External Requirements Federal

4-F01 OMB Circular No. A-133, Audits of States, Local Governments, and Non-profit Organizations

Purpose

OMB Circular A-133 is issued pursuant to the Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. It sets forth standards for obtaining consistency and uniformity among federal agencies for the audit of states, local governments, and non-profit organizations expending federal awards.

Applicability

Federal funds received by states, local governments and non-profit organizations including higher education institutions.

Summary of Provisions

Non-Federal entities that expend $500,000 or more in federal awards each year shall have a single audit conducted in accordance with Circular Subpart E.500, except when they elect to have a program-specific audit conducted in accordance with Circular Subpart B.200(c).

The below excerpt from Circular Subpart.500 summarizes the scope of the audit requirements:

(a) General. The audit shall be conducted in accordance with GAGAS [Generally Accepted Government Auditing Standards]. The audit shall cover the entire operations of the auditee; or, at the option of the auditee, such audit shall include a series of audits that cover departments, agencies, and other organizational units which expended or otherwise administered Federal awards during such fiscal year, provided that each such audit shall encompass the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which shall be considered to be a non-Federal entity. The financial statements and schedule of expenditures of Federal awards shall be for the same fiscal year.

(b) Financial statements. The auditor shall determine whether the financial statements of the auditee are presented fairly in all material respects in conformity with generally accepted accounting principles. The auditor shall also determine whether the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the auditee's financial statements taken as a whole.

(c) Internal control. (1) In addition to the requirements of GAGAS, the auditor shall perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk for major programs.

Lead Agency

Office of Management and Budget

Implementing Regulations

Circular A-133 is issued under the authority of 31 USC sections 503, 1111, and 7501 et seq. and Executive Orders 8248 and 11541.

Primary University Responsibility

UCOP Associate Vice President and Systemwide Controller - Financial Accounting under the Chief Financial Officer

University Policy Implementation

BUS-76, Engagements with The Regents' Audit Firm

RMP-2, Records Disposition Program and Procedures