OMB Provides Updated Single Audit Guidance in 2021 Compliance Supplement

August 17, 2021

The Office of Management and Budget (OMB) recently released the 2021 Compliance Supplement providing updated guidance for single audits of fiscal years beginning after June 30, 2020. The 2021 Supplement supersedes the 2020 Compliance Supplement and its Addendum.

The 2021 Supplement identifies several federal COVID-19 relief programs as higher-risk programs, including the Education Stabilization Fund, the Coronavirus Relief Fund and the Provider Relief Fund. It also clarifies requirements for the Provider Relief Fund in terms of when funding is included on an entity’s schedule of expenditures of federal awards and what aspects of an entity’s required reporting for this program the auditor is required to test.

Another change is the update of Part 3 of the 2021 Supplement for the Nov. 2020 revisions to 2 C.F.R. Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The Federal Funding Accountability and Transparency Act (FFATA), P.L. 109-282, is also incorporated into the Reporting section in Part 3 of the 2021 Supplement.

The first Addendum of the 2021 Supplement will likely be issued in early fall. It is expected to include guidance on the Coronavirus State and Local Fiscal Recovery Funds as well as an update on the Education Stabilization Fund. The second Addendum, expected to be issued later in the fall, is projected to include guidance on the Capital Projects Fund, the Homeowner Assistance Fund and the Local Assistance and Tribal Consistency Fund. Additional programs may be added.

For more information, read the alert issued by the AICPA Governmental Audit Quality Center (GAQC).