What the tool applies
The risk-based approach in 2 CFR 200.518 works in steps. Step one classifies programs as Type A or Type B using the Table 1 threshold. Step two identifies low-risk Type A programs, which need not be major, and step three identifies high-risk Type B programs from those above 25% of the Type A threshold. Step four sets the programs that must be audited as major: Type A programs not low-risk, Type B programs identified as high-risk, and whatever more is needed to reach the coverage percentage. The tool takes the low-risk and high-risk marks as your inputs and applies the arithmetic of the other steps. It follows the rules as revised by OMB in 2024, effective for fiscal years beginning on or after October 1, 2024.
When to use it
Use it at planning to size the compliance audit, to check a client's own expectation of major programs, and to see how far a low-risk auditee status reduces coverage from 40% to 20%. Materiality for the financial statements is separate: see the materiality calculator.
Limits
Program definitions, clusters, loan programs and the treatment of awards expended follow the regulation and the current Compliance Supplement, and the auditor documents the determination. The auditor's judgment is presumed correct when the determination was performed and documented under the requirements. Check the result against your firm's methodology before relying on it.
Common questions
When is a single audit required?
Under 2 CFR 200.501(a), a non-Federal entity that expends $1,000,000 or more in Federal awards during its fiscal year must have a single audit or a program-specific audit for that year. The $1,000,000 level applies to fiscal years beginning on or after October 1, 2024; earlier years used $750,000.
How is the Type A threshold set?
Table 1 in 2 CFR 200.518(b) sets it by total Federal awards expended: $1,000,000 for totals from $1 million to $34 million; 3% of the total above $34 million up to $100 million; $3 million above $100 million up to $1 billion; 0.3% of the total above $1 billion up to $10 billion; $30 million above $10 billion up to $20 billion; and 0.15% of the total above $20 billion. A Type A program has Federal awards expended exceeding the threshold; all others are Type B.
Which programs must be audited as major?
At a minimum, Type A programs not identified as low-risk, Type B programs identified as high-risk, and any additional programs needed to meet the percentage of coverage rule (200.518(e)). The auditor assesses risk on Type B programs that exceed 25% of the Type A threshold. The risk analysis must be included in the audit documentation (200.518(g)).
What is the percentage of coverage rule?
Major programs must cover at least 40% of total Federal awards expended, or at least 20% if the auditee qualifies as a low-risk auditee under 2 CFR 200.520 (200.518(f)). To qualify, the auditee must have had annual single audits in each of the preceding two audit periods, with unmodified opinions, no material weaknesses, no going concern doubt reported, and no Type A program findings of the kinds listed in 200.520.
What does this tool leave out?
The large loan and loan guarantee adjustment in 200.518(b)(3), biennial audit periods, and fiscal years that began before October 1, 2024. It also does not decide which Type A programs are low-risk or which Type B programs are high-risk. Those are auditor judgments. When it adds programs to reach coverage it picks the largest remaining ones only as an illustration.
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.