The Single Audit Act and Office of Management and Budget (OMB) Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” govern the auditing of Federal awards made to non-Federal entities. The purpose of this pamphlet is to provide basic information on the single audit process in straightforward and concise language. Users should refer to the Circular and other referenced documents for the language of the actual requirements.
Each year, the Federal Government provides over $300 billion–one-sixth of the Federal budget–in grants to non-Federal entities (States, local and tribal governments, colleges and universities, and other nonprofit organizations). Audits are a primary tool used by the Federal government to ensure that these funds are expended properly.