Fiscal Year 2025 Statewide Single Audit Update

OFM Statewide Accounting has started working on different components of the 2025 Single Audit Report. After Phase 2 and the disclosure form application closed in September, the preparation of the Annual Comprehensive Financial Report (ACFR) and Schedule of Expenditures of Federal Awards (SEFA) began. The fiscal year 2025 (FY25) SEFA was submitted to the State Auditor’s Office (SAO) on September 24, 2025, for review. Any material misstatements will be corrected before the final audited SEFA is incorporated into the FY25 Single Audit Report.

SEFA expenditures for FY25 totaled $29.5 billion, representing an increase of more than $2 billion from the prior year. This is primarily due to a significant increase in Medicaid expenditures. Expenditures from pandemic funding continued the downward trend in FY25 to approximately $1.5 billion, 5% of the total SEFA expenditures.

The following table shows the ten state agencies with the highest federal expenditures in FY25:

Agency Name FY25 SEFA Expenditures
Health Care Authority 10,828,896,134
Department of Social and Health Services 7,673,462,544
Employment Security Department 2,358,577,591
University of Washington 1,773,678,265
Office of Superintendent of Public Instruction 1,409,543,746
Department of Transportation 1,379,226,367
Department of Health 619,133,262
Department of Children, Youth, and Families 609,707,174
State Board for Community and Technical Colleges 447,410,085
Military Department 419,879,116

SAO is currently conducting audits of selected federal programs. The expenditure threshold used by SAO to select major programs for the FY25 audit is $44.3 million. There are 28 programs from various agencies selected for audit.

We want to thank agencies for your efforts in completing this year’s federal disclosure forms early to help facilitate the preparation of the SEFA. This is important to help drive the flow of audit work and the progress of the Single Audit Report.

Lastly, please note that the FY25 Federal Assistance Certification Form is due on February 27, 2026.

For more information, please contact Stacie Boyd at stacie.boyd@ofm.wa.gov.