The White House Office of Management and Budget (OMB) has issued the 2020 Compliance Supplement.
The 2020 Supplement is effective for audits of fiscal years beginning after June 30, 2019 and supersedes the 2019 Compliance Supplement dated August 2019.
Contents of the 2020 Compliance Supplement
The 2020 Compliance Supplement, like previous annual Compliance Supplements, adds, deletes, and modifies prior Supplement sections. In addition, it follows the OMB mandate adopted in the 2019 Compliance Supplement that requires each federal agency to limit the number of compliance requirements subject to the audit to six, with the exception of the Research and Development cluster.
The Research and Development cluster is permitted to identify seven compliance requirements as subject to the audit. For this purpose, the requirements relating to A. Activities Allowed and Unallowed and B. Allowable Costs and Cost Principles are treated as one requirement. The Part 2 matrix and the related program sections in parts 4 and 5 reflect this OMB mandate. Additionally, this six-requirement mandate does not apply to programs not included in this Supplement.
2020 Changes to Compliance Supplement
Appendix V provides a list of changes from the 2019 Compliance Supplement. However, changes in the Matrix of Compliance Requirements are reflected in Part 2 of the 2020 Compliance Supplement and not in Appendix V.