Single Audit
A federally required audit for organizations that spend $750,000 or more in federal awards in a fiscal year.
Definition
A Single Audit (formerly known as an A-133 audit) is a rigorous, organization-wide audit required by the Single Audit Act and OMB Uniform Guidance (2 CFR 200). It evaluates both financial statements and compliance with federal grant requirements. The audit examines internal controls over federal programs, tests transactions for allowability, and reports findings to federal agencies.
Why It Matters
Failing a Single Audit can result in loss of federal funding, required repayment of grant funds, increased oversight, and reputational damage. Proper AP controls and documentation are essential for passing.
Examples
Threshold determination
A nonprofit receives $500,000 from HHS and $300,000 from DOE. Total federal expenditures of $800,000 exceed the $750,000 threshold, triggering a Single Audit.
Compliance testing
Auditors sample 60 transactions from a major federal program, testing each for allowability, allocability, and proper documentation.
How Nexus AP Helps
Nexus Fund maintains complete audit trails for every transaction, auto-tags federal grant expenditures, and generates compliance reports that streamline the Single Audit process.
Start Free TrialFrequently Asked Questions
What is the Single Audit threshold?
Organizations that expend $750,000 or more in federal awards during their fiscal year must have a Single Audit performed. This threshold was set by the 2013 Uniform Guidance revision.
What happens if you fail a Single Audit?
Findings can range from material weakness to qualified opinions. Consequences include corrective action plans, increased federal monitoring, funding holds, or in severe cases, repayment of funds.
How long does a Single Audit take?
A Single Audit typically takes 3-6 months from planning through final report issuance. Organizations must submit to the Federal Audit Clearinghouse within 30 days of receipt or 9 months after fiscal year end.
Category
nonprofitRelated Terms
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