A friend's startup received some government funding. As a result they need to have an audit done, even though they are fairly early stage. Are there particular requirements the firm must have? If they go with a good reputable regional firm who have no particular government "specialist", could the audit or the funding get rejected? Thanks for any notes.
Government Audit Specialist?
Answers
It depends on the fund source. I administer more than 25 grants within our public agency. Federal, state and local sources. Each fund source has its own requirements for audit. In some cases, there isn't one. In some, the audits are conducted by contractors engaged by the source agency. The audits can be financial or operational or both.
Thankfully, most of the fund audit requirements are covered by the Single Audit with maybe a one or two page additional certification from our independent auditors required in the compliance section.
The requirements depend on the funding source as noted above, as well as type of contract if it is a Govt contract. Federal, state or local? Contract or Grant? If this is a Federal Govt contract, what type -- FFP, T&M or CPFF makes a huge difference and if it is the latter you absolutely have to meet several requirements and pass the audits and no you definitely cannot rely on regular
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Accounting