Single Audit (A-133)

The Single Audit, formerly known as the A-133 Audit, is an independent financial and compliance audit required under 2 CFR Part 200 Subpart F for non-federal entities, including nonprofits, universities, state and local governments, and tribes, that expend $1 million or more in federal awards during a fiscal year.

What is a Single Audit?

The Single Audit requirement replaces the need for each individual federal agency to conduct separate audits of grantees receiving multiple awards, consolidating oversight into one comprehensive audit covering all of a recipient's federal program activity. The audit must be conducted by an independent certified public accountant or state auditor and completed within nine months of the auditee's fiscal year end.

The audit has two components. First, the financial statement audit tests whether the organization's financial statements are presented fairly in accordance with generally accepted accounting principles. Second, the federal program compliance audit evaluates whether the organization complied with the requirements of its major federal programs, those that represent the largest expenditures or highest risk, as determined by the auditor using thresholds in 2 CFR Part 200.518.

Audit results are submitted to the Federal Audit Clearinghouse (FAC), operated by the Census Bureau, and are publicly searchable. Findings, including material weaknesses, significant deficiencies, and program compliance violations, are reported to the relevant federal awarding agencies, which must follow up to ensure corrective action. Repeat findings receive heightened scrutiny.

Why the Single Audit matters for government contractors

Organizations that receive significant federal grant funding and approach the $1 million expenditure threshold must plan for Single Audit costs, typically $25,000-$75,000 for smaller organizations, more for larger ones, as an allowable administrative cost charged to federal awards. Adverse audit findings can jeopardize future award eligibility and trigger repayment demands.

Example

A regional nonprofit receives three federal grants totaling $1.4 million in expenditures during fiscal year 2025: a $700,000 HHS community services grant, a $500,000 DoED literacy grant, and a $200,000 EPA environmental justice grant. Because expenditures exceed $1 million, the nonprofit must have a Single Audit conducted by September 30, 2026 (nine months after its December 31 fiscal year end). The auditor designates the HHS grant as a major program and tests compliance with HHS-specific requirements.

Frequently Asked Questions

What is the current Single Audit threshold?

As of October 1, 2024, the threshold is $1 million in total federal award expenditures in a fiscal year. The previous threshold was $750,000. Organizations spending between $750,000 and $1 million that had audits under the old threshold should confirm whether they still meet the new threshold.

Are for-profit companies subject to the Single Audit requirement?

No. The Single Audit requirement applies to non-federal entities, nonprofits, state and local governments, universities, and tribes. For-profit companies receiving federal grants are not subject to the Single Audit, but may be subject to other audit rights specified in their award terms, including agency Inspector General audits.

Where are Single Audit reports submitted and published?

Single Audit reports are submitted electronically to the Federal Audit Clearinghouse (FAC) at fac.gov, which makes them publicly searchable. Federal awarding agencies review audit findings for programs they fund and are responsible for following up on reported deficiencies.

What is a "material weakness" in a Single Audit finding?

A material weakness is a deficiency (or combination of deficiencies) in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the organization's financial statements will not be prevented or detected on a timely basis. Material weaknesses are the most serious category of internal control finding and require immediate corrective action.