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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D">Hello ACFR Contacts,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D">Please see the email below about the proposed revisions to
<i>Guidance on Grants and Agreements</i> that were officially published for comment in the Federal Register. The earlier notice on this was sent on September 25. For those agencies with federal awards, I expect the proposals will be of particular interest for
you. Please share any feedback with me by <b><u>November 10, 2023</u></b>, so that we may include it with NASACT’s response. It’s possible we may provide our own feedback, separate from NASACT, as well, depending upon the information we receive from agencies.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D">If you have any questions, please let me know.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D">Thanks,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D">Rob<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal"><b><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D;mso-ligatures:none">Robert W. Hamilton, CPA
<o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-family:Roboto;color:#1F497D;mso-ligatures:none">Statewide Accounting and Reporting Services Manager</span><span style="font-size:16.0pt;font-family:Roboto;color:#1F497D;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:Roboto;color:#1F497D;mso-ligatures:none">971-719-3031<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:Roboto;color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> Cornelia Chebinou <cchebinou@nasact.org>
<br>
<b>Sent:</b> Thursday, October 5, 2023 5:20 AM<br>
<b>To:</b> NSAAAuditors <NSAAAuditors@nasact.org>; NASCComptrollers <NASCComptrollers@nasact.org>; StateTreasurers <StateTreasurers@nasact.org><br>
<b>Cc:</b> NSAAAuditorsCCs <NSAAAuditorsCCs@nasact.org>; NASCComptrollersCCs <NASCComptrollersCCs@nasact.org>; StateTreasurersCCs <StateTreasurersCCs@nasact.org><br>
<b>Subject:</b> Request for Comment - Official Notice of Proposed Revisions to OMB's Guidance on Grants and Agreements- Redline Version Available<o:p></o:p></span></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Good morning, NASACT’s Executive Director Kinney Poynter recently sent an email containing a pre-released version of the US Office of Management and Budget’s proposed revisions to
<i>Guidance on Grants and Agreements</i>. Today, the proposed revisions were officially published for comment in the
<a href="https://www.federalregister.gov/documents/2023/10/05/2023-21078/guidance-for-grants-and-agreements.">
Federal Register</a><span style="color:#1B1B1B;background:white">.</span><span style="font-size:12.5pt;font-family:"Helvetica",sans-serif;color:#1B1B1B;background:white">
</span><span style="color:#1B1B1B;background:white">A redline version of the proposed changes can be viewed </span><a href="https://www.cfo.gov/assets/files/Uniform%20Grants%20Guidance%20Revisions%20-%20Redline%20(2023).pdf"><span style="color:blue;background:white">here</span></a><span style="color:#1B1B1B;background:white">.</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The proposed revisions are in a number of areas including: Part 1 (About Title 2 of the Code of Federal Regulations and Subtitle A); Part 25 (Universal Identifier and System for Award Management); Part 170 (Reporting Subaward and Executive
Compensation Information), Part 175 (Award Term for Trafficking in Persons); Part 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Non-procurement)); Part 182 (Governmentwide Requirements for Drug-Free Workplace (Financial Assistance));
Part 183 (Never Contract with the Enemy); and Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Although the proposed revisions cover many areas, there are a few items of note in the proposal:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Raises the single audit threshold from $750,000 to $ 1 million<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Raises the de minimus indirect cost rate from 10% to 15%<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Removes the requirement that indirect cost rates be available on a governmental website<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Uses the term recipient and subrecipient except in areas where a specific provision applies to an entity that is not a federal entity<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Raises equipment and supply thresholds from $5000 to $10000<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Modifies and expands many definitions such as period of performance and questioned costs<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Modifies the definition of “Modified Total Direct Costs” to exclude subaward costs above $50,000
<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Removes prior written approval for 10 items of cost<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Revises areas of the cost principals including clarification of pension costs<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo3">Revises the template text for a Notice of Funding Opportunity (NOFO)<o:p></o:p></li></ul>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">OMB is also seeking comment on several areas that could be modified in future revisions including:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l2 level1 lfo6">Audit requirements for for-profit entities
<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l2 level1 lfo6">Additional guidance on loans and loan guarantees<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l2 level1 lfo6">Automatic adjustments for certain thresholds<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l2 level1 lfo6">Amendments to indirect costs<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l2 level1 lfo6">Expanding audit guidance to address “proper perspective”<o:p></o:p></li></ul>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Comments on this proposal must be submitted electronically before the comment closing date of 12/04/2023 to
<a href="http://www.regulations.gov/">www.regulations.gov</a>. In submitting comments, please search for recent submissions by OMB to find docket OMB–2023–0017 which includes the full text of the proposed revisions and submit comments there. Please provide
clarity as to the section of the guidance that each comment is referencing by beginning each comment with the section number in brackets. For example, if the comment is on 2 CFR 200.1 include the following before the comment [200.1]. The public comments received
by OMB will be posted at <a href="http://www.regulations.gov/">http://www.regulations.gov</a> and be a matter of public record.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="background:yellow;mso-highlight:yellow">NASACT will be preparing an association response. Please provide your comments no later than 11/17/2023</span>. Additionally, if you are sending comments directly to OMB we would
appreciate if you could also send us a copy</b>. Please note that while it is important to provide comments and insights to the questions posed in the document, it is also extremely beneficial to also provide commentary on
<b>any other areas of OMB’s guidance on grants and agreements that you believe could use clarification and/or amendment.</b>
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Thank you!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">Cornelia Chebinou, Washington Director<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">NASACT<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none"><a href="http://www.nasact.org/">www.nasact.org</a><o:p></o:p></span></p>
<p class="MsoNormal"><a href="mailto:cchebinou@nasact.org"><span style="mso-ligatures:none">cchebinou@nasact.org</span></a><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">202-989-6801<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">202-989-6804 (fax)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:none">571-234-7108 (cell)<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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