Upcoming Increase in Single Audit or Program-Specific Audit Thresholds

For audits of fiscal years beginning on or after October 1, 2024, the Office of Management and Budget (OMB) will raise the threshold for requiring a single audit or program-specific audit from $750,000 to $1,000,000. Non-Federal entities receiving less than $1,000,000 in federal funds annually will no longer be required to undergo a single audit, reducing compliance costs and administrative burden. Larger recipients will continue to follow existing audit requirements.

This update was part of OMB’s effort to improve efficiency and oversight of federal funds. By raising the threshold, the revised guidance aims to ease requirements for smaller organizations while maintaining accountability for larger recipients.

For-profit entities that receive federal awards will continue to follow the funding agency’s contract and agreement provisions and may be subject to the agency specific audit requirement that has different audit thresholds. For profit entities are not subject to 2 CFP Part 200, Subpart F (Uniform Guidance Audit Requirement).

Read more about OMB’s most recent updates to its Uniform Guidance. >>

AAFCPAs advises that clients consult with their audit team to understand the implications of the new threshold and to take appropriate actions to align with the updated guidance.

How We Help

At AAFCPAs, we specialize in providing UG/Single audits, outsourced accounting and fractional CFO, technical accounting advisory, internal controls consulting, and board development and governance for nonprofit organizations subject to federal Uniform Guidance and state-specific compliance requirements. With the single audit threshold increasing, we help clients understand and adapt to these changes, ensuring a smooth transition.

Our team brings multi-disciplinary expertise to federally funded entities, including multi-service health & human services organizations, federally qualified health centers (FQHCs), community development corporations (CDCs), special education schools, and more.

Whether your organization is new to federal funding or adjusting to new requirements, AAFCPAs offers a suite of solutions for strategy, efficiency, compliance, and risk management.

If you have questions, please contact Hui-Ting Grady, CPA, Director, Assurance at 774.512.4106 or hgrady@nullaafcpa.com—or your AAFCPAs Partner.