This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

10439 

Vol. 86, No. 33 

Monday, February 22, 2021 

OFFICE OF MANAGEMENT AND 

BUDGET 

2 CFR Parts 25 and 200 

[Docket No. 2020–17468] 

Guidance for Grants and Agreements 

AGENCY: Office of Management and 

Budget. 

ACTION: Correcting amendments. 

SUMMARY: The Office of Management 

and Budget (OMB) is correcting the final 

guidance that appeared in the Federal 

Register on August 13, 2020. That 

document incorrectly cited specific 

sections or laws and inadvertently 

omitted specific language from the 

revisions. This amendment fixes 

citations and references and clarifies 

specific language. 

DATES: Effective on February 22, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Nicole Waldeck or Gil Tran at the OMB 

Office of Federal Financial Management 

at GrantsTeam@omb.eop.gov or 202– 

395–3993. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the revisions to OMB’s 

Guidance for Grants and Agreements 

published August 13, 2020 (85 FR 

49506). 

List of Subjects in 2 CFR Parts 25 and 

200 

Accounting, Administrative practice 

and procedure, Colleges and 

universities, Grant programs, Grants 

administration, Hospitals, Indians, Loan 

programs, Nonprofit organizations, 

Reporting and recordkeeping 

requirements, State and local 

governments. 

Accordingly, 2 CFR parts 25 and 200 

are corrected by making the following 

correcting amendments: 

PART 25—UNIVERSAL IDENTIFIER 

AND SYSTEM FOR AWARD 

MANAGEMENT 

■ 1. The authority citation for part 25 

continues to read as follows: 

Authority: Pub. L. 109–282; 31 U.S.C. 

6102. 

■ 2. Revise paragraph 3 of item C of 

Appendix A to Part 25 to read as 

follows: 

Appendix A to 2 CFR Part 25—Award 

Term 

* * * * * 

C. * * * 

3. Entity includes non-Federal entities as 

defined at 2 CFR 200.1 and also includes all 

of the following, for purposes of this part: 

a. A foreign organization; 

b. A foreign public entity; 

c. A domestic for-profit organization; and 

d. A Federal agency. 

* * * * * 

PART 200—UNIFORM 

ADMINISTRATIVE REQUIREMENTS, 

COST PRINCIPLES, AND AUDIT 

REQUIREMENTS FOR FEDERAL 

AWARDS 

■ 3. The authority citation for part 200 

continues to read as follows: 

Authority: 31 U.S.C. 503. 

■ 4. In § 200.1, add in alphabetical order 

the definition of Federal awarding 

agency and revise the definition of 

oversight agency for audit to read as 

follows: 

§ 200.1 Definitions 

* * * * * 

Federal awarding agency means the 

Federal agency that provides a Federal 

award directly to a non-Federal entity. 

* * * * * 

Oversight agency for audit means the 

Federal awarding agency that provides 

the predominant amount of funding 

directly (direct funding) (as listed on the 

schedule of expenditures of Federal 

awards, see § 200.510(b)) to a nonFederal entity unless OMB designates a 

specific cognizant agency for audit. 

When the direct funding represents less 

than 25 percent of the total Federal 

expenditures (as direct and sub-awards) 

by the non-Federal entity, then the 

Federal agency with the predominant 

amount of total funding is the 

designated oversight agency for audit. 

When there is no direct funding, the 

Federal awarding agency which is the 

predominant source of pass-through 

funding must assume the oversight 

responsibilities. The duties of the 

oversight agency for audit and the 

process for any reassignments are 

described in § 200.513(b). 

* * * * * 

§§ 200.2 through 200.99 [Removed] 

■ 5. Remove §§ 200.2 through 200.99. 

■ 6. In § 200.101, revise paragraphs (e) 

introductory text and (f) introductory 

text to read as follows: 

§ 200.101 Applicability. 

