RESPONSIBILITY FOR MONITORING THE AUDIT REQUIREMENT FOR A GRANTEE) AMONG FEDERAL AGENCIES WHERE MORE THAN ONE AGENCY HAS GIVEN GRANTS TO A SINGLE ENTITY; AUDIT COSTS; AUDIT SCOPE; ENSURING THE QUALITY OF NON-FEDERAL AUDITS; THE INADEQUACY OF MANY GRANTEE FINANCIAL MANAGEMENT SYSTEMS; AND THE COORDINATION OF THE AUDITING RESPONSIBILITIES OF AN AGENCY'S INSPECTOR GENERAL WITH THE 'SINGLE AUDIT' SYSTEM. AN IMPLEMENTATION SYSTEM DESIGNED TO DEAL WITH THESE PROBLEMS MIGHT INCLUDE THE PROVISION OF DETAILED GUIDELINES FOR AUDIT CONTRACTING AND AUDIT AGENCY RESPONSIBILITIES; A DATA COLLECTION PHASE WHICH WOULD PROVIDE THE INFORMATION NEEDED TO DEVELOP A WORKABLE AUDITING SYSTEM; THE ESTABLISHMENT OF A PLANNING BODY TO MAKE COGNIZANCE ASSIGNMENTS AND PLAN PILOT AUDITS; A SERIES OF TEST AUDITS, FOLLOWED BY EVALUATION TO DETERMINE IF MAJOR ADJUSTMENTS ARE NEEDED; AND BASED UPON INFORMATION GAINED FROM THE EVALUATION, DEVELOPMENT OF A FRAMEWORK FOR FULL NATIONWIDE IMPLEMENTATION.