The Compliance Supplement is a publication that assists auditors in completing the compliance testing requirements of the state’s Single Audit. It contains the audit objectives for most federal programs, and Part 3 of the Supplement lists the actual compliance requirements of the grants that are subject to the Single Audit.

Due to the 2024 revisions to the Uniform Guidance (UG), the 2025 Supplement includes two sections on suggested audit procedures for the Part 3 compliance requirements. Federal awards are now divided into two categories: those governed by the pre-2024 UG and those under the revised UG (effective October 1, 2024), which are summarized in Part 3.1 and Part 3.2, respectively.

Part 2 of the Compliance Supplement provides a matrix detailing the specific requirements selected by each federal agency for its grant programs. This matrix will let state agencies know which of the compliance requirements the auditors will be testing for their grant programs. Federal agencies are required to choose a maximum of six of the 12 compliance areas, and the six selected areas could change from year to year. We encourage agencies to familiarize themselves with the compliance areas applicable to their grant program(s) each year and to ensure effective controls are in place.

The following is an updated list of programs that were designated as “higher risk” in the 2025 Compliance Supplement. This designation will impact the auditors’ major program determination process when selecting programs to be included in each year’s audit.

Federal Agency Assistance Listing Number (ALN) Title
Dept of Health and Human Services 93.778, 93.777, 93.775 Medicaid Cluster
Department of the Interior 15.252 Abandoned Mine Land Reclamation (AMLR)

We are currently updating cluster names and grant award titles in AFRS based on the 2025 Compliance Supplement. We will promptly communicate any reporting changes or new federal requirements that may impact agencies.