Preparing for Grant Audits

Audits are a normal part of grant management. Good preparation makes them smoother and less stressful. This guide helps you get ready.

Types of Grant Audits

Single Audit (A-133)

Required if you receive $1,000,000+ in federal funds:

• Covers all federal programs
• Tests internal controls
• Reviews compliance requirements
• Results in a public report

Funder Audits

Individual funders may audit their grants:

• Can be desk review or on-site
• Focus on their specific award
• May request detailed documentation

Internal Audits

Your organization's own review:

• Tests internal controls
• Identifies issues before external audits
• Continuous improvement focus

What Auditors Look For

Financial Documentation

• Transaction support (invoices, receipts)
• Allocation methodology
• Budget to actual comparison
• Bank reconciliations

Compliance Documentation

• Grant agreement
• Budget (original and modifications)
• Funder correspondence
• Approval documentation

Internal Controls

• Segregation of duties
• Approval processes
• Policy documentation
• Training records

Using GrantLink for Audit Prep

Generate Audit Reports

1. Go to Reports > New Report
2. Ask the AI: "Generate an audit summary for [grant name]"
3. Review the comprehensive output
4. Export as PDF

Transaction Detail

1. Go to the grant
2. Export all transactions
3. Include:
   • Date, vendor, amount
   • Account coding
   • Budget category
   • Allocation notes

Activity Log

1. Go to Activity
2. Filter by grant
3. Export the audit trail
4. Shows all changes with timestamps

Pre-Audit Checklist

30 Days Before:

• Confirm audit scope and timing
• Review prior audit findings
• Gather grant agreements
• Prepare staff involved

14 Days Before:

• Run GrantLink reports
• Reconcile bank statements
• Organize supporting documents
• Verify all allocations are complete

Day Before:

• Set up auditor workspace
• Prepare electronic file access
• Brief staff on procedures
• Have contact info ready

Common Audit Findings

Avoid these issues:

1. Missing documentation - Keep all receipts and invoices
2. Inconsistent allocation - Use methods consistently
3. Budget overruns - Monitor spending carefully
4. Late reporting - Submit on time
5. Improper costs - Know what's allowable

Best Practices

1. Audit continuously - Don't wait until year-end
2. Organize as you go - File documents promptly
3. Communicate early - Alert auditors to known issues
4. Learn from findings - Implement corrective actions
5. Use GrantLink data - Let the system help you