One of our public policy priorities for the past two years has been to bring much-needed change to the state’s single audit regulations. Foraker staff and the public policy committee have devoted significant time to this effort. And that work has paid off.
While we did not see all the adjustments we felt were needed, the state did make changes that will help save time and money for many Alaska nonprofits.
By way of background – Alaska nonprofits that receive at least $500,000 in grant funds from the state in a fiscal year are required to file a State Single Audit. In comments submitted to the state earlier this year, Foraker said that the $500,000 threshold was onerous and diverted resources from critical nonprofit missions. We urged the state to raise the threshold to at least $750,000 to match the requirement for federal audits. At the same time, we called for increases to the thresholds the state uses to classify a “major program,” as well as for a move to a more risk-based system overall.
We are pleased that the state has accepted a portion of our recommendations. The state single audit threshold was increased from $500,000 to $750,000 for grantees whose fiscal year began on or after April 1, 2017. However, that increase was not tied to the federal threshold requirement.
The state also made some small changes to the “major programs” thresholds. Those are:
- If the total adjusted expenditures for all state financial assistance is less than $1 million, the major program threshold moves from $50,000 to $75,000.
- If the assistance is between $1 million and $5 million, the threshold moves from $75,000 to $150,000.
- If the assistance is between $5 million and $20 million, the threshold moves from $100,000 to $200,000.
- If the assistance is greater than $20 million, the threshold moves from $300,000 to $500,000.
Remember that the major audit threshold is what determines whether a program is “major” and, therefore, requires a single state audit.
We thank Sheldon Fisher, Commissioner of the Department of Administration, and the Division of Finance for their work with us on these changes.
We urge you to check with your granting agency to determine if these changes apply to your organization. If you have questions, you can also get in touch with Mike Walsh, Vice President and Director of Public Policy, at 907.388.5561 or email@example.com powered by Disqus