The Single Audit threshold for organizations that receive Federal awards has been increased from $750,000 to $1 million, effective for fiscal periods starting on or after October 1, 2024. A Single Audit is an extremely complex and demanding process for organizations. This adjustment is designed to lessen the audit burden on entities with smaller awards and allow federal oversight resources to focus on larger awards.
What is a Single Audit?
A Single Audit is an examination requirement for non-Federal entities that receive and spend Federal funding. By adhering to Generally Accepted Auditing Standards (GAAS) as well as Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller of the U.S, and the Uniform Guidance, a Single Audit assesses compliance with federal award conditions and verifies that organization are following financial and regulatory guidance.
Any entity that has received Federal funding should be familiar with the Uniform Guidance (UG) Title 2 of the Code of Federal Regulations, Part 200. This guidance provides information on cost principles, administrative requirements, and audit obligations for recipients of federal funds.
Single Audit 2025 - $1 Million Threshold
Beginning on or after October 1, 2024, only organizations with federal expenditures of $1 million or more in a single fiscal year will be subject to a Single Audit.
- The $1M criteria is based on the total federal grant/loan money an organization SPENT within a single fiscal year. If your entity received over $1M, but spent less, you will not need to complete a Single Audit.
- The $1M is based on a total of ALL federal grant/loan money spent. If your organization received several Federal grants/loans, you must consider the expenditures of all of them together.
- The total does not consider state or local money. You only need to determine the sum of Federal money spent within one fiscal year.
This increase in the threshold may benefit many organizations including nonprofits and smaller governments that receive federal funding but spend less than a million in a year. However, even if a Single Audit is not required, entities must continue to comply with all federal requirements for award expenditures and conditions. It is essential to complete internal audits and maintain internal controls to ensure ongoing compliance.
Single Audit Preparation
For current clients, during your annual audit, our team will review your records and alert you if a Single Audit will be necessary. If so, entities are generally allowed six months after their fiscal year-end to complete the Single Audit, although that timeline can vary depending on grant requirements.
For current clients and entities looking for an auditor, our team is excels in both performing Single Audits and in preparing organizations to undergo a Single Audit. We can guide you through gathering, organizing, and presenting documents you need: expenditures incurred, expenditure reimbursed, invoices, contractor agreements, any required local matching, and any other specific reporting requirements you may have to follow. Please contact us to learn more.
Records You'll Need for a Single Audit
Kirsten Robertson Owens, CPA
A Manager on our assurance team, Kirsten maintains expertise to provide auditing services with a specialization in Avizo’s governmental and construction-based niches. She is one of the primary leads on our in-field audits and completes training for all members of the firm before they visit clients offices.
