CT HB05275

Increases the audit threshold for nonstate entities receiving state financial assistance from $300,000 to $500,000 per fiscal year, effective July 1, 2024.

Nonstate entities expending $500,000 or more in state financial assistance must have either a single audit or program-specific audit, depending on whether assistance is for one or multiple programs.

Entities expending less than $500,000 in state financial assistance are exempt from financial and compliance audit requirements, though they must still maintain records and provide access to state agencies.

Requires nonstate entities to designate an independent auditor at least 30 days before the end of the fiscal period and file audit reports within six months of the audit period's end, with possible extensions of up to 12 months total.

Establishes civil penalties ranging from $1,000 to $10,000 for entities or auditors failing to file required audit reports on time, with authority for the Secretary of the Office of Policy and Management to waive penalties for reasonable cause.