Guest Post from Lori L. Scott, CPA, Partner at Lindquist LLP
Since November 2009, the U.S. Office of Management and Budget (OMB) has been working on updating guidance to OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133) as well as a number of other key grant reforms.
In January 2013, the OMB issued Proposed OMB Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards. This represents the largest guidance changes proposed by the OMB since the Single Audit Act was issued in 1996. It is expected that the guidance will be finalized by the close of 2013.
The proposed uniform guidance, referred to as the “Super Circular,” covers all types of federal awards, including:
- Federal grants, cooperative agreements, cost-reimbursement contracts
- Loans, loan insurance, or non-cash assistance
- Direct awards
- Pass-through awards
- Federal awards that are sent to governments (states/local/tribal) and not-for-profits
Some of the key areas of change the proposed guidance covers are:
- Increased audit threshold
- Modifications to major program selection
- Reduction in single audit coverage
- Changes to findings
- Reductions in the types of compliance requirements to be tested
- Streamlining of related circulars and guidance
- Changes to indirect cost rates and time and effort reporting
Read the rest of the article here: http://www.lindquistcpa.com/Single-Audits-Changes-12122013.htm
Lori Scott, CPA, is a partner in Lindquist LLP’s Seattle office. Lori performs financial statement audits and A-133 audits for not-for-profit organizations. The total federal awards administered by her clients have ranged from $700,000 to $3.7 billion. She has contributed to several internal publications and developed training courses for staff members, including “An Introduction to Not-for-Profit Entities” and “OMB Circular A-133.” She is a member of the American Institute of Certified Public Accountants, the Washington Society of Certified Public Accountants and the International Foundation of Employee Benefit Plans.
If your organization is unclear about whether you need a single audit, you can contact her at (206) 522-6370 or firstname.lastname@example.org with questions.