OMB Releases Final 2025 Compliance Supplement: What Nonprofits and Auditors Should Know
The Office of Management and Budget (OMB) finally released the final 2025 OMB Compliance Supplement which is now available on the White House website. This announcement, much to the surprise of many auditors and nonprofit organizations, was made without much fanfare and occurred quietly right before the Thanksgiving holiday on November 25, 2025. Jackie Winchell, a Director on McKonly & Asbury’s Nonprofit team, discussed the impact of this long delay in a previous article earlier this fall.
The issuance of the 2025 OMB Compliance Supplement was a major development, as nonprofit auditors, and those nonprofit organizations who receive federal awards, use the annual compliance supplement to complete Single Audits in accordance with the Uniform Guidance. This document is critical because it outlines federal program compliance requirements auditors must test (and organizations must meet), and until the 2025 OMB Compliance Supplement was issued, auditors were unable to finalize and issue audit reports where this supplement would have been applicable.
The 2025 OMB Compliance Supplement includes the usual annual updates, such as additions, removals, and revisions to federal programs, along with several new clarifications and guidance items. Importantly, the final version of the supplement is virtually unchanged from the draft that was released earlier this fall that auditors were able to use strictly for planning purposes. The AICPA Government Audit Quality Center previously outlined the changes in the draft supplement, which can be accessed in their Alert #489, and a list of changes are also included in the 2025 Compliance Supplement in Part 8, Appendix V. Auditors that previously referenced the draft supplement in their audit documentation should now replace those references to the final 2025 OMB Compliance Supplement.
The final 2025 OMB Compliance Supplement applies to fiscal years beginning after June 30, 2024 (i.e. fiscal year end June 30, 2025, and later) and fully supersedes the 2024 version of the compliance supplement.
Please contact us if you have questions about the 2025 OMB Compliance Supplement; our seasoned and experienced Nonprofit professionals are here to help. You can also learn more about our Nonprofit services by visiting our Nonprofit industry page.
About the Author
Jim is a Partner at McKonly & Asbury and Director of the firm’s Nonprofit industry group. He brings 23 years of public accounting experience, all with McKonly & Asbury, and leads many of the firm’s core audit and attest engagements… Read more
