NON-COMPLIANCE
New regulations inevitably create upfront costs. The recent implementation of the Uniform Guidance (2 CFR Part 200) is no exception. There are costs to both the regulating bodies and to the agencies who must adjust their operations to comply with the new regulations. Federal and state cognizant agencies must now audit to the standards of the Guidance and any governmental agency, nonprofit, school district, or special district must calculate their indirect costs and comply with the audit requirements. Employee training costs, new software systems, and increased staffing requirements are upfront costs that will impact all of these agencies. The burden of compliance is shared by both parties, but so are the benefits. After the upfront costs are paid, both sides will see continued cost savings. The cost of compliance may seem high, but the cost of non-compliance is much higher.
30 CAPTURE. COSTTREE 2016 Q3 ISSUE
THE CO$T OF