The Office of Management and Budget (OMB) has released the 2014 Circular A-133 Compliance Supplement, which contains a number of changes that will affect tribal governments, states, local governments, and non-profits that receive federal funding. The Compliance Supplement is viewed as an essential guide for performing single audits on federal grant programs and it is seen as a resource for auditors to better understand federal program objectives and procedures.
Highlights of the 2014 Compliance Supplement Changes:
Part 1: Background, Purpose, and Applicability
Part 2: Matrix of Compliance Requirements
The matrix was updated to add and remove programs consistent with Part 4.
Part 3: Compliance Requirements
OMB made minor clarifications in Section C, "Cash Management," eliminated coverage of "Principals" in Section I, removed coverage of reporting of the American Recovery and Reinvestment ACT (ARRA, section 1512), resulting in changes to sections L and M, and modified the titles in Section B "Allowable Costs/Cost Principles" to add reference to the 2 CFR part in which OMB cost principles are currently located.
Part 4: Agency Program Requirements
All program supplements were modified to remove ARRA reporting.
Part 5: Clusters of Programs
OMB added five programs, modified the title of nine programs, and removed 17 programs; including the ARRA, Indian CDBG Program Cluster, Indian Housing Block Grants Cluster, CFP Cluster, and the Native Hawaiian Housing Cluster. Several clusters also were changed with the removal of ARRA.
The compliance supplement is applicable for audits of fiscal years beginning after June 30, 2013. For a full list of the Compliance Supplement changes, click here.