Agenda - Council - 01/22/1985 - Laserfiche WebLink

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I I I l~plemented. This could be In the form of a revision to the curren I version of Rttachment P or similar policy guidance tn a separate new circular. OMB has had a draft of e revision of Attachment under consideration since 3uly 1983, but has been waiting for th outcome of the legislative process to ~ake a flnal decision about it I' OMB is also expected to designate cognizant agencies for the audit I to be conducted under the legislation. OMB also had this responsJ b~lity under the current version of Attachment P~ but only designate I cognizant agencies for about 1,OOO of the largest governmental unit I I (at both state and local levels) that were subject to the require ments. It appears that additional specific designations will now b required. OMB's guidance ls also zequlred to include provisions for addressir how fund recipients are expected to pay for the required audits Basically, a fair proportional share of audit costs may be charge to benefiting federal assistance programs unless the recipient c$ produce documentatlon to show that a larger amount is warrantee OMB must a)so report to Congress in three years concerning ti progress of implementing the new requirements. Since the new bill clearly attempts to make order out of ti disjointed approach that has previously characterized federal poll~ on audit of assistance recipients, Congress has taken some preca~ tions to avoid inconsistent requirements in the future. -The Gener;