Policy Memo 100

DOH-CACFP: Number 100 (09/04)Supersedes Number 45 (12/99)

TO: All CACFP Sponsoring Organizations

FROM: Jeanne Culver, State Director

SUBJECT: Audit Requirements-Revisions to Circular A-133

Purpose and Scope

The purpose of this memorandum is to provide all Child and Adult Care Food Program (CACFP) sponsoring organizations with information on recent revisions to the Office of Management and Budget (OMB) Circular A-133.

Background Information

  1. Revisions to OMB Circular A-133 increase the threshold requirement for an audit from $300,000 to $500,000 for fiscal years ending after December 31, 2003.
  2. CACFP Program regulations prohibit the use of Federal funds for audits that are not required by Federal regulations.
  3. OMB Circular A-133 applies to all private, not-for-profit organizations, municipalities, hospitals, and Indian tribes.
  4. The revised OMB Circular A-133 is available electronically at the following web site: http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2012

Summary of Changes

Sponsoring organizations that expend $500,000 or more in Federal funds during a fiscal year ending after December 31, 2003 are required to conduct a single or program-specific audit in accordance with OMB Circular A-133. Sponsoring organizations expending less than the new $500,000 threshold are not allowed to use CACFP funds to pay audit costs. Organizations that exceed the threshold may charge the program the allocated cost associated with the CACFP portion of the audit. CACFP no longer reimburses sponsors directly for required audits.

Effective April 1, 2003, any participating CACFP sponsoring organization having outstanding audit reports will be found to be seriously deficient in their operation of CACFP. The consequences of being named seriously deficient, which can include termination from CACFP, are described in CACFP Policy Memorandum 79 (12/02).