1 Vol. 78 Thursday, No. 248 December 26, 2013. Part III. Office of Management and Budget 2 CFR Chapter I, Chapter II, Part 200, et al. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule tkelley on DSK3 SPTVN1 PROD with RULES3. VerDate Mar<15>2010 18:36 Dec 24, 2013 Jkt 232001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\ 26 DER3. 78590 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Rules and Regulations Office OF Management AND affecting Federal awards to non-Federal collaboration with their non-Federal Budget entities including state and local partners, in accordance with OMB. governments, Indian tribes, institutions guidance in M 13 17 Next Steps in the 2 CFR Chapter I, and Chapter II, Parts of higher education, and nonprofit Evidence and Innovation Agenda''.
2 This 200, 215, 220, 225, and 230 organizations. Parts of it may also apply new guidance plays an important role in to for-profit entities in limited fostering these and other innovative Uniform Administrative Requirements, circumstances and to foreign entities as models and cost-effective approaches by Cost Principles, and Audit described in this guidance and the including many provisions that Requirements for Federal Awards Federal Acquisition Regulation. This strengthen requirements for internal AGENCY: Executive Office of the guidance does not change or modify any controls while providing administrative President, Office of Management and existing statute or guidance otherwise flexibility for non-Federal entities.
3 Budget (OMB). based on any existing statute. This These provisions include mechanisms guidance does not supersede any such as fixed amount awards'' which ACTION: Final guidance. existing or future authority under law or rely more on performance than SUMMARY: To deliver on the promise of by executive order or the Federal compliance requirements to ensure a 21st-Century government that is more Acquisition Regulation. accountability, and allow Federal efficient, effective and transparent, the DATES: Effective Date: This guidance is agencies some additional flexibility to Office of Management and Budget effective December 26, 2013. waive some requirements (in addition to (OMB) is streamlining the Federal Applicability Date: This guidance is the longstanding option to apply to government's guidance on applicable for Federal agencies OMB to waive requirements) that Administrative Requirements, Cost December 26, 2013 and applicable for impede their capacity to achieve better Principles, and Audit Requirements for non-Federal entities as described in this outcomes through Federal awards.
4 This Federal awards. These modifications are guidance. guidance will provide a backbone for a key component of a larger Federal FOR FURTHER INFORMATION CONTACT: sound financial Management as Federal effort to more effectively focus Federal OMB will host an informational webcast agencies and their partners continue to with the Council on Financial develop and advance innovative and resources on improving performance Assistance Reform and key effective practices. and outcomes while ensuring the stakeholders. Please visit This reform of OMB guidance will financial integrity of taxpayer dollars in improve the integrity of the financial partnership with non-Federal cofar for further information on the time and date of the webcast and on the Management and operation of Federal stakeholders.
5 This guidance provides a programs and strengthen accountability governmentwide framework for grants Council on Financial Assistance Reform. For general information, please for Federal dollars by improving Management which will be policies that protect against waste, complemented by additional efforts to contact Victoria Collin or Gil Tran at the OMB Office of Federal Financial fraud, and abuse. At the same time, this strengthen program outcomes through reform will increase the impact and innovative and effective use of grant- Management at (202) 395 3993. accessibility of programs by minimizing making models, performance metrics, SUPPLEMENTARY INFORMATION: time spent complying with and evaluation.
6 This reform of OMB I. Objectives and Background unnecessarily burdensome guidance will reduce administrative administrative requirements, and so re- burden for non-Federal entities A. Objectives orients recipients toward achieving receiving Federal awards while The goal of this reform is to deliver program objectives. Through close and reducing the risk of waste, fraud and on the President's directives to (1) sustained collaboration with Federal abuse. streamline our guidance for Federal and non-Federal partners, OMB has This final guidance supersedes and awards to ease administrative burden developed ideas that will ensure that streamlines requirements from OMB and (2) strengthen oversight over discretionary grants and cooperative Circulars A 21, A 87, A 110, and A Federal funds to reduce risks of waste, agreements are awarded based on merit.
7 122 (which have been placed in OMB fraud, and abuse. Streamlining existing that Management increases focus on guidances); Circulars A 89, A 102, and OMB guidance will increase the performance outcomes; that rules A 133; and the guidance in Circular A efficiency and effectiveness of Federal governing the allocation of Federal 50 on Single Audit Act follow-up. awards to ensure best use of the more funds are streamlined, and that the Future reform efforts may eventually than $500 billion expended annually. Single Audit oversight tool is better seek to incorporate the Cost Principles This reform builds on two years of focused to reduce waste, fraud, and for Hospitals in Department of Health work by the Federal government and its abuse.
8 And Human Services regulations. Copies non-Federal partners: state, and local As set forth in Executive Order 13563. of the OMB Circulars that are governments, Indian tribes, institutions of January 18, 2011, on Improving superseded by this guidance are of higher education, nonprofit Regulation and Regulatory Review (76. available on OMB's Web site at http:// organizations, and the audit community FR 3821; January 21, 2011; http://. to rethink and reform the rules that default/. The final guidance govern our stewardship of Federal ), each Federal consolidates the guidance previously dollars. The revised rules set standard agency must tailor its regulations to contained in the aforementioned requirements for financial Management impose the least burden on society, citations into a streamlined format that of Federal awards across the entire consistent with regulatory objectives, aims to improve both the clarity and Federal government.
9 Taking into account, among other things, tkelley on DSK3 SPTVN1 PROD with RULES3. accessibility. This final guidance is These reforms complement targeted and to the extent practicable, the costs located in Title 2 of the Code of Federal efforts by OMB and a number of Federal of cumulative regulations.'' To that end, Regulations. agencies to reform overall approaches to it is important that Federal agencies This final guidance does not broaden grant-making by implementing identify those rules that may be the scope of applicability from existing innovative, outcome-focused grant- outmoded, ineffective, insufficient, or government-wide requirements, making designs and processes in excessively burdensome,'' and modify, VerDate Mar<15>2010 18:36 Dec 24, 2013 Jkt 232001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\ 26 DER3.
10 Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Rules and Regulations 78591. streamline, expand, or repeal them in Federal and non-Federal financial to engaging in outreach efforts with both accordance with what has been assistance community led by the Federal and non-Federal stakeholders, learned.'' This was reinforced in COFAR in response to the following two with respect to this reform and beyond. Executive Order 13579 of July 11, 2011 Presidential Directives: OMB has adopted changes from the on Regulation and Independent 1. February 28, 2011, Presidential NPG to the final guidance as Regulatory Agencies (76 FR 41587; July Memorandum on Administrative recommended by the COFAR as 14, 2011; Flexibility, Lower Costs, and Better described in the summary of major FR-2011-07-14/ ).