If your organization expends $1,000,000 or more in federal awards in a fiscal year, as of September 30, 2025, you’re required to complete a Uniform Guidance Single Audit under the Single Audit Act. But the preparation of your audit report is critical. Single audits involve more than just reviewing your books; the Office of Management and Budget (OMB) provisions require you to prove internal control strength, compliance with grant requirements, and accuracy in reporting.
Here are five financial audit tips to help your team get audit-ready and avoid common pitfalls when you submit a single audit.
1. Understand the Scope of a Single Audit
A uniform guidance single audit, also known as a compliance audit or federal single audit, covers both financial statements and compliance requirements with federal program expectations. Your organization must demonstrate not only accurate financial reporting but also compliance with federal rules outlined in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements—specifically 2 CFR Part 200, also known as Title 2 of the Code of Federal Regulations.
These include procurement practices, subrecipient monitoring, allowable costs, and other audit requirements for federal awards that organizations must follow to remain compliant.
Make sure your team understands what the uniform guidance single audit will evaluate and who needs to be involved, from finance to program staff. The audit must reflect the organization’s ability to meet each compliance requirement and demonstrate strong oversight.
2. Build Strong Internal Controls for Your Organization
Effective internal controls are essential to meeting audit requirements under Uniform Guidance. Nonprofit auditors assess your control environment to determine how well you monitor, document, and execute compliance responsibilities outlined by the OMB and the Code of Federal Regulations.
As Bennie Lewis, CPA, President, Partner at Assurance Dimensions, LLC, explains:
“Clients required to have Single Audits completed typically need help understanding some of the compliance and control aspects required by their grantors. Helping organizations understand their roles and responsibilities better is something we pride ourselves in each day.”
Internal controls should include documented policies, segregation of duties, and consistent review processes. These safeguards help organizations stay compliant and audit-ready, especially for entities that exceed the audit threshold of $1,000,000 in federal expenditures.
If weaknesses are identified, take corrective actions well before submitting your audit report to the Federal Audit Clearinghouse.
3. Prepare a Complete and Accurate SEFA
Your Schedule of Expenditures of Federal Awards (SEFA) must be complete and accurate; it’s a cornerstone of the single audit process.
Each federal award must be listed with its identifying information, including the Assistance Listing (formerly CFDA) number, total expenditures, and federal agencies providing the funds. This requirement is outlined in 2 CFR Part 200 Subpart F, Audit Requirements.
Ensure your single audit information is accurate, complete, and well-documented, as single audits are conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS).
4. Communicate with Your Audit Team Early
Proactive communication with your auditors can minimize surprises. Set expectations early, especially around access to documents, end of the audit period, and availability of key staff. Clarify any major changes in programs, systems, or leadership that occurred during the audit period.
Proactive coordination gives your team time to gather materials and resolve any audit findings before the final single audit report is submitted. Organizations that use single audit preparation tools or software platforms often streamline this process, reducing the risk of missed deadlines.
5. Review Prior Findings and Resolve Issues
If your organization has had prior single audit findings, address them thoroughly before the next financial audit. Auditors will review how you’ve responded and whether your corrective actions were sufficient.
Keep a detailed log of findings, corrective actions, and resolution dates to track your progress. If you’re required to conduct single audits across multiple programs, ensure your responses meet the compliance requirements for each major program.
Preparing for a Single Audit? Assurance Dimensions Can Help
At Assurance Dimensions, our team guides nonprofits, local governments, and recipients of federal awards through the single audit process with confidence. We offer clear timelines, expert insights, and tailored support to help your organization stay compliant and ready for future growth.
Contact us to learn how our single audit services can help simplify your federal compliance and meet single audit requirements.