Article

Common Single Audit Findings and Tips to Avoid Them

Updated: September 27, 2026

Published: September 23, 2026

Diego Herrera

Manager

Executive Summary

Federal awards come with detailed compliance requirements, and even small administrative oversights can result in Single Audit findings. The following are among the most common and easily preventable findings we have been noticing with greater frequency in recent years. While the requirements themselves are often straightforward, gaps in documentation and oversight can quickly lead to findings.

Three areas that frequently create issues are suspension and debarment, Federal Funding Accountability and Transparency Act (FFATA) reporting, and financial and performance reporting.

Many of these findings can be avoided by establishing clear processes, assigning responsibility, monitoring deadlines, and maintaining documentation throughout the year. In our experience, organizations are often performing the required activities but do not consistently document them or retain sufficient evidence to demonstrate compliance.

A key principle across all three areas is simple: if it isn’t documented, it may be difficult to demonstrate that it happened.

Suspension and Debarment

Organizations should have a process to verify that parties to covered transactions are not suspended, debarred, or otherwise excluded before entering into the transaction.

Under 2 CFR 180.300, organizations may verify eligibility by:

Checking SAM.gov exclusions;

Obtaining a certification from the other party; or

Including an appropriate clause or condition in the covered transaction.

Covered transactions generally include:

Applicable procurement contracts expected to equal or exceed $25,000;

Nonprocurement transactions such as subawards, subject to certain exemptions; and

Federally required audit services.

To help avoid findings, management should:

Incorporate the verification into the contracting or subaward approval process;

Complete the verification before entering into the covered transaction;

Document which verification method was used;

Retain evidence showing when the verification was completed; and

Maintain documentation in a location that can be easily retrieved during the audit.

FFATA Reporting

Organizations should also monitor modifications. A subaward that initially falls below the reporting threshold may become reportable when a modification increases Federal funding to an amount that equals or exceeds $30,000.

Management should establish controls to:

Track cumulative Federal funding for each subaward;

Identify when the FFATA reporting threshold has been met;

Monitor reporting deadlines;

Assign responsibility for preparing the submission;

Require a separate review and approval before submission;

Review the report for accuracy and unusual information; and
Retain evidence showing when the report was submitted.

Tracking these requirements throughout the year can help prevent reporting obligations from being missed when new agreements or modifications are executed.

Financial and Performance Reporting

Federal awards may require quarterly, semiannual, annual, or final financial and performance reports. Reporting requirements can differ between programs and even between individual grant or subaward agreements.

Management should:

Carefully review each award and applicable subaward agreement;

Identify all required financial and performance reports;

Document the applicable reporting periods and due dates;

Maintain a centralized compliance calendar;

Establish reminders before reporting deadlines;

Assign responsibility for preparing each report;

Require review and approval before submission; and

Retain documentation showing when the report was submitted.

Organizations should not assume that reporting requirements are the same across all Federal awards. Deadlines and required submissions should be evaluated based on the specific terms of each agreement.

Documentation Matters

Across all three areas, organizations should retain clear evidence showing:

What compliance procedure was performed;

When it was performed;

Who prepared or completed it;

Who reviewed or approved it; and

When required reports were submitted.

From an audit perspective, performing the procedure is only part of the process. If it isn’t documented, it may be difficult to demonstrate that it happened.

Final Thoughts

Single audit compliance can be challenging, particularly for organizations managing multiple Federal awards with different requirements, deadlines, and reporting responsibilities.

As CPAs who work with single audits and nonprofit organizations on a regular basis, we understand the compliance issues that commonly lead to findings and the practical steps organizations can take to address them before they become audit problems.

We can be a resource by helping organizations:

Understand the compliance requirements applicable to their Federal awards;

Evaluate whether policies and internal controls are appropriately designed;

Identify gaps in suspension and debarment, FFATA, and reporting processes;

Develop practical compliance calendars, checklists, and review procedures;

Improve documentation and audit readiness; and

Prepare for the single audit process with greater confidence.

The most effective time to address Federal compliance issues is before the audit begins. Proactive review can help organizations strengthen internal controls, improve documentation, and reduce the risk of avoidable findings.

To learn how Han Group can support your organization’s single audit compliance and readiness,