 However, it only applies to state, local government, and nonprofit recipients that expend $750,000 or more of such assistance in one year.A Single Audit encompasses an examination of a recipient's financial records, financial statements, federal award transactions and expenditures, the general management of its operations, internal control systems, and federal assistance it received during the audit period (the time period of recipient operations examined in the Single Audit, which is usually covers a natural or fiscal year).The Single Audit is divided into two areas