The Office of Management and Budget (OMB) is updating guidance for the procurement grace period available to nonfederal entities under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (or uniform guidance).
The update, as announced in the Federal Register on May 17, 2017, allows a grace period of one additional fiscal year for nonfederal entities to implement the procurement standards outlined in 2 CFR 200.317–200.326 of the uniform guidance. With this update, the grace period for nonfederal entities continues through December 25, 2017, with the implementation date for the procurement standards starting for fiscal years beginning on or after December 26, 2017.
A nonfederal entity that chooses to take advantage of this grace period must document its choice in its internal records, noting whether it’s in compliance with the old or new procurement standard, and must meet the documented standard.
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To learn more about whether your organization’s procurement processes adhere to the new guidance, or for help creating appropriate internal controls over procurement, contact your Moss Adams professional.