Members and staff of the American Institute of CPAs’ (AICPA) Governmental Audit Quality Center have wrapped up their annual review of the U.S. Office of Management and Budget’s draft version of the 2014 Compliance Supplement. OMB’s Compliance Supplement is an important tool for auditors of those non-profit organizations, state and local governments and Indian tribal governments that are administering federal financial assistance programs. The audits are often referred to as “single audits.”
The Compliance Supplement identifies the compliance requirements the federal government expects to be considered as part of a single audit when they are direct and material to a major federal program and provides audit objectives and suggested audit procedures for determining compliance with these requirements.
Consequently, the AICPA places a high priority on providing OMB with comprehensive comments on the draft Compliance Supplement each year. For 2014, key AICPA comments expressed concerns with proposed provisions relating to the Disaster Relief Appropriations Act, recommended the removal of certain requirements relating to the American Recovery and Reinvestment Act, suggested needed clarifications to the suspension and debarment requirements, as well as provided many suggestions for edits and potential corrections.
OMB is expected to issue the Compliance Supplement within the next few weeks in order for auditors to use it for audits of fiscal years beginning after June 30, 2013.