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Glossary/Government, nonprofit and ERISA

Type A and Type B programs

In a single audit, Type A programs exceed a size threshold based on total federal awards expended and all others are Type B; the auditor selects major programs from both using a risk-based approach.

CORAA TeamUpdated November 5, 2026

Definition

Under 2 CFR 200.518(b), Type A programs are federal programs with awards expended above a threshold that depends on the entity's total federal awards expended. For totals from $1,000,000 up to $34 million, the threshold is $1,000,000. Above that it scales: total times .03 up to $100 million, $3 million up to $1 billion, total times .003 up to $10 billion, $30 million up to $20 billion, and total times .0015 above that. Programs not labelled Type A are Type B.

Why it matters in an audit or review

The classification starts major program selection. The auditor identifies low-risk Type A programs, risk-assesses Type B programs above 25 percent of the Type A threshold, and audits as major programs all Type A programs that are not low-risk, the high-risk Type B programs, and enough others so that major programs cover at least 40 percent of total federal awards expended, or 20 percent for a low-risk auditee. Major programs get compliance testing. Wrong classification means the wrong programs get tested.

Example

Illustrative: an entity with $5 million in total federal awards uses a $1,000,000 Type A threshold. A program with $1.4 million expended is Type A. One with $700,000 is Type B, and because it exceeds $250,000 (25 percent of the threshold), the auditor risk-assesses it.

Common mistakes

Using the old $750,000 threshold, or not rechecking the table after OMB revisions.

FAQ

What makes a program major?

A Type A program that is not low-risk, or a Type B program the auditor identifies as high-risk, plus programs needed to reach the coverage requirement.

Sources

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

Standards

2 CFR 200.518

Related terms

  • Single audit
    A single audit is the combined financial statement and federal compliance audit required under 2 CFR 200 Subpart F when a nonfederal entity expends $1,000,000 or more in federal awards in a fiscal year.
  • Uniform Guidance (2 CFR 200)
    The Uniform Guidance is OMB's consolidated rulebook in 2 CFR Part 200 for administering federal awards, covering allowable costs, procurement and subrecipient oversight, and the audit requirements of Subpart F.
  • Schedule of findings and questioned costs
    The schedule of findings and questioned costs is the single audit report section that summarizes auditor results and lists financial statement findings and federal award findings, including questioned costs, as 2 CFR 200.515 requires.
  • SEFA
    The SEFA, or schedule of expenditures of federal awards, is the management-prepared schedule listing each federal program's expenditures, which is audited in relation to the financial statements in a single audit.

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