Published Dec 14, 2025 Federal Audit Insight

Weekly Federal Single Audit Summary: Notable Trends and Insights (Dec 6 - Dec 13, 2025)

This week's audit findings reveal a significant uptick in questioned costs and material weaknesses, highlighting compliance challenges for grant-funded organizations. Key organizations, including Grand Canyon University and the Navajo Nation, face scrutiny amidst rising audit anomalies.

As we delve into this week's federal single audit data, several trends stand out, indicating a notable shift in compliance challenges faced by grant-funded organizations. With a staggering 673% increase in questioned costs compared to the 365-day average, organizations are urged to reassess their compliance frameworks to mitigate these findings.

This Week at a Glance

CFR Findings Analysis

Dec 06, 2025 to Dec 13, 2025

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Total Audits
1,194
CFR Findings
57
Audits w/ Findings
48
CFR Sections
10

Top CFR Sections

§ 200.303 16
§ 200.512 11
§ 200.318 10
§ 200.302 6
§ 200.327 5
§ 200.214 4
§ 200.320 4
§ 200.328 3
§ 200.403 3
§ 200.430 3

Top Finding Categories

Questioned Costs 236
Internal Control / Segregation of Duties 86
Reporting 61
HUD Housing Programs 52
Significant Deficiency 50
Procurement, Suspension & Debarment 40
Subrecipient Monitoring 40
Allowable Costs / Cost Principles 31
Matching / Level of Effort / Earmarking 29
Material Weakness 27

Data from FAC Explorer

Significant Trends in Audit Findings

The recent data reveals several alarming trends: - Material Weakness Rate UP 179%: This significant rise points to deeper systemic issues within many organizations' internal controls, necessitating immediate attention. - HUD Housing Programs Findings UP 170%: The increase in findings related to HUD programs raises concerns about compliance, especially as these programs often deal with vulnerable populations. - School Nutrition Programs Findings UP 133%: This trend suggests that organizations managing nutrition programs are facing heightened scrutiny, possibly due to increased funding and regulatory focus.

Conversely, Equipment & Real Property Management findings have seen a drastic drop of 96%, potentially indicating improved compliance or a shift in focus for auditors.

Highlighting Notable Organizations

This week’s audits spotlight several organizations grappling with high expenditures and compliance challenges: - Grand Canyon University: With total federal expenditures of $1,432,119,460, GCU is under scrutiny not only for its financial management but also for ongoing legal issues surrounding its recruitment practices (as noted by recent FTC actions). - The Navajo Nation: Facing $923,775,212 in federal expenditures, the Navajo Nation's internal audit revealed compliance concerns regarding ARPA dollars, emphasizing the need for stringent oversight in fund management. - Southwest Housing Compliance Corporation: Reporting $622,049,007 in expenditures, this organization has been flagged for repeat material weaknesses, indicating persistent challenges in governance.

News Context

The ongoing legal issues involving Grand Canyon University, including allegations of deceptive practices against prospective students, add a layer of complexity to their compliance landscape. Similarly, revelations about the Navajo Nation's internal audit findings underscore the critical importance of robust internal controls, especially in managing federal funds.

Corrective Action Plans in Action

Several organizations are actively addressing their audit findings: - Dallas Christian College is implementing a more rigorous review process for Title IV funds to align with federal requirements, ensuring that financial aid is accurately processed for students. - Central Minnesota Jobs and Training Services is adopting comprehensive documentation policies for cost allocations to enhance transparency and compliance. - Lincoln-King Adams-Young Academy has established new controls for monthly reimbursement requests, ensuring accuracy in financial reporting.

These proactive measures demonstrate the importance of addressing audit findings head-on, fostering a culture of accountability and compliance.

Conclusion

In conclusion, the data from this week's federal single audits presents both challenges and opportunities for grant-funded organizations. The sharp increases in questioned costs and material weaknesses signal a need for enhanced compliance efforts. As organizations navigate this evolving landscape, learning from the experiences of others and implementing corrective action plans will be crucial in maintaining compliance and securing future funding.

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