A: State law says a school district that receives $ 200,000 or more in total revenues in a year has to have an audit for that year. The Federal government further requires that if you spend
$ 3000,000 or more in Federal assistance, your audit has to comply with “ Single Audit” requirements.
A: Small schools that do not receive $ 200,000 in revenue and do not spend $ 300,000 or more Federal assistance in a year are asked to have audit-type reviews done at least every four years. The schedule is set by OPI. A district receives notice from OPI in January or so when a review must be done in the following fiscal year. A review covers one year only. A review is more basic than an audit. During a review, an auditor verifies a list of specific items, including revenues and expenditures, adequate record keeping and reconciliation procedures, etc.
A: An audit has to cover each year the district met the revenue criteria, but it’s acceptable by law to have an audit covering two years. OPI encourages Annual Audits because it is a better management practice.
A: A “ Single Audit” ( aka “OMB A –133 audit”) is an audit that complies with the “ Single Audit Act”, a Federal law that imposes additional auditing procedures to cover Federal grants. For example, in a single audit, audit testing is expanded to be sure costs were allowable under Federal program regulations. Also the report must include a few different reports and audit assurances than are required in a regular audit.
A: yes, in some cases. Some audit costs can be included as indirect costs when preparing your indirect cost rate application. With an approved indirect cost rate, you can charge most grants a percentage to cover the indirect, or “ overhead” type of school operations, including audit costs. That way, each grant absorbs part of the audit cost. Under new Federal regulations, though, the cost of a “single audit” is allowable as an indirect cost, but costs of a regular audit are not.
OPI Contact: Rebecca Phillips at (406) 444-0783 or email firstname.lastname@example.org
3rd of February, 2010