United States

OMB issues 2019 Compliance Supplement


The Office of Management and Budget (OMB) recently announced the availability of the 2019 Compliance Supplement, which is effective for audits of fiscal years beginning after June 30, 2018.

The 2019 Compliance Supplement adds, deletes and modifies prior Supplement sections. However, it is unlike previous annual updates to the Supplement in that each Federal agency has been required by the OMB to limit the number of compliance requirements subject to the audit to six, with the exception of the Research and Development cluster, which has been permitted to identify seven compliance requirements as subject to the audit. For this purpose, the requirements relating to A., Activities Allowed and Unallowed, and B., Allowable Costs and Cost Principles, are treated as one requirement. The Part 2 matrix has been revised to reflect this change for all programs, as well as the related program sections in Parts 4 and 5. The six-requirement mandate does not apply to programs not included in the Supplement.

Appendix V of the 2019 Compliance Supplement provides a list of changes from the 2018 Compliance Supplement.