Portland Public Schools' Audit Committee was told on Wednesday that the district's external auditors are proceeding with annual financial testing but that a late release of the Office of Management and Budget's (OMB) compliance supplement could force more testing and revisions to the single-audit portion of the annual comprehensive financial report.

The district's chief financial officer, Michelle Morrison, told the committee that the OMB compliance supplement — guidance auditors use to test federal program compliance — usually appears in May but had not been released this year. Morrison said the auditors are completing work under standard procedures but "it may create some challenges for us if the OMB guidance comes out with new information because they'll have to come back and do some testing, and we'll likely have to revise our statements to a degree."

The single audit provides required testing of federal grants and other federal program compliance. Morrison told the committee the district is "fully engaged with our auditors" and that the financial statements themselves are unlikely to change; the uncertainty relates to additional federal-program testing and timing of the auditors' final opinion.

Committee chair Patty Sullivan said the state requires the completed annual financial report, which includes single-audit results, to be received before the December deadline so the district can receive its January state school fund payment. Morrison said the state is aware of the national timing issue and will need to address procedural implications if OMB guidance remains delayed.

Given the uncertainty, Morrison recommended flexibility in the committee schedule: auditors can present draft findings earlier, but the final opinion may arrive later. The committee has tentatively held December and mid-December meeting slots and scheduled a November 6 status update; Morrison asked members to allow for potential scheduling adjustments.

The committee did not take formal action. Morrison and Sullivan said they would continue coordinating with the auditors and the state and return to the committee with updates.

Ending: The committee plans an update at its November meeting and is holding two December meeting dates pending OMB guidance and final auditor work. The district will communicate timing changes as the federal guidance situation develops.