The Office of Management and Budget (OMB) has announced a delay in releasing the final 2025 OMB Compliance Supplement, a critical resource for auditors conducting single audits. To address the delay, OMB provided the AICPA with a “final draft version” in August 2025, allowing auditors to begin planning upcoming engagements. While the official release is still pending, OMB has confirmed that no significant changes are expected from the final draft.
What Auditors Need to Know
According to the AICPA’s Governmental Audit Quality Center (GAQC) Alert 488, auditors should not issue single audit reports for entities with fiscal years ending June 30, 2025, and later until the final Compliance Supplement is officially released.
The 2025 Supplement will:
- Be effective for audits of fiscal years beginning after June 30, 2024.
- Supersede the 2024 Compliance Supplement once finalized.
- Provide guidance on navigating changes introduced by the 2024 revisions to the Uniform Guidance.
Key Updates in the 2025 Compliance Supplement
The draft version includes several notable updates designed to align with recent regulatory changes and improve audit efficiency:
- Structural Updates: New formatting accommodates awards that fall under both pre- and post-2024 Uniform Guidance revisions.
- Clarified Effective Dates: Expanded explanations of the 2024 Uniform Guidance changes to help auditors understand transition periods.
- Risk Reductions: Removal of several programs previously categorized as “higher risk,” simplifying certain audit requirements.
- Program Revisions: Various program additions, deletions, and technical modifications to reflect current federal award structures.
Why the Delay?
OMB cited administrative backlog as the primary reason for the delay. The 2025 Compliance Supplement’s extensive updates—particularly around the 2024 Uniform Guidance revisions—required additional internal review and coordination across federal agencies before publication.
Despite the delay, the “final draft version” enables auditors and federal grant recipients to begin audit planning with reasonable assurance that the guidance will not substantially change.
Conclusion
While the final 2025 OMB Compliance Supplement is still pending release, the final draft version provides the clarity auditors need to start preparing for upcoming single audits. Understanding the new structural changes, risk adjustments, and updated Uniform Guidance requirements is essential for maintaining audit quality and compliance.
Auditors are encouraged to stay alert for the official release, which will confirm the effective dates and finalize minor editorial revisions—but no major changes are anticipated.
