Risk Management Overview
As we near the end of our Breaking Down OMB’s Recent Guidance for Grants and Agreements blog series, we have covered a number of revision areas, including performance measurement. program design, de minimis indirect cost rate, terminology, closeout time, purchase thresholds, period of performance and budget period, and data. In continuation of the series, we are covering changes to risk management.
To minimize the risk of abuse and waste of taxpayers’ dollars, legislation continues to stress the importance of conducting risk assessments prior to awarding Federal funds. As such, the OMB focused on risk assessment and management when making their most recent set of revisions to the Guidance for Grants and Agreements.
In this edition of our blog series, we are explaining how the OMB has revised this Guidance to strengthen Federal awarding agencies’ ability to assess risk.
Read on to learn more about the changes to risk management and how to maintain compliance with these changes.
Risk Management Revisions
Many of the recent revisions the OMB has made to this Guidance serve to further support the President’s Management Agenda Cross-Agency Priority (CAP) Goal #8: Results-Oriented Accountability for Grants. Specifically, when focusing on Goal #8, the OMB has targeted areas of greater risk.
According to these revisions, Federal agencies must all invest in risk analysis starting in November, and the risk they are to consider no longer only entails spending or next year award risk, but also the risk of a lack of performance. Therefore, if recipients are not meeting the now mandated performance or program plans according to this Guidance, Federal agencies can cancel the funding.
How to Prepare for Compliance With These Changes
To ensure you are meeting the requirements of risk assessments, you need a system that will not only help you evaluate risk, but also one that lets you evaluate if you are meeting the programmatic goals set by the funder throughout the lifecycle of a grant.
AmpliFund has a number of functions and features geared towards both assessing and minimizing risk. Through AmpliFund, the funder and the recipient will negotiate the programmatic goals of the grant before the award begins, and both parties can amend these as needed. After conducting this negotiation, you can utilize AmpliFund’s configurable risk, which specifically monitors programmatic goal risk and allows you to configure risk thresholds per grant.
Also, to ensure you are best managing risk, in AmpliFund, funders dictate reporting periods to ensure that grant-related goals remain on track. As the recipient of the grant, you can dictate tracking periods so you can continually assess and manage potential risk. AmpliFund also has dashboards that allow you to view your goal progress at-a-glance and reporting features that provide a detailed view of goals across all grants or all recipients.
You can access the full version OMB’s updated Guidance for Grants and Agreements here.
Stay tuned for the last edition of this series, Part #6.
All editions of this series are now available on our blog:
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