Audits of States,
Local Governments, and Non-Profit Organizations: Circular A-133 Compliance
Supplement 2003
On June 23, 2003
the Office of Management and Budget (OMB) issued a notice of availability
of the 2003 Circular A-133 Compliance Supplement.
Circular A-133 Compliance
Supplement 2003 is intended to assist non-Federal entities and their
auditors in complying with applicable laws, regulations, and the provisions
of contract and grant agreements.
Applicability: As a condition of receiving Federal awards, non-Federal
entities agree to comply with applicable laws, regulations, and the
provisions of contract and grant agreements, and to maintain internal
control to provide reasonable assurance of compliance with these requirements.
"Auditors are
required to determine whether the recipient has complied with laws,
regulations, and the provisions of contracts and grant agreements that
may have a direct and material effect on its major Federal programs.
Auditors shall consider the Supplement and the referenced laws, regulations,
and OMB Circulars (as codified by Federal agencies in agency regulations)
in determining the compliance requirements that could have a direct
and material effect on the programs included herein. That is, use of
the Supplement is mandatory."
