At Mayer Hoffman McCann P.C., we’ve been closely following the federal Office of Management and Budget’s (OMB) initiative aimed at streamlining the Single Audit (A-133 audit) process “to make the most of taxpayer dollars and ensure financial integrity while delivering the right program outcomes.”
Last month, the OMB issued for comment its long-awaited major revisions to Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. If implemented, these changes would have a direct impact on organizations that receive federal funding by eliminating the Single Audit requirement entirely for some and reducing the amount of required testing for others.
Key aspects of the proposed revisions:
- Threshold for Single Audit raised to $750,000
- Threshold for Type A programs raised to $500,000
- Threshold for required reporting of questioned costs raised to $25,000
- Definition of high-risk Type A major program narrowed
- Percent of audit coverage of federal funds reduced
- Reduction in number of compliance requirements to be tested
- Consolidation of documentation
The OMB is requesting comments on these drafts until May 2 although no effective date has been provided for implementation of the proposed guidance.
You can read more details about the proposed changes in our latest MHM Messenger: OMB Proposes Broad Revisions to A-133 Audit Requirements.
Mayer Hoffman McCann has extensive experience in conducting organization-wide audits in accordance with OMB Circular A-133 and will keep abreast of this topic. If you have any questions on how the changes could affect your organization, please contact Michelle Spriggs or your MHM service professional.