The Omni Circular

Posted on Wednesday, September 24, 2014

Effective December 26, 2013, the Office of Management and Budget (OMB) streamlined the Federal government’s guidance on administrative requirements, cost principles and audit requirements for federal awards.  In an effort to eliminate duplication and provide additional clarity, the following eight OMB Circulars were combined in to one Circular, originally referred to as the “Super Circular” and now called the Omni Circular.

Administrative Circulars

A-102    Grants and Cooperative Agreements With State and Local Governments

A-110    Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations

Cost Circulars

A-21       Cost Principles for Educational Institutions

A-87       Cost Principles for State, Local and Indian Tribal Governments

A-122    Cost Principles for Non-Profit Organizations

Audit Circulars

A-50       Audit Followup

A-89       Catalog of Federal Domestic Assistance

A-133    Audits of States, Local Governments and Non-Profit Organizations

The new Omni Circular has six parts covering (1) definitions and acronyms, (2) general provisions, (3) administrative requirements, (4) cost principles, and (5) new audit requirements.  Also included are a few changes to cost principles, administrative principles and salary requirements.  In addition, the audit threshold will increase from $500,000 to $750,000 for fiscal years beginning on or after January 1, 2015.

The guidance in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Omni Circular) took effect on December 26, 2013 for federal agencies which have six months to implement the regulations.  Other organizations (nonprofits, state and local governments, etc.) have until December 26, 2014 to comply with the new regulations. 

If your organization receives federal grants, you will want to review the new Omni Circular to make sure you have the new policies and procedures in place.

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

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