2 CFR 200.510 sets 2 requirements for organizations that receive federal grants and cooperative agreements. Applies once you spend federal award money, at audit time.
The auditee must prepare financial statements reflecting its financial position, results of operations or changes in net assets, and (where appropriate) cash flows for the fiscal year audited, covering the same organizational unit and fiscal year chosen to meet Subpart F requirements.
Entity is subject to a Subpart F audit for the fiscal year
The auditee must prepare a SEFA for the audit period that: lists individual Federal programs by Federal agency with Assistance Listing numbers (cluster name and members for clusters; R&D by award or agency/major subdivision); for pass-through awards, names the pass-through entity and its assigned identifying number; provides total Federal awards expended per program (per § 200.502) and per cluster; includes total amounts provided to subrecipients from each program; identifies loan/loan-guarantee balances outstanding at period end in the notes; and includes notes describing significant accounting policies and whether the auditee elected the de minimis indirect cost rate of up to 15 percent (§ 200.414).
Entity is subject to a Subpart F audit for the fiscal year
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(a) Financial statements. The auditee must prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. The financial statements must be for the same organizational unit and fiscal year chosen to meet this part's requirements. However, organization-wide financial statements of the non-Federal entity may also include departments, agencies, and other organizational units that have separate audits in accordance with § 200.514(a) and prepare separate financial statements.
(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with § 200.502. The auditee may choose to provide information requested by Federal agencies or pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may separately list the amount of Federal awards expended for each year of a Federal award. The schedule must:
(1) List individual Federal programs by Federal agency using the applicable Assistance Listing number(s). For a cluster of programs, the non-Federal entity must provide the cluster name, a list of individual Federal programs within the cluster, and provide the Federal agency name and the applicable Assistance Listing number(s). For research and development, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision within the Department of Health and Human Services.
(2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included.
(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings number or other identifying number when the Assistance Listings information is unavailable. For a cluster of programs, the auditee must also provide the total for the cluster.
(4) Include the total amount provided to subrecipients from each Federal program.
(5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This requirement is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule.
(6) Include notes describing the significant accounting policies used in preparing the schedule and whether the auditee elected to use the de minimis indirect cost rate of up to 15 percent (see § 200.414).
Source: eCFR · checked Sep 17, 2026
The auditee must prepare financial statements reflecting its financial position, results of operations or changes in net assets, and (where appropriate) cash flows for the fiscal year audited, covering the same organizational unit and fiscal year chosen to meet Subpart F requirements. The auditee must prepare a SEFA for the audit period that: lists individual Federal programs by Federal agency with Assistance Listing numbers (cluster name and members for clusters; R&D by award or agency/major subdivision); for pass-through awards, names the pass-through entity and its assigned identifying number; provides total Federal awards expended per program (per § 200.502) and per cluster; includes total amounts provided to subrecipients from each program; identifies loan/loan-guarantee balances outstanding at period end in the notes; and includes notes describing significant accounting policies and whether the auditee elected the de minimis indirect cost rate of up to 15 percent (§ 200.414).
Entity is subject to a Subpart F audit for the fiscal year. Entity is subject to a Subpart F audit for the fiscal year.
Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.