Uniform Guidance: Procurement grace period extension
FINANCIAL REPORTING INSIGHTS |
Recently, the Office of Management and Budget (OMB) issued a correcting amendment to the Uniform Guidance in the Federal Register to allow a grace period of one additional fiscal year for non-federal entities to implement changes to their procurement policies and procedures in accordance with the procurement standards in 2 CFR 200.317 through 200.326 of the Uniform Guidance. Therefore, the implementation date for the procurement standards will start for fiscal years beginning on or after December 26, 2017, for those entities choosing to take advantage of the extension.
OMB staff has communicated that this will be the final grace period for non-federal entities that have chosen not to implement the Uniform Guidance procurement standards. Those entities should begin preparing for implementation prior to the extended implementation date (e.g., an entity with a fiscal year ending December 31, 2018, should be ready to implement the Uniform Guidance procurement standards at the beginning of that fiscal year [i.e., January 1, 2018]). Non-federal entities and their auditors also are reminded about the provisions in 2 CFR 200.110, which require non-federal entities to document their decision to choose to use the previous procurement standards during the extension period.