For nonprofit organizations, federal funds can be subject to single audit requirements under the OMB Uniform Grant Guidance. The SBA recently provided the following guidance for nonprofits receiving SBA funds under the CARES Act, whether they are from PPP (Paycheck Protection Program) or EIDL (Emergency Injury Disaster Loan) programs.
- SBA PPP loans given to Non Profit organizations are NOT subject to single audit requirements.
- SBA EIDL loans given to Non Profit organization ARE subject to single audit requirements.
As a reminder, the threshold requiring an audit under the OMB Uniform Grant Guidance is federal funds expended of $750,000 or more.
On a somewhat related note, if your organization expended federal funds in your regular course of business, that are subject to the single audit requirements, the OMB has issued a blanket six- month extension beyond your expected due date for year-ends, from the date of the OMB memorandum (3/19/2020) through June 30, 2020. Since the memorandum was released March 19, 2020 it affects the audit due date for organizations with year ends that fall at 3/31/2020 through 6/30/2020.
Please contact your HW&Co business advisor with any questions you may have.