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SAS Update -- Caporicci & Larson - San Diego, Orange County, Oakland, and Sacramento

In May of 2006 the Office of Management andrange from basic verbiage changes to
Budget issued a new revised supplement forsignificant compliance requirement changes.
OMB A-133. This revised supplement hadThe Following is a list of the Federal
several changes made to grant programAgencies that have made changes to their
narratives on the program requirements, whichgrant  programs:
resulted in other parts of the compliance
supplement also being changed. The changesDepartment  of  Agriculture  (CFDA#  10.XXX)
range from minor verbiage changes to specific
changes in program requirements as a resultDepartment  of  Commerce  (CFDA#  11.XXX)
of Hurricane Katrina. A brief over view of
the changes can be seen in Appendix V of theDepartment  of  Defense  (CFDA#  12.XXX)
2006  Compliance  Supplement.
Department of Housing and Urban Development
The major Program requirement changes were in(CFDA#  14.XXX)
the  following  parts  of  the  supplement:
Department  of  Labor  (CFDA#  17.XXX)
Part  3  -  Compliance  Requirements
Department  of  Transportation (CFDA# 20.XXX)
Part  4  -  Agency  Program  Requirements
Department  of  the  Treasury  (CFDA# 21.XXX)
Part  5  -  Clusters  of  Programs
National Foundation of the Arts and
PART  3Humanities  (CFDA#  45.XXX)
The significant change made in Part 3 was inDepartment  of  Energy  (CFDA#  81.XXX)
Section D, which was the creation of a
disaster waiver for Davis Bacon requirementsDepartment  of  Education  (CFDA#  84.XXX)
as a result of Hurricane Katrina. On
September 8, 2005, the President of theDepartment of Health and Human Services
United States issued a proclamation(CFDA#  93.XXX)
suspending the Davis-Bacon Act for the
payment of Davis-Bacon wages in areasDepartment of Homeland Security (CFDA#
affected by Hurricane Katrina. The waiver97.XXX)
was  rescinded  as  of  November  8,  2005.
United States Agency for International
For further information and guidance on theDevelopment  (CFDA#  98.XXX)
disaster waiver refer to Appendix VI of the
2006  Compliance  Supplement.If you have any grant award from any of these
agencies you should review the list of grant
Another notable change made in Part 3 was inprograms listed in Appendix V of the 2006
Section I (Procurement, Suspension andCompliance Supplement to determine if any of
Disbarment). This section has been changedthe changes will affect the grants which have
to clearly state the compliance requirementsbeen  awarded  to  you.
pertaining to procurements as it applies to
the implementation of OMB Circular A-102PART  5
"Common Rule" and OMB Circular A-110, which
was  effective  November  26,  2003.As a result of the changes made in Part 3 and
4 of the Compliance Supplement the list of
Local governments and Indian tribalgrant  clusters  were  changed.
governments which are not sub-recipients of
States will use their own procurementAppendices
procedures provided that these procedures
conform to applicable Federal law andAs a result of the changes made in Part 3 and
regulations as well as the standards4 of the Compliance Supplement the various
identified  in  A-102  "Common  Rule".exhibits, reference sources and explanatory
information contained in the Appendices were
Institutions of higher education, hospitals,changed.
and other non-profit organizations shall use
the procurement procedures that conform toTraditionally the Office of Management and
applicable Federal law and regulations andBudget has reviewed OMB A-133 Compliance
the standards identified in OMB CircularSupplement on an annual basis to assure that
A-110.the information contained is as current as
possible to assist in evaluating program
This section has also added procedures andcompliance on federal award programs. These
references for identifying contractors whorevisions are normally made available on
have been suspended and/or disbarred fromtheir web site in May of each year.
participating in Federal award programs.Therefore it is advisable to become familiar
This verification may be accomplished bywith the web site and monitor it for updates
checking the Excluded Parties List Systemand other pertinent information pertaining to
(EPLS), which is maintained by the Generalthe  Single  Audit  Act.
Services Administration (GSA). For further
information on EPLS refer to Part 3 Section ISummary : Caporicci & Larson Report - In May
of  the  2006  Compliance  Supplement.of 2006 the Office of Management and Budget
issued a new revised supplement for OMB
PART  4A-133. This revised supplement had several
changes made to grant program narratives on
This part of the 2006 Compliance Supplementthe  program  requirements…
mainly summarizes program requirements for
various grants. These requirements areAbout author : Brian Kelly is a Senior
summarized and then organized and presentedAuditor with Caporicci & Larson, a
in the order of Federal agency and then CFDACalifornia-based CPA firm specializing in
number. The changes made to these programsgovernment compliance auditing.



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