Single Audit Services for DC, Maryland & Virginia Nonprofits

    The rule: a non-federal entity (including a nonprofit) needs a Single Audit when it expends $1,000,000 or more in federal awards in a fiscal year, for fiscal years beginning on or after October 1, 2024 (2 CFR 200.501(a); the threshold was $750,000 for fiscal years that began before that date). Current as of October 2026.

    Which threshold applies to your fiscal year?
    Fiscal year beginsExample yearSingle Audit threshold
    Before October 1, 2024July 1, 2024 to June 30, 2025$750,000 (prior rule)
    October 1, 2024October 1, 2024 to September 30, 2025$1,000,000
    January 1, 2025Calendar year 2025$1,000,000
    July 1, 2025 or laterJuly 1, 2025 to June 30, 2026$1,000,000

    Spending, not awards received: the test is federal money you expend during the fiscal year (2 CFR 200.502), combined across all federal programs and pass-through grants. A $3 million multi-year award you spend $600,000 of this year counts as $600,000. Cash received in advance that you have not yet spent does not count until it is spent. Sources: 2 CFR 200.501 and 200.502 (eCFR); OMB final rule, 89 FR 30046 (April 22, 2024).

    When does a nonprofit need a Single Audit?

    A Single Audit is an audit of an organization's financial statements and federal award compliance required by 2 CFR 200.501 (Uniform Guidance). A nonprofit needs one when it expends $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024, including federal funds passed through state or local governments.

    Why Organizations Come to Us

    We didn't know pass-through state grants count toward the $1M threshold

    Many nonprofits receiving state housing, education, or social services grants are unknowingly subject to Single Audit because those funds originate from federal agencies.

    Our FAC submission was late and our funder found out

    Data Collection Form (SF-SAC) must be submitted to the Federal Audit Clearinghouse within 30 days of the auditor's report, or 9 months after fiscal year-end — whichever is earlier. Late submissions trigger funder scrutiny.

    We have findings from prior years and they keep repeating

    Repeat findings in the Schedule of Findings and Questioned Costs (SFFAC) are flagged by program offices and can jeopardize grant renewals.

    Our time and effort documentation is a mess

    Time and effort (T&E) documentation is one of the most common Single Audit findings. Federal staff must document time charged to specific grants on a regular basis — not reconstructed at year-end.

    We don't know which of our grants are 'major programs'

    The major program determination requires calculating Type A/B thresholds and applying a risk-based approach. Incorrect major program selection invalidates the audit scope.

    We manage sub-recipients and don't know our monitoring obligations

    Pass-through entities must monitor sub-recipients, including risk assessments, site visits for high-risk sub-recipients, and documentation of monitoring procedures.

    Ready to talk it through?

    Key Single Audit Terms

    Schedule of Expenditures of Federal Awards (SEFA)
    A required schedule listing all federal awards expended by the organization during the fiscal year, organized by federal agency and ALN (Assistance Listing Number). The SEFA is the primary document auditors use to identify major programs subject to compliance testing.
    Federal Audit Clearinghouse (FAC)
    The federal repository where Single Audit data collection forms and audit packages are submitted electronically. Submission is required within 30 days of the auditor's report, or 9 months after fiscal year-end, whichever is earlier.
    Major Program
    A federal program selected for compliance testing based on a risk-based approach. Programs are classified as Type A (high-dollar) or Type B, and risk factors determine which must receive compliance testing. Each major program gets its own compliance opinion.

    Single Audit vs. Standard Financial Statement Audit

    FeatureStandard GAAS AuditSingle Audit (2 CFR 200)
    ScopeFinancial statements onlyFinancial statements + federal program compliance
    Reports issued1 auditor's opinion4–5 reports including findings schedule
    FAC submissionNot requiredRequired within 30 days of report date
    Compliance testingNoneEach major program tested against 12 compliance types
    FeesFee quoted upfront after a short callFee quoted upfront — reflects number of major programs
    Specialist requiredCPA with GAAS trainingCPA with 2 CFR 200 expertise

    Our Process

    1

    Schedule of Federal Awards Review

    We compile and review your SEFA, verify ALN numbers, and confirm which state pass-throughs originate from federal sources.

    2

    Major Program Determination

    We apply the risk-based approach to identify Type A/B programs and determine which programs require compliance testing based on dollar thresholds and prior-year risk factors.

    3

    Financial Statement Audit

    We conduct the GAAS financial statement audit including testing of internal controls, substantive procedures, and review of restricted net asset classifications.

    4

    Compliance Testing

    For each major program, we test 12 types of compliance requirements: activities allowed, allowable costs, cash management, eligibility, equipment, matching, period of performance, procurement, program income, reporting, subrecipient monitoring, and special tests.

