OMB Gives Non-Federal Entities One Last Chance To Comply With New Procurement Guidelines – Rea CPA

OMB Gives Non-Federal Entities One Last Chance To Comply With New Procurement Guidelines

Special Announcement || Uniform Guidance | New Deadlines
Please note: Entities with fiscal years ending Dec. 31, must have the new procurement standards in place by Jan. 1, 2018. Entities with a fiscal years ending June 30, must have the new standards in place by July 1, 2018.

Earlier this year we reported that time was running out for non-federal entities to review their policies and procedures to make sure they were in line with the new procurement guidelines. But once again, the Office of Management and Budget (OMB) stepped in just in time to allow another one-year grace period for entities and organizations faced with implementing the new procurement standards for non-federal entities.

Read Also: Uniform Grant Guidance: What All Government Entities Need To Know

Uniform Grant Guidance (UGG) was put into place in 2014 to help govern new awards and/or incremental funding increases. To give those affected time to comply, a two-year grace period was granted. Unfortunately, the two years wasn’t long enough for some and on May 17, 2017, OMB released an amendment to the Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards. The amendment gives non-federal entities another year to “implement changes to their procurement policies and procedures in accordance with the procurement standards in 2 CFR 200.317 through 200.326 of the UGG.”

Moving forward, entities with fiscal years ending Dec. 31, must have the new procurement standards in place by Jan. 1, 2018. Entities with a fiscal years ending June 30, must have the new standards in place by July 1, 2018.

According to reports, OMB staff has said this will be the final grace period. Entities that have not implemented the UGG procurement standards should begin preparing for the new implementation date immediately. If you need help getting your policies and procedures in order with the new procurement guidelines, email the government services team at Rea & Associates.

In the meantime, take a look at this article for helpful insight into the methods you should follow for successful federal procurement efforts as well as some common pitfalls to avoid as you move toward implementing these new guidelines. After all, complying with these new guidelines by the new deadline could mean the difference between maintaining access to federal dollars or losing a valuable source of funding.

By Chad Gorfido, CPA (Medina office)

Chad has earned his AICPA Advanced Single Audit Certificate from the AICPA’s Governmental Audit Quality Center. This certification speaks to Chad’s ability to plan, direct and report on single audits in compliance with Uniform Guidance.

For more insight to help your government entity through the procurement process, check out these articles:

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County Governments Prepare To Feel The Pinch

New Auditor Of State Requirements Will Affect You