The Office of Federal Financial Management, and Office of Management and Budget (OMB) recently proposed revisions to the sections of OMB’s Guidance for Grants and Agreements on October 5th, 2023. This followed a process where OMB sought comments from federal agencies and the public, leading to the suggestion of these widespread changes. The revisions are aimed to infuse more flexibility into the rules and streamline compliance, consequently reducing the burden on agencies and recipients.
More details available here.
The comprehensive proposal is part of an ongoing attempt to ease the regulatory burden on federal agencies while maintaining accountability standards in the dispersal and management of federal funds. The changes appear to be an effort to strike a balance between imposing necessary controls and streamlining the procedure to allow for swift and efficient transaction of business.
Full proposal can be accessed here.
The proposal includes changes in various sections, including administrative requirements, cost principles, and audit requirements for federal awards. It also incorporates public comments which have been instrumental in devising these modifications, showcasing OMB’s commitment to taking into account the perspectives of the business and law professionals who deal with these processes on a day-to-day basis.
The changes, once implemented, are expected to greatly reduce time and expense on grant and agreement administration, broaden the application of risk-based thinking, and enhance accountability mechanisms.
This is an important shift in federal policy and could potentially drive more efficient and streamlined operations at large corporations and big law firms, making it crucial for in-house and private legal practitioners to keep abreast of these changes. It is advisable for these professionals to familiarize themselves with the proposed changes and assess how they could potentially affect their organizations or clients.
More information on this available here.