The Wait Goes On for the Release of the 2020 Compliance Supplement

Honestly, we swear we weren’t going to do this this year. Considering the national emergency we’re facing under the COVID-19 pandemic, the hopes for a timely release of an audit document would appear trivial. However, here we are.

Readers familiar with our Thompson Grants blog posts over the years have followed our tradition of posting a picture of snail to represent the Office of Management and Budget’s delays in releasing the annual Compliance Supplement. We had hoped that the 2020 version would have seen the light of day in July, particularly for auditors testing major programs for auditees with June 30 year-ends. Yet, as of late Tuesday, still no word.

One look at the Results Oriented Accountability for Grants Task Force’s July 2020 action plan update shows that the supplement was fated to be delayed. Under the key milestone to “Issue 2020 Single Audit Compliance Supplement,” the action plan reads “Delayed due to COVID-19. Expected in Quarter 3 of FY2020.” In all actuality, the third quarter ended June 30, assuming the first quarter started Oct. 1, 2019.

We’ve heard reports from many in the audit community that are following the progress of the supplement that it will be released “soon,” perhaps later this week. Hopefully, they are right. We have heard that this year’s supplement will have separate parts – the main Compliance Supplement that we are familiar with, as well as an addendum covering Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. 116-136) programs that will be released later this fall.

Although the Compliance Supplement is written for auditors to test compliance, we recommend grant recipients read the document once it is released so that they will be aware of what their auditors will be testing, which can result in a smoother audit all around. And as always, once it is released, stick with Thompson Grants to find out more about what it entails and the changes from the 2019 version. We also are planning to release a free whitepaper on the key points of interest in the supplement. Until then, we wait expectantly!

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