What Is the Threshold for an A-133 Single Audit?

Understanding the $750,000 Threshold

Under the Uniform Guidance (2 CFR Part 200, Subpart F), any non-federal entity—such as a nonprofit organization, state or local government, or educational institution—that expends $750,000 or more in federal funds within a single fiscal year must undergo a Single Audit.

The $750,000 threshold applies to the total federal funds spent, not just the amount received. This means that if an entity receives federal grants but does not expend at least $750,000 during the fiscal year, it is not required to undergo a Single Audit.

Purpose of the Single Audit

The primary objective of a Single Audit is to ensure that federal funds are used appropriately and in compliance with applicable laws and regulations. The audit assesses:

• Financial Statements: Verifying that the organization’s financial reports fairly present its financial position.
• Internal Controls: Evaluating internal processes to prevent fraud, waste, and misuse of funds.
• Compliance with Federal Programs: Ensuring that funds are used according to grant agreements and federal guidelines.

Reporting Requirements and Process

Entities subject to a Single Audit must engage an independent auditor to conduct the review. The audit report must include:

1. Financial Statements with an auditor’s opinion.
2. Schedule of Expenditures of Federal Awards (SEFA), listing all federal funds spent.
3. Findings and Recommendations, highlighting any compliance issues or deficiencies.

The completed audit report must be submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year-end or 30 days after receiving the final audit report, whichever is earlier.

Conclusion

Entities that expend $750,000 or more in federal funds must comply with the Single Audit requirement to maintain financial transparency and ensure proper use of federal grants. Staying informed about audit regulations helps organizations remain compliant and avoid financial penalties.