ADMINISTRATIVE LETTER NO. 10

POLICY CODE:  DIE

 

 

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

                        Organizations

 

      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.  

 

2. 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).

 

3. 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 susan.griffin@maine.gov

 

Attachments

 

cc:  Auditors of School Administrative Units