The 2024 revisions to the federal Uniform Guidance increased the threshold for a Single Audit from $750,000 to $1 million in federal awards expended during the fiscal year. The revisions became effective October 1, 2024.

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For municipalities, school districts, and other governmental entities, this means that federal funding should be evaluated carefully each year to determine whether a Single Audit is required.

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The key measurement is generally federal awards expended, not simply federal cash received during the year. That distinction can become important for reimbursement-based grants, equipment, loans, and other types of federal assistance.

Even when federal expenditures fall below the Single Audit threshold, governments remain responsible for complying with applicable grant requirements and maintaining adequate documentation. The increase in the threshold does not eliminate a pass-through entity’s monitoring responsibilities or the possibility that grant records may be subject to review. OMB specifically noted that a Single Audit is not a substitute for proper subrecipient monitoring.

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Governments that expect to approach the threshold should track federal activity throughout the year rather than waiting until the audit begins. Maintaining award documents, Assistance Listing numbers, reimbursement requests, grant expenditures, and pass-through information can significantly simplify year-end reporting.

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If you are uncertain whether a particular award should be included in your federal expenditure calculation, discussing it with your auditor before year-end can help avoid surprises.