CHICAGO (February 26, 2014) – A majority of organizations receiving federal grants are unsure whether U.S. Office of Management and Budget (OMB) grant reform changes will have a significant impact on them, according to a poll taken during a recent webinar on the topic hosted by Baker Tilly.
Fifty-eight percent of poll respondents—finance and grant management professionals from state and local governments, not-for-profits and higher education institutions across the country—indicated they are still evaluating what the impact of the OMB’s comprehensive overhaul to federal grant policies for administrative requirements, cost principles and audit requirements will be.
“While federal grant recipients have until December 26, 2014 to start complying with the new rules, they will need to begin assessing the impact of the changes now to ensure processes and controls are updated by the end of the year,” explains Heather Acker, lead webinar presenter and partner in Baker Tilly’s state and local government assurance practice. “Recipients should assess where they are today to gain an understanding of what the biggest areas of change in their organization will be. They need to be alert for additional guidance through the granting agencies and develop an action plan for implementing the changes and educating key personnel, management, board members and subrecipients.”
The grant reform consolidates eight individual circulars into one 700-page “super circular” that is intended to reduce administrative burden and help organizations mitigate risk by bolstering the integrity of grant accounting and reporting. The changes are also intended to heighten focus on the organization’s ability to achieve their mission through program performance results.
Some of the key areas of change getting the most attention include revisions to personnel time and effort reporting requirements, internal control guidance, changes to indirect cost rates, modernization of records, and an increase in the threshold requiring a single audit to $750,000.
View a replay of the webinar, “OMB grant reform: An overview of the recent changes and tips to help you comply.”
About Baker Tilly Virchow Krause, LLP (bakertilly.com)
Baker Tilly Virchow Krause, LLP (Baker Tilly) is a nationally recognized, full-service accounting and advisory firm whose specialized professionals connect with clients and their businesses through refreshing candor and clear industry insight. With approximately 2,700 employees across the United States, Baker Tilly is ranked as one of the 15 largest accounting and advisory firms in the country. Headquartered in Chicago, Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion.