Uniform Guidance Audit Changes
Posted by Mary Young on January 19, 2026
In April 2024, the Office of Management and Budget (OMB) published significant updates to Title 2 of the Code of Federal Regulations (CFR), which included 2 CFR Part 200 (Uniform Guidance). The revisions are the most substantial update to the Uniform Guidance since its development in 2013.
Defining the Uniform Guidance
The Uniform Guidance is the close examination of an organization’s financial statements and its compliance with federal award requirements. Also known as a single audit, the Uniform Guidance ensures organizations receiving federal awards meet lawful regulations and can account for funds received.
As the body responsible for setting the Uniform Guidance standards, OMB publishes a the Compliance Supplement which provides auditors in the United States with testing requirements under the Uniform Guidance for federal awards received .
What are the Key Changes to the Uniform Guidance?
The OMB revisions became effective on October 1, 2024 for federal awards issued on or after that date.
One of the most significant revisions is the increase in the single audit threshold from $750,000 to $1,000,000. Organizations spending less than $1,000,000 in federal funds in the fiscal year will no longer be required to have a single audit performed, reducing the administrative burden on smaller award recipients. This will be a welcome change to many nonprofit and governmental entities.
Another revision redefines the threshold for program determinations; moving forward, the minimum threshold for Type A programs has increased from $750,000 to $1,000,000. The maximum threshold has also increased from $25,000,000 to $34,000,000. Entities with more than $34M in federal expenditures will see adjusted thresholds under the new guidance.
Moving Forward
Entities should reassess whether a single audit is required. Entities with almost $1,000,000 in federal expenditures should closely monitor spending to avoid surprises at the end of the fiscal year. It is important to note that while some entities may no longer need a single audit, federal compliance guidelines are still applicable. Coordinate with your advisors at Lumsden McCormick to discuss how these changes may affect an audit’s scope, timing, and documentation.
for more information
Mary has experience working with governmental entities including school districts, industrial development agencies, and municipalities in the areas of auditing, Single Audits, taxation, information returns, and financial reporting. She currently conducts the audit fieldwork for our larger school districts and maintains the continuing professional education requirements of Governmental Auditing Standards. Mary is also experienced with and provides services to many of our nonprofit clients. In 2015, Mary earned the Certified Internal Auditors designation, which is accredited through the Institute of Internal Auditors.