* * * * * 

(e) Program applicability. Except for 

§§ 200.203, 200.216, and 200.331 

through 200.333, the requirements in 

subparts C, D, and E of this part do not 

apply to the following programs: 

* * * * * 

(f) Additional program applicability. 

Except for §§ 200.203 and 200.216, the 

guidance in subpart C of this part does 

not apply to the following programs: 

* * * * * 

■ 7. In § 200.102, revise paragraph (c) to 

read as follows: 

§ 200.102 Exceptions. 

* * * * * 

(c) The Federal awarding agency may 

adjust requirements to a class of Federal 

awards or non-Federal entities when 

approved by OMB, or when required by 

Federal statutes or regulations, except 

for the requirements in subpart F of this 

part. A Federal awarding agency may 

apply less restrictive requirements when 

making fixed amount awards as defined 

in subpart A of this part, except for 

those requirements imposed by statute 

or in subpart F of this part. 

* * * * * 

■ 8. In § 200.206, revise paragraph (a)(1) 

to read as follows: 

§ 200.206 Federal awarding agency review 

of risk posed by applicants. 

(a) * * * (1) Prior to making a Federal 

award, the Federal awarding agency is 

required by the Payment Integrity 

Information Act of 2019, 31 U.S.C. 3301 

note, and 41 U.S.C. 2313 to review 

information available through any OMBdesignated repositories of 

governmentwide eligibility qualification 

or financial integrity information as 

appropriate. See also suspension and 

debarment requirements at 2 CFR part 


tkelley on DSKBCP9HB2PROD with RULES
10440 Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Rules and Regulations 

180 as well as individual Federal agency 

suspension and debarment regulations 

in title 2 of the Code of Federal 

Regulations. 

* * * * * 

■ 9. In § 200.318, revise paragraph (e) to 

read as follows: 

§ 200.318 General Procurement standards. 

* * * * * 

(e) To foster greater economy and 

efficiency, and in accordance with 

efforts to promote cost-effective use of 

shared services across the Federal 

Government, the non-Federal entity is 

encouraged to enter into state and local 

intergovernmental agreements or interentity agreements where appropriate for 

procurement or use of common or 

shared goods and services. Competition 

requirements will be met with 

documented procurement actions using 

strategic sourcing, shared services, and 

other similar procurement 

arrangements. 

* * * * * 

■ 10. In § 200.332, revise paragraph 

(d)(4) to read as follows: 

§ 200.332 Requirements for pass-through 

entities. 

* * * * * 

(d) * * * 

(4) The pass-through entity is 

responsible for resolving audit findings 

specifically related to the subaward and 

not responsible for resolving 

crosscutting findings. If a subrecipient 

has a current Single Audit report posted 

in the Federal Audit Clearinghouse and 

has not otherwise been excluded from 

receipt of Federal funding (e.g., has been 

debarred or suspended), the passthrough entity may rely on the 

subrecipient’s cognizant audit agency or 

cognizant oversight agency to perform 

audit follow-up and make management 

decisions related to cross-cutting 

findings in accordance with section 

§ 200.513(a)(3)(vii). Such reliance does 

not eliminate the responsibility of the 

pass-through entity to issue subawards 

that conform to agency and awardspecific requirements, to manage risk 

through ongoing subaward monitoring, 

and to monitor the status of the findings 

that are specifically related to the 

subaward. 

* * * * * 

■ 11. In § 200.416, revise paragraph (c) 

to read as follows: 

§ 200.416 Cost allocation plans and 

indirect cost proposals. 

* * * * * 

(c) The requirements for development 

and submission of cost allocation plans 

(for central service costs and public 

assistance programs) and indirect cost 

rate proposals are contained in 

appendices V, VI and VII to this part. 

* * * * * 

■ 12. In § 200.509, revise paragraph (a) 

to read as follows: 

§ 200.509 Auditor selection. 

