Ensuring Nonprofit Compliance with the Federal OMB Uniform Guidance and NJ's Circular 15-08 OMB

By John D'Amico  |  March 13, 2017

The federal OMB’s Uniform Guidance requires New Jersey-based nonprofit organizations with fiscal year expenditures greater than $750,000 to have a Single Audit. Organizations that receive new or incremental federal funding either directly from a federal agency or passed-through from the state or a local government after December 24, 2014 need to follow the federal OMB’s Uniform Guidance. For federal grants awarded prior to that date, OMB Circulars (A-110 and A-122 for nonprofits) are still in effect.

The Uniform Guidance, which supersedes and combines the requirements of eight existing OMB Circulars (A-21, A-50, A-87, A-89, A-102, A-110, A-122, A-133), is now codified into the Code of Federal Regulations (CFR) Title 2 Part 200. Title 2 Part 200.300 series contains the administrative requirements, Title 2 Part 200.400 series contains the cost principles. Title 2 Part 200.500 series requires independent auditors to perform their Single Audits for all Single Audits performed with year ends after December 26, 2015 regardless of whether the nonprofit has to adhere to the OMB Circulars or the CFR Title 2 part 200. All of this means that some New Jersey nonprofits will find themselves having to comply with both new and existing regulations, depending upon when their grants were issued. This will go on until the federal agency awards them new direct or incremental funding.

New Jersey-based nonprofit organizations are required to have a State Single Audit for their state- funded programs when total state-funded expenditures are greater than $750,000 in the organization’s fiscal year. The State Single Audit under Circular 15-08 follows the requirements contained in the Uniform Guidance.  Therefore, NJ nonprofit organizations that have expenditures greater than $750,000 in federal or State funds in their fiscal year must have a Single Audit under Uniform Guidance and/or the State of New Jersey Circular 15-08 OMB.

The State of New Jersey requires NJ nonprofits that expend less than $750,000 in federal or state assistance within their fiscal year, but expend $100,000 or more are required to have either a financial statement audit performed in accordance with Government Auditing Standards or a program-specific audit in accordance with the Single Audit Act.

The Single Audit Guidance under both the Uniform Guidance and New Jersey Circular 15-08 OMB are only for recipients who carry out or administer a program. Contractors (vendors) who provide goods or services but do not carry out or administer a program are not affected.

New Jersey nonprofit organizations should utilize the award notices and agreements and the State Grant Compliance Supplement to determine the compliance requirements. The State Grant Compliance Supplement can be located at:


Therefore, NJ nonprofits must be familiar with the requirements in the Title 2 part 200.300 and part 200.400 series for their federal grants and OMB Circular 15-08 and the State Grant Compliance Supplement for their state-funded grants.

OMB Circular 15-08 requires NJ nonprofits that receive federal funding passed through from a NJ State agency or receive a state of NJ-funded grant or aid to have a Single Audit.  The Single Audit report must have the federally required reports and opinions and similar reports and opinions for State grant or State Aid funds including a supplementary schedule entitled Schedule of Expenditures of State Financial Assistance and must show for each State grant:

  • State Grantor Department
  • Program title/Name
  • State Grant Award Number or Account Number
  • Grant Award Period
  • Fiscal Year Grant Expenditures
  • Total Grant Expenditures to Date

The Single Audit reports are due nine months after the end of the organization’s fiscal year-end.

For more information: 
If you have questions about this article, please contact John D'Amico, Director in our Nonprofit, Government and Healthcare Group, at 973.267.1400 or via email at jdamico@markspaneth.com, or any of our nonprofit professionals.

About John D'Amico

John D'Amico Linkedin Icon

John D'Amico, CPA, is a Partner within the Professional Standards Group at Marks Paneth LLP, which is responsible for monitoring quality control in the firm as mandated by professional standards. He specializes in pre-issuance reviews and inspections of nonprofit organizations, governments and Single Audits. Mr. D’Amico also provides consultation on accounting and attestation matters and tests and monitors the firm's quality review policies and procedures. He teaches continuing education classes for the firm and on... READ MORE +

SUCCESS IS PERSONAL Click here to learn more about our brand