The U.S. has seen historic levels of federal funding in response to the COVID-19 pandemic. Various laws provided billions of dollars to American businesses, state and local governments and not-for-profits. While this funding has provided relief, especially for nonprofits, it may cause complications for many recipients.
Much of the new pandemic funding is subject to single audit rules. Not all recipients of this funding will need a single audit. However, when a nonfederal entity spends $750,000 or more of federal awards in a fiscal year, must have a single audit.
Many recipients of pandemic funding have never had a single audit before and may not be aware of the requirements. Your existing clients may need a single audit for the first time, or you may begin working with new clients who have never had a financial statement audit before.
To help practitioners with these single audits, the AICPA provides several resources. You can access the AICPA’s GAQC website, in particular its COVID-19 Resource page, which outlines many resources. You may also want to contact other firms on their single audit and pandemic-related resources.