PPS CFO: pending federal guidance could delay single‑audit finalization and affect state reporting timeline

Michelle Morrison, Portland Public Schools’ chief financial officer, told the audit committee that the Office of Management and Budget’s (OMB) compliance supplement — the annual guidance auditors use to test federal grants — had not been released and that the omission could complicate the district’s single‑audit schedule.

Morrison said auditors are proceeding with standard testing but that if OMB issues new instructions the auditors may need to return to perform additional testing and the district may have to revise some statements. "We just have to wait," Morrison said, adding the district is fully engaged with its auditors and will present draft material as it becomes available.

Morrison explained the timing sensitivity: state law requires the state receive the district’s annual financial report (which includes single‑audit information) by December so the district can receive its January state school fund payment. If final federal guidance arrives late, that sequence could require additional procedural steps at the state level.

The committee agreed to keep an audit‑committee meeting on Nov. 6 for an interim status update and to consider whether the December presentation should be adjusted. Morrison said auditors could present a draft of their findings even if a final opinion had not been issued.

Next steps: the audit committee will receive an update at the Nov. 6 meeting and may shift the December presentation date if necessary; the district and auditors will continue to monitor OMB guidance and coordinate with state officials about any timeline changes.