What is a Single Audit?

The threshold is based on Federal awards expended during the fiscal year, not simply awards received, cash on hand, or the organization's total revenue. An entity below the threshold is generally exempt from the Federal audit requirements for that year but must still make records available for review or audit by authorized parties.

A Single Audit is different from a routine financial statement audit. It adds Federal award compliance work and is submitted through the Federal Audit Clearinghouse under the applicable reporting requirements.

The audit covers the financial statements, the schedule of expenditures of Federal awards, internal control over Federal programs, and compliance for selected major programs. It does not test every transaction or every program in the same depth.

Findings may address internal control, unsupported costs, reporting, eligibility, subrecipient monitoring, procurement, or other requirements that apply to the selected program. The applicable compliance supplement and award terms shape the testing.

For pass-through entities, 2 CFR 200.332(a) requires verifying that every subrecipient is not excluded or disqualified in accordance with 2 CFR 180.300. The permitted methods include checking SAM.gov Exclusions, collecting a certification, or adding a clause or condition to the covered transaction.

Vendor transactions are different. A vendor requires suspension and debarment verification under 2 CFR 180.300 only when the purchase is a covered transaction. The classification of the other party and the transaction cannot be skipped.

Evidence should identify the party, the method used, the date, and the result. For a SAM.gov exclusion check, the record should also identify the source date and distinguish an identifier match from a potential name match.

A verification record documents the diligence performed. It does not determine how an auditor will assess the evidence or replace the entity's responsibility to apply the award terms and regulations.