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Type B Risk Assessment Threshold Calculator (2 CFR 200.518(d))

What do these figures come to once the work is shown?

Type A threshold, the 25 percent floor for Type B risk assessments, whether a Type B program needs one, and the one-fourth limit on high-risk Type B programs.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Risk assessment floor (25% of Type A threshold)
$465,000
2 CFR 200.518(d)(2)
Type A threshold
$1,860,000
High-risk Type B programs required, at most
1.50
One-fourth of the low-risk Type A count; the regulation states no rounding
Drawn to one scale
Type A threshold$1,860,000
Risk assessment floor (25% of Type A threshold)$465,000
All results
MeasureResult
Type A threshold$1,860,000
Risk assessment floor (25% of Type A threshold)$465,000
Type B program is below the Type A thresholdYes
Risk assessment required for this programYes
High-risk Type B programs required, at most
One-fourth of the low-risk Type A count; the regulation states no rounding
1.50
How this was worked out
Work shownrecomputed as you type
Type A threshold from Table 1 in 200.518(b)(1), after removing large loan programs
Risk assessment floor = 0.25 x Type A threshold
Assess a Type B program when its expenditures exceed the floor
High-risk Type B programs required, at most = low-risk Type A programs / 4

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

The formulas

  • Type A threshold from Table 1 in 200.518(b)(1), after removing large loan programs
  • Risk assessment floor = 0.25 x Type A threshold
  • Assess a Type B program when its expenditures exceed the floor
  • High-risk Type B programs required, at most = low-risk Type A programs / 4

How it works

2 CFR 200.518(d)(2) relieves the auditor from assessing risk on relatively small programs: risk assessments are required only for Type B programs that exceed 25 percent of the Type A threshold. Under (d)(1) the auditor is not required to identify more high-risk Type B programs than one-fourth of the number of low-risk Type A programs.

Except for known material weaknesses or compliance problems, a single risk criterion would rarely make a Type B program high-risk, and the regulation encourages rotating which Type B programs are assessed over time. All high-risk Type B programs identified are audited as major.

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

Common questions

What if there are no low-risk Type A programs?

Then one-fourth of zero is zero, and the cap requires no high-risk Type B programs. Coverage still has to meet 200.518(f).

Can I assess Type B programs below the floor?

Yes. The floor sets when an assessment is required, not when one is allowed.

Where do I get the low-risk Type A count?

From step two, 200.518(c). The Type A low-risk program test on this site checks each program.

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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