Library Services and Technology Act Grant Adminsitration

Field Guide
for Administering
Library Services and Technology Act Grants

AUDIT

All recipients of Library Services and Technology Act funds must submit an audit in compliance with the provisions of the Single Audit Act of 1984 (Public Law 98-502). This law, establishing statutory policy regarding audit of many federal assistance programs, applies to all grants active after December 31, 1984.

The Single Audit Act outlines a uniform approach by the federal government for the audit of all federal assistance programs, from revenue sharing to discretionary grant programs such as LSTA. It should cover most federal funds received by all non-federal entities. The single audit concept allows one agency-wide audit to cover all federal programs being implemented by the agency. The non-federal entity may be defined as a state or local government (city or county) or a non-profit organization.

The provisions of the Single Audit Act require that non-federal entities receiving $300,000 or more a year in federal funds, regardless of source, to have an annual audit performed in accordance with the Single Audit Act (OMB Circular A-133). Recipients of amounts below $300,000 are exempt from Federal audit requirements for that year; however, when LSTA funds are involved, an audit conforming to state or local law or regulation will be required. However, records must be available for review or audit by appropriate officials of the Federal Agency or the Department of State.

The annual audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits as found in the U. S. General Accounting Office publication, Standards for Audit of Governmental Organizations, Programs, Activities, and Functions.

If the audit meets both state and federal auditing requirements, only one copy of the report needs to be submitted to the Division by libraries that receive state and LSTA grants during a single fiscal year. Upon receipt by the State and Federal Grants Office, the audit is reviewed for inclusion of seven parts or reports. They are:

Independent Auditors Report. Auditors opinion of the auditee's financial statements and schedule of expenditures of federal awards in relation to the financial statements.
Auditors report on the auditee's internal control and compliance at the financial statement level.
Auditors report on Circular A-133. This includes an opinion on compliance and report on internal controls of the major programs.
Schedule of Findings and Questioned Costs.
Summary Schedule of Prior Audit Findings.
Corrective Action Plan. Prepared by the auditee, it includes the corrective action planned for each finding, the contact person and anticipated completion date.
Schedule of Expenditure of Federal Awards.
The Schedule should:
- Identify the federal agency.
- Identify the name of the pass-through entity.
  For LSTA this should be the Florida Department of State, Division of Library and Information Services.
- Identify each federal project.
- Include the CFDA number.
  For LSTA grants the CFDA number is 45.310
- Identify the project number.
- Identify the amount of expenditures on the grant.

Any adverse findings reported, as a result of the audit must be addressed with corrective action to be taken.