State and local government agencies are entering 2026 facing expanding compliance requirements, increased audit scrutiny, and ongoing staffing constraints. While regulatory expectations continue to grow, many agencies are expected to meet these obligations with the same — or fewer — resources.
According to the National Association of State Chief Information Officers, workforce capacity and outdated systems remain persistent barriers to effective compliance management across SLG environments.
Below are the most pressing compliance challenges SLG agencies must address in 2026.
Many SLG agencies rely on one or two individuals to manage compliance across multiple departments. As requirements expand, manual tracking becomes unsustainable and error-prone.
Without centralized systems, departments often manage compliance training independently, leading to inconsistent delivery and uneven documentation — both of which increase audit risk.
Spreadsheets, email trails, and disconnected tools make audits more stressful than they need to be. Manual reporting consumes time that small teams do not have.
The Government Finance Officers Association has repeatedly emphasized the importance of standardized reporting to reduce audit strain.
High turnover and retirements make it challenging to maintain consistent compliance and onboarding practices, especially when training processes are informal or undocumented.
Agency leaders need real-time insight into compliance status without having to chase updates. Without dashboards and centralized reporting, visibility is delayed or incomplete.
Compliance challenges for SLG agencies are not going away in 2026. Agencies that rely on manual systems will continue to face unnecessary risk and administrative burden.
Automation, centralized reporting, and workforce enablement are no longer optional — they are foundational to sustainable compliance.
Download the SLG Compliance Guide. Learn how automation helps small public-sector teams stay audit-ready.
