Audit Updates: 2021 Compliance Supplement
Please note: This blog is current to the date of its publication, November 9, 2021. For more recent updates, contact SST’s experts.
On August 21, 2021, the Office of Management and Budget (OMB) released the 2021 Compliance Supplement. Organizations receiving federal funds should review the Supplement to determine the effects on their program and reporting requirements.
The 2021 Compliance Supplement is effective for audits of fiscal years beginning after June 30, 2020. The Supplement includes updates for funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Coronavirus Response and Relief Supplement Appropriations Act (CRRSAA), along with part of the Compliance Supplement for the American Rescue Plan (ARP) Act.
One significant aspect of the Supplement includes the identification of programs as high-risk programs. These high-risk programs include the Education Stabilization Fund, the Coronavirus Relief Fund and the Provider Relief Fund. The designation of these programs as high risk may require them to be audited as major programs. Appendix IX of the Supplement contains a list of all other programs that have been designated as high risk due to the inclusion of COVID-19 funding.
The Supplement also features updates for the Revised Uniform Guidance. This includes the OMB change in terminology related to program numbers for the Catalog of Federal Domestic Assistance (CFDA) to Assistance Listing (AL) Number. This change is effective after November 12, 2020. The Supplement also includes the memorandum issued in March 2021, granting an extension of six months for the submission of the single audit reporting package not submitted as of March 19, 2021 through June 30, 2021 fiscal year-ends.
For more information, visit The Journal of Accountancy to read the latest announcement on the 2021 Compliance Supplement.
Additionally, the experts at SST are equipped and available to assist your organization in navigating these updates. Learn more about our service areas, or contact us today for immediate assistance.
