Single Audit Readiness Self-Assessment
Single Audit Readiness Self-Assessment helps finance teams verify SEFA, controls, sample testing, and submission prep before the external auditor arrives. Use it to surface deficiencies early and close gaps across the 12 compliance requirements.
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Overview
This Single Audit Readiness Self-Assessment template is a finance-led inspection of the records, controls, and support files that auditors typically test under the Uniform Guidance single audit framework. It walks through program identification and SEFA preparation, internal controls over compliance, allowable costs, cash management, procurement, eligibility, matching or level of effort, reporting, subrecipient monitoring, special tests, equipment, period of performance, suspension/debarment, personnel time and effort, and audit package readiness.
Use it when you want to confirm that federal awards are correctly identified, sample transactions are supportable, and the audit binder is complete before fieldwork starts. It is especially useful after a year with new grants, staff turnover, system changes, or prior-year findings that need documented remediation. The template is built to surface deficiencies, non-conformances, and missing evidence while there is still time to fix them.
Do not use it as a substitute for the audit or for program monitoring throughout the year. If your organization has no federal awards, or if you only need a narrow review of one grant requirement, a smaller grant checklist may be a better fit. The value of this template is that it gives finance and program teams one structured pass through the full audit-readiness picture, with enough detail to support action before the external auditor asks for it.
Standards & compliance context
- The template is aligned to the single audit framework under 2 CFR Part 200 and is organized around the compliance requirements commonly tested by auditors and pass-through entities.
- Procurement, cash management, and internal control prompts reflect the documentation expectations in Uniform Guidance and related federal award terms.
- Subrecipient monitoring fields support the pass-through entity responsibilities that are typically reviewed under federal grant oversight requirements.
- Time and effort, equipment, and period-of-performance checks help document support for payroll and asset charges that auditors often test in federal award files.
- Where program-specific rules apply, the template can be extended to include agency guidance, award conditions, or special tests tied to the grant agreement.
General regulatory context for orientation only — verify current requirements with counsel or the relevant agency before relying on this template for compliance.
What's inside this template
Program Identification & SEFA Preparation
This section matters because an accurate award inventory and SEFA are the starting point for every single audit review.
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All federal awards (direct and pass-through) are identified and listed with correct CFDA/ALN numbers
Confirm that every active federal award, including pass-through awards from prime recipients, is catalogued with its Assistance Listing Number (ALN, formerly CFDA) per 2 CFR §200.510(b).
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SEFA draft is complete and reconciles to the general ledger
The SEFA total federal expenditures per program tie out to the general ledger. Differences are documented and resolved.
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Pass-through awards include the pass-through entity name, identifying number, and federal award amount
Per 2 CFR §200.331, subaward information on the SEFA must include the pass-through entity name and identifying number.
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Major programs have been identified using the risk-based approach
Finance leadership has applied the Type A/B threshold and risk criteria per 2 CFR §200.518 to anticipate which programs the auditor will designate as major.
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Total federal expenditures for the fiscal year
Enter the total federal expenditures as reflected on the draft SEFA. Must meet or exceed the $750,000 single audit threshold.
Internal Controls Over Compliance
This section shows whether the organization has documented controls that actually prevent or catch compliance errors.
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Written policies and procedures exist for each major federal program covering applicable compliance requirements
Documented SOPs or desk procedures address the specific compliance requirements (e.g., allowable costs, eligibility, reporting) for each major program.
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Segregation of duties is in place for authorization, recordkeeping, and custody of federal funds
No single employee has unchecked authority to authorize expenditures, record transactions, AND handle assets for federal programs.
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Management review controls (approvals, reconciliations) are documented and consistently applied
Evidence of supervisory review — signed approvals, reconciliation sign-offs, or system audit trails — exists for the current fiscal year.
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Prior audit findings and corrective action plan (CAP) items are tracked and remediated
All findings from the prior year’s single audit report have a documented status. Open items have updated corrective action plans.
