written by Eric Lampe
Not-for-profits, government entities, school districts, and private entities that receive and spend Federal assistance are finally getting some relief after years of the Single Audit threshold being held consistent at $500,000. Effective on all single audit engagements with fiscal years beginning on or after January 1, 2015, the threshold has been raised to $750,000.
The Office of Management and Budget (OMB) has raised the threshold for OMB A-133 compliance audits, commonly referred to as “Single Audits” from $500,000 to $750,000. This means that if your entity spends $750,000 or more of federal money, then a compliance audit over federal grants is required. If your entity is under that amount, then you are responsible for making your records available for review or audit by the Federal awarding agency, but a yearly single audit engagements is not required.
An OMB A-133 Single Audit is significantly more testing performed on your federal grants received and spent. This can include multiple programs scrutinized, numerous invoices reviewed, more individuals within the organization talked to, and many more hours of work to be completed by your independent auditors. This also means higher fees to be paid to those auditors.
It has been estimated that approximately 5,000 non-federal entities will be relieved of the single audit requirement as a result of the higher threshold. As with any new programs installed, there are also factors to consider in the year of implementation. These can include when to implement, policies to be adopted, and consultation with your independent auditors.
If your not-for-profit, government entity, school district, or private entity was under a single audit in the past, but feel like the new relief package will include you, feel free to call our office and an auditor will be glad to speak with you 417-881-0145.