(a) Auditor procurement. In procuring 

audit services, the auditee must follow 

the procurement standards prescribed 

by the Procurement Standards in 

§§ 200.317 through 200.327 of subpart D 

of this part or the FAR (48 CFR part 42), 

as applicable. In requesting proposals 

for audit services, the objectives and 

scope of the audit must be made clear 

and the non-Federal entity must request 

a copy of the audit organization’s peer 

review report which the auditor is 

required to provide under GAGAS. 

Factors to be considered in evaluating 

each proposal for audit services include 

the responsiveness to the request for 

proposal, relevant experience, 

availability of staff with professional 

qualifications and technical abilities, 

the results of peer and external quality 

control reviews, and price. Whenever 

possible, the auditee must make positive 

efforts to utilize small businesses, 

minority-owned firms, and women’s 

business enterprises, in procuring audit 

services as stated in § 200.321, or the 

FAR (48 CFR part 42), as applicable. 

* * * * * 

■ 13. In § 200.514, revise paragraph 

(c)(4) to read as follow: 

§ 200.514 Scope of audit. 

* * * * * 

(c) * * * 

(4) When internal control over some 

or all of the compliance requirements 

for a major program are likely to be 

ineffective in preventing or detecting 

noncompliance, the planning and 

performing of testing described in 

paragraph (c)(3) of this section are not 

required for those compliance 

requirements. However, the auditor 

must report a significant deficiency or 

material weakness in accordance with 

§ 200.516, assess the related control risk 

at the maximum, and consider whether 

additional compliance tests are required 

because of ineffective internal control. 

* * * * * 

■ 14. Revise Appendix IX to Part 200 to 

read as follows: 

Appendix IX to Part 200—Hospital Cost 

Principles 

Until such time as revised guidance is 

proposed and implemented for 

hospitals, the existing principles located 

at 45 CFR part 75 Appendix IX, entitled 

‘‘Principles for Determining Cost 

Applicable to Research and 

Development Under Grants and 

Contracts with Hospitals,’’ remain in 

effect. 

Deidre A. Harrison, 

Deputy Controller (Acting). 

[FR Doc. 2021–02969 Filed 2–19–21; 8:45 am] 

BILLING CODE 3110–01–P 

DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

7 CFR Parts 761 

[Docket ID USDA–2019–0007] 

RIN 0560–AA16 

Farm Loan Programs, Debt Settlement 

AGENCY: Farm Service Agency, USDA. 

ACTION: Correcting amendments. 

SUMMARY: The Farm Service Agency 

(FSA) amended the Farm Loan Programs 

Debt Settlement regulations in through 

a final rule published in the Federal 

Register on June 17, 2020. This 

correction is to remove a certain word 

that erroneously appeared in the 

regulation. 

DATES: Effective: February 22, 2021. 

FOR FURTHER INFORMATION CONTACT: Bill 

Cobb; telephone (202) 720–4671; email: 

Bill.Cobb@usda.gov. Persons with 

disabilities who require alternative 

means for communication should 

contact the USDA Target Center at (202) 

720–2600 (voice). 

SUPPLEMENTARY INFORMATION: This 

document corrects the regulations in 7 

CFR part 761, which was implemented 

in the final rule that was published in 

the Federal Register on June 17, 2020 

(85 FR 36670–36714). This correction is 

to remove the word ‘‘or’’ at the end of 

the sentence and to end the sentence 

with a period in 7 CFR 761.403(c)(3). 

List of Subjects in 7 CFR Part 761 

Accounting, Administrative practice 

and procedure, Loan programsagriculture, Reporting and 

recordkeeping requirements, Rural 

areas. 

Accordingly, 7 CFR part 761 is 

corrected by making the following 

correcting amendment: 

PART 761—FARM LOAN PROGRAMS; 

GENERAL PROGRAM 

ADMINISTRATION 

■ 1. The authority citation for part 761 

continues to read as follows: 

Authority: 5 U.S.C. 301 and 7 U.S.C. 1989. 


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