October 21, 2019

Recently, the Office of Management and Budget (OMB) sent out an email alert to those organizations that require Single Audits to be performed. If your organization does not have a Single Audit performed, there is no need to read further. For those organizations that do require Single Audits to be performed, we wanted to draw attention to the alert and what it may mean for your organization.

Each year, the OMB issues guidance to auditors via the OMB Compliance Supplement. Like in the past, the OMB issued this year’s Compliance Supplement in June, effective for audits beginning with fiscal year June 30, 2019 organizations. The audit community soon identified a number of errors in the 2019 Compliance Supplement. Because of this, the OMB chose to take the unprecedented action of reissuing the 2019 Compliance Supplement in August.

As a result of the late changes, the recent OMB alert provides guidance to auditors of fiscal year end June 30, 2019 Single Audits on when is it acceptable to use the original June 2019 Compliance Supplement and when the August 2019 version is required.

The potential impact of the OMB alert is the greatest to those fiscal year June 30, 2019 Single Audits where fieldwork has been completed and the report has either been issued or is awaiting issuance. Clark Nuber audit teams have been tracking developments in this area, and we expect that this alert will not have an impact on Single Audits completed by us.

A copy of the updated August 2019 Compliance Supplement can be found here. And you can learn more about the 2019 Compliance Supplement by clicking here.

If you have further questions, please reach out to your audit team and they will gladly discuss it with you.

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This article contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor.