INSIGHT

Important notice: Delay in 2025 OMB compliance supplement release 

September 11, 2025

Industries: Nonprofit

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The Office of Management and Budget (OMB) has experienced an administrative backlog that has delayed the release of the 2025 OMB Compliance Supplement. This annual guidance, which typically becomes available in May, provides the framework auditors use to conduct single audits for organizations receiving federal funding. 

Impact on your organization 

If your organization has a June 30, 2025 year-end and receives federal funding: 

• Your single audit cannot be finalized until OMB releases the official 2025 Compliance Supplement 
• This may affect your ability to submit required audit reports to federal funders within standard timeframes 
• Your financial statement audit can proceed separately and be issued on schedule 

What we’re doing 

BPM has obtained a draft version of the 2025 Compliance Supplement through the AICPA Government Audit Quality Center (GAQC). While we cannot issue final single audit reports based on this draft, we are using it to: 

• Begin planning your single audit engagement 
• Identify potential compliance testing areas 
• Prepare audit procedures in advance 

OMB has indicated they do not expect significant changes between the draft and final versions. 

Next steps for your organization 

1. Financial Statement Audit: You can proceed with your financial statement audit, but should talk to your auditors and users of the financial statements about separating the financial statement audit and single audit if issuance is necessary. 
2. Single Audit: We will begin planning and preliminary work but cannot issue the final single audit report until the official Supplement is released 

3. Funder Communication: You may want to be proactive in talking to funders and donors about the possible delay in the issuance of your single audit and have a discussion with them on expectations. 

We’re Here to Help 

BPM is actively monitoring this situation and will notify you immediately when the final 2025 Compliance Supplement is released. We’re committed to completing your audit as quickly as possible once the guidance becomes available. 

If you have questions about how this delay affects your specific situation or need assistance communicating with your funders, please contact your BPM engagement team. 

This notice is based on information from the AICPA Government Audit Quality Center and current OMB guidance. We will provide updates as new information becomes available.