A Practical Single Audit Guide for U.S. Organizations

A Practical Single Audit Guide for U.S. Organizations

Compliance with federal funding rules is one of the biggest responsibilities for nonprofits, universities, and local governments across the country. When federal awards are part of your funding stream, you need to be sure every dollar is documented and accounted for. That’s where a Single Audit Guide becomes essential. For organizations that spend $750,000 or more in federal funds within a fiscal year, a Single Audit is mandatory under the Uniform Guidance. Understanding the process in detail can help your team prepare effectively, avoid penalties, and demonstrate strong financial accountability.

What Is the Single Audit?

The Single Audit, also referred to as a Uniform Guidance Audit or Subpart F Audit, is a comprehensive annual review that covers both financial statements and compliance with federal program rules. Rather than conducting separate audits for every federal grant, this process consolidates oversight into one audit, making it more efficient while still ensuring accountability.

The audit looks at two main areas:

1. Financial Statements – Reviewing accuracy and ensuring compliance with Generally Accepted Accounting Principles (GAAP).

2. Federal Awards – Confirming that funds were spent according to program requirements, restrictions, and applicable laws.

Who Must Undergo a Single Audit?

Not all organizations fall under this requirement. The threshold is clear: if your organization spends $750,000 or more in federal awards during a fiscal year, you must complete a Single Audit.

This applies to:

• Nonprofit organizations

• Universities and colleges

• Hospitals and healthcare systems

• State and local governments

For example, a university receiving federal research grants or a nonprofit administering community development funds must comply if their total spending meets the threshold.