    5

    Reporting & FAC Submission

    We issue all required reports, prepare the Data Collection Form (SF-SAC), and submit the complete audit package to the Federal Audit Clearinghouse on your behalf.

    DC, Maryland & Virginia Specifics

    Washington DC

    Most DC nonprofits receiving District government grants that pass through federal sources (CDBG, HOPWA, Title I) are subject to Single Audit. PCSB schools with Title I funding are routinely subject.

    Maryland

    Maryland Department of Human Services, Maryland Department of Housing, and MSDE pass federal funds to nonprofits — these count toward your threshold. Maryland registration renewal may require the Single Audit report.

    Virginia

    VDSS, VDH, and VDOE all pass through significant federal awards. Virginia VDACS registration requires submission of the Single Audit if applicable.

    Related Nonprofit Services

    Nonprofit Audit Hub →Audit Readiness →Grant Compliance →Yellow Book Audit →

    Frequently Asked Questions

    Under 2 CFR 200.501, a non-federal entity that expends $1,000,000 or more in federal awards during a fiscal year beginning on or after October 1, 2024 must have a Single Audit (the threshold was $750,000 for earlier fiscal years). "Expended" means the period when the award was used, not when funds were received. It includes grants, cost-reimbursement subawards, the value of federal loans and loan guarantees (2 CFR 200.502), and non-cash assistance, combined across all agencies.

    Yes. Federal funds passed through state or local governments to your nonprofit are called "federal awards" and count toward the $1,000,000 threshold. Your state grant agreement or Notice of Award should identify the federal program and ALN number.

    Your audit report and Data Collection Form must be submitted to the Federal Audit Clearinghouse within the earlier of: (1) 30 days after the auditor's report date, or (2) 9 months after the end of your fiscal year. For June 30 year-ends, this means March 31.

    Time and effort documentation (payroll charges to grants without adequate time records) is one of the most frequent findings we see. Other common findings include procurement violations (lack of competitive bids), unallowable costs, cash management failures, and inadequate sub-recipient monitoring.

    Repeat findings from prior years are flagged in the Schedule of Findings and Questioned Costs and automatically visible to program officers in the FAC database. Federal agencies may impose special conditions, require corrective action plans, or reduce future award amounts. Our audit readiness services help resolve findings before they repeat.

    Under 2 CFR 200.518, programs are classified as Type A or Type B. For an auditee expending $1 million to $34 million in federal awards, the Type A threshold is $1,000,000; larger auditees use a percentage-based threshold. Type A programs are assessed for risk, high-risk Type B programs are identified, and the selected major programs must cover at least 40% of total federal expenditures (20% for a low-risk auditee).

    A questioned cost is a federal expenditure that the auditor determined may not be allowable, allocable, or reasonable under the grant's terms or federal regulations. Known or likely questioned costs above $50,000 for a type of compliance requirement must be reported as a finding (2 CFR 200.516, as revised in 2024) in the Schedule of Findings. The federal agency then determines whether to disallow (require repayment) or allow the cost.

    Yes. The organization submits a corrective action plan (CAP) with the audit report, explaining how findings will be resolved. The federal agency or pass-through entity then reviews the CAP and findings, and may issue a management decision. Disputed determinations can be appealed through the federal agency's dispute resolution process.

    Generally no. Federal money you receive as a subrecipient counts; payments you receive as a contractor providing goods or services generally do not. The subrecipient-versus-contractor determination under 2 CFR 200.331 is decisive, so review each agreement rather than relying on the label the funder uses.

    If you pass federal funds to other organizations, 2 CFR 200.332 requires you to evaluate each subrecipient's risk, include required award information in subaward agreements, monitor performance and spending, and follow up on their audit findings. Weak or undocumented monitoring is a frequent Single Audit finding for pass-through entities.

    No. A Yellow Book (GAGAS) audit is a financial statement audit performed under Government Auditing Standards. A Single Audit adds major program compliance testing, an opinion on compliance for each major program, reporting on the Schedule of Expenditures of Federal Awards, and submission to the Federal Audit Clearinghouse. Every Single Audit is performed under Yellow Book; the reverse is not true.

    Federal agencies and pass-through entities can withhold payments, impose specific conditions under 2 CFR 200.208, disallow costs, or decline new awards (2 CFR 200.505). A late or missing audit also prevents the entity from qualifying as a low-risk auditee in later years, which increases required compliance testing.

    For each current-year finding, the auditee prepares a corrective action plan naming the person responsible, the planned corrective action, and the anticipated completion date (2 CFR 200.511). It is submitted with the reporting package to the Federal Audit Clearinghouse, together with a summary schedule of prior audit findings.

    Single Audit fees depend on the size of the organization, the number of federal programs, and the quality of your records, along with whether there are prior-year findings. We are transparent and charge fair fees quoted upfront after a short call — no surprises.

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