Allowable Costs & Activities (Compliance Requirement 1 & 2)
This section matters because auditors often test whether federal charges are supported, allowable, and within scope.
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Sample of expenditures tested: costs are allowable under 2 CFR Part 200 Subpart E and the award terms
Pull a sample of at least 10 transactions from major programs. Confirm each cost is allowable (not on the unallowable list per 2 CFR §§200.420–200.476), allocable, and reasonable.
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Number of transactions sampled for allowable costs review
Record the number of expenditure transactions pulled for the allowable costs sample test.
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Number of exceptions (unallowable or unsupported costs) identified in sample
Record the count of sampled transactions that were found to be unallowable, unsupported, or misallocated.
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Activities charged to the award align with the approved scope of work and budget
Verify that program activities are consistent with the award agreement and that budget line items have not been exceeded without prior approval (per 2 CFR §200.308 budget revision thresholds).
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Unallowable costs (e.g., entertainment, lobbying, fines) are excluded from federal charge codes
Chart of accounts or cost allocation methodology prevents unallowable cost categories from being charged to federal award accounts.
Cash Management & Procurement (Compliance Requirements 3 & 4)
This section checks whether federal cash is handled efficiently and whether purchases follow required competition and contract rules.
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Federal cash drawdowns are made on a reimbursement or just-in-time basis, minimizing idle federal cash
Per 2 CFR §200.305, recipients must minimize the time elapsed between drawdown and disbursement. Review the last 3 drawdowns for timing compliance.
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Average number of days between federal cash drawdown and disbursement
Calculate the average lag time for the last 3 drawdown cycles. Acceptable threshold is typically ≤3 business days for advance payment methods.
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Procurement transactions sampled comply with competition requirements and documented cost/price analysis
Contracts and purchase orders over the micro-purchase threshold ($10,000) have documented competition or sole-source justification. Contracts over the simplified acquisition threshold ($250,000) include cost/price analysis per 2 CFR §200.324.
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Contracts include required federal provisions (e.g., debarment, equal opportunity, Byrd Amendment where applicable)
Contracts funded with federal dollars include mandatory clauses per 2 CFR Part 200 Appendix II.
Eligibility & Matching/Level of Effort (Compliance Requirements 5 & 6)
This section matters because participant eligibility and required match or effort commitments are common sources of audit exceptions.
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Eligibility determination records exist for a sample of program participants/beneficiaries
Pull a sample of participant files. Each file must contain documentation that eligibility was determined prior to service delivery, per program-specific requirements.
- Number of participant files sampled for eligibility review
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Matching or cost-share commitments are tracked in the general ledger and meet the required percentage
If the award requires matching funds or cost-sharing, verify the cumulative match-to-date meets or exceeds the required ratio and is supported by source documentation per 2 CFR §200.306.
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Maintenance-of-effort (MOE) baseline is documented and current-year expenditures meet the MOE threshold
For programs with MOE requirements, the prior-year baseline is on file and current-year non-federal expenditures are tracked against it.
Reporting & Subrecipient Monitoring (Compliance Requirements 7 & 8)
This section verifies that reports tie to the books and that pass-through oversight is documented for subrecipients.
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Federal financial reports (e.g., SF-425, program-specific reports) were submitted on time for all reporting periods
Review the submission log for all required federal financial reports in the current fiscal year. Confirm no late submissions or missing reports.
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Reported federal expenditures on financial reports reconcile to the general ledger within an acceptable variance
Spot-check the most recent SF-425 or equivalent report against the GL. Variance should be $0 or immaterial and explained.
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Subrecipient agreements include all required pass-through information per 2 CFR §200.332(a)
Each subaward agreement identifies the federal award name, ALN, total amount, applicable compliance requirements, and audit requirements.
