Compliance Conversations | Exploring the 2025 OMB Compliance Supplement: Implications for Auditees-Video Recording

Video Transcription

Video Summary

The NGMA Compliance Conversations webinar, led by Lee Klump and Nick Nunn-Ferrin of BDO, focused on the delayed 2025 OMB Compliance Supplement and its implications for grants professionals. The session emphasized that auditors cannot issue single audit reports for fiscal years ending June 30, 2025, until the final supplement is released, which remains pending. The 2025 supplement includes modest changes, such as updates to the important Matrix 2 (Part 2), removal of most COVID-related programs, and modifications to audit requirements, internal controls, and special testing provisions. A significant topic discussed was the ongoing freeze and restructuring of federal grants, including capped indirect cost rates at 15% by agencies like NIH, DOE, and DOD, severely impacting research institutions and nonprofits reliant on higher rates. The speakers highlighted the need for organizations to closely monitor cash flow, diversify funding sources, strengthen financial planning, and maintain open communication with federal grant officers. They also noted an increased focus on internal controls and audit sampling improvements in forthcoming government auditing standards. The presenters encouraged grants professionals to stay informed, participate in advocacy efforts, and leverage NGMA resources to navigate the evolving federal funding landscape amidst ongoing legal and policy changes. A draft of the 2025 Compliance Supplement is available on the AICPA GAAC website and NGMA portal for member use.

Keywords

NGMA Compliance Conversations

2025 OMB Compliance Supplement

single audit reports

Matrix 2 updates

COVID-related program removal

federal grants restructuring

capped indirect cost rates

internal controls and audit sampling

NGMA resources and advocacy