The document presents a summary of a February 2013 presentation by Danny Werfel addressing priorities and ongoing reforms of the Council on Financial Assistance Reform (COFAR) for fiscal years 2013-2015. COFAR, established in 2011, aims to enhance the management and oversight of federal grant dollars through improved policy guidance, standardized business processes, data transparency, workforce training, and program oversight. The presentation outlines both the motivations for grant reform—including recent Presidential directives targeting the reduction of improper payments and increased administrative flexibility—and the collaborative approach taken to engage stakeholders across state, local, tribal governments, and academic institutions.
Major proposed reforms focus on reducing administrative burden and risk while promoting better grant outcomes. Key measures include streamlining and unifying overlapping OMB circulars under a single guidance structure, strengthening pre-award risk assessments, standardizing subrecipient monitoring, and increasing transparency and consistency in the application of indirect cost rates. Other policy changes involve simplifying reporting requirements, clarifying distinctions between direct and indirect costs, updating procedures for charging computing devices, and overhauling audit requirements to focus resources on higher-risk areas, thereby reducing duplication and unnecessary audits. The document emphasizes ongoing stakeholder engagement and invites public feedback to ensure that the final guidance reflects the needs and insights of the broader grants community.
