The Office of Management and Budget (OMB) is proposing broad reforms to compliance audits under OMB Circular A-133, Audit of State, Local Government and Non-Profit Organizations. Some of the proposed highlights:
- Single-audit requirement threshold increased from $500,000/year to $750,000/year in federal expenditures.
- Entities with less than $750,000/year in federal expenditures would be required to make records available for review or audit by appropriate officials.
- Determination of which federal programs will be audited is suggested for change.
- The number of types of compliance requirement to be tested in a single audit is suggested to be reduced from 14 to 6. The six would be:
- Activities allowed or unallowed, and allowable costs/costs principles
- Cash management
- Sub-recipient monitoring
- Special tests and provisions
- More detail is suggested to be reported in auditor findings.
- Questioned costs threshold for reporting will be increased from $10,000 to $25,000.
- Eight existing OMB Circulars will be combined into one document.
The OMB is seeking comments to the proposed changes by May 2, 2013.
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