OMB Rolls Out Updated Guidance Around Federal Awards
Back in October of 2023, the Office of Management and Budget (OMB) announced that they had planned to revise sections of their guidance for grants and agreements. Now, just five months later, a memorandum addressing the changes to the guidance on administering and managing Federal Awards in Title 2 of the Code of Federal Regulation (CFR) has been published.
The approved changes include:
Increasing the single audit threshold from $750,000 to $1,000,000
Increasing the de minimis rate from 10% to 15%
Increasing the equipment threshold to items over $10,000
The final guidance goes into effect on October 1, 2024 with the option for Federal agencies to apply to awards issued prior to October 1, 2024. However, it is still unclear as to which fiscal years will be impacted for auditees. All Federal agencies must submit their plans for implementing the revisions by May 15, 2024.
What Does This Mean for Your Not-for-Profit Organization?
With these new changes, certain not-for-profit organizations that were previously subject to single audits may be exempt, depending on their federal expenditures. For many smaller organizations that may have been just above the previous threshold, it will eliminate the burden of a single audit.
Interested in checking out the memorandum here? You can access it here.
Please reach out with questions and look for future notifications as further clarifying guidance is released.
