What is EDGAR and why is it so important?

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We’ve been on a roll lately talking about grant accounting. We’re going to keep with that theme this week and tell you about our good friend, Edgar. EDGAR stands for Education Department General Administrative Regulations (not to be confused with the other Edgar, the Electronic Data Gathering, Analysis, and Retrieval online database maintained by the U.S. Securities and Exchange Commission).

EDGAR is a set of regulations and guidelines established by the U.S. Department of Education to govern the administration and management of federal education grants and programs. These regulations outline the requirements that educational institutions and organizations must follow when receiving and managing federal funds.

The purpose of EDGAR is to ensure accountability, transparency, and proper fiscal management in the administration of federal education grants. It covers various aspects such as financial management, recordkeeping, reporting, procurement procedures, and audit requirements.

Educational institutions and organizations that receive federal funds, such as universities, colleges, school districts, and nonprofit organizations, are required to comply with the regulations outlined in EDGAR. The Department of Education provides guidance and oversight to ensure that federal funds are used appropriately and effectively to support educational programs and initiatives.

Generally speaking, when we get questions about federal accounting compliance, we recommend that our clients pursue EDGAR training. While EDGAR is specific to education, the principles of EDGAR compliance are pretty universally applicable to most federal grants. This is not an area where we provide specific training, but we do recommend a reputable provider, The Bruman Group.

As a head’s up for those intimately familiar with EDGAR already, there are about 500 pages of proposed changes to the UGG (Universal Grant Guidance) open for public comment right now that will potentially affect EDGAR next year. While we don’t necessarily recommend perusing the full draft, it is a good idea to check out a briefing and comment if you have suggestions or concerns. We attended a briefing recently and found most of the proposed changes to be positive.

The proposed changes will take effect next year and we strongly encourage all grantees to stay abreast of the changes and be sure to get training on the updates when they take effect. Rest assured that we will keep you posted right here.

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  • “Thank you for shedding light on the significance of EDGAR in the nonprofit sector. Your concise yet informative article helped clarify its importance, making complex regulatory requirements more accessible to readers. Keep up the great work in empowering nonprofits with valuable knowledge!”

    FinalertLLC on

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