Yesterday, the Office of Management and Budget (OMB) released for public inspection the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The intention of this 758 page document is to streamline Federal grants rules and procedures. The new requirements apply to continuing awards as of the start of the 2014/2015 fiscal year on October 1, 2014.

In addition to reforms to procurement standards and increased assessment and monitoring requirements for sub-recipients, there are significant reforms to cost principles that should enable nonprofit organizations to use negotiated lump sums for indirect expenses, obtain predetermined multi-year indirect rates or obtain negotiated fixed rates with carry-forward provisions. Could it be possible that the Feds will finally reimburse nonprofit contractors and grantees for reasonable indirect costs?

Finally, don’t forget that the threshold for a single (A-133) audit will now be $750,000.

To enjoy all 758 pages, click here.

Happy Holidays!

Note: Since the 2013 Data Collection Form (DCF) is still not available for use, the OMB has granted an extension until January 31, 2014 for filing the DCF for a single audit for a fiscal period ending in 2013 where the DCF is due before the final form is available. This extension is automatic and there is no approval required. The extension applies only to single audits for fiscal periods ending in 2013. This 2013 DCF submission waiver language is posted on the Federal Audit Clearinghouse website.