If you have any federal grant experience, you most likely have heard the term “Uniform Guidance. ” But even some experts need help properly understanding the requirements under the guidance. In December 2014, through the Code of Federal Regulations, the Office of Management and Budget (OMB) implemented “Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards “ (2 C.F.R. Part 200). It was created to streamline and simplify the existing federal grant management process and replace and consolidate eight previously separate sets of federal grant guidance into a comprehensive set of rules. This simplification aims to reduce the administrative burden for recipients and improve consistency and transparency in federal grantmaking. By including reforms such as new procurement standards and clarified cost allocation rules, the Uniform Guidance also promotes effective and efficient use of federal grant funds. Finally, the Uniform Guidance also benefits the public at large through efforts to reduce administrative costs and improve efficiency for the grantor and grantee, ultimately enhancing stewardship of taxpayer dollars. Federal agencies have implemented the Uniform Guidance within their regulations in other sections of Title 2. The Uniform Guidance was revised in August 2020, and OMB plans to make more revisions in 2023. stewardship of taxpayer dollars.

This blog will help you understand the importance of guidance, how to keep your organization compliant, and best practices for staying aware of the ever-changing grants landscape and the Uniform Guidance.

To whom does the Uniform Guidance Apply?

The Uniform Guidance applies to entities that receive and administer federal grant funding, including state and local governments, tribal nations, nonprofit organizations, and higher education institutions. Compliance with the guidance is required to receive and maintain federal grant funding. Grant professionals must understand the rules and requirements, including financial management, procurement, and reporting standards, to ensure continued receipt of federal funding, avoid penalties and legal actions, improve risk management, reduce errors, and enhance reputation and credibility. 

What does the Uniform Guidance cover?

The Uniform Guidance covers several areas related to federal grant management, including:

• Financial management: The Uniform Guidance outlines rules for managing federal grant funds, including how to budget, account for, and report on grant funds.
• Procurement: The Uniform Guidance establishes requirements for grant recipients purchasing goods and services with federal grant funds.
• Administrative requirements: The Uniform Guidance outlines various administrative requirements, including documentation and recordkeeping standards.
• Cost principles: The Uniform Guidance determines the reasonable and allowable costs when using federal grant funds.
• Audit requirements: The Uniform Guidance outlines the requirements for ensuring compliance with federal grant regulations, including Single Audit requirements.

How can organizations comply with the Uniform Guidance?

Grants professionals can help their organizations stay compliant with the Uniform Guidance by implementing the following:

1. Familiarizing their staff with 2 C.F.R. Part 200 by conducting regular training sessions. This ensures your staff understands their roles and responsibilities under their guidance.  This reduces the risk of non-compliance, errors, and any legal repercussions. Many grantmaking agencies and third-party organizations offer training sessions on Uniform Guidance.
2. OMB requires all nonfederal entities and organizations to have written policies. Your entity should implement internal policies and procedures to reflect the latest Uniform Guidance requirements and promote efficient grant management.
3. Maintaining detailed records can help grantee entities identify potential compliance issues and errors early, enabling them to proactively address them and reduce risks. A focused effort on maintaining records can also enhance communication and coordination between team members responsible for managing grant activities leading to improved collaboration, reduced documentation duplications, increased accountability, and greater efficiency.
4. Conduct regular internal audits to verify compliance with the Uniform Guidance. This can enable grantee organizations to take necessary corrective actions proactively, reducing the risk of financial mismanagement and non-compliance.
5. Work with grantmaking agencies, professional organizations, or third-party consultants when providing additional guidance and support on issues related to the Uniform Guidance. Third-party consultants can offer technical assistance, conduct training or assessments, or even provide a one-stop shop for all the organization’s compliance needs.

How to stay updated with the latest changes to the Uniform Guidance?

Staying current with the Uniform Guidance is imperative but a necessary investment for grant professionals. Grants professionals can stay informed of the ever-changing grant landscape by:

• Attending webinars or conferences lets you hear from federal grant management experts and earn CPE and GPCI CEU credits as needed. Attend sessions that feature guest speakers or presentations on the Uniform Guidance.
• Joining groups or networks for grant professionals, such as NGMA, can offer a space to share updates, learn from others and ask questions about the Uniform Guidance.
• Participating in professional development workshops, technical assistance, and compliance training can provide a wealth of resources to inform you on the latest Uniform Guidance.

In short, the Uniform Guidance is a comprehensive set of standardized guidelines that outlines fiscal management, procurement, and reporting standards. It applies to organizations that receive federal grant funding, and their adherence to these regulations determines their eligibility for additional funding in the future. Understanding and implementing these guidelines is crucial for successfully administering grants and minimizing the risk of penalties or lawsuits. At Thompson Grants, our experts deeply understand these regulations and their impact on federally funded organizations. Learn how we can help your organization maintain compliance with the Uniform Guidance.

Please note: This blog post is not official or legal guidance. Recipients should consult the federal awarding agency regarding whether the Uniform Guidance applies to a particular federal award. Subrecipients should consult with the pass-through entity. Thompson Grants is not a grantmaking organization and does not award grants.

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