In December 2014, the Obama administration finalized the Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards, commonly referred to as the Uniform Guidance. The rules are effective for new awards made on or after December 26, 2014. The Uniform Guidance has been described as historic reform that will make long-term changes to the Federal government’s financial assistance programs.
Beginning with December 31, 2015 year end audits, organization’s that met certain thresholds were required to have an audit performed under the Uniform Guidance.
For those organizations with June 30 year ends that met the threshold you are about to incur your first Uniform Guidance audit. Some items to consider:
- The organization needs to prepare their schedule of federal awards and understand which grant expended amounts are under “old” and “new” requirements
- Type A minimum threshold has increased from $500,000 to $750,000
- Uniform Guidance audit reports will include updated wording
- Determination of Type A and Type B programs has changed. This means that programs not previously selected could be audited in your June 30th year end single audit
With the various changes under the Uniform Guidance you not only need to be well informed but you need auditors that understand these new changes. Feel free to contact me at 216.378.7224 to learn more about our services.