On March 19th, the OMB issued M-20-11 to provide relief to grant and award recipients and flexibility to the awarding agencies in order to expedite funding of grants to recipients affected by COVID-19. Exceptions to grant requirements under administrative provisions of the awards are being permitted, but must be documented by the agencies.
This memorandum also provides relief to recipients of federal awards in filing their single audit reports for up to six months beyond the normal due date. This automatic extension of time applies to recipients that have not filed their Single Audit reporting package with the Single Audit Clearinghouse and whose fiscal year end is on or before June 30, 2020. In utilizing the extension, the recipient may continue to qualify as a “low-risk auditee” under 2 CFR § 200.520(a).
Salaries and benefits are still allowable under currently active federal awards, as well as certain costs not normally chargeable to awards; however, there are other caveats and recipients should review the full memo to understand how their specific awards may be impacted.
Other Current Issues
At this time, the Treasury department has not issued any extension for the May 15th exempt organization deadline. The IRS will also need to develop procedures for exempt organizations for claiming the tax credit under the Families First Coronavirus Response Act signed into law this week, which becomes effective April 2, 2020. We’ll provide further updates as these matters evolve.
by Jason C. LeBlanc, CPA