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January 25, 2012.

Recent Changes in the OMB Compliance Supplement for Single Audit

by Gene Elias, CPA, RMA, CGFM

The 2011 OMB Compliance supplement is applicable to all entities with fiscal years beginning after June 30, 2010 and supersedes the 2010 supplement. In the 2011 compliance supplement, 19 new programs some Recovery Act specific have been added, and 2 programs have been deleted. Out of the 19 programs, 5 added are related to student financial assistance cluster. There have also been many programmatic changes which are outlined in Appendix 5 of the new compliance supplement. However, one of the biggest changes relates to new Federal Funding Accountability and Transparency Act (FFATA) requirements.

FFATA was signed on September 26, 2006 to empower every American with the ability to hold government accountable for its spending decisions. The end goal is to reduce wasteful spending in the government.

Click here to read about the changes in OMB compliance.

IRS Changes Way it Treats Cell Phones

by Warren Broudy, CPA, CGFM, PSA

For many businesses, employer-provided cell phones were one of the more onerous tax-related expenses to track. However, much of that will change for business thanks to the new treatment of cell phones recently announced by the IRS.

Previously, because cell phones were considered listed property, employers and employees would have to keep detailed records regarding the business and personal use of any cell phones distributed by the company. Any personal use of the cell phone was taxable as income to the employee. Many individuals actually carried two cell phones to avoid this burdensome recordkeeping requirement.