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Federal Grant Compliance

The essentials

  • Federal grant compliance is the set of rules you follow all year when you spend federal money, set out in the Uniform Guidance. The Single Audit is where those rules get checked.
  • The big areas are allowable costs, procurement, eligibility, reporting, and subrecipient monitoring. The OMB Compliance Supplement is where auditors look for what applies to each program.
  • Strong compliance is built into how you run programs all year. Below: the rules that get tested, and how we help you stay inside them.

Taking federal money comes with strings, and the strings are written down. The Uniform Guidance sets the rules for how federal awards may be spent, documented, and reported, and your Single Audit checks whether you followed them.

Most compliance findings are honest mistakes. A well-run organization spends real program dollars in a way that misses a rule it did not know applied, and the gap surfaces at audit time. Building the rule into day-to-day operations is what keeps it off the finding list.

What federal grant compliance covers

The Uniform Guidance (2 CFR Part 200) covers three areas:

Subpart D

post-award administration.

Subpart E

cost principles.

Subpart F

the audit.

Together they govern how you spend, track, document, and report federal awards.

The requirements that get tested

Auditors do not invent what to test. For each major program, the OMB Compliance Supplement identifies the compliance requirements that apply. The recurring ones are:

  • Allowable costs and cost principles.
  • Procurement, suspension, and debarment.
  • Eligibility.
  • Reporting.
  • Subrecipient monitoring.
  • Matching, level of effort, and earmarking.
  • Period of performance.

Allowable costs

A cost on a federal award has to clear three tests (2 CFR 200.403):

Reasonable

A prudent person would have spent it.

Allocable

It benefits the federal program it is charged to.

Documented

There is support behind it.

If you have no negotiated indirect cost rate, you can use the de minimis rate, now up to 15 percent. Getting costs into the right buckets, with support behind them, is where day-to-day compliance is won or lost.

Procurement

Buying with federal dollars means meeting the federal procurement rules (2 CFR 200.318):

  • Real competition before you award.
  • Documented decisions you can show an auditor.
  • A check that the vendor is not suspended or debarred.

Your own purchasing policy may be looser, but on federal dollars the federal standard governs.

Subrecipient monitoring

Pass federal money through to another organization and the responsibility for how they spend it stays with you (2 CFR 200.332). You have to:

  • Verify they are not suspended, debarred, or excluded before you fund them.
  • Watch their compliance throughout the award.

You stay responsible even after the money moves on.

Where compliance meets the audit

Everything on this page is what a Single Audit tests. Your SEFA captures the spending, and the A-133 audit requirements page covers the audit that checks it. Strong year-round compliance is what makes that audit short and finding-free.

How we help with compliance

We build and run the systems that keep you compliant all year, and we handle the Single Audit when it comes:

1

Cost allocation

Getting costs into the right buckets, with support behind them.

2

Procurement policy

Purchasing rules that satisfy the federal standard, which is stricter than most internal policies.

3

Reporting calendar

Federal deadlines tracked so nothing is filed late.

4

Subrecipient monitoring

Verification and oversight for every dollar you pass through.

Want a pre-audit check first? That is our audit readiness assessment. Need the Single Audit itself? We do that too.

Built-in compliance is what keeps a Single Audit short. A rule found at audit time can become questioned costs, a finding, and funds you have to pay back. The organizations that move through a Single Audit cleanly run the rules all year.

What compliance support costs

There is no flat price. The work scales with your federal footprint and how much you want us to build versus review. The main drivers are:

  • How many federal programs you run, and how many funding sources feed them.
  • Whether we build systems from scratch (cost allocation, procurement policy, a reporting calendar) or review what you already have.
  • How much funding you pass through to subrecipients, which adds monitoring scope.
  • Whether any single program crosses the $1,000,000 Type A threshold, which raises what gets tested at audit.

Tell us what you run and how you handle it today, and we will give you a fixed quote before you commit to anything.

Why Businesses Trust Dimov Tax

Single Audits and grant-compliance work we have delivered, and what clients said about how it went.

Federal Grant Compliance

Tell us which federal programs you run and how you handle costs, procurement, and subrecipients today, and we will show you where the gaps are. Confidential, handled by a CPA firm, not a call center.