The Office of Management and Budget (OMB) has finalized revisions to the Uniform Guidance and issued an accompanying implementation memorandum as well as reference guides.
2 CFR 200, also known as the “Uniform Guidance” consists of Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. It was issued by the Office of Management and Budget (OMB) on December 26, 2013, and was compiled from previously separate OMB circulars that addressed separately administrative requirements, audits, and cost principles for specific entities such as universities, non-profit organizations, and hospitals. The overarching goal of the Uniform Guidance is to improve program performance, reduce the administrative burden on award recipients and mitigate the risk of the inappropriate use of Federal funds. 2 CFR 200 is considered guidance and not regulation.
Recent revisions to the Uniform Guidance include requiring federal agencies to provide Notices of Funding Opportunities (NOFO) in plain language, to the extent possible. The revisions also include an increase to multiple thresholds that trigger additional requirements on those receiving grants and other funding, such as raising the Single Audit Threshold from $750,000 to $1 million per fiscal year. The threshold increases mean fewer hurdles and administrative burdens for local governments when receiving federal grant money.
The League’s federal partners at the National League of Cities have been working with Congress and the White House Office of Management and Budget on improving the ability of local governments to manage the life cycle of the grant process. The changes made to the Uniform Guidance will reduce many of the administrative burdens placed on local governments in managing their federal grants.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.