OMB Circular A-133 applies to which entities?

OMB Circular A-133 applies to which entities?

• A. True, all contracts and grants
• B. False, only government agencies
• C. False, only for-profit organizations
• D. True, but only to non-profit organizations

Answer: (B)

OMB Circular A-133 specifically applies to non-federal entities that receive federal awards. This includes state and local governments, universities, non-profit organizations, and other entities that are subject to federal funding requirements. The circular was designed to set uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities, thus ensuring accountability and transparency in the use of federal funds. In this context, stating that the circular applies only to government agencies is not accurate, as it broadly encompasses a variety of non-federal entities that receive federal financial assistance. Therefore, understanding that OMB Circular A-133 primarily targets entities that receive federal funding highlights its purpose in promoting effective governance and financial management among those recipients.

OMB Circular A-133 specifically applies to non-federal entities that receive federal awards. This includes state and local governments, universities, non-profit organizations, and other entities that are subject to federal funding requirements. The circular was designed to set uniform administrative requirements, cost principles, and audit requirements for federal awards to non-federal entities, thus ensuring accountability and transparency in the use of federal funds.

In this context, stating that the circular applies only to government agencies is not accurate, as it broadly encompasses a variety of non-federal entities that receive federal financial assistance. Therefore, understanding that OMB Circular A-133 primarily targets entities that receive federal funding highlights its purpose in promoting effective governance and financial management among those recipients.