Rule2021-17363
Uniform Administrative Requirements, Cost Principles, and Audit Requirements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 13, 2021
Issuing agencies
Management and Budget Office
Abstract
This document announces the availability of the 2021 Compliance Supplement (2021 Supplement) for the Office of Management and Budget's uniform administrative requirements, cost principles, and audit requirements regulations. This document also offers interested parties an opportunity to comment on the 2021 Supplement.
Full Text
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<title>Federal Register, Volume 86 Issue 154 (Friday, August 13, 2021)</title>
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[Federal Register Volume 86, Number 154 (Friday, August 13, 2021)]
[Rules and Regulations]
[Pages 44573-44574]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17363]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 86, No. 154 / Friday, August 13, 2021 / Rules
and Regulations
[[Page 44573]]
OFFICE OF MANAGEMENT AND BUDGET
2 CFR Part 200
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements
AGENCY: Office of Management and Budget (OMB).
ACTION: Guidance.
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SUMMARY: This document announces the availability of the 2021
Compliance Supplement (2021 Supplement) for the Office of Management
and Budget's uniform administrative requirements, cost principles, and
audit requirements regulations. This document also offers interested
parties an opportunity to comment on the 2021 Supplement.
DATES: The 2021 Supplement replaces the 2020 Supplement (issued in
August 2020) and its Addendum (issued in December 2020). The Supplement
applies to fiscal year audits beginning after June 30, 2020.
ADDRESSES: All comments to the 2021 Supplement must be in writing and
received by August 30, 2021. Late comments will be considered to the
extent practicable. Comments will be reviewed and addressed, when
appropriate, in the 2022 Compliance Supplement. Electronic mail
comments may be submitted to: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Please
include ``2 CFR Part 200 Subpart F--Audit Requirements, Appendix XI--
Compliance Supplement--2021'' in the subject line and the full body of
your comments in the text of the electronic message and as an
attachment. Please include your name, title, organization, postal
address, telephone number, and email address in the text of the
message. Comments may also be sent to: <a href="/cdn-cgi/l/email-protection#561124373822250233373b16393b347833392678313920"><span class="__cf_email__" data-cfemail="3f784d5e514b4c6b5a5e527f50525d115a504f11585049">[email protected]</span></a>.
Please note that all public comments received are subject to the
Freedom of Information Act and will be posted in their entirety,
including any personal and/or business confidential information
provided. Do not include any information you would not like to be made
publically available.
The 2021 Supplement is available online on the OMB home page at
<a href="https://www.whitehouse.gov/omb/office-federal-financial-management/">https://www.whitehouse.gov/omb/office-federal-financial-management/</a>.
FOR FURTHER INFORMATION CONTACT: Recipients and auditors should contact
their cognizant or oversight agency for audit, or Federal awarding
agency, as appropriate. The Federal agency contacts are listed in
appendix III of the Supplement. Subrecipients should contact their
pass-through entity. Federal agencies should contact Gil Tran at
<a href="/cdn-cgi/l/email-protection#c28aa3ab9d8fec9d96b0a3ac82adafa0eca7adb2eca5adb4"><span class="__cf_email__" data-cfemail="276f464e786a09787355464967484a450942485709404851">[email protected]</span></a> or (202) 395-3052 or the OMB Grants team at
<a href="/cdn-cgi/l/email-protection#571025363923240332363a17383a357932382779303821"><span class="__cf_email__" data-cfemail="3f784d5e514b4c6b5a5e527f50525d115a504f11585049">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The 2021 Supplement (2 CFR part 200, subpart
F, appendix XI) adds five new programs, deletes four programs and
provides updates on many other programs (including the 14 programs
previously included in the 2020 Addendum to the Single Audit Compliance
Supplement), where necessary. The 2021 Supplement is a continuation of
efforts to maximize the value of grant funding by applying a risk-
based, data-driven framework that balances compliance requirements with
demonstrating successful results. Consistent with the reduction in
compliance areas in the 2019 Supplement, the 2021 Compliance Supplement
allows for a maximum of six compliance areas and requires a review for
performance reporting for 57 programs. OMB is continuing to work with
Federal awarding agencies to further emphasize performance reviews and
will make updates accordingly in future Supplements. The 2021
Supplement also includes guidance related to the administrative
flexibilities included in Appendix 3 of OMB memorandum M-21-20 (March
19, 2021) and the revisions to 2 CFR--Grants and Agreements (published
in August 12, 2020) in Part 8, Appendix VII of the Supplement. As part
of the development of the audit guidance contained in the Supplement,
OMB shared the draft language developed by the agencies with recipient
and audit stakeholders, including the American Institute of Certified
Public Accountants (AICPA), the National Association of State Auditors,
Controllers and Treasurers (NASACT, the US Government Accountability
Office (GAO), and agency Inspector General offices for comments. The
comments were reviewed, adjudicated, and addressed by the relevant
agencies and OMB. All necessary changes are reflected in the final
published version. A summary of comments and OMB responses is shown
below.
Audit Extension--Commenters suggested clarifications on the Single
Audit extension allowed in OMB M-21-20 to be included in the Supplement
Part 8, Appendix VII. OMB concurred and added information related the
audit extension.
Performance Reporting Review--Commenters highlighted that there was
a significant increase in the number of programs in the Supplement that
require auditors to review the recipients' performance reporting
requirements. Commenters suggested agencies add the key line items in
the performance reports that the agencies request the auditors verify,
in order to focus the auditors on the important areas for review. OMB
concurred and worked with the relevant agencies to add the key line
items on the performance reports in the ``Suggested Audit Procedures''
section.
2 CFR Revisions (effective November 12, 2020)--Commenters requested
that the Supplement contain two separate parts B for the Allowable
Costs/Cost Principles--one for the applicable cost principles prior to
2 CFR updates on November 12, 2020 and one for applicable cost
principles after November 12, 2020. OMB disagreed but provided clear
indication of the cost principles and areas that were revised in
November 12, 2020. Additionally, the Supplement provides the link to
<a href="http://CFO.gov">CFO.gov</a> Uniform Guidance (cfo.gov) which contains the relevant
information related to the 2 CFR and its revisions, including the
redlined version of the guidance, a crosswalk document, and the latest
set of Frequently Asked Questions (FAQs)--2CRF-
FrequentlyAskedQuestions_2021050321.pdf (cfo.gov).
Assistance Listing (CFDA)--Commenters noted that the term
``Assistance Listing'' is now used on the Federal Government website
<a href="http://Sam.gov">Sam.gov</a> instead of the previous term of ``CFDA'' to describe a Federal
program. OMB concurred and replaced ``CFDA'' with ``Assistance
Listing'' for consistency.
[[Page 44574]]
American Rescue Plan Act (ARP) Programs--The audit community,
including GAO, requested that the agencies provide audit guidance
expeditiously for the programs created under the ARP, since funds are
material and many have complex compliance and reporting requirements.
OMB is working with Federal awarding agencies to identify the new ARP
programs with special compliance and reporting requirements. When
completed by the agencies and reviewed by OMB, these audit guides will
be published on the <a href="http://CFO.gov">CFO.gov</a> website.
Deidre A. Harrison,
Deputy Controller.
[FR Doc. 2021-17363 Filed 8-12-21; 8:45 am]
BILLING CODE 3110-01-P
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