Glossary
Grants

Single Audit

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A Single Audit is a thorough review of a nonprofit’s financials and compliance when it spends $750,000+ in federal grant funds in a year.
A Single Audit is a comprehensive financial and compliance audit required for U.S. nonprofit organizations and governmental entities that expend $750,000 or more in federal funds within a fiscal year. Governed by the Uniform Guidance (2 CFR Part 200 Subpart F), the Single Audit assesses both the financial statements and the organization’s compliance with federal grant requirements. The process includes a review of internal controls, grant expenditures, and adherence to program-specific requirements. An independent auditor conducts the audit, which results in a report submitted to the Federal Audit Clearinghouse. This process ensures accountability and transparency in the use of federal funds, helping both federal agencies and the public trust how grants are managed.

Key Takeaways

  • Required for entities spending $750,000+ in federal funds annually
  • Assesses both financial statements and grant compliance
  • Involves independent auditors and federal reporting
  • Ensures accountability for federal grant expenditures

Why It Matters

Single Audits provide assurance that federal grant funds are used properly and in compliance with regulations.

Real World Example

Imagine a community health nonprofit receives and spends $900,000 in federal funding during the year to support its programs. Because the amount exceeds the $750,000 threshold, the organization must undergo a Single Audit. An independent CPA reviews the nonprofit’s financial records, verifies appropriate use of the grant funds, checks compliance with specific federal program rules, and evaluates internal controls. The audit report is then submitted to the Federal Audit Clearinghouse. This process ensures both the federal agency and the public that the nonprofit is managing government funds responsibly and in compliance with regulations.

How Aplos Helps

Aplos helps nonprofits and government organizations track grant expenditures, manage compliance, and prepare necessary documentation for Single Audits. By using Aplos, organizations can easily monitor grant activity and generate custom reports, simplifying the audit process and reducing the risk of non-compliance.
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Frequently Asked Questions

Who is required to have a Single Audit?

Any nonprofit or government entity that spends $750,000 or more in federal grant funds in a fiscal year must undergo a Single Audit.

What does a Single Audit cover?

It reviews both the organization's financial statements and its compliance with federal grant requirements, including internal controls and specific program rules.

How can Aplos help with Single Audit preparation?

Aplos assists by tracking grant spending, organizing compliance documentation, and generating reports needed for a successful Single Audit.

What happens after a Single Audit is completed?

The audit report is submitted to the Federal Audit Clearinghouse, and any findings must be addressed by the organization.

Related Terms

IRS Form 990
Statement of Functional Expenses
Grantor
Accrual Basis
Recurring Donation
Variance Analysis

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