Service Line

Grants & Compliance

Federal grant accounting, Single Audit preparation, and the compliance infrastructure that governmental and nonprofit organizations require to maintain funding relationships. Engagements led by practitioners experienced with 2 CFR Part 200 Uniform Guidance and the specialized treatment of federal awards.

When clients engage us

Situations that typically drive this conversation

01

A new federal grant introduces compliance requirements beyond internal capacity

A first federal grant, or a significantly larger grant than the organization has previously managed, introduces compliance requirements that require specialized support.

02

The Single Audit threshold has been exceeded

Federal expenditure crossing the seven hundred fifty thousand dollar threshold triggers Single Audit requirements that require preparation beyond routine financial statement audit.

03

Single Audit findings require remediation

Material weaknesses, significant deficiencies, questioned costs, or other findings require structured corrective action and documentation.

04

Grant portfolio growth is outpacing compliance infrastructure

Increasing grant volume, funding source diversity, or program complexity has outgrown existing compliance processes.

05

A grant renewal or new application requires compliance documentation

Funder requests for compliance documentation or program evaluation require responses beyond what routine accounting produces.

Capabilities

What this service line delivers

01

Federal grant accounting

Grant-specific accounting consistent with 2 CFR Part 200 Uniform Guidance. Time-and-effort reporting, indirect cost allocation, matching and cost-sharing tracking, and the specialized treatment required across different federal funding sources. Integration with existing accounting systems with grant-level visibility and reporting.

02

Single Audit preparation

Schedule of Expenditures of Federal Awards (SEFA) development and reconciliation, major program determination under the risk-based approach, internal control documentation for federal awards, and direct support through the Single Audit process. Documentation prepared to audit standards with supporting reconciliations.

03

Compliance program design

Structured compliance programs addressing procurement, subrecipient monitoring, time-and-effort certification, cash management, and reporting. Includes compliance calendars, internal control frameworks, and monitoring processes appropriate to the scale and complexity of the federal funding portfolio.

04

Indirect cost rate negotiation

Indirect cost rate proposal development and negotiation with cognizant agencies. Includes base and pool analysis, rate calculation methodology, and supporting documentation for rate approval and renewal.

05

Findings remediation

Structured response to Single Audit findings including root cause analysis, corrective action plan development, implementation, and documentation suitable for subsequent audit review. Engagement continues through confirmation of remediation in the following audit cycle.

Compliance architecture

Federal funding sits inside concentric compliance

Federal award management is defined less by the funding itself than by the compliance infrastructure surrounding it. Each layer — program compliance, period reporting, Single Audit — operates on a different cadence and carries distinct requirements.

Federal Funding Compliance Layers Federal funding sits inside concentric program compliance, reporting and Single Audit layers. OUTER · ANNUAL Single Audit PERIOD Reporting CONTINUOUS Program Compliance THE AWARD Federal Funding COMPLIANCE ACCUMULATES AROUND THE AWARD Program compliance Allowable cost principles Time-and-effort documentation Procurement standards Period reporting Financial status reports Federal cash transactions Progress reporting Single Audit (if $750K+) Schedule of Expenditures Internal control assessment Compliance testing by program Single Audit applies when federal expenditures exceed $750K in a fiscal year · Standards under 2 CFR Part 200 Uniform Guidance
Deliverables

What clients receive

✓

Schedule of Expenditures of Federal Awards with supporting documentation

✓

Grant-specific compliance calendar with assigned ownership

✓

Internal control documentation for federal awards

✓

Indirect cost rate proposal and supporting analysis

✓

Subrecipient monitoring framework and documentation

✓

Corrective action plans for audit findings with implementation status tracking

Frequently asked

Questions clients ask before engaging

Can Outlook perform the Single Audit itself?

No. Audit preparation and audit execution are distinct functions under independence standards. Outlook supports Single Audit preparation, remediation of findings, and the ongoing compliance infrastructure. The audit itself is performed by an independent audit firm qualified to perform audits under Government Auditing Standards.

Grant writing is outside the scope of this service. Grant writing, program design, and funder relationship management are specialized activities typically handled by grant-writing specialists, program staff, or internal development teams. Outlook handles the compliance and accounting infrastructure that makes grant funding sustainable.

Subrecipient monitoring frameworks are designed based on risk assessment factors including funding volume, subrecipient audit history, program complexity, and prior performance. Typical deliverables include initial subrecipient risk assessment, monitoring plan development, desk review and on-site review protocols, and periodic review documentation. Monitoring can be executed by Outlook or transitioned to internal staff after program implementation.

Indirect cost rate calculation follows the methodology required by the cognizant federal agency under 2 CFR Part 200 Appendix IV. Methodologies include simplified, multiple allocation base, direct allocation, and special rate methods. Method selection depends on entity structure, cost patterns, and federal agency relationships. Negotiation occurs with the cognizant agency, which for most non-profits is the agency providing the largest share of federal funding.

Time-and-effort reporting must comply with 2 CFR 200.430(i), which requires documentation supporting that compensation charged to federal awards is reasonable and accurate. Implementation approaches range from after-the-fact activity reports to monitored time systems; the appropriate approach depends on the scale of federal funding and the nature of employee responsibilities. We design and implement the approach appropriate to the organization.

Discuss a Grants & Compliance engagement

A brief conversation is the fastest way to determine fit. We will listen to your situation and provide a candid view on how we can help.