As a result of the current federal government shutdown, the release of the final Office of Management and Budget (OMB) Compliance Supplement for 2025 has been delayed. LGC staff are aware that this delay has the potential to impact audit completion and submission for a large number of local governments and public authorities in North Carolina, as the supplement is needed for auditors to test the major federal programs of units that expended $750,000 or more of federal financial assistance in FY 2025.
While OMB issued a draft version of the 2025 Compliance Supplement in August, OMB has specified that the draft should only be used for planning purposes. It is currently unclear when the finalized supplement will be approved and released by OMB leadership.
In light of these circumstances, units and auditors are advised to consider the following guidance:
- Note that FY 2025 audits are due on Dec. 31 rather than the previous deadline of Oct. 31. This should allow some time for units whose audits cannot be completed without the finalized supplement.
- Units concerned that a delay in audit submission may impact an application for debt approval should contact the financial analyst assigned to their transaction in the Debt Management Section. If the transaction has not yet been assigned, contact should be made through the Debt Inquiry Portal on our website.
- If an auditor believes that an audit performed under State Single Audit requirements is not significantly impacted by the requirements of the OMB 2025 Compliance Supplement, the audit may be submitted at the audit firm’s discretion.
- Our office no longer accepts audits with separate compliance sections issued at a later date. Audit submissions received without a compliance section that is required will not be considered received by LGC staff until the compliance section is submitted.
LGC staff will continue to follow the situation and provide additional guidance as needed.
Users of the 2025 OMB Compliance Supplement should regularly monitor websites for the final issuance, such as OMB’s website. Our office is not planning to send an additional notice when the final version is issued, but a link will be provided at our State Compliance Supplements webpage once the final 2025 OMB Compliance Supplement is released.