Spring 2015 issue of Horizons

PUBLIC SECTOR

How Recent Changes in Federal Grant Rules Impact You by Ted Williamson, CPA

D ecember 26, 2014, marked the dawn of a new era in the world of federal grant making and compliance. On that date, many of the provisions of a new Office of Management and Budget (OMB) pronouncement, generally referred to as the “Uniform Grant Guidance” (UGG), became effective for governments, not- for-profit organizations and colleges and universities that expend federal awards. The intent of the OMB was to simplify existing guidance related to federal grants, and many of the provisions of the UGG do just that. As a result, it is incumbent upon entities that receive federal grants to understand the provisions of the UGG so they can begin to take advantage of them.

The full title of the OMB document is Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , and it is available in its entirety at www.RubinBrown.com/UGG .

As the title implies, the UGG revises existing federal award guidance in three areas:

∙ Administrative requirements

∙ Cost principles for federal awards

∙ Audit requirements associated with federal awards, often referred to as a “single audit”

The requirements associated with the first two areas are effective for new or incrementally funded awards issued on or after December 26, 2014.

page 42 | horizons Spring 2015