United States

Federal hurricane guidance

FINANCIAL REPORTING INSIGHTS  | 

The Office of Management and Budget (OMB) has issued a memorandum, Administrative Relief for Grantees Impacted by Hurricanes Harvey, Irma, and Maria, which identifies actions that federal agencies may take to relieve short-term administrative, financial management and audit requirements under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) for grantees in counties or parishes where a major disaster has been declared because of the hurricanes. Such actions include certain procurement requirement exemptions, reporting extensions and extensions of currently approved indirect cost rates. The memorandum also instructs agencies to allow grantees to delay the completion and submission of Single Audits for 12 months beyond the normal due date.

It is important to note that, on its own, this memorandum does not provide any relief to affected grantees. Instead, each federal agency will consider the guidance in the memorandum and then issue its own guidance as deemed appropriate by the agency and to the extent permitted by law. Grantees should confer with funding agencies for more information. Appendix III, “Federal Agency Single Audit, Key Management Liaison, and Program Contacts,” of the 2017 OMB Compliance Supplement includes contact information for each agency.

Also, the U.S. Department of Homeland Security Office of Inspector General issued Audit Tips for Managing Disaster-Related Project Costs to assist recipients and subrecipients of Federal Emergency Management Agency (FEMA) disaster assistance grants in: (a) documenting and accounting for disaster-related costs; (b) minimizing the loss of FEMA disaster assistance funds; (c) maximizing financial recovery; and (d) preventing fraud, waste and abuse of disaster funds. This guidance is effective for all emergencies and major disasters declared on or after April 1, 2017.