OMB Releases Grant Reform Proposal




The federal Office of Management and Budget (OMB) released its long-awaited proposal to reform federal grant administration. The proposal, entitled Proposed Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards, combines multiple federal regulations that currently govern federal grants administration into one complete, streamlined policy manual. The proposal’s provisions aim to improve the efficiency and effectiveness of federal grant programs by eliminating requirements that are duplicative or no longer necessary, as well as strengthen oversight of grant funds. Proposal measures include, among others, simplifying grantee reporting requirements related to justifying salaries and wages charged to grants; directing more audit resources to preventing waste, fraud and abuse; and ensuring robust sub-recipient oversight.

To assist stakeholders in determining what has changed, OMB has prepared supporting materials, including a nine-page crosswalk and crosswalk chart to highlight changes between existing guidance and the proposed guidance. Additional text comparisons of administrative requirements, cost principles, audit requirements, and definitions are also provided. The official notice of the proposed guidance was published in the Federal Register on February 1, and will be open for public comments for 90 days. Comments can be submitted at www.regulations.gov under docket number OMB-2013-0001. OMB will host an informational webinar with the Council on Financial Assistance Reform (COFAR) on Friday, February 8 at 11:00AM EST. No advance registration is required.

Links: Proposed Rule (with links to Supporting Materials); Webinar Links