What is the focus of the Single Audit Act regarding federal funds?

• A. Auditing only the district's internal controls.
• B. Requiring private entities to submit grant proposals.
• C. Focusing on state compliance reporting.
• D. Ensuring proper use of federal funds and compliance with grant terms, with audits for major programs under OMB circulars.

Answer: (D)

The Single Audit Act centers on accountability for federal funds by making sure they’re used for authorized purposes and in compliance with grant terms, through audits of major programs under OMB guidelines. This means the audit isn’t just about internal controls or about proposing grants; it focuses on how federal funds were spent and whether the recipient met all requirements attached to those grants. Audits target major federal programs identified under the applicable OMB circulars, ensuring a comprehensive, single review rather than multiple separate audits.