The Single Audit is required for annual expenditures of at least how much in federal funds?

• A. $500,000
• B. $750,000
• C. $1,000,000
• D. $250,000

Answer: (B)

Understanding when a Single Audit is required hinges on the amount of federal awards expended in a fiscal year. The rule, established by the Single Audit Act as amended and codified in the Uniform Guidance, requires a single comprehensive audit when an organization expends $750,000 or more in federal awards in a given year. This threshold uses the figure for federal awards expended, which includes both direct federal funding and funds passed through to subrecipients, measured for the entity’s fiscal year. If that amount is reached or exceeded, the audit must cover the financial statements and compliance with federal program requirements, including identifying major programs and testing internal controls. If expenditures fall below the threshold, a single audit isn’t required, though other specific program or auditing requirements may still apply. Note that this is the current standard; some older references cited a different amount, but $750,000 is the threshold now.