Compliance Supplement Delay and Audit Report Impact

Dear Clients:

GRF CPAs & Advisors (GRF) has been monitoring the Office of Management and Budget’s (OMB) release of the 2025 Compliance Supplement (supplement). The supplement, updated annually, is a critical component in our audits of entities which have received federal funds and are subject to a Single Audit.

While a draft supplement was made available to auditors for year-end audit work to begin, the draft has not received final approval from the OMB leaders. Delays in the release of the supplement are impacting report finalizations for our clients with year ends on or after June 30, 2025.

Current Status and Release Expectations

• Previous estimates regarding the release of the Compliance Supplement have been affected by the government shutdown.
  • The timeline for release of the 2025 Compliance Supplement is unclear.

Audit Report Impact

• The AICPA’s Government Audit Quality Center (GAQC) has indicated it would not be appropriate for GRF, or any auditor, to release Single Audit reports of entities with year ends on or after June 30, 2025 until the supplement is officially released.

What Can Be Done
GRF

• Use the draft supplement for audit purposes.
• Monitor multiple sources for supplement release updates.

Clients

• Continue to monitor the OMB’s website for news about the release of the supplement
• Follow GRF for updates as they become available.
• Consider the above expectations when planning board meetings and schedule the agenda accordingly.

We are happy to serve the non-profit community and are looking forward to the moment the final compliance supplement is released. For any specific questions on how this impacts your audit, please contact the audit partner on the engagement.

Sincerely,

Gelman, Rosenberg & Freedman