Federal Grant Streamlining Update - July 14, 2003 Vol. 4 No. 14

July 14, 2003 Vol. 4 No. 14:

Published: 07/14/2003

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Federal Grant Streamlining Update

The federal government is moving forward with implementation of a 1999 law requiring streamlining and simplification of the grants process. In late June, the Office of Management and Budget (OMB) published four announcements in the Federal Register on policies to standardize information and formats for grant announcements, and increase the threshold for organization-wide audits for grantees from $300,000 to $500,000. A policy requiring grant applicants to have a Dun and Bradstreet DUNS number after October 1, 2003 was also published.

The Office of Federal Financial Management, an arm of OMB, issued a Policy Directive on Financial Assistance Program Announcements on June 23, 2003, establishing a standard format for all grant announcements, whether online or in print. Another directive orders the use of standard data elements for the FIND website, which is located at grants.gov. OMB is seeking comments on requiring agencies to post all grant announcements on this site by July 23, 2003.

OMB also announced an amendment to its policy on audits for grantees, which increases the threshold for organization wide audits of grantees to $500,000. The policy will be effective for fiscal years ending after December 31, 2003. The move will affect less than one half of one percent of federal grant dollars, but will relieve nearly 6,000 grantees from the expense and burden of the single entity audit. Program audits are required from grantees, limited to their federal funds.