Required information The Single Audit Act Read the case and answer the questions that follow Congress passed the Single Audit Act to help improve the way federal financial assistance programs that are granted are managed CONCEPT REVIEW: The Single Audit Act provides a statuatory requirement to test compliance with laws and regulations and internal controls over all federal program compliance requirements. Read the case content and answer the questions that follow. BACKGROUND The Single Audit Act provides a mechanism for improving the management of federal financial assistance programs by mandating that federal fund recipients follow compliance requirements and that monies are spent in accordance with program regulations and laws. The Single Audit Act applies to states, local governments, and nonprofit organizations that expend $750,000 or more within a fiscal year in federal financial assistance. Audits performed under the Single Audit Act are more extensive than audits of an organization's financial statements Free Trees, Inc. is a nonprofit organization that focuses on planting trees in open areas. For many years, it operated with a budget of approximately $800,000, almost all from private donations. Under various federal programs in 2016, Free Trees received three different grants. One came directly from the EPA (a federal program) for $610,000; a second came from the USDA (also a federal program) for $102,000; a third came to Free Trees as the subrecipient for $45,000 from the State of Illinois, which acted as a pass- through entity. All funds received were expended. 1. Is Free Trees required to have a Single Audit in 2016? 1. Is Free Trees required to have a Single Audit in 2016? 2. Why or why not? 3. What if the funds from the State of lllinois were paid to Free Trees as an independent contractor? Would that change the situation