This month, the Office of Management and Budget (OMB) published proposed rule changes that designed to simplify the process for applying for federal grants. These rule changes are related to a 2009 Presidential Executive Order regarding the elimination of waste in federal programs included an element on the streamlining of federal grant programs. OMB has seen been hearing from stakeholders (including major local government associations) and is proposing reforms designed to provide a uniform policy for federal grants by consolidating and updating government regulations.
The “Reform of Federal Policies Relating to Grants and Cooperative Agreements; Cost Principles and Administrative Requirements (Including Single Audit Act)” details OMB’s proposed changes to a range of processes and requirements, which will have important impacts on grants management and those who work in the field. The reforms seek to strengthen the oversight of federal grant dollars and increase the efficiency and effectiveness of grant programs by eliminating unnecessary and duplicative requirements.
More specifically, OMB is proposing the following:
- Consolidating and treamlining all OMB guidance on grants into one document
- Ensuring that federal agencies weigh the financial risk and merits of an application before providing a grant
- Simplifying the reporting requirements that grantees must adhere to in justifying salaries and wages charged to grants
- Providing guidance to ensure robust oversight of sub-recipients
- Focusing more audit resources on preventing waste, fraud and abuse
- Holding agencies accountable for getting results and addressing weaknesses among grant recipients
Moving forward, OMB wants to hear from local governments and others who would be affected. The proposal will remain open for a 90-day comment period, which translates into a May 2 deadline. It is available at www.regulations.gov under docket number omb-2013-0001.[/dw-post-more][divider]