01/09/2025

Navigating Single Audit Threshold Changes for Not-for-profit Organizations

These changes reflect efforts to adapt to economic conditions, streamline oversight

For not-for-profit organizations (NFPs) that rely on federal funding, compliance with federal regulations is critical. Among these requirements, the single audit ensures proper oversight of federal funds. This article delves into the current single audit threshold, its historical changes, and the reasons behind these adjustments.

Balancing Oversight and Practicality

The single audit threshold aims to balance accountability for federal funds with practical considerations for NFPs. Changes to the threshold reflect efforts to adapt to economic conditions and streamline oversight. However, any increase comes with trade-offs, as fewer organizations fall under the requirement, potentially reducing the scrutiny of federal funds.

For NFPs, understanding the threshold's implications is critical to maintaining compliance and ensuring continued eligibility for federal funding. As thresholds are continually adjusted by the Office of Management and Budget (OMB), staying informed will help organizations navigate these evolving requirements and focus on advancing their missions.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).