Multifamily Housing Program Financial Management Toolkit

8b. Threshold Amount for a Federal ‘Single’ Audit (§200.501)

To be in compliance with 2 CFR Part 200.501, financial audits must follow both Federal rules and Generally Accepted Auditing Standards (GAAS). Under the new consolidated circular, grantees and sub-recipients who expend $750,000 or more in Federal funds during their fiscal year must complete and submit what’s called a single audit.
Since this part does not apply to for-profit sub-recipients, the pass-through entity is responsible for establishing requirements, as necessary, to ensure compliance by any for-profit sub-recipients. The agreement with the for-profit sub-recipient must describe applicable compliance requirements and the for-profit sub-recipient’s compliance responsibility. Methods to ensure compliance for Federal awards made to for-profit sub-recipients may include pre-award audits, monitoring during the agreement, and post-award audits. [See also §200.331 Requirements for pass-through entities.]