Uniform Administrative Requirements, Cost Principles, and Audit Requirements

CourtManagement And Budget Office
Citation86 FR 44573
Record Number2021-17363
Publication Date13 Aug 2021
Federal Register, Volume 86 Issue 154 (Friday, August 13, 2021)
[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 [www.gpo.gov]
                [FR Doc No: 2021-17363]
                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.
                Federal Register / Vol. 86, No. 154 / Friday, August 13, 2021 / Rules
                and Regulations
                [[Page 44573]]
                2 CFR Part 200
                Uniform Administrative Requirements, Cost Principles, and Audit
                AGENCY: Office of Management and Budget (OMB).
                ACTION: Guidance.
                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: http://www.regulations.gov. 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: [email protected].
                 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
                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
                [email protected] or (202) 395-3052 or the OMB Grants team at
                [email protected].
                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
                 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''
                 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
                CFO.gov 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
                Sam.gov 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 CFO.gov 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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