Single Audit

The Single Audit Act of 1984 is an important means by which Congress, federal oversight officials, and program managers can obtain information on whether recipients of federal assistance properly account for the money they receive, maintain adequate internal controls of those funds, and comply with program requirements. The single audit, which is widely accepted today, has helped foster basic financial management improvements and has strengthened accountability at state and local governments and nonprofit groups receiving federal aid. Twelve years' worth of experience with the act has shown that refinements can be made to improve the usefulness of single audits while reducing the burden on state and local governments and nonprofit groups. Proposed amendments, which GAO strongly supports, address the need for refinements. This testimony provides some perspective on the act, highlights GAO's most recent assessment of the act's implementation, and discusses specific amendments now being considered.