When Is a Single Audit Required for Federal Award Recipients?

A non-federal entity, such as a state, local government, Indian tribe, college or nonprofit, that spends $1,000,000 or more in federal awards during its fiscal year must have a single audit or, if it qualifies, a program-specific audit for that year (2 CFR 200.501(a) and (b)). The threshold is set by OMB's Uniform Guidance.

Program-specific audit option. An entity may elect a program-specific audit instead if it spends federal awards under only one federal program (not research and development) and the program's statutes, regulations or award terms do not require a financial statement audit (2 CFR 200.501(c)). A separate option applies to research and development awards from a single agency, if the agency approves in advance (2 CFR 200.501(d)).

Below the threshold. An entity that spends less than $1,000,000 in federal awards during its fiscal year is exempt from federal audit requirements for that year, except as noted in 2 CFR 200.503. Its records must still be available for review or audit by the federal agency, the pass-through entity and the Government Accountability Office (2 CFR 200.501(e)).

Pending changes. OMB published a proposed rule titled "Regulation for Federal Financial Assistance" on May 29, 2026. Under the Continuing Appropriations Act, 2027, a rule revising the Uniform Guidance from that proposal, or a substantially similar rule, may not be issued or finalized, and may not take effect, through December 11, 2026 (Pub. L. 119-103, Division A, sec. 157).

Related grant duties. Grant recipients also have drug-free workplace duties, covered in the FAQ on drug-free workplace rules for federal grant recipients. The FAQ on drug-free workplace program components lists common policy elements, and the FAQ on what compliance training is describes how training is recorded.