The government passed the Single Audit Act of 1984, as amended in 1996, to ensure that organizations receiving Federal grants use the funds in compliance with the Federal government's requirements.
So even though RSA is not coming out each year to look at your financials, the State Legislative Auditor is performing this function on behalf of the Federal government.
The Federal government provides instructions to the State Legislative Auditor on focus areas for this audit: 2025 Compliance Supplement. The Compliance Supplement is based on the requirements of the 1996 Amendments and 2 CFR part 200, subpart F, which provides for the issuance of a compliance supplement to assist auditors in performing the required audits. CFDA 84.126 Rehabilitation Services- Vocational Rehabilitation Grants to States can be found starting at page 4-84.126-1 Department of Education (ED).
This is even more reason to ensure your financial house is in order, you have a good understanding of the requirements, and you are able to demonstrate you have used the Federal funds according to requirements.
Many times, auditors are unfamiliar with your particular program and may come to a different conclusion. For example, they may question the allowability of consumer purchases such as buying llamas for a self-employment plan. If you run into issues and the audit team is not listening to you, we recommend that you have the auditors call RSA and talk to the Fiscal Team. However, while the Compliance Supplement is provided for consideration for auditors, there is no requirement for them to use it. State auditors may write audit findings inconsistent with VR requirements or program regulations, but RSA may choose not to sustain the findings.