What is the threshold amount for Federal Grant expenditures that triggers a Federal Single Audit requirement?

What is the threshold amount for Federal Grant expenditures that triggers a Federal Single Audit requirement?

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

Answer: (B)

The threshold for Federal Grant expenditures that necessitates a Federal Single Audit requirement is set at $750,000. This requirement applies to non-federal entities that expend these amounts in federal awards within a fiscal year. The purpose of the audit is to ensure that the federal funds have been used appropriately and in compliance with applicable regulations and guidelines. This $750,000 threshold is established by the Office of Management and Budget (OMB) in the Uniform Guidance, which aims to streamline acknowledgment and enhance accountability for federal funds. When an entity reaches or exceeds this amount in federal grants, it becomes subject to the Single Audit process to ensure that it is effectively managing and utilizing those funds. Understanding this threshold is crucial for municipalities and organizations that engage with federal grants, as it directly influences their audit requirements and subsequent reporting procedures.

The threshold for Federal Grant expenditures that necessitates a Federal Single Audit requirement is set at $750,000. This requirement applies to non-federal entities that expend these amounts in federal awards within a fiscal year. The purpose of the audit is to ensure that the federal funds have been used appropriately and in compliance with applicable regulations and guidelines.

This $750,000 threshold is established by the Office of Management and Budget (OMB) in the Uniform Guidance, which aims to streamline acknowledgment and enhance accountability for federal funds. When an entity reaches or exceeds this amount in federal grants, it becomes subject to the Single Audit process to ensure that it is effectively managing and utilizing those funds.

Understanding this threshold is crucial for municipalities and organizations that engage with federal grants, as it directly influences their audit requirements and subsequent reporting procedures.