Summit Advisory provides government auditing services for municipalities, counties, special districts, tribal governments, and public entities. Our engagements comply with Government Auditing Standards (Yellow Book / GAGAS) — delivering the financial transparency, accountability, and compliance documentation that citizens, governing boards, and oversight agencies require.
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Government Auditing Standards — commonly called the Yellow Book — are published by the U.S. Government Accountability Office (GAO) and establish the requirements for auditors performing audits or attestation engagements on government entities or organizations that receive government awards.
Yellow Book audits go beyond GAAS — they require enhanced independence, additional reporting on internal control and compliance, and, in performance audits, assessment of whether programs are achieving their intended results. For government entities, Yellow Book compliance is a condition of federal funding and a fundamental obligation of public stewardship.
Summit Advisory has extensive experience auditing municipalities, counties, housing authorities, utility districts, tribal governments, and state agencies — delivering Yellow Book-compliant audit reports that satisfy state oversight requirements, bond covenants, and federal grant conditions.
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From annual financial statement audits to Single Audits, HUD compliance engagements, and performance audits — Summit Advisory covers the full spectrum of government audit and assurance services.
Annual independent audit of government financial statements under GAAS and GASB (Governmental Accounting Standards Board) — including fund financial statements, government-wide statements, and required supplementary information.
Required audit for government entities expending $750,000+ in federal awards annually. Includes financial statement audit, SEFA, major program determination, compliance testing, and Federal Audit Clearinghouse submission.
Compliance audits for public housing authorities and HUD-funded programs — covering HUD financial reporting requirements, tenant eligibility verification, and compliance with applicable HUD program regulations.
Assessment of whether government programs, departments, or initiatives are achieving their intended outcomes efficiently and effectively. Provides objective, evidence-based insights to support better resource allocation and accountability to constituents.
Compliance testing for specific federal or state grant programs — verifying that grant funds were used in accordance with award terms, applicable regulations, and allowable cost requirements.
Evaluation of internal control over financial reporting and compliance for government entities — identifying deficiencies, recommending improvements, and supporting management's implementation of stronger accountability structures.
Our Process
We review prior audit reports, governing documents, fund structure, and federal award portfolio — developing a risk-based audit plan compliant with Yellow Book planning requirements.
We document and test the design and effectiveness of internal controls over financial reporting and compliance — a required element of all Yellow Book engagements.
We test fund balances, revenues, expenditures, and compliance with applicable laws, regulations, and grant requirements — applying Yellow Book and GASB standards throughout.
We issue all required Yellow Book reports — including the auditor's report on financial statements, internal controls, and compliance — with clear findings and actionable corrective action recommendations.
FAQ
The Yellow Book (formally titled "Government Auditing Standards") is published by the U.S. GAO and sets requirements for auditors performing audits of government entities or programs receiving government funds. It applies above and beyond GAAS for these engagements.
Government entities follow GASB (Governmental Accounting Standards Board) standards rather than FASB standards. Key differences include fund accounting, government-wide vs. fund financial statements, and modified accrual vs. full accrual basis of accounting.
Yes, if you expend $750,000 or more in federal awards during the fiscal year. This threshold applies across all federal programs and funding sources combined, not per individual award.
Government audits apply GASB accounting standards (instead of FASB), use fund-based accounting, and require Yellow Book compliance — which adds requirements for independence, reporting on internal controls, and compliance with laws and regulations.