If your nonprofit spends $750,000 or more in federal awards in a fiscal year, it will be required to undergo a single audit, according to new guidelines from the Office of Management and Budget. The guidelines, issued in December, raise the threshold for compliance audits from $500,000 to $750,000 per fiscal year. They’ll take effect for fiscal years beginning on or after Jan. 1, 2015.
Nonprofits that spend less than $750,000 in a fiscal year will be required to make records available for review or audit by officials of the federal funding agency, any pass-through entity and the U.S. Government Accountability Office. The new federal rules contain other changes to the requirements for nonprofits and for their auditors. Contact your CPA for more information.