A Single Audit, formerly known as an A-133 audit, is a detailed examination of an entity’s financial statements and federal award expenditures. This audit ensures compliance with federal regulations and is required for organizations that receive significant federal funding.
Under the Uniform Guidance (2 CFR Part 200, Subpart F), any non-federal entity—such as a nonprofit organization, state or local government, or educational institution—that expends $750,000 or more in federal funds within a single fiscal year must undergo a Single Audit.
The $750,000 threshold applies to the total federal funds spent, not just the amount received. This means that if an entity receives federal grants but does not expend at least $750,000 during the fiscal year, it is not required to undergo a Single Audit.
The primary objective of a Single Audit is to ensure that federal funds are used appropriately and in compliance with applicable laws and regulations. The audit assesses:
Entities subject to a Single Audit must engage an independent auditor to conduct the review. The audit report must include:
The completed audit report must be submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year-end or 30 days after receiving the final audit report, whichever is earlier.
Entities that expend $750,000 or more in federal funds must comply with the Single Audit requirement to maintain financial transparency and ensure proper use of federal grants. Staying informed about audit regulations helps organizations remain compliant and avoid financial penalties.