Resources · Single Audit
The $1 million Single Audit threshold: what changed and how to tell if it applies to you
Short answer
If your organization spends $1,000,000 or more in federal awards in a fiscal year that starts on or after October 1, 2024, you need a Single Audit for that year. For fiscal years that started earlier, the line was $750,000. What counts is federal money spent during the year, including federal money passed through your state or county, not the size of your awards or the cash you received.
The rule, in one paragraph
The Single Audit requirement lives in the federal Uniform Guidance, 2 CFR 200 Subpart F. Section 200.501 says a non-federal entity that expends federal awards at or above the threshold during its fiscal year must have a Single Audit (or, in limited cases, a program-specific audit). The 2024 revision of the Uniform Guidance raised that threshold from $750,000 to $1,000,000, effective for fiscal years beginning on or after October 1, 2024. The Federal Audit Clearinghouse states the same split on its help pages.
Which threshold applies to your year?
The test is the date your fiscal year starts, not when the audit happens. A few common year-ends:
| Fiscal year | Starts | Threshold |
|---|---|---|
| July 2024 – June 2025 | Jul 1, 2024 | $750,000 |
| October 2024 – September 2025 | Oct 1, 2024 | $1,000,000 |
| Calendar year 2025 | Jan 1, 2025 | $1,000,000 |
| July 2025 – June 2026 | Jul 1, 2025 | $1,000,000 |
So a June 30 organization was still on the $750,000 line for its fiscal 2025 audit, and moves to $1,000,000 starting with the year that began July 1, 2025.
Quick check
Are you over the line this year?
Pick when your fiscal year starts and enter your federal spending for that year, including federal money passed through your state or county. Nothing you type leaves this page.
General information, not advice. Count expenditures, not award totals or cash received; see below. Confirm with your auditor.
It's spending, not awards or cash
The most common mistake is testing the threshold against award totals or deposits. Section 200.502 bases the test on federal expenditures during the year: the allowable costs you incurred on federal programs in that fiscal year. A three-year, $900,000 award may put only $300,000 into this year's total. And a reimbursement that arrives in July for costs incurred in June counts in the year the costs were incurred, not the year the cash arrived.
Two other things often get missed:
- Pass-through money counts. A grant from your state agency or county may be federal money underneath. If the agreement lists an Assistance Listing number (the old CFDA number), it's federal and it belongs in the total.
- Some non-cash and loan amounts count too. Section 200.502 covers loans, loan guarantees, donated property and other non-cash assistance. If you have any of these, walk through them with your auditor before you decide you're under the line.
If you're under the threshold
Below the line, you're exempt from the federal Single Audit requirement for that year. That doesn't make the records optional: federal agencies, pass-through entities and auditors can still review them, and many grant agreements, state rules and funders require their own audit or review regardless. Check your agreements, not just the federal threshold.
If you're over it: the schedule and the deadline
A Single Audit is built around one schedule you prepare: the Schedule of Expenditures of Federal Awards, or SEFA (2 CFR 200.510(b)). It lists each federal program with its Assistance Listing number, the federal agency, the pass-through entity and its award number when the money came through a third party, total expenditures, and amounts passed to subrecipients. Your auditor tests the SEFA against your books, then picks the major programs to audit for compliance.
The finished audit is due to the Federal Audit Clearinghouse by the earlier of 30 calendar days after you receive the auditor's report or nine months after your fiscal year ends (2 CFR 200.512). For a June 30 year-end, that's March 31 at the latest.
A short checklist for this year
- List every federal dollar. Go through each agreement, including state and county grants, and note the Assistance Listing number and the pass-through entity's award number.
- Track federal spending monthly, by program, from your general ledger, not from award letters. A mid-year total tells you early whether you'll cross the line.
- Check your year's start date against the table above so you test against the right threshold.
- Tie the SEFA to the books before your auditor arrives: total federal expenditures on the SEFA should match the federal grant expenses in your GL, with any differences explained.
- Book the audit timeline early. Work back from the 30-day / nine-month deadline and agree fieldwork dates with your auditor.
This article is general information, not accounting, audit or legal advice. Pemberlo is not a CPA firm. Confirm how the rules apply to your organization with your independent auditor or your federal or pass-through agency. Sources: 2 CFR 200.501, 200.502, 200.510 and 200.512 (eCFR); Federal Audit Clearinghouse, "Is my organization required to conduct a Single Audit?"; Colorado Office of the State Controller, Single Audit reviews resource.