Single Audit Revisions – The Government Needs Your Help

The latest view on not-for-profit accounting issues

Imaging looking at your Schedule of Expenditures of Federal Awards (SEFA) and noting that the total is $502,000.  Some of you might think, “Why couldn’t we have spent $3,000 less and save ourselves the cost of a single audit?”  And you’re not alone.  The United States OMB is working on reforming the Federal Grant process, which may make you very happy. 

The proposed changes would not require a full single-audit (as we know it now) until your SEFA total is $3 million.  The changes would increase the single audit requirement to $1 million, and even the single audits performed on entities with Federal Expenditures between $1-3 million would be more focused on two compliance requirements, decided by the funding source. 

There is much more to the proposed changes that can be reviewed here.  The OMB is currently asking for comments from the public, meaning you, to help them decide if reform is a good idea or not, and which parts of the proposed changes are most important. 

Consider letting the OMB know what you think, as your input will be invaluable to making the necessary changes.

Bobby Mikkelsen