New reforms have been proposed by the Office of Management and Budget (OMB) that could drastically change the way audits are performed under OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The proposal aims to combine all various regulations that must be followed when administering grant programs into a single, comprehensive guide.
The biggest proposed change is increasing the threshold for single-audit requirements from $500,000 to $750,000. This means that entities spending less than $750,000 in federal awards in one year will not be subject to audits performed under OMB Circular A-133. These organizations will not be completely off the hook, as they will still need to have their records available for review by governmental agencies, various pass-through entities, and the U.S. Government Accountability Office.
Also included in the proposal is a reduction in the number of compliance requirements from 14 to 6. In addition, the proposal includes a number of other proposed changes to improve reporting and oversight. The proposal was published February 1, 2013 and the comment period just closed May 2, 2013.All Insights