The threshold for A-133 financial and compliance audits is $500,000. That means if your organization receives $500,000 or more of federal money, from all sources combined, both direct and pass-through, during your fiscal year, you are required by OMB Circular A-133, to arrange for this kind of audit. It includes a regular financial audit, a schedule of federal financial assistance, plus testing your compliance with federal laws and regulations. It takes longer to do than just a financial audit, and it costs more.
We usually produce two separate reports for these engagements, one for the regular financial statements, and the other for the schedule of federal awards and compliance reports.
