Subpart F: Audit requirements 2024 Uniform Guidance · effective Oct 1, 2024

2 CFR 200.504: Frequency of audits

2 CFR 200.504 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies once you spend federal award money, at audit time.

Shows up in your application: Audit historyOrganizational capacity

What 2 CFR 200.504 requires

1. Reporting

What you must do

Subpart F audits must be performed annually, unless the entity qualifies for a grandfathered biennial cycle: (a) a State, local government, or Indian Tribe required by a constitution or statute in effect on January 1, 1987 (and still in effect) to audit less frequently than annually, or (b) a nonprofit that had biennial audits for all biennial periods ending between July 1, 1992 and January 1, 1995. Biennial audits must cover both fiscal years of the biennial period.

When it applies

Entity is subject to Subpart F audit (≥ $1,000,000 Federal awards expended)

Audit historyOrganizational capacity
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Regulation text of 2 CFR 200.504

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Audits required by this part must be performed annually unless biennial audits are permitted under paragraph (a) or (b) of this section. Biennial audits must cover both fiscal years within the biennial period.

(a) A State, local government, or Indian Tribe that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo biennial (every other year) audits pursuant to this part. This requirement must still be in effect for the biennial period.

(b) Any nonprofit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo biennial audits pursuant to this part.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.504

What does 2 CFR 200.504 require?

Subpart F audits must be performed annually, unless the entity qualifies for a grandfathered biennial cycle: (a) a State, local government, or Indian Tribe required by a constitution or statute in effect on January 1, 1987 (and still in effect) to audit less frequently than annually, or (b) a nonprofit that had biennial audits for all biennial periods ending between July 1, 1992 and January 1, 1995. Biennial audits must cover both fiscal years of the biennial period.

When does 2 CFR 200.504 apply?

Entity is subject to Subpart F audit (≥ $1,000,000 Federal awards expended).

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.