The Office of Management and Budget (OMB) is in the process of finalizing the 2019 Compliance Supplement thatis to be used for single audits. The OMB made significant changes to the Compliance Supplement for 2019 including a requirement that agencies identify no more than six compliance attributes that are to be considered for testing. The 2019 Compliance Supplement is expected to feature more significant changes to the compliance requirements, including a focus on areas that have a higher level of assessed risk or are prone to error. The OMB is also expected to update information on internal controls in the 2019 Compliance Supplement.
Due to these extensive changes, many auditors and auditees are planning for and conducting preliminary audit fieldwork without having the final version of the Compliance Supplement. The OMB did release a draft of the matrix of compliance requirements, which can be found on the AICPA’s website. The matrix can be used to identify the areas of compliance that are to be considered when designing single audit procedures. We recommend that anyone using the draft matrix to plan their engagement, consult the final version of the Compliance Supplement upon its release, as the draft is still subject to change. Auditees also still need to comply with all compliance requirements of the federal award regardless of whether the requirement is listed in the matrix as direct and material. Please contact a member of our governmental team for assistance.