OFFICE OF RECOVERY PROGRAMS

Introduction to Single Audits and the 

Compliance Supplement

ORP Office of Grant Policy

July 2023
Single Audit Overview

What is a Single Audit?

• Single Audits are required from all recipients who expend $750,000 or 

more in aggregate federal financial assistance within their fiscal year

• Single Audits are comprised of two main sections: 

o Financial Statements: Audit of a recipient’s financial statements, 

policies, documentation, and system of internal controls 

o Programmatic Compliance Evaluation: Test of a recipient’s compliance 

with the requirements of their federal awards which often assesses the 

effectiveness of award spending and evaluate performance progress
Single Audit Objectives

What are the Objectives of Single Audits?

• Determines if the recipient (i.e., Auditee):

o Established an accounting system with adequate internal controls that 

provide full accountability for assets, liabilities, revenues, and 

expenditures

o Prepared financial statements which are presented fairly and in 

accordance with generally accepted accounting principles (GAAP)

o Submitted financial reports, cash reports, and claims for advances and 

reimbursements that contain accurate and reliable financial data, and 

are presented in accordance with the terms and conditions of the 

financial assistance awards’ agreements

o Expended federal funds in accordance with the terms of award 

agreements and those provisions of federal law or regulations that 

could have a material effect on the financial statements or on the 

financial assistance awards tested 
Who Is Subject to a Single Audit?

• Auditees which meet the $750,000 expenditure threshold within their fiscal year

• Note: For-profit organizations and foreign entities are NOT subject to Single 

Audits unless required due to unique circumstances

Who Conducts Single Audits?

• Independent Auditors procured or otherwise arranged by Auditees

When are Single Audits Conducted?

• An Auditee’s Single Audit is conducted after the conclusion of their fiscal year

• Single Audit reporting packages are due to the Federal Audit Clearinghouse (FAC) 

the earlier between 30 calendar days after receipt of an Auditor’s report, or 

within nine months after the Auditee’s fiscal year end

What Types of Programs are Subject to Single Audits?

• Programs that award federal financial assistance (e.g., grants, cooperative 

agreements, direct payments for specified use awards, and loans)

High-level Single Audit FAQs
OMB is responsible for issuance and 

maintenance of Single Audit 

regulations, annual Compliance 

Supplement, and coordinating with 

federal awarding agencies

The Federal Audit Clearinghouse (FAC) 

collects and disseminates single and 

program-specific audit reports and 

information on-behalf of the OMB

Federal Awarding Agencies

GAO is responsible for issuance of the 

Generally Accepted Government 

Auditing Standards (GAGAS) and 

performing Government-wide reviews 

and studies

DEPARTMENT OF THE TREASURY

Federal Level Single Audit Roles
Auditees are responsible for arranging their Single Audits and ensuring they are 

performed properly. Auditees must establish internal controls and evaluate or monitor 

compliance with federal statutes, regulations, and the terms and conditions of their 

awards.

Key Auditee responsibilities include:

(hire the Auditor)

Key Auditee Responsibilities (200.508-509; 200.303)
Auditors determine whether the Auditee’s internal control systems provide reasonable 

assurance that it is managing federal awards in compliance with applicable laws, 

regulations, and agreement terms.

Key Auditor responsibilities include:

*Generally Accepted Government Auditing Standards (GAGAS)

**Generally Accepted Accounting Principles (GAAP)

*

**

Key Auditor Responsibilities (2 CFR 200.514; 200.516)
Auditee Responsibilities

•Establish and maintain effective internal control 

over federal awards

•Comply with federal statutes, regulations, and the 

terms and conditions of each award

•Procure and arrange for the audit

•Prepare financial statements and Schedule of 

Expenditures of Federal Awards (SEFA)

•Follow up and take corrective action on audit

findings identified by Auditors, including preparing 

a summary schedule of prior audit findings, and a 

corrective action plan for current audit findings

•Submit the SF-SAC Data Collection Form, and the 

single audit report package to the Federal Audit 

Clearinghouse (FAC). Ensure the documents do not 

contain any personally identifiable information (PII)

Auditor Responsibilities

•Conduct audit in accordance with GAGAS, 2 CFR 

Part 200, Subpart F, and the Compliance 

Supplement, if applicable

•Determine whether Auditee financial statements 

are presented fairly in all material respects in 

conformity with GAAP

•Test the Auditee's internal controls

•Determine whether the Auditee complied with 

applicable statutes, regulations, and terms and 

conditions of federal awards

•Follow up on the status prior-year audit findings 

schedule and related corrective action plan (e.g., 

implemented, in progress, or repeat) 

•Complete and sign the specified sections of the SFSAC in the FAC

Auditee vs. Auditor Responsibilities Comparison 

(2 CFR 200.303; 200.509-200.521; 200.514)
Compliance Supplement Overview

What is the Compliance Supplement?

• 2 CFR Part 200, Subpart F – Audit Requirements includes broad instructions for 

Agencies, Auditees (i.e., recipients, subrecipients), and Auditors for how to 

conduct Single Audits and program-specific audits

• OMB issues the Compliance Supplement annually to provide Auditors with 

guidance and program-specific instructions for how to evaluate Auditees that is 

distinct from what is required in 2 CFR Part 200

• Prior to 2019, Auditors were required to evaluate 12 Compliance Requirements 

for every major program based on the major program threshold for each Auditee 

(also know as the Type A/B threshold)

• Since 2019, Agencies must identify up to 6 Compliance Requirements which 

Auditors should evaluate for each program in the Compliance Supplement, this is 

also known as A/B plus 5 

• In the absence of a Compliance Supplement, Auditors evaluate all 12 Compliance 

Requirements
Compliance Supplement Objectives and Impacts 

Objectives Impacts

Non-Federal Entities 

Resource to understand Single 

Audit Compliance Requirements 

and program-specific audit 

requirements

• Non-Federal entities are required to ensure 

that Auditors follow the Single Audit 

instructions in the Compliance Supplement

Auditors

Provides direction on which 6 of 

the 12 Compliance Requirements 

to focus testing for programs and 

how to test them

• Direction and testing instructions reduce 

Auditor burden by narrowing the scope of 

Single Audits

• Auditors provide more in-depth, targeted 

analysis on programs included in the 

Compliance Supplement 
Compliance Supplement Sections
2023 HAF Compliance Matrix View in the Supplement

Link to the 2023 HAF Compliance Supplement

COMPLIANCE REQUIREMENTS 

A. Activities Allowed or Unallowed

B. Allowable Costs/Cost Principles

E. Eligibility

G. Matching, Level of Effort, Earmarking

H. Period of Performance

L. Reporting

M. Subrecipient Monitoring 

HAF Compliance Requirements
Single Audit Report Submission Package (2 CFR 200.515)

Once the Single Audit is completed, the “report package” submitted to 

Federal Audit Clearinghouse will include:

• Auditor’s report on the financial statements of the entity and SEFA evaluation

• Auditees financial statements and SEFA

• Auditor’s report(s) on internal control over financial reporting, compliance and 

other GAGAS requirements

• Auditor’s report on compliance and internal control over compliance (major 

programs)

• Auditor’s schedule of current findings and questioned costs

• Auditee’s summary schedule of prior-year audit findings, if applicable

• If available, the Auditee’s corrective action plan of current year findings

The Auditee is required to submit its Single Audit Report to the FAC within 30 

calendar days after receipt of the Auditor’s report, or within nine months

after the close of the Auditee’s fiscal year, whichever is earlier.
Questions and Contact Info

• Questions?

• Please direct any single audit questions to:

• Nasr Fahmy, ORP Single Audit Advisor

• 202-527-4036

• Nasr.Fahmy@treasury.gov