Single Audit Act of 1981

Single Audit Act of 1981 - Requires the Director of the Office of Management and Budget (OMB): (1) to establish standard procedures to be used by all Federal agencies in the administration, accounting, and auditing of Federal assistance to State and local governments, nonprofit organizations, and Indian tribes; and (2) to prescribe regulations to carry out such procedures, coordinate Federal, State, and local audits of assistance programs, and designate one agency to oversee audits of assistance recipients.

Requires each State and local government or nonprofit organization which receives Federal assistance to use independent auditors to conduct a single financial and compliance audit of such government or organization and any subgrantees every two years (every five years if the government or organization receives less than $100,000 in assistance per year). Requires the designated agency to utilize a quality review process, to be established by the Director, to assure the proper performance of such audits.

Declares that the Federal Government is responsible for conducting any audits which are not financial and compliance audits, or which are more stringent than audits required by this Act.

Requires the Director to prescribe appropriate means for reimbursing independent auditors.