Single Audit Prep Timeline
TLDR
Single audit preparation takes months, not the two weeks before fieldwork that most organizations actually use. This timeline works backward from fiscal year end with specific tasks at each milestone - so the audit arrives to find organized records rather than an assembly project. The threshold: $1,000,000 in federal expenditures in a fiscal year (updated from $750,000, effective for fiscal years ending September 30, 2025 or later).
Who Needs This Timeline
Organizations that expend $1,000,000 or more in federal awards in a fiscal year are required to have a single audit under 2 CFR Part 200 Subpart F. The threshold was updated from $750,000 - organizations should verify which threshold applies based on their fiscal year end date (new threshold effective for fiscal years ending September 30, 2025 or later).
This timeline is designed for the finance director, grants manager, or operations lead who coordinates audit preparation for an organization without a dedicated audit readiness staff. The tasks are specific, not aspirational.
Day 90 Before Fiscal Year End: SEFA Review and Reconciliation
Goal: Produce a draft SEFA that is reconciled and accurate before the fiscal year closes.
Tasks:
Update the SEFA tracking record with current cumulative expenditures for every active award Pull grant-specific expenditure reports from the accounting system for each federal award. Update the SEFA tracking record with year-to-date totals. Note any awards where actual expenditures may differ from the award amount in ways that could affect the SEFA total.
Verify Assistance Listing (CFDA) numbers for every award Cross-check each SEFA row against the notice of award and SAM.gov to confirm the Assistance Listing number is correct. Incorrect numbers are an audit adjustment and can affect major program selection.
Identify all sub-awards received from pass-through entities For every award received from a state agency or other pass-through entity, confirm the pass-through entity name and the pass-through’s identifying number are recorded in the SEFA. These are required disclosures under 2 CFR 200.510(b).
Confirm cluster program designations Check Part 5 of the current OMB Compliance Supplement to verify that any awards belonging to cluster programs are correctly identified. Cluster misidentification affects major program selection.
Estimate whether any programs will cross the Type A major program threshold The Type A threshold is the larger of $750,000 or 3% of total federal expenditures. Programs above this threshold receive a different risk classification in major program selection. If a program is close to crossing the threshold, project the year-end expenditure.
Single Audit Prep Timeline
A 90-day countdown timeline for single audit preparation - working backward from fiscal year end with specific tasks at each milestone. Delivered by email.
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