What it is
In a single audit the auditor uses a risk-based approach to choose which federal programs are audited as major programs. 2 CFR 200.518 sets four steps: label Type A and Type B programs by dollar threshold, identify low-risk Type A programs, identify high-risk Type B programs, and select major programs, then meet the percentage-of-coverage rule.
This worksheet runs those steps from a program list. It applies the Type A threshold table, handles large loan programs, flags low-risk Type A programs from the prior-period tests, shows which Type B programs need a risk assessment and computes coverage against 20% or 40% of total federal awards expended. The table follows 2 CFR 200.518(b)(1) as revised effective for fiscal years beginning on or after October 1, 2024; the threshold table and coverage percentages are inputs.
When to use it
- Planning a single audit and documenting the major program determination.
- Reviewing the determination in a working paper file.
- Testing whether coverage has been met before fieldwork.
What’s inside
- Inputs: total expended, Type A threshold table, low-risk auditee status and coverage
- Programs tab: Type A or B, loan tests, low-risk Type A, Type B risk assessment trigger, major program
- Coverage achieved against required and shortfall
- Counts of Type A, low-risk, high-risk Type B and major programs
Standard cited
This template follows 2 CFR 200.518. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What makes a Type A program low-risk?
It was audited as a major program in at least one of the two most recent audit periods and, in the most recent period, had no material weakness in internal control over the program, no modified opinion and known or likely questioned costs not above 5% of the program’s expenditures. Follow-up results or changes in personnel or systems can preclude low-risk.
What is the coverage rule?
Major programs must cover at least 20% of total federal awards expended if the auditee qualifies as low-risk under 2 CFR 200.520, otherwise at least 40%. Add programs until the shortfall is zero.
How are large loan programs handled?
A loan program is one where loans are 50% or more of the program. It is a large loan program if it exceeds four times the largest non-loan program. Large loan programs are Type A and are removed from the total before recalculating the Type A threshold.
Related templates
- Subrecipient Monitoring Checklist (2 CFR 200.332)
- Audit Risk Assessment Worksheet (SAS 145)
- Audit Planning Memo (AU-C 300)
Last updated 11/05/2026. All free templates.