The Single Audit Threshold Rises to $1 Million: What Changed
Organizations that spend federal funds — and the firms that audit them — got meaningful relief when the Office of Management and Budget (OMB) updated the Uniform Guidance and raised the Single Audit threshold.
What changed
The threshold that triggers a Single Audit (under the Uniform Guidance, 2 CFR Part 200) increased from $750,000 to $1,000,000 in annual federal award expenditures, effective for fiscal years beginning on or after October 1, 2024. OMB also updated other provisions in the same revision.
Related updates to know
- The de minimis indirect cost rate that entities may use without a negotiated rate was increased.
- Various thresholds and administrative provisions across the Uniform Guidance were refreshed.
What it means
- Some smaller nonprofits and governments now fall below the threshold and may no longer require a Single Audit — confirm each client’s federal expenditure level.
- Entities close to the line should track expenditures carefully year to year.
- Auditors should update engagement scoping and templates for the new figures.
Stay ready with CPE Options
When the rules change, continuing education is how you keep up. Browse the catalog, cover a full year with an Unlimited Access plan, or see all CPE plans. Check your state’s ongoing requirements on our CPE requirements page.
This article is general information for accounting and finance professionals and is not legal or professional advice. Licensure, examination, and audit rules are set by individual state boards, NASBA, the AICPA, federal agencies, and other bodies, and they change and vary by jurisdiction — always confirm the current requirements with the relevant authority before relying on them.
