Single Audits: Incorporating Recent OMB Revisions to Uniform Guidance

Effective Oct. 1, 2024, the OMB revised the guidelines for organizations receiving federal financial assistance. Perhaps the most complex of examinations, single audits must be conducted in accordance with Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards (GAGAS). Funding agencies most often require these audits to meet the Yellow Book requirements of the General Accounting Office as well.

Among the notable OMB changes, organizations receiving over $1 million in assistance are subject to single audits, an increase from the previous threshold of $750,000. Similarly, the threshold for determining Type A programs increased from $750,000 to $1 million, and the threshold for capital expenditures increased from $5,000 to $10,000. The revisions are meant to simplify these complex audits; however, the guidance itself is well over 400 pages. Accounting and auditing professionals who perform governmental audits or work with organizations subject to single audit standards must thoroughly understand the new requirements.

Listen as Jack Reagan, Managing Director at UHY Advisors MidAtlantic, offers an analysis of the updated OMB guidelines and advice for implementing the new requirements.