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WHITEPAPER: Preparing for an Audit

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800.443.9441 | November 2016 10 | Conclusion The future of grant funding will increasingly benefit organizations with clean audits. That's because the new risk assessment is heavily weighted to reward non-federal entities that manage grants well and pass audits with flying colors. The more you resolve areas of noncompliance, the more likely you are to tap into the over $620 billion in federal awards available to nonprofits, higher education institutions, and state, local, and tribal governments to make a bigger difference in communities and in the world. Bonus Resource: 10 Tips for a Smooth Single Audit When it comes to preparing your nonprofit organization or government entity for a single audit, start by communicating a plan to program and support staff. Here are 10 tips that you should include: 1 Have senior staff review the information request from the auditors and assign responsibility for providing various parts of information. Plan a pre-audit meeting with Program, Procurement, Finance, IT, and HR staff to communicate the major changes in 2 CFR Part 200 (Uniform Guidance) and how they will be affected by these changes. Listen to concerns about the audit process and address them as needed. Review your internal control systems prior to the audit. Strengthen any areas that show weaknesses. Ensure that all required written policies for federal grant recipients are complete and accessible to share with the auditors. Initiate pre-audit monitoring of the 12 common areas of noncompliance listed above. Do any smoking guns result that need to be corrected prior to the audit? Document IT security plans for safeguarding protected, personally identifying information and preventing accidental or intentional disclosure. Review your written procurement policies to ensure that you've documented whether you're using old procurement standards (as part of the two-year grace period) or new ones contained in 2 CFR Part 200. Assign your procurement department to a review of contracts to ensure that you have all required contract provisions in your documents. Review of your standards of conduct with the HR department to ensure that all required components—including disciplinary action—appear in your written policies. Review prior audits (if available) and ensure that all deficiencies were resolved. Make sure that documentation for the corrective action is available and complete prior to the start of the new audit. Successful completion of your single audit with no findings or deficiencies should be the goal of every grant recipient. With the advent of Uniform Guidance and tracking requirements in the Federal Audit Clearinghouse (FAC) and Federal Awardee Performance and Integrity Information System (FAPIIS), the long-term implications of your single audit's results could determine whether your organization or non-federal entity sinks or swims. Take the steps now to be certain that your organization is prepared to undergo a smooth sailing single audit whenever the time arises. 2 3 4 5 6 7 8 9 10

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