Should You Ask for an Extension? How to Know When It's Time (And How to Do It Well)

Every finance team wants to hit their audit deadline.

But sometimes, despite your best efforts, the timeline slips:

• Staff turnover

• Late closings

• Unexpected findings

• A messy trial balance

• A grant you forgot to track that now needs reconciling

Now the deadline is around the corner—and you’re not ready.

So what do you do?

 

Do you ask for an extension? Or try to push through and hope for the best?

Here’s how to know when it’s the right call—and how to request one professionally, without damaging your relationship with your auditor or your credibility with oversight agencies.

When It Might Be Time to Ask for an Extension

An extension isn’t a failure. In fact, in some cases, it’s the most responsible decision you can make.

✅ Consider requesting an extension if:

• Key documents (like bank recs or final journal entries) are incomplete

• The trial balance is still being adjusted

• You’re still waiting on pension or OPEB reports

• You’ve had recent turnover in finance leadership

• Your auditor hasn’t been able to start fieldwork yet due to other delays

• You’re preparing for a single audit and your SEFA isn’t final

In short: if you can’t submit a complete and accurate report by the deadline, asking for more time protects the quality of your audit.

When an Extension Might Not Be Necessary

Extensions are useful—but they shouldn’t be automatic. Sometimes, the audit is “almost there,” and you just need a push to get across the finish line.

✅ You may not need an extension if:

• The audit is materially complete

• The auditor has submitted a draft and is waiting on your final review

• The only item outstanding is minor (like a management rep letter or board signature)

• You’ve already granted the auditor full access to all documentation

In these cases, clarify the timeline with your auditor—but stay on track.

How to Ask for an Extension Professionally

If you’ve decided that an extension is needed, here’s how to do it the right way:

✅ 1. Talk to Your Auditor First

Let them know what’s happening before you notify the state or oversight agency. Your auditor can help estimate a realistic new timeline—and may need to sign off on the extension in some jurisdictions.

✅ 2. Submit the Formal Request Promptly

Don’t wait until the day of the deadline. Most state departments, federal agencies, and bond authorities allow extensions—but only if you request them before the due date.

Check your state’s specific rules (e.g., Nebraska Department of Education, Municipal Finance Division, etc.).

✅ 3. Explain the Reason Clearly (But Briefly)

No need to write a novel—just explain the cause and your plan to complete the audit.

Example:
"Due to turnover in key finance roles and ongoing year-end adjustments, the district will be unable to complete the FY24 audit by the November 1 deadline. We are actively working with our auditor and expect to submit a complete report by December 15."

✅ 4. Commit to a New, Realistic Deadline

Don't guess. Check with your auditor, review your schedule, and set a completion date you can meet. Then stick to it.

✅ 5. Use It as a Learning Opportunity

If this is your first extension, think about what led to the delay:

• Were month-end closes inconsistent?

• Did the SEFA get overlooked?

• Was too much knowledge tied to one person?

Use the offseason to strengthen your internal processes so next year goes more smoothly.

Timeliness Matters—But So Does Quality

Yes, deadlines are important.

But so is getting it right.

If your records need more time to finalize, or if life threw you curveballs this year, an extension is not a failure—it’s a professional step toward a clean, accurate, and complete audit.

✅ Ask early
✅ Communicate clearly
✅ Finish strong

Because a late report is still better than an incomplete one.