Summary: In 1984, to deal with concern about a lack of accountability in federal financial aid provided to states and local entities, Congress passed the Single Audit Act to promote uniform, entitywide audit coverage of federal assistance. According to state and local government officials interviewed by GAO, the single audit process has contributed to improvements in financial management practices. State and local officials have installed new accounting systems, begun having annual comprehensive financial statement audits, adopted or accelerated the adoption of generally accepted accounting principles, improved systems for tracking federal funds, strengthened administrative controls, and increased oversight. Despite these improvements, a number of issues have created concerns and hinder the usefulness of single audit reports. GAO recommends changing the criteria for selecting which entities and programs should be subject to single audit; revising the form, content, and publication of single audit reports; and improving access to results of single audits by oversight officials and program managers.
