New Single Audit Circular

New Single Audit Circular

Hinkle + Landers, PC, one of the leading Albuquerque CPA and Audit firms, stays up to date on news that has an impact on the accounting industry and our community.  The following is a blog by Maclen Enriquez, an Audit Manager of Hinkle + Landers, PC related to the new single audit OMB Circular which relates to non-profit accounting, non-profit organizations, state and local governmental accounting, and state and local governmental audits.The Office of Management and Budget (OMB) recently published its Super Circular in the Federal Register. The circular makes several changes, summarized below, to the guidance previously known as Circular A-133. These changes will apply to audits of fiscal years beginning on or after December 26, 2014 (fiscal years ending December 31, 2015).

The most significant change is the consolidation of eight circulars into one conformed set of cost principles and one conformed set of administrative requirements.

Also, the threshold for the need for a single audit will increase from $500,000 to $750,000.

In addition, the threshold separating Type A and Type B programs will increase from $300,000 to $750,000.

Furthermore, the percent of coverage will change from 25% to 20% for low risk auditees, and from 50% to 40% for auditees not considered low-risk.

The data collection form was also revised during 2013. The updated version is now available for submission. The data collection must include the following:

·      Financial Statement(s)

·      Schedule of Expenditures of Federal awards

·      Summary Schedule of Prior Audit Findings

·      Opinion on Financial Statements

·      Report on Internal Control - GAS

·      Report on Compliance - GAS

·      Report on Internal Control- A-133

·      Report on Compliance - A-133

·      Schedule of Findings and Questioned Costs

·      Corrective Action Plan (if findings)

·      Opinion or Disclaimer of Opinion on Schedule of Federal Awards

Firm Profile:  Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms.  Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico.  Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation, bookkeeping and elder care in Albuquerque New Mexico