Definition
A nonfederal entity that spends $1,000,000 or more of federal awards in a year (the threshold was $750,000 for fiscal years beginning before October 1, 2024) must have a single audit (or, in limited cases, a program-specific audit) under the Uniform Guidance. Management prepares the SEFA, listing individual programs by federal agency with their Assistance Listing numbers, pass-through entity names and identifying numbers, total expenditures, and amounts provided to subrecipients. The auditor reports on it in relation to the financial statements.
Why it matters in an audit or review
The SEFA defines the population for major program determination. If it is incomplete, programs can be missed and the compliance audit scope is wrong. The auditor tests that it agrees to the accounting records and that its basis of accounting is described in notes.
Example
Illustrative: a nonprofit spends $600,000 on one grant and $550,000 on a pass-through grant. Total federal expenditures of $1,150,000 exceed $1,000,000, so a single audit is required even though no single award does.
Common mistakes
- Omitting noncash awards or loans from the totals.
- Missing pass-through identifying numbers.
- Omitting the notes on significant accounting policies and on whether the de minimis indirect cost rate was elected.
FAQ
What is the single audit threshold?
A single audit is required when an entity expends $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024. Earlier years used $750,000.
Sources
- 2 CFR 200.501, Audit requirements: https://www.ecfr.gov/current/title-2/section-200.501
- 2 CFR 200.502, Basis for determining Federal awards expended
- 2 CFR 200.510(b), Schedule of expenditures of Federal awards: https://www.ecfr.gov/current/title-2/section-200.510
- AICPA, AU-C Section 725, Supplementary Information in Relation to the Financial Statements as a Whole
- OMB, Guidance for Federal Financial Assistance, 89 FR 30046 (April 22, 2024): https://www.federalregister.gov/d/2024-07496
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error