18469_Authority_June

municipalauthorities.org | 55 OMB I ssues U pdates to U niform G uidance By Daniel B. Sefick, CPA, CGFM, Hill Barth and King (HBK) The Office of Management and Budget (OMB) has updated and revised its guidance for organizations receiving federal funds. It comes in the form of revisions to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"), the federal regulations surrounding federal financial assistance, including single audit requirements. The changes are intended to help recipients of federal funding “focus more on the people they serve and to deliver results for their communities,” and familiarity with these updates should help organizations comply with OMB requirements. However, although significant revisions were made to help reduce the administrative burden on recipients of federal funds, the transition has raised some implementation questions. It is important to note that the revisions are effective for new federal awards issued on or after October 1, 2024, and in the case of audit revisions, for fiscal years beginning on or after October 1, 2024. Federal awards issued prior to October 1, 2024, should use the previous version of the Uniform Guidance unless an official amendment is issued stating otherwise. Some of the key changes: • Increased single audit threshold: The expenditure threshold requiring a single audit has been raised from $750,000 to $1,000,000. This change aims to reduce the compliance burden on smaller entities. • Raised Type A program threshold: The threshold for Type A programs has also increased from $750,000 to $1,000,000. This adjustment affects the determination of major programs during audits. • Higher equipment thresholds: The capitalization threshold for equipment has been increased from $5,000 to $10,000. It could potentially be a good time for organizations to consider revising their capitalization thresholds policies to match the federal increase. • De minimis indirect cost rate: The de minimis indirect cost rate has been increased from 10 to 15 percent, providing greater flexibility for entities that do not have a negotiated indirect cost rate. Organizations may apply for rates lower than 15 percent at their own discretion. • Fixed amount awards and subawards: The maximum amount for fixed amount subawards has been increased from $250,000 to $500,000, given prior written approval from the federal agency. • Plain language and accessibility: The revisions emphasize the use of plain language in Notices of Funding Opportunities (NOFOs) to make them more accessible, particularly for organizations with limited capacity. Continued on page 63.