Do Proposed Compliance Supplement Changes Affect Reliability?

Jerry Ashworth
June 28, 2019 at 07:35:23 ET

The 2019 Compliance Supplement has yet to be issued and already there is some concern about proposed changes coming in this year's version. The Office of Management and Budget, aiming to ease auditor burden, has required awarding agencies to select a maximum of six of the 12 compliance requirements for auditors to test under the 2019 supplement for each program. However, because nonfederal entities must still comply with all 12 requirements, some worry that their single audits won't be as reliable in past years to prove they are in compliance with federal regulations, as auditors will only be testing for up to six of the requirements. This video helps explain this change and provides an example as to how this can affect grantees and awarding agencies going forward.