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Major Program Materiality Calculator for Compliance Audits (AU-C 935)

How big can an error get before it would change what a reader decides?

Materiality for one government program from its expenditures and your chosen percentage, and known plus likely noncompliance against it.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Program materiality
$138,000
Materiality for the government program as a whole
Known plus likely noncompliance
$79,000
Noncompliance as % of program materiality
57.25%
Drawn to one scale
Program materiality$138,000
Known plus likely noncompliance$79,000
All results
MeasureResult
Program materiality$138,000
Known plus likely noncompliance$79,000
Noncompliance as % of program materiality57.25%
Indication
Below program materiality for the program as a whole
How this was worked out
Work shownrecomputed as you type
Program materiality = federal awards expended for the program x your percentage
Compare known plus likely noncompliance with program materiality

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Program materiality = federal awards expended for the program x your percentage
  • Compare known plus likely noncompliance with program materiality

How it works

AU-C 935 paragraph .13 requires the auditor to establish and apply materiality levels for a compliance audit based on the governmental audit requirement. Paragraph .A7 says materiality is generally considered in relation to the government program as a whole, while the Uniform Guidance judges whether noncompliance is material for reporting an audit finding in relation to a type of compliance requirement.

Neither AU-C 935 nor 2 CFR 200.514 sets a percentage. Enter your firm's policy. Run the tool again at the level of a single type of compliance requirement when deciding whether a finding is material for reporting, and remember qualitative factors and the needs of grantors under AU-C 935 .A8.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is this the same as financial statement materiality?

No. Each major program has its own materiality, set in relation to that program.

Does materiality decide whether to report questioned costs?

No. 2 CFR 200.516(a)(3) uses a separate $25,000 threshold for known or likely questioned costs.

What base should I use for a cluster?

The cluster is treated as one program, so use the cluster's total expenditures.

Sources

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.

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