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Subrecipient monitoring activities (desk reviews, site visits, audit report review) are documented for the current year
Evidence of monitoring — checklists, correspondence, site visit reports, or review of subrecipient single audit findings — is on file for each active subrecipient.
Special Tests, Equipment, Real Property & Suspension/Debarment (Compliance Requirements 9–12)
This section captures the program-specific checks that often reveal hidden compliance gaps, especially for assets and vendor screening.
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Program-specific special tests and provisions have been identified and controls are in place to ensure compliance
Review the program’s compliance supplement section for special tests unique to the program (e.g., Davis-Bacon wage rates, SNAP eligibility verification). Confirm controls address each.
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Federally-funded equipment is tagged, inventoried, and the inventory was physically verified within the past two years
Per 2 CFR §200.313, equipment with a unit cost ≥ the capitalization threshold must be tagged, tracked in a property record, and physically inventoried at least every two years.
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All expenditures are within the approved period of performance; no costs charged before start date or after end date
Review the award start/end dates and confirm no transactions fall outside the period of performance without prior written approval from the federal awarding agency.
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Vendors and contractors are checked against SAM.gov exclusions (suspension/debarment) prior to award
Procurement records include SAM.gov exclusion search results for all contracts above the $25,000 threshold, or a system-based check is documented.
Personnel & Time & Effort Documentation
This section matters because payroll allocations must be backed by time records or equivalent support for employees charging federal awards.
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Personnel activity reports or equivalent time-tracking records exist for all employees charging time to federal awards
Per 2 CFR §200.430(i), charges for salaries must be supported by records that reflect actual activity for each employee. Semi-annual certifications are acceptable only for employees working solely on one federal program.
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Time records are signed/certified by the employee or supervisor with direct knowledge of work performed
Timesheets or activity reports bear the signature (or electronic equivalent) of the employee and/or a supervisor who has first-hand knowledge of the work.
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Payroll charges to federal awards reconcile to the time records for a sample of employees
Pull a sample of at least 5 employees. Confirm the hours charged to each federal award in the payroll system match the time records on file.
Audit Package & Submission Readiness
This section confirms the organization is ready to hand over a clean, organized audit package and respond to management requests.
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Financial statements are drafted and reviewed by management prior to audit fieldwork
A substantially complete draft of the financial statements (including SEFA) is available for the auditor at the start of fieldwork.
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Audit support binder/document repository is organized with key schedules, grant agreements, and prior-year workpapers
A centralized repository (physical or electronic) is prepared with award agreements, drawdown reports, financial reports, time records, procurement files, and prior-year audit report.
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Anticipated audit submission date (single audit report due to FAC)
Enter the planned submission date. The single audit report must be submitted to the Federal Audit Clearinghouse (FAC) within 30 days of receiving the auditor’s report, or 9 months after fiscal year-end, whichever is earlier (2 CFR §200.512).
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Management has reviewed and is prepared to respond to the management representation letter
Finance leadership understands the assertions they will be asked to make in the management representation letter and has no known unresolved issues.
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Overall readiness assessment rating
Rate the organization’s overall single audit readiness based on findings from this self-assessment.
Inspector Sign-Off & Findings Summary
This section creates the formal record of what was reviewed, what was found, and who completed the assessment.
- Assessor name and title
- Assessment date
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Fiscal year under review
Enter the fiscal year end date (e.g., 06/30/2025 or 12/31/2025).
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Summary of open deficiencies or non-conformances identified during this self-assessment
List all items answered ‘No’ or flagged as exceptions, including the compliance requirement area, description of the gap, and planned corrective action owner and due date.
- Assessor signature confirming this self-assessment was completed in good faith and findings are accurately reported
How to use this template
- 1. Populate the program inventory, fiscal year, and SEFA draft first, then reconcile federal expenditures to the general ledger before testing any compliance areas.
- 2. Assign each section to the person who owns the records, such as grants accounting, payroll, procurement, program operations, or subrecipient monitoring.
