According to a July 1, 2019 Notice from the Office of Federal Financial Management, the 2019 Office of Management and Budget Compliance Supplement (2019 Compliance Supplement) is now available. It will replace the 2018 and 2017 Supplements and will apply to audits of fiscal years beginning after June 30, 2018.

a pencil lying beside an open notebook with the printed words "2019 Compliance Supplement"

The 2019 Compliance Supplement includes the following:

  • 12 new added programs
  • Three deleted expired programs
  • Updates provided on other programs, where necessary

What is the impact of the 2019 Compliance Supplement?

  • The big change for 2019 is they reduced the maximum compliance areas auditors need to consider from 12 to 6.
  • The 2019 Compliance Supplement also adds guidance in Part 3.1, Procurement and Suspension and Debarment and Appendix VII of the Supplement.

Organizations are still required to comply with all aspects of the grant agreement, but it is possible they could see a reduction in testing performed by their auditors. What they can currently do is review the compliance supplement and see which compliance areas the federal agencies have decided warrant more focus. Organizations should also review the guidance related to procurement to ensure their policies are in compliance with the new standards.

The Office of Management and Budget updates the compliance supplement annually to provide additional guidance on specific programs and updates guidance for auditors. Following this announcement, interested parties now have an opportunity to comment on the 2019 Compliance Supplement, which will be reviewed and potentially addressed in the 2020 Compliance Supplement.

For the full details, visit www.whitehouse.gov.

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