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Single Audit Preparation Checklist

Three documents and four sheets that build the schedule auditors ask for first, then run the major programme determination forward from its total.

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Federal Expenditure Tagging

One row per award, per activity trigger

Fiscal year [dates]. Built during the year. The schedule is a summary of this sheet, never of the general ledger.

Activity triggerCash movesAmount
Expenditure transactions under grants and agreementsYes-
Disbursement of funds to subrecipientsYes-
Use of loan proceedsYes-
Receipt of property, including surplus propertyNo-
Receipt or use of program incomeSometimes-
Distribution or use of food commoditiesNo-
Disbursement of amounts entitling you to an interest subsidyNo-
Period during which insurance is in forceNo-
Loan balances carried from previous years, a separate ruleNo-
Total federal awards expended-

What the total then decides

Whether an audit is required at all. The Type A threshold, read off a published table. The percentage of coverage the auditor has to reach. Three decisions, one input.

The rows a ledger does not surface

Loan balances still carrying compliance requirements, commodities and donated property at fair market value, program income, and any agreement a pass-through titled a service contract.

River's single audit pack is three documents and four sheets, built around the fact that the schedule of expenditures of federal awards is an activity measure rather than a revenue figure. Eight kinds of activity make an award expended. One is an expenditure transaction, and six of the other seven can happen with no cash moving at all. So the total is derived rather than read off, and the reporting calendar says when the package is owed.

That total then settles three things in order: whether an audit is required, the Type A threshold, and how much coverage the auditor has to reach. Which makes the schedule an input to a selection rather than a disclosure at the back of the statements. An error in it does not misstate a note. It changes which of your programmes get compliance-tested, and the largest dollar errors turn out not to be the ones that do the most damage.

Larkspur Community Services read $958,000 off its grant revenue accounts and concluded it was $42,000 under the threshold. On the activity basis the total is $1,973,500. Three subawards from one area agency, held in the ledger as three separate funds, group into a cluster worth $1,035,500 and become the only Type A programme in the audit. No single member of that cluster clears $402,800, so on its own each one is a Type B programme nobody has to test. Which reports each award owes at all comes from the award terms.

The gap between the revenue accounts and the schedule, and what the gap costs

The tagged year, the schedule it produces, and the determination that runs forward from the total.

Federal Expenditure Tagging

Illustrative, for a fictional community services nonprofit called Larkspur Community Services. Year ended 2026-06-30, first single audit. The first pass was read off the grant revenue accounts.

AwardListingActivity triggerAmountCash movedRevenue account
Aging Title III-B, supportive services93.044Expenditure transaction$341,200YesYes
Aging Title III-C, nutrition services93.045Expenditure transaction$354,200YesYes
Aging Title III-C, subaward paid out93.045Disbursement to a subrecipient$48,600YesYes
Emergency Food Assistance, administrative10.568Expenditure transaction$38,600YesYes
Community Services Block Grant93.569Expenditure transaction$118,400YesYes
Emergency Solutions Grants14.231Expenditure transaction$57,000YesYes
First pass, as read off the ledger$958,000$42,000 short
Nutrition Services Incentive Program93.053Distribution or use of food commodities$291,500NoNone
Emergency Food Assistance, donated foods used10.569Distribution or use of food commodities$164,300NoNone
Community Facilities loan, balance outstanding10.766Prior-year loan balance, compliance survives$468,000NoNone
Social Services Block Grant93.667Subaward the county titled a service contract$91,700YesContract revenue
Total federal awards expended$1,973,500Audit required

The four additions come to $1,015,500, which is 106.0% of the first pass, and three of them moved no cash whatever. The smallest is $91,700 against a $42,000 gap, so any single one of the four crosses the line on its own. Nothing here is exotic: a nutrition programme that arrives as food, a food bank allocation, an old building loan, and one county agreement whose title says contract and whose terms say subaward.

SEFA by Award and Assistance Listing

The schedule is required to carry the cluster name, the individual programmes inside it and the cluster total. Group before totalling, because a cluster counts as one programme everywhere downstream.

AgencyClusterProgrammeListingExpended
HHSAging ClusterTitle III-B, supportive services93.044$341,200
HHSAging ClusterTitle III-C, nutrition services93.045$402,800
HHSAging ClusterNutrition Services Incentive Program93.053$291,500
Aging Cluster totalThree subawards, one pass-through$1,035,500
USDAFood DistributionEmergency Food Assistance, administrative10.568$38,600
USDAFood DistributionEmergency Food Assistance, commodities10.569$164,300
Food Distribution total$202,900
USDACommunity Facilities loans and grants10.766$468,000
HHSCommunity Services Block Grant93.569$118,400
HHSSocial Services Block Grant93.667$91,700
HUDEmergency Solutions Grants14.231$57,000
Total federal awards expended$1,973,500

No individual programme inside the Aging Cluster is above $402,800, and the Type A threshold is a flat $1,000,000 at this size of schedule. So the cluster clears the threshold and none of its members does. Larkspur's finance system tracks those three as separate funds, with separate agreements, separate budgets and separate programme managers, and nothing in the ledger hints that they are one thing. The join is between the listing numbers on the agreements and the cluster list in the compliance supplement, and no accounting system does it for you.

Major programme determination, run forward

The auditor makes this call and their documented judgement is presumed correct. Running the arithmetic yourself is how you know the shape of the audit before fieldwork rather than after.

