SINGLE AUDIT Lace View Mental Health Affiliates, a non-governmental not-for-profit organization has contracted William Wise, CPA, about conducting an annual audit for its first year of operations. In discussions with Lake View's controller certain facts came to light that made William Wise question if a single audit was necessary. Using the information below, determine how much is considered federal funds expended for the determination of whether a single audit is needed. Item Amount of Federal Funds Expended 75,000 1. Lake View received a $200,000 grant from the city of Lake View, of which 50 percent was stated as being from federal sources. Of this amount $150,000 was expended during the year, equally from federal and nonfederal sources. 2. Unrestricted gifts of $50,000 were received from private donors; $40.000 was spent during the year. 3. The organization received $300,000 from Medicare for mental health services rendered during the year. 300,000 Lake View received federal funding passed through Highlands County of $350,000; $300,000 of the funds were spent for allowable costs. 250,000 5. Lake View carried out a program with the Federal Bureau of Prisons to provide alcohol and drug abuse counseling services for prisoners at a nearby federal prison. Services are provided on a "units of service" reimbursement basis. Each unit of service is reimbursed at the rate of $100 and the contract provides for maximum reimbursement of $400.000. Actual units of service for the year were 4,400. Direct costs incurred for these services amounted to $250,000 in total. TOTAL $625,000 Assuming a single audit is required, explain how that would impact the fee that William Wise should charge for the audit. SINGLE AUDIT Lace View Mental Health Affiliates, a non-governmental not-for-profit organization has contracted William Wise, CPA, about conducting an annual audit for its first year of operations. In discussions with Lake View's controller certain facts came to light that made William Wise question if a single audit was necessary. Using the information below, determine how much is considered federal funds expended for the determination of whether a single audit is needed. Item Amount of Federal Funds Expended 75,000 1. Lake View received a $200,000 grant from the city of Lake View, of which 50 percent was stated as being from federal sources. Of this amount $150,000 was expended during the year, equally from federal and nonfederal sources. 2. Unrestricted gifts of $50,000 were received from private donors; $40.000 was spent during the year. 3. The organization received $300,000 from Medicare for mental health services rendered during the year. 300,000 Lake View received federal funding passed through Highlands County of $350,000; $300,000 of the funds were spent for allowable costs. 250,000 5. Lake View carried out a program with the Federal Bureau of Prisons to provide alcohol and drug abuse counseling services for prisoners at a nearby federal prison. Services are provided on a "units of service" reimbursement basis. Each unit of service is reimbursed at the rate of $100 and the contract provides for maximum reimbursement of $400.000. Actual units of service for the year were 4,400. Direct costs incurred for these services amounted to $250,000 in total. TOTAL $625,000 Assuming a single audit is required, explain how that would impact the fee that William Wise should charge for the audit