The Office of Management and Budget (OMB) has been delayed in issuing the 2026 OMB Compliance Supplement. LGC staff are aware of the impact of this delay for local governments and public authorities in North Carolina as it relates to completion and submission of their FY 2026 audits.
While OMB issued a draft version of the 2026 Compliance Supplement in September, 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:
For fiscal year 2026 audits, the LGC will not require amended contracts for units subject to Single Audit to be submitted if the only change to the original contract is an extended due date. Units and/or auditors retain the right to sign and submit an amended contract if they require. Units not subject to Single Audit must still submit an amended contract if its audit is submitted after the contracted due date.
Units concerned that a delay in audit submission may impact an application for debt approval should contact the financial analyst assigned to its 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 2026 Compliance Supplement, the audit may be submitted at the audit firm’s discretion.
LOGOS will be updated to reject Federal Single Audits until the final OMB guidance is issued. LGC staff will be checking to ensure the Federal Single Audit opinion date is after the final guidance is issued.
LGC will release a subsequent blog post stating the updated due date for Single Audits after the final OMB Compliance Supplement has been released.
LGC staff will continue to follow the situation and provide additional guidance as needed.
Users of the 2026 OMB Compliance Supplement should regularly monitor websites for the final issuance, such as OMB’s website. Our office will be sending an additional notice when the final version is issued. A link will be provided on our State Compliance Supplements webpage once the final 2026 OMB Compliance Supplement is released. When the final guidance is issued, it is requested that the audits be issued as soon as possible so financial concerns and findings can be addressed in a timely manner.