We provided an update last year on proposed revisions to OMB Circular A-133 and how this would affect your audits. Since then, new proposed revisions have been released that are different than the ones previously issued. During the first quarter of 2013, the U.S Office of Management and Budget (OMB) issued proposed guidance that includes significant revisions to OMB Circular A-133, Audits of State, Local Government and Non-Profit Organizations. The proposed guidance is the first major re-write of the Circular A-133 in over 10 years. A few of the major changes proposed are:
– Activities allowed or unallowed, allowable costs/costs principles, matching, and period of availability (combined),
- Cash management,
- Sub-recipient monitoring, and
- Special tests and provisions.
The proposed revisions are designed to increase both the efficiency and effectiveness of federal programs. The changes are expected to reduce the audit burden on many non-profit agencies that receive between $500,000 and $750,000 of federal funding, and also increase the chance of auditors selecting high risk type B programs for single audit testing procedures.The proposed guidance titled, Proposed OMB Uniform Guidance: Cost Principles,Audit and Administrative Requirements for Federal Awards, can be found at: