Skip Maine state header navigation

Agencies | Online Services | Help










TO: Superintendents of Schools

Directors of Applied Technology Regions

Municipal Officials of School Administrative Units

FROM: Susan A. Gendron, Commissioner of Education


DATE: August 25, 2003


RE: Revised O.M.B. Circular A-133 Single Audit Guidelines for

Audits of States, Local Governments, and Non-Profit



This is notice that the Office of Management and Budget (OMB) is implementing revised standards for audits of state and local governments under Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular), effective for fiscal years that end after December 31, 2003 (Page 2 of Attachment #1).


The following outlines the revisions to the Federal audit requirements:


  1. Raising the Threshold - OMB raised the threshold that determines eligibility for subrecipient (school administrative unit) A-133 audits from $300,000 to $500,000 in total Federal expenditures (Page 9 of Attachment #1).


The effect of this revision on subrecipients means fewer school administrative units will now be required to have an A-133 Single Audit conducted.


Although this revision excludes certain school administrative units from having an A-133 audit, limited scope audits will continue to be required for subrecipients that receive at least $100,000 but less than $500,000, in order to meet the monitoring requirements of the Circular (Pages 14 and 26 of Attachment #1). Department of Education implementing guidelines for limited scope audits are enclosed as Attachment #2.


  1. Cognizant Agency Assignments The revision OMB made to "cognizant agency assignments" affects recipients but not subrecipients. OMB raised the threshold for assigning a cognizant agency for audit from $25 million to $50 million. Recipients that expend less than $50 million a year in Federal assistance will have an audit oversight agency, rather than a cognizant agency. The cognizant agency is the Federal agency that provides the most direct funding to recipients (Page 24 of Attachment #1).


OMB also made a technical revision that amends the base year for determining cognizant agency assignments (Page 24 of Attachment #1).


  1. Oversight Agency for Audit This revision also does not affect subrecipients, but is listed here as another major change to the Circular. OMB revised the Circular to allow Federal oversight agencies to make reassignments. A Federal agency with oversight for a recipient may reassign oversight to another Federal agency which provides substantial funding and agrees to be the oversight agency for audit (Page 7 of Attachment #1).


Please consult your auditor should you have any questions or require further information regarding these revisions. You may also call Susan Griffin, Supervisor of Audit, at 624-6864 or send e-mail to




cc: Auditors of School Administrative Units