The 2025 Ohio Compliance Supplement updates show you exactly what auditors will test during your next audit. Think of it as getting the test questions before the exam – entities that use this advanced knowledge to organize documentation save time and reduce stress during fieldwork.
Here’s how to prepare for the three main changes that will affect your audit process.
Fraud Training Documentation Your Auditors Will Request
The Ohio Auditor of State replaced simple fraud acknowledgment forms with mandatory training videos after seeing increased fraudulent activity across government entities. New hires must complete training within 30 days, and all employees must renew every four years.
During your audit, you’ll need to show compliance records. Entities using manual tracking often face extended questioning while auditors verify who watched the training and when. One city official set a personal calendar reminder for renewals, but it became clear this approach was unreliable due to the risk of staff turnover. .
How to prepare: Set up tracking that survives staff turnover. School districts using learning management systems like Public School Works have documentation ready when auditors request it. Smaller entities can achieve similar results using HR systems with automated reminders tied to positions rather than individual employees.
Create 25-day automated reminders (five days before the 30-day deadline). When auditors ask for fraud training records, you’ll have organized documentation instead of scrambling through email chains and handwritten notes.
Construction Project Files That Speed Up Testing
Projects using “construction manager at risk” or “design-build” delivery methods face additional audit testing. Auditors will request specific documentation in a predictable sequence, and disorganized files mean multiple follow-up requests that extend your audit timeline.
How to prepare: Use the Ohio Auditor of State compliance manuals to organize project files before auditors arrive. Create folders that match their testing sequence:
- Contractor Selection: bid documents, evaluation criteria, selection justification
- Project Oversight: meeting minutes, progress reports, site visit documentation
- Change Orders: approval documentation, cost justification, authorization signatures
- Payment Documentation: invoice approvals, payment authorizations, compliance certifications
When auditors request construction project files, organized documentation lets them complete testing in one session instead of coming back for missing pieces. Your project managers spend less time hunting for paperwork, and audit fieldwork stays on schedule.
School District Records That Auditors Will Verify
Chapter 4 updates create multiple compliance checkpoints throughout the year. Auditors will test enrollment documentation, transportation calculations, and facilities program compliance using specific procedures outlined in the updated supplement.
The pattern we see with funding issues involves documentation gaps. Districts that can’t support their reported student counts face extended audit procedures due to the additional time and communication required to verify enrollment records.
How to prepare: Build verification steps into your existing administrative processes. Monthly enrollment reviews, annual facilities program checks, and immediate transportation documentation when changes occur. Use Chapter 4 testing procedures as your internal checklist.
When auditors test student records, funding calculations, and transportation reports, you’ll have documentation that supports your numbers instead of explaining discrepancies discovered during fieldwork. Address documentation gaps on your timeline, not during audit deadlines when options are limited.
Turn Advance Notice Into Audit Efficiency
These updates tell you exactly what auditors will examine and in what order. Entities that organize documentation to match testing procedures complete audits more smoothly than those caught unprepared.
The compliance supplement provides your roadmap. Auditors must follow these testing procedures, so you know their questions before they arrive. Preparation reduces the back-and-forth requests that extend fieldwork and create stress for your staff.
The choice is simple: organize documentation proactively using the state’s published testing guide, or spend audit time explaining why required records aren’t readily available.
At Rea, we see the difference preparation makes across hundreds of Ohio government audits. Entities with organized documentation complete testing efficiently while unprepared organizations face extended fieldwork as auditors work through disorganized files. Our government audit specialists help entities understand what auditors will test and how to organize documentation for smooth audit procedures.
The 2025 compliance changes are already published. Your next audit will follow these procedures whether you’re prepared or not. If you’re not prepared for your next audit, reach out to Rea to get experienced partners that can help you stay ready.
