The OMB Compliance Supplement highlights the compliance requirements for CPA auditors to consider during single audits under the Office of Management and Budget (OMB)’s Uniform Guidance). However, as a nonprofit organization, you may wonder what the OMB Compliance Supplement is and how it impacts your organization. This article briefly introduces the supplement and explains how it works with uniform guidance during your next audit.


What is the OMB Compliance Supplement?

The OMB Compliance Supplement is a guidance document issued by the Office of Management and Budget (OMB) to provide information on federal programs subject to audits under the Uniform Guidance. This supplement is updated annually with essential guidance for auditors who perform single audits and potential insights for nonprofit organizations.


Types of Changes to OMB Compliance Supplement

Over the years, the OMB Compliance Supplement has undergone revisions to address the evolving needs of federal agencies and the recipients of federal funds. These changes primarily revolve around these areas related to federal funding:

  1. Inclusion of new federal programs or removal of outdated ones.
  2. Revision of the criteria for major award programs.
  3. Adjustments to reflect changes in the federal awarding agencies’ compliance requirements.

This supplement provides guidance to auditors and identifies changes that could affect single audit engagements. Your audit team should stay current with any of these changes to ensure they’re evaluating your organization with the most recent and accurate criteria. Additionally, nonprofits must be aware of these alterations to maintain their compliance standards.


How Does the OMB Supplement Work with the Uniform Guidance? 

Auditors must use the OMB Compliance Supplement alongside the Uniform Guidance when performing single audits. The supplement complements the guidance and helps auditors understand which compliance requirements they should consider during their audit procedures. It highlights specific areas of interest for different federal programs that recipients must follow.


How Can Your Nonprofit Prepare for Your Single Audit?

While memorizing the updated OMB Compliance Supplement is unnecessary for preparing your organization’s single audit, you should be aware of the changes that could affect your nonprofit. 

A few steps can help:

  1. Communicate with your audit team: Talk to your auditors about updates to federal funding guidelines and how they may affect your uniform guidance audit.
  2. Understand the supplement’s scope: Know which federal programs are subject to audits under uniform guidance and if your organization meets the threshold. 
  3. Maintain detailed records:  Record-keeping is critical. Ensure all financial transactions, especially those pertaining to federal funds, are well-documented.
  4. Review major updates issued by the OMB: Be on the lookout for changes that may affect your organization’s single audit requirements.
  5. Consult audit specialists: When in doubt, seek advice from auditors and accounting professionals specializing in nonprofit audits.



The OMB Compliance Supplement is one compliance document that provides auditors and nonprofits with guidance on federal programs subject to audits under uniform guidance. When you select a CPA firm to perform your single audit, ensure they have experience performing audits under uniform guidance and are well-versed with the latest updates.

At Assurance Dimensions, we have a team of audit professionals providing nonprofit and single audit services. We help nonprofit organizations and their boards understand federal compliance, and we have the knowledge and experience to prepare audits for your nonprofit organization.

Contact us today or request a quote to receive more information about our audit and assurance services.