Single Audit Requirements for 2026 Rising Standards for Federal Grant Recipients

For nonprofit organizations in Virginia and Washington DC that expend $750,000 or more in federal awards in a year, the Single Audit is a critical compliance milestone. As we move through 2026, expectations for Single Audit documentation and compliance continue to rise. Funders want stronger documentation, cleaner Schedules of Expenditures of Federal Awards (SEFA), and clearer time-and-effort support .

The 2024 Uniform Guidance, which became fully effective for fiscal years beginning after October 1, 2025, introduced several changes affecting Single Audits. These include modifications to major program determination thresholds and updated procurement standards. For the 2026 audit season, auditors face stricter reporting expectations when they cannot quantify questioned costs, leading to potentially more findings and required corrective actions . Single Audit extensions, while available, are now generally granted only when tied to meaningful operational disruptions, not simply administrative delays.

Practical steps for preparing for a Single Audit include creating an organized file for each grant, verifying that payroll allocations are properly documented, refreshing procurement and reimbursement procedures, and considering a “mini-checkup” before audit season . Grant dollars come with strings—an organization’s job is not to get tangled in them . The SEFA must be accurate and complete, with each federal award identified by CFDA number (now known as Assistance Listings number), amount expended, and pass-through entity information.

Nonprofits receiving federal funds should also be aware of changes to procurement thresholds under the Uniform Guidance. The micro-purchase threshold increased from $10,000to$50,000 effective late 2025, and the simplified acquisition threshold increased from $250,000to$500,000. Organizations must update their procurement policies accordingly and ensure compliance with the new limits. At Nova Tax & Accounting Services, our Audit & Review and Assurance and Compliance for Nonprofits services include Single Audit support, helping organizations prepare accurate SEFAs and maintain the documentation required by federal award terms.