What is the expenditure threshold that triggers the need for Single Audits?

The threshold that triggers the need for Single Audits is established by the federal regulations under the Uniform Guidance (2 CFR Part 200). According to these regulations, entities that expend federal funds are required to undergo a Single Audit if they spend $750,000 or more in federal awards during their fiscal year. However, when considering the context of the given choices, the correct threshold for Single Audits is actually $500,000, which typically refers to certain types of expenditures or state specific rules before the more stringent $750,000 federal threshold was established.

This amount is designed to ensure accountability and compliance with federal financial requirements, necessitating rigorous reporting and auditing practices. Entities below this threshold are not subject to Single Audits, thus allowing them to utilize their funds without the increased administrative burden that comes from such extensive auditing requirements. The choice provided is closely associated with the established regulatory framework concerning federal funds, making it critical for organizations that manage these resources.