The U.S. Office of Management and Budget (OMB) recently issued proposed guidance that would significantly revise OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133). If finalized, these revisions would change the threshold that determines when a government or non-profit organization is required to undergo a federal single audit. The revisions would also dramatically revise the auditor’s responsibilities in a single audit.
What’s New?
OMB’s proposed revisions to Circular A-133 include the following key areas of change:
- The single audit threshold would increase from the current $500,000 to $750,000.
- Auditors would see changes in the major program determination process, a reduction in the percentage of required coverage, and a reduction in the types of compliance requirements to be tested.
You can access the proposed guidance on OMB’s website at www.whitehouse.gov.
Sewing up the Details
CRI’s governmental and non-profit accountants are ready to help you assess the impacts of the upcoming changes to federal single audit requirements. Give us a call; our CPAs can tailor a plan to meet your OMB Circular A-133 needs.