On December 26, 2013 the Office of Management and Budget (OMB) and Council on Financial Assistance Reform (COFAR) released 2 CFR 200 which affects the requirements from OMB Circulars A-21, A-87, A-110, A-89, A-102, A-133, and A-50. These new regulations are effective for any federal funding after December 26, 2014. The largest impact is that any nonprofit who expends funding from federal agencies in excess of $750,000 during its fiscal year must complete a Single Audit. The previous threshold was $500,000.
BPM's Single Audit group is deeply experienced in guiding organizations through this audit, as many of our clients receive federal funding from government agencies such as the Departments of Health and Human Services, Education, Labor, Commerce, and Housing and Urban Development.
Our professionals provide a tailored approach to conducting the audit. Using the guidance in 2 CFR 200 – Uniform Guidance and the OMB Circular A-133 Compliance Supplement, our professionals can plan your Single Audit to include only those federal programs that are considered major programs based on risk both at the program and organizational level. We then integrate our testing of internal controls and compliance with the requirements for each major program into the financial statement audit to achieve a dual-purpose approach. This approach, combined with our relevant experience, ensures that each Single Audit is efficient and effective. We can also help clients complete the submission of their Single Audit Reporting Package and Data Collection Form to the Federal Audit Clearinghouse.
The audit also serves as a chance to enhance and strengthen your organization's internal control environment. During the course of the audit, we work with management to identify areas where internal controls can be strengthened with respect to federal programs under the COSO framework of internal controls.
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