The Link Between COVID Relief Funds and Required Audits

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According to a recent article featured on the Pennsylvania Institute of CPAs (PICPA)’s website, organizations that received more than $750,000 in COVID relief funds could be required to have a single audit or a program audit. Subsequently, this will result in roughly 30,000 new single audits across the U.S.

If you are a practitioner and your client(s) received relief funding, you may want to explore compliance requirements or guidelines for frequently used programs by visiting online resources such as SAM.gov under Assistance Listings, Restaurant Revitalization Fund or the Shuttered Venue Operators Grant Program. Additionally, the AICPA Governmental Audit Quality Center (GAQC) maintains a nonauthoritative list of programs and the related audit requirements for review. However, if your client received payment from the Paycheck Protection Program and/or the Economic Injury Disaster Loan Emergency Advance, the funds are not subject to a single audit requirement.

Due to the high-risk nature of single audits, the GAQC continues to work with federal agencies to explain single audit requirements related to pandemic relief. If you are considering performing one, you should obtain the relevant competencies before providing this service for your client(s).