Welcome Revisions to OMB Circular A-133
Recently, the U.S. Office of Management and Budget (OMB) issued proposed revisions to Circular A-133 “Audits of States, Local Governments and Non-Profit Organizations.”
The revisions are meant to increase the efficiency of government and its use of taxpayer dollars.
If enacted as currently proposed, these revisions should provide welcome relief to those that are subject to A-133 audits. The more significant revisions include:
- Increasing the single audit threshold to $750,000 from the current $500,000
- Increasing the major program threshold (i.e. type A program) to $500,000 from the current $300,000
- Revising the criteria for determining high-risk type A programs and reducing the number of high-risk type B programs that must be audited
- Reducing the percentage of total federal expenditures that must be audited under A-133
- Increasing the reportable questioned cost threshold to $25,000 from $10,000
- Revising the requirements for reporting audit findings
- Revising the definition of a low-risk auditee; and
- Reducing the number of compliance requirements that must be tested for major programs from the current 14 possible types of compliance requirements to 6
The comment period ends on May 2, 2013 and the notification can be found in full here.
No implementation date has yet been proposed. BNN will keep you informed as these revisions unfold.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.