What is an A-133 Audit?
In 1990, the Office of Management and Budget (OMB) issued Circular A133, Audits of Institutions of Higher Education and Other Nonprofit Institutions, which defines audit requirements for nonprofits receiving more than $25,000 in federal funding. Your organization is subject to these audit requirements even if the federal money you receive is passed through another agency. For example, a city housing authority may make a grant to a local nonprofit housing developer which contains H.U.D. funding. The local housing developer is subject to A-133 audit requirements even though the grant was not directly from H.U.D.
The Office of Management and Budget (OMB) has issued Circular A133, Audits of State, Local Governments, and Nonprofit Organizations, which requires nonprofits spending more than $500,000 per year in federal funding to have an audit. This audit is required even if the federal money you receive is passed through another agency. For example, a city housing authority may make a grant to a local nonprofit housing developer which contains H.U.D. funding. The local housing developer is subject to A-133 audit requirements even though the grant was not directly from H.U.D. A-133 audits, like non-federal audits, test financial statement information. However, the A-133 audit looks more closely at tracking and classifying revenue from federal sources. In addition, the auditor looks for compliance with general and specific government audit requirements, which cover both financial and non-financial factors such as program effectiveness, client eligibility, efficiency with which resources are used, e
Related Questions
- When is my organization required to have an audit performed in accordance with the Single Audit Act and OMB Circular A-133?
- Are recipients of less than $500,000 exempt from LSC audit requirements under the new OMB Circular A-133?
- Where can I find guidance on the form and content of the A-133 audit reports?
