Earlier this year we released Memorandum 2018-06 (and an addendum) that discussed at length the Uniform Guidance Procurement Standard that became effective for most units at July 1, 2018.
On June 20, 2018, the Office of Management and Budget released a statement that the micro purchase threshold has increased from $3,500 to $10,000. The statement also revealed that the simplified acquisition threshold was increased from $150,000 to $250,000. Our original memorandum explains the finer points of these two thresholds. The original announcement of publication of that memo is below.
Please let us know if you have questions by calling (919) 814-4299.
The Uniform Guidance Procurement Requirements are in effect for all fiscal years beginning on or after December 26, 2017, which means fiscal years that began on January 1, and those beginning on April 1, July 1, or October 1, 2018, for NC local governments and public authorities. The new rules have a much wider applicability than most of our State procurement laws, mostly because they apply to the procurement of goods and services, and the dollar thresholds at which documentation requirements kick in are much lower than current State requirements. They apply to purchases funded with federal financial assistance (direct or reimbursed), which includes, but is not limited to, direct grants, USDA grants and loans, CDBG funds, FEMA disaster assistance grants, and the Highway Planning, Research, and Construction program. The requirements apply to any sub recipient of the funds as well. Finally, many of the requirements relate to documentation, including written policies and procedures that units of government expending federal financial assistance are required to have.
These requirements are complex and will take some time for units to implement. All units are strongly encouraged to review the requirements and check with their funding agencies if they have specific questions about requirements for specific programs. The punishment for noncompliance can be very harsh.