The document, authored by Norman Dong and delivered at the February 2014 COGR meeting, outlines the major reform efforts undertaken by the Council on Financial Assistance Reform (COFAR) to streamline federal grant regulations, culminating in the release of the new Uniform Guidance (2 CFR 200). It reviews progress made in federal grant management, such as cleaner audits and reduced improper payment rates, against a backdrop of significant growth in federal grant activity and a highly fragmented regulatory environment. The new guidance aims to eliminate redundancies and conflicts in existing regulations by consolidating multiple prior circulars into a single, standardized framework, thereby promoting performance, internal controls, transparency, and consistent cost treatment.
COFAR prioritized reducing administrative burden, standardizing business processes, improving financial management, increasing oversight, and ensuring a well-trained workforce. The reform was characterized by active engagement with a diverse range of stakeholders including state governments, nonprofits, universities, and auditors. Stakeholder response to the reforms was generally positive, highlighting strong interest in training and resources to aid in implementation. The guidance also introduces metrics for evaluating its effectiveness in minimizing compliance risks and administrative costs, such as audit outcomes, timely submissions, and data quality. The timeline provided indicates a phased rollout, with ongoing outreach and the collection of baseline data to measure best practices and impact. Overall, the document emphasizes that the Uniform Guidance is designed to enhance accountability, efficiency, and outcomes in federal grant management.
