What Triggers a HUD Audit?

Receiving HUD funding does not by itself create an audit obligation. Whether you need an audit depends on your entity type, program, award terms, and the federal awards you expended that year.

HUD OIG can also decide to audit an organization after a complaint or a risk assessment. For what a HUD audit is and which framework applies, see what is a HUD audit.

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When Is a HUD Audit Required or Proposed?

Program and Award Requirements
Whether an audit is required is fixed by the rules and award terms for your entity type and program. For-profit participants, nonprofits and public housing agencies face different requirements.
Exceeding Financial Thresholds
States, local governments, Tribes, colleges, and nonprofits that expend $1,000,000 or more in federal awards during a fiscal year need a Single Audit or, when eligible, a program-specific audit under the Uniform Guidance. OMB raised the threshold from $750,000 for fiscal years beginning on or after October 1, 2024 (2 CFR 200.501).
Auditors examine financial statements, internal controls, and federal compliance.
Routine Annual Audit Requirements
HUD requires annual audited financial statements for some participants. Depending on the program, others may submit certified or unaudited reports, or need an audit only after meeting a federal threshold or a program or award requirement.
Complaints or Suspected Fraud
HUD OIG reviews complaints about mismanagement, fraud, or financial irregularities and may route them to an audit, an evaluation, an investigation, management action, another agency, or no further action. HUD OIG does not automatically open an audit after a whistleblower report, a tenant complaint, or a financial inconsistency.
HUD Monitoring and Risk Assessments
HUD conducts routine monitoring and risk assessments to evaluate how organizations manage federal funds. Where that work raises concerns, HUD program officials can pass them to HUD OIG.
HUD applies HUD compliance monitoring and HUD risk assessment differently across its programs. A monitoring visit is not an audit, and OIG decides separately whether to audit.

Which audit framework applies to your organization

Send your entity type, HUD programs and the federal awards you expended last year and we will tell you whether a Single Audit, an audit under HUD's Consolidated Audit Guide, or neither applies.

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