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I CITY OF ROSEVILLE IEMERGING ISSUES December 31,2014 I UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES AND AUDIT IREQUIREMENTS FOR FEDERAL AWARDS The Office of Management and Budget (OMB) issued grant reform rules on December 23, 2013. This I uniform grant guidance streamlines Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Effective Dates IFederal agencies must implement the requirements to be effective by December 26, 2014. Non-federal entities will need to implement the new Administrative Requirements and Cost Principles for all new Federal Awards made after December 26, 2014. Audit Requirements are effective for fiscal years Ibeginning on or after December 26, 2014. Objective of OMB Grant Reform I This reform streamlines the language from eight existing OMB Circulars into one consolidated set of guidance, in the code of Federal regulations, known as the"Super Circular". The objective of the grant reform is to reduce administrative burden for non-federal entities receiving Federal Awards while Ireducing the risk of waste, fraud and abuse by: 1. Eliminating duplicative and conflicting guidance I2. Focusing on performance over compliance for accountability 3. Encouraging efficient use of information technology and shared services 4. Providing for consistent and transparent treatment of costs 5. Limiting allowable costs to make the best use of federal resources I 6. Setting standard processes using data definitions 7. Encouraging non-federal entities to have family friendly policies 8. Strengthening oversight 1 9. Targeting audit requirements on risk of waste, fraud and abuse This grant reform complements targeted efforts by OMB and a number of Federal agencies to reform I overall approaches to grant-making by implementing innovative, outcome-focused grant making decisions and processes in collaboration with their non-federal partners. Administrative Requirements —Subpart A-D of Federal Register IFollowing are some of the notable items in the updated Administrative Requirements. • Must is defined as required I • Should is defined as best practice or recommended approach • The term "vendor" is no longer used and was replaced with the term "contractor" (Section 200.23) I • Personally Identifiable Information(PII) and Protected Personally Identifiable Information (PPII) are defined (Sections 200.79 and 200.82) • Fixed amount awards focused on meeting performance milestones (Section 200.201) I • Emphasis on performance goals and performance reporting (Section 200.301) • Defined that computers are considered supplies, not equipment (Section 200.940) • Flexibility in electronic documentation retention, with associated internal controls (Section 1 200.335) 1 20