OMB raising threshold that triggers compliance audits.
In an effort to streamline its guidance on grants management, the Office of Management and Budget (OMB) has raised the threshold for OMB A-133 compliance audits (Federal Single Audits). The threshold was set at $500,000 for federal awards and now has been raised to $750,000 per fiscal year. This will eliminate the burden of some smaller entities that are receiving only a small portion of federal funding by increasing the threshold that triggers compliance audits.
When determining major federal programs for a federal single audit, the threshold has increased from a minimum of $300,000 to a minimum of $750,000. However, the State of North Carolina single audit threshold remains at $500,000.
Along with the threshold changes, the new comprehensive rules also contain numerous other requirement changes for entities that expend federal grants and their Auditors. Changes include the percentage requirements of program testing for low-risk auditees and the compliance requirements found in the compliance supplements. The new rules and the threshold take effect for single audits of fiscal years beginning on or after January 1, 2015. If you expend federal or State awards, it is important to review the changes to understand how it impacts you and why your Auditors may be requesting different information this year.
For more information and details regarding the changes, see the following websites:
Article by: Cassie Wilson, Senior Audit Accountant