This week the Office of Management and Budget (OMB) released the long-anticipated 2012 Circular A-133 Compliance Supplement, all 1,552 pages worth. You'd be wise to begin by gleaning any changes by reviewing Appendix V of the document, the List of Changes for the 2012 Compliance Supplement from the 2011 circular. The full document is broken down by section and in full at the bottom of the OMB website.
You’ve probably read about the GAO report from April finding nearly $800 million in funding remaining in expired grant accounts (those which were more than 3 months past the grant end date and had not been active for 9 months or more). That kind of news should wake up grant makers and seekers alike. The grant close-out process is the responsibility of both the funding agency and the awardee, but award recipients can/should take steps to ensure an effective close-out, making everyone—funding agencies, auditors, and especially taxpayers—happy. (Subscribers to KnowledgeBase can read a variation of this article here.)
More on the OMB: Though the OMB has not yet given an official expected release date for the OMB Circular A-133 Compliance Supplement, AICPA informed me that the final draft of the document is available and that the OMB does not expect any significant changes. I wrote previously about the Compliance Supplement here.
Recipients of federal grant funds must use the funds as indicated by the grant agreement and must ensure that funds are expended in the time frame specified by the document. This publication discusses the period of fund availability, how the time period will influence the expending of funds, and how the time period affects the Single Audit process, also known as the OMB A-133 audit, an organization-wide audit of an entity that expends $750,000* or more of federal assistance received for its operations.
This publication provides an overview of the audit process. It explains what a grant recipient can expect from an audit, presents best practices for your grants management system, and identifies the types of information that will be expected for presentation throughout an audit process.