The New Single Audit Threshold, Just In Time for the Holidays

January 2, 2014

00022583We’ve been keeping an eye on the OMB Circular A-133 reform and it has finally moved from “in the pipeline” to “actually published”. On December 26, 2013, most of you certainly had Single Audit thresholds foremost in mind as the Office of Management and Budget (OMB) published its final revised grant rules.  A key change that will impact a number of you, is the change to the threshold determining who must undergo an A-133 audit. Currently, if the organization expends $500,000 or more in federal funding (cumulative of all federal grants awarded), it must obtain a Single Audit. The new rules increase that threshold so that now an organization must expend $750,000 or more in federal funding before being required to undergo a Single Audit. The new rule will be effective for fiscal years starting January 1, 2015 and after, meaning December 31, 2015 will be the first of the year ends to qualify for the change.