StepRuleFigureResult
Audit requiredTotal at or above $1,000,000$1,973,500Required
Type A thresholdFlat $1,000,000 up to a $34 million total$1,000,000Only the Aging Cluster clears it
Large loan testFour times the largest non-loan programme$4,142,000$468,000 is not large. No recalculation
Type B assessment floor25% of the Type A threshold$250,000Only 10.766 is above it
High-risk Type B neededA quarter of the low-risk Type A count0Nothing can be low-risk in a first audit
Coverage required40%, or 20% for a low-risk auditee$789,400Aging Cluster alone is 52.5%
Major programmesType A not low-risk, plus coverage1Aging Cluster, $1,035,500

The same schedule with one judgement reversed

ChangeRevised totalType AMajor programmesTested
As filed$1,973,50011$1,035,500
Cluster line omitted, three listings shown separately$1,973,50002$809,200
Commodities omitted, since no cash moved$1,682,00001$744,000
Loan balance omitted$1,505,50011$1,035,500
Subaward left as contract revenue$1,881,80011$1,035,500

Read that in order of consequence and it is not in order of size. Leaving the cluster line off moves the total by nothing at all, and it still empties the Type A list, hands the whole scope to the coverage arithmetic and produces two major programmes instead of one, neither of them the nutrition work that is the largest thing Larkspur runs. Omitting the loan balance misstates the schedule by 23.7%, the biggest dollar error here, and changes not one thing about what gets tested. Both still put the auditor's in-relation-to opinion on the schedule at risk, and a modified opinion there is itself a bar to low-risk auditee status.

What is in the pack

01

Federal Expenditure Tagging

One row per award per activity trigger, built during the year, with the four items no ledger surfaces given rows of their own and a valuation basis each.

02

SEFA by Award and Assistance Listing

The schedule with the required columns, cluster subtotals, the notes and an item-by-item reconciliation from the total to federal revenue in the statements.

03

Federal Expenditure Methodology Note

How each figure was determined, then the determination run forward, then the whole arithmetic re-run with each judgement reversed and ranked by effect on scope.

04

Audit Preparation Plan

The order that avoids rework, dated backwards from a deadline that moves earlier rather than later when the auditor's report arrives early.

05

PBC Request Tracker

The auditor's requests and your own two reporting package deliverables on one list, split by whether an item exists, must be produced, or sits with somebody else.

06

Finding and Corrective Action Register

Each finding taken apart into the elements it was written with, and every questioned cost measured against both thresholds, one flat and one proportional.

07

Corrective Action Format

The four things a corrective action plan must carry, worded so completion is observable, plus the three conditions that let a prior finding be dropped.

How it works

  1. 1

    Send the ledger and every agreement

    Ledger detail rather than a category summary, all executed awards and subawards including anything titled a service contract, drawdown records, and any loan still outstanding.

  2. 2

    Tag the activity, then group

    One row per trigger, with the non-cash items valued and sourced. Then clusters, checked against the compliance supplement and settled before any total is struck.

  3. 3

    Total, reconcile and run it forward

    The schedule against federal revenue, every difference named. Then the threshold, the labels and the coverage floor, tested against each award's own terms.

  4. 4

    Track the requests, then the findings

    Dated backwards from the submission deadline, with the items held outside the organisation chased first. Findings become a plan with a name and a date on every row.

Frequently asked questions

Is this free, and what format are the files?

Yes. The download is three Word documents and four CSV spreadsheets, which open in Word, Pages, Excel, Numbers and Google Sheets with no conversion. Edit with AI opens the same pack as a working space instead, where the sheets recompute from your own ledger and award agreements.

Does this perform the audit?

No. Your auditor forms the opinion on the financial statements and the in-relation-to opinion on the schedule, documents their own risk analysis and determines major programmes. This pack builds the schedule, the tagging behind it, the request tracking and the corrective action plan. It does not test whether shared and indirect costs are allocated defensibly, which is separate preparation.

Do I need a single audit at all?

It depends on federal awards expended for the year, and the threshold is a million dollars. The catch is that the figure is not your federal revenue. Larkspur's revenue accounts said $958,000 and the activity basis said $1,973,500, and three of the four differences involved no cash.

Why does grouping awards into clusters matter so much?

Because a cluster counts as one programme, and the schedule has to show the cluster name, its programmes and its total. Several small subawards from one pass-through routinely aggregate past a threshold none of them approaches alone, and your ledger holds them as separate funds.

How do I treat a loan we took out years ago?

Read the loan agreement rather than the amortisation schedule. The balance outstanding at the start of the year counts as expended while the federal government imposes continuing compliance requirements beyond repayment. When repayment is the only obligation left, it does not count, and the difference is the whole balance.

When is the reporting package due?

The earlier of thirty calendar days after you receive the auditor's report and nine months after your year end. The thirty-day rule surprises people because it moves the deadline forward. Two of the four items in the package are yours to produce, not the auditor's.

How is this different from the 990 or a federal financial report?

Different unit of account each time. The 990 organiser is an annual return on the whole organisation. The SF-425 reports one award for one period. This schedule measures federal activity across every fund and programme. None of the three tests whether a fund balance is actually restricted in the first place.

Find out what your schedule total actually is

Send the ledger detail, every award agreement and any loan still outstanding. The first thing back is the tagged year and the reconciliation to federal revenue.

Edit with AI