The US Office of Management and Budget (OMB) 2021 Compliance Supplement is available.
On December 26, 2013, OMB Circular A-133 was superseded by the issuance of 2 CFR Part 200, Subpart F. Among other things, those changes increased the audit threshold to $750,000 for auditee fiscal years beginning on or after December 26, 2014, and made changes to the major program determination process.
The Compliance Supplement (Supplement) is based on the requirements of the 1996 Amendments to the Single Audit Act and 2 CFR Part 200, Subpart F, which provide for the issuance of a compliance supplement to assist auditors in performing required audits. The Supplement identifies existing, important compliance requirements that the federal government expects to be considered as part of an audit required by the 1996 Amendments. This Supplement provides a source of information for auditors to understand the federal program’s objectives, procedures, and compliance requirements subject to the audit, as well as audit objectives and suggested audit procedures for determining compliance with these requirements.
Federal awarding agencies are encouraged to continue to shift their focus in grants management from one heavy on compliance to a balanced approach that includes establishing measurable program and project goals and analyzing data to improve results. To that end, starting in 2019 and continuing in 2021, the Supplement has reduced the areas for compliance reviews from a maximum of twelve to a maximum of six (A and B compliance areas are counted as one). This reduction focused the agencies and the auditors on the areas that are most important for federal awarding agencies to manage programs more efficiently.
This 2021 Supplement is in effect for audits of fiscal years beginning after June 30, 2020, and supersedes the 2020 Compliance Supplement (dated August 2020) and its Addendum (dated December 2020). This 2021 Supplement adds, deletes, and modifies prior Supplement sections as usual. Further, it continues the OMB mandate adopted in the 2019 Compliance Supplement requiring that each federal agency 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.