A133 nonprofit annual single audits
Who completes the audit?
Certified Public Accountant (CPA)
When is a nonprofit required to have an A133 audit?
In 1998 Nonprofits that expended $300,000 or more in a year in federal awards had to have a single or program-specific audit conducted for that year in accordance with the A133 (OMB Circular A133). As of 2003 the A133 states that the expanded limit is $500,000 (http://www.whitehouse.gov/omb/circulars_a133) . If an organization has expended more than $500,000 in federal awards in a fiscal year, the organization will be required to have an A133, single audit.
For you Health Care Centers/Clinics –There is a more important question and that is what is not considered federal awards expended? (See the partial list of federal items identified in this section, even if these items meet the $500,000 limit, the items listed in this section will not require an A133 audit)
Medicare- "Medicare payments to a non-Federal entity for providing patient care services to Medicare eligible individuals are not considered Federal awards expended."
Medicaid (maybe yes - maybe no) - "Medicaid payments to a sub recipient for providing patient care services to Medicaid eligible individuals are not considered Federal awards expended. Caveat: Unless a State requires the funds to be treated as Federal awards expended because reimbursement is on a cost reimbursement basis." Please check your states requirements.
What are your A133 audit responsibilities?
The responsibilities of the nonprofit are:
Prior to your fiscal year end, between the second (2nd) or third (3rd) quarter of your current fiscal year, begin a self assessment, a pre-audit of your internal controls and a review of the previous year’s audit findings. Your assessment objective is to check your fiscal controls and to see if you have put all the corrective actions in place to resolve all prior year audit findings.
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