What are the HHS audit requirements for commercial (For-Profit) organizations?
The Department of Health and Human Services (HHS) has specified requirements for non-Federal audits of for-profit (commercial) organizations in HHS’ Title 45, Code of Federal Regulations (CFR), Part 74.26 , “Non-Federal Audits.” Per the regulations, a for-profit (commercial) organization is subject to audit requirements for a non-Federal audit if, during its fiscal year, it expended $500,000* or more under HHS awards and at least one award is a HHS grant or subgrant. Title 45 CFR Part 74.26 essentially incorporates the thresholds and deadlines of Office of Management and Budget (OMB) Circular No. A-133, “Audits of States, Local Governments and Non-Profit Organizations,” but provides for-profit organizations with two options regarding the type of audit that will satisfy the audit requirements either: • a financial related audit (as defined in the Government Auditing Standards, GPO Stock #020-000-00-265-4, http://www.gao.gov/govaud/ybk01.htm) of the HHS awards in accordance with Governme
