Preparing for Grant Audits

Grant audit preparation for nonprofits usually breaks down when support lives across QuickBooks, spreadsheets, inbox threads, and shared drives. This guide covers how to get ready for single audits, funder reviews, and internal audit requests with cleaner documentation, reconciliations, and reporting.

Types of Grant Audits

Single Audit (A-133)

Required if you expend $1,000,000+ in federal funds for fiscal years beginning on or after October 1, 2024:

• 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

How GrantLink supports this today

GrantLink helps by organizing QBO-backed allocations, budget lines, fund receipts, funding shares, documents, report outputs, and activity history. It supports audit preparation, but it does not replace funder guidance, accounting policy, or professional review.