- 3. Review each compliance area against the listed evidence fields, record sample sizes and exceptions, and attach the supporting documents used for the test.
- 4. Mark each deficiency, non-conformance, or missing control with a clear owner, corrective action, and due date so remediation is tracked before fieldwork.
- 5. Complete the audit package section last by confirming the financial statements, binder structure, management review, and expected submission timeline are ready.
Best practices
- Reconcile the SEFA to the general ledger before you start sample testing, because an unreconciled schedule makes every downstream review harder to trust.
- Test a real sample of transactions, participant files, and payroll records instead of relying on policy statements alone.
- Flag any unallowable, unsupported, or out-of-period charge as a deficiency and document the exact reason it fails the award terms or Uniform Guidance.
- Keep evidence links or file names in each section so the reviewer can trace every answer back to source documentation.
- Verify that subrecipient files include the required pass-through information and monitoring evidence, not just the signed agreement.
- Review prior-year findings and corrective action plans separately so you can confirm remediation is complete, not merely in progress.
- Use the same sample logic and reviewer notes across programs so the assessment is defensible if the auditor asks how it was performed.
What this template typically catches
Issues teams running this template most often surface in practice:
Common use cases
Frequently asked questions
What does this self-assessment cover?
This template covers the core single audit readiness areas finance teams need to check before fieldwork: SEFA preparation, internal controls over compliance, allowable costs, cash management, procurement, eligibility, matching or MOE, reporting, subrecipient monitoring, special tests, equipment, period of performance, suspension/debarment, time and effort, and audit package readiness. It is designed to mirror how an external auditor will look at the file. The output is a documented readiness review with deficiencies, exceptions, and follow-up actions.
Who should complete the assessment?
It is usually owned by finance leadership, grants accounting, or the controller, with input from program managers, procurement, payroll, and subrecipient oversight staff. The person signing should have enough authority to confirm the status of controls and supporting records. If your organization has a grant compliance manager or internal audit function, they can help gather evidence and validate sample testing.
How often should this template be used?
Most organizations use it annually, ideally several weeks before year-end close or before the audit package is finalized. If your federal award volume is high or your controls are changing, a midyear check can reduce surprises. It is also useful after a prior-year finding to confirm the corrective action plan has actually been implemented.
Does this replace the external single audit?
No. This is a readiness self-assessment, not the audit itself. It helps you identify missing documentation, control gaps, and likely exceptions before the auditor tests them. The goal is to reduce rework, speed up fieldwork, and improve the quality of the audit package.
How does this align with Uniform Guidance and other standards?
The template is structured around the compliance requirements commonly tested under 2 CFR Part 200 and the Uniform Guidance single audit framework. It also supports documentation expectations tied to internal control, procurement, subrecipient monitoring, and financial reporting. Depending on your programs, it may also touch related guidance from the federal awarding agency or pass-through entity.
What are the most common mistakes this template helps catch?
Common misses include an SEFA that does not reconcile to the general ledger, missing pass-through award details, unsupported or unallowable costs, weak procurement documentation, and time records that do not match payroll charges. Teams also often find incomplete subrecipient monitoring files, outdated equipment inventories, or missing SAM.gov exclusion checks. Catching these early gives you time to correct records or document exceptions.
Can we customize it for our grants and systems?
Yes. You can tailor the sample sizes, add program-specific special tests, and map each section to your ERP, payroll, procurement, or grant management system. Many teams also add fields for reviewer, evidence link, corrective action owner, and due date. The structure should stay aligned to the compliance areas you expect auditors to test.
How should we use it with supporting documents and integrations?
Use it as the front door to your audit binder or shared repository, with links to the SEFA draft, grant agreements, payroll reports, procurement files, subrecipient monitoring notes, and inventory records. If your systems support it, connect the template to document storage, task tracking, and approval workflows so follow-up items are assigned immediately. That makes it easier to prove remediation later.
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