The Office of Management and Budget (OMB) recently released new guidelines raising the threshold for compliance audits of entities that expend federal award money to $750,000 per fiscal year. Nonprofit organizations and other entities will be required to perform a single audit if they cross this threshold. The new rules are applicable beginning on or after January 1, 2015.
What does this mean for your organization?
The OMB will raise the previous threshold of $500,000 as part of an effort to reduce administrative burden, waste, and fraud. As a result, the new guidelines will relieve approximately 5,000 entities from the single audit requirement. Entities expending federal funding totaling less than $750,000 are still required to make records available for review or audit by the federal agency and other entities.
f you have any questions please contact your AAF Partner or Thomas Muldoon, Audit Partner, at 774.512.4032 or firstname.lastname@example.org.