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Nonprofit audit guide

What is a major program in a single audit?

How auditors pick major programs in a single audit: the Type A dollar thresholds, Type B risk assessment and the percentage-of-coverage rule in 2 CFR 200.518.

  • Updated 2026-09-20
  • 5 official sources
  • 3 questions answered

22,398 nonprofit single audits were filed for audit year 2024.

6,728 audit firms observed in FAC filings, as of 2026-11-06.

Data as of 2026-09-20

In short: A major program is one the auditor selects for compliance testing using the risk-based approach in 2 CFR 200.518: split programs into Type A and Type B by dollar size, assess risk, then select enough programs to cover 40 percent of federal awards expended, or 20 percent for a low-risk auditee. In audit year 2024 the median nonprofit single audit reported 4 federal programs in total (data as of 2026-09-20).

What is a Type A program?

Type A is the large-program bucket, and the cut-off scales with total federal awards expended.

Type A thresholds
Total federal awards expendedType A threshold
$1 million to $34 million$1,000,000
Over $34 million to $100 millionTotal federal awards expended times .03
Over $100 million to $1 billion$3 million
Over $1 billion to $10 billionTotal federal awards expended times .003
Over $10 billion to $20 billion$30 million
Over $20 billionTotal federal awards expended times .0015

Everything that is not Type A is Type B.

Source: 2 CFR 200.518 · Last verified: 2026-09-20

  • Type A and Type B

    Programs are split by dollar size, then assessed for risk (2 CFR 200.518).

  • Risk, not size alone

    A large program can be low risk and a small one can still be selected.

  • Coverage

    Median 4 programs per audit year 2024 filing.

How does the auditor choose?

  1. Identify the Type A programs using the dollar thresholds above.
  2. Identify which Type A programs are low risk — a Type A program with recent findings is normally not low risk.
  3. Identify high-risk Type B programs, using the risk criteria the rule sets out.
  4. Select the major programs and check the coverage rule: at least 40 percent of total federal awards expended, or 20 percent for a low-risk auditee.

The risk criteria themselves are in 2 CFR 200.519: current and prior audit experience, oversight by federal agencies and pass-through entities, and the inherent risk of the program.

Source: 2 CFR 200.518 · 2 CFR 200.519 · 2 CFR 200.520 · Last verified: 2026-09-20

How does the percentage-of-coverage rule work?

After selecting programs by risk, the auditor checks the total. If the selected major programs do not reach the required percentage of total federal awards expended, more programs are added until they do (2 CFR 200.518(f)). This is the practical reason a small program sometimes gets audited: it was needed to reach coverage.

Source: 2 CFR 200.518 · 2 CFR 200.520 · Last verified: 2026-09-20

What is a cluster of programs?

A cluster is a group of closely related programs treated as one program for the purposes of the audit, including the threshold and major program determination. Clusters are identified in the Compliance Supplement, and they must be shown as a cluster on the schedule of expenditures of federal awards (2 CFR 200.510(b)). Splitting a cluster on the schedule is a common error, because it changes which programs look large enough to be Type A.

Source: OMB Compliance Supplement · 2 CFR 200.510 · Last verified: 2026-09-20

Questions and answers

What is a major program in single audit terms?

A federal program the auditor selected for compliance testing under the risk-based approach in 2 CFR 200.518, after classifying programs as Type A or Type B and applying the coverage rule.

What is a Type A program in a single audit?

A program at or above the Type A dollar threshold for your level of total federal awards expended — $1,000,000 for entities expending $1 million to $34 million, scaling up from there.

What is a cluster in a single audit?

A group of closely related programs identified in the Compliance Supplement that is treated as one program for the threshold, for major program determination and on the schedule of expenditures of federal awards.

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This is public-record information, not accounting or legal advice.

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