OMB A-133 compliance supplement information for non-profit organizations

Many government agencies and organizations receiving federal funds, such as non-profit organizations, are required to undergo a Single or OMB A-133 Audit as per the regulations that were set out in Circular A-133 by the United States Office of Management and Budget (OMB).The purpose of the Single Audit is to make sure that recipients of federal funds are in compliance with program requirements outlining how the money is to be used.

While there are a number of requirements with respect to which programs need to be audited, in general, any agency or organization that has expenditures of federal grants and awards in a single year equal to or over $750,000 must undertake the audit. Each federal agency that provides grants establishes requirements for its recipients to meet for that program to be successfully managed. These requirements or items are spelled out in the A-133 Compliance Supplement which is updated every year.

An OMB A-133 audit will look at a non-profit’s financial records, financial statements, any federal award transactions and expenditures, internal control systems, and the federal assistance that the organization has received during the period of the audit.

Auditing assistance

A single audit includes:

• Financial statements
• Internal control
• Compliance

Non-profit organization auditing should be performed by an independent certified public accountant or auditing firm in accordance with GAGAS (Generally Accepted Governmental Auditing Standards). The CPA or accounting firm should have the knowledge and expertise needed to perform a single audit for a non-profit.

GYL provides a full range of financial services for non-profit organizations. We understand the unique business as well as the financial challenges that not for profit entities are facing today due to declining federal and state funding as well as increased oversight from both regulatory and tax authorities, all of which means greater compliance requirements for your organization.

At GYL our goal is to understand your organization, how it operates, its internal control systems, and your ability to responsibly manage federal funding as part of the single audit process. We will help to assist management and/or audit committees with any assessments concerning internal-control risk, documentation of policies and procedures, the identification of internal control gaps, and test of control for effectiveness.

We keep current on the annual changes to the OMB A-133 supplement which provides instructions to auditors on what and how to conduct the audit, identifying existing important compliance requirements that the federal government expects to be taken into consideration as part of the audit.

Not for profit financial planning experts

There is a lot of paperwork involved in preparing for a single audit. Our team of not for profit financial experts will work with your organization to educate you staff about the steps that need to be taken to prepare for the audit. During the auditing process, we will review the organization’s accounting records including any financial transactions so it’s important that all records and documents be up-to-date, accurate, and organized.

If your nonprofit receives federal money equal to or exceeding $750,000, there are complicated compliance regulations that require an independent audit. Call one of our offices located in Southern California to arrange a free consultation.