Document ID: DOT-OST-2009-0092-0424
Agency: dot
Document Type: Rule
Title: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,
Posted Date: 2015-12-17T05:00Z

[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)]
[Rules and Regulations]
[Page 78649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31076]

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  Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / 
Rules and Regulations  

[[Page 78649]]

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

2 CFR Part 1201

49 CFR Parts 18 and 19

[Docket No. OMB-2014-0006]
RIN 2105-AE33

Department of Transportation Regulatory Implementation of Office 
of Management and Budget's Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards

AGENCY: Office of the Secretary (OST), U.S. Department of 
Transportation (DOT).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On December 19, 2014, the U.S. Department of Transportation, 
with other Federal agencies, published a joint interim final rule 
implementing the guidance titled ``Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards'' that the 
Office of Management and Budget (OMB) published on December 26, 2013. 
While the Department received two comments on related implementation 
guidance, to which we respond, the Department did not receive any 
comments on the final rule implementing the OMB guidance. Therefore, 
this rule confirms that the changes that the Department published in 
the interim final rule on December 19, 2014, are final.

DATES: Effective December 17, 2015.

FOR FURTHER INFORMATION CONTACT: Michael A. Smith, Office of the 
General Counsel (C-10), U.S. Department of Transportation, 1200 New 
Jersey Avenue SE., Washington, DC 20590, (202) 366-2917, 
michael.a.smith@dot.gov.

SUPPLEMENTARY INFORMATION: The Office of Management and Budget (OMB) 
published guidance titled ``Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards'' in 2 CFR part 
200 on December 26, 2013 (78 FR 78589), to improve the efficiency and 
effectiveness of Federal financial assistance. That guidance followed 
an advance notice of proposed guidance (77 FR 11778) and a notice of 
proposed guidance (78 FR 7282). The guidance required that Federal 
agencies promulgate a regulation implementing its policies and 
procedures. On December 19, 2014, the Department and other agencies 
published a joint interim final rule to implement the guidance (79 FR 
75871).
    In the joint interim final rule, the Department implemented the 
guidance through regulations at 2 CFR part 1201 and removed its 
previous regulations on Federal awards at 49 CFR parts 18 and 19. The 
OMB and the Department received comments in response to the joint 
interim final rule, but none of those comments were about the final 
rule itself, 2 CFR part 1201, or 49 CFR part 18 or 19. Thus, the 
Department confirms that the changes to 2 CFR part 1201 and 49 CFR 
parts 18 and 19 that it published in the joint interim final rule are 
final.
    Although the Department did not receive any comments regarding the 
substance of the joint interim final rule, there were two comments 
submitted related to implementation guidance that the Federal Highway 
Administration (FHWA) issued on December 4, 2014. First, we received a 
comment from the Maryland State Highway Administration (SHA) seeking 
clarification of how FHWA expected State departments of transportation, 
as ``pass-through entities,'' to monitor and negotiate subrecipients' 
indirect costs. Section D.1.b of Appendix VII to part 200 states that 
``[w]here a non-Federal entity only receives funds as a subrecipient, 
the pass-through entity will be responsible for negotiating and/or 
monitoring the subrecipient's indirect costs.'' The FHWA's 
implementation guidance supports this requirement and does not add any 
additional oversight responsibilities for the SHA in negotiating or 
monitoring the subrecipient's indirect costs.
    Second, we received a comment from the Missouri Department of 
Transportation (MoDOT). The FHWA implementation guidance had stated 
that 2 CFR 200.309 was ``a significant change to the Federal-aid 
highway program because it will impose a period when project costs can 
be incurred, which includes a project agreement start and end date. . . 
. The new provision will require an end date to be included in the 
agreement after which no additional costs may be incurred and are not 
eligible for reimbursement.'' The MoDOT commented that the 
``requirement to monitor and track project end dates duplicates the 
efforts being performed to monitor and track inactive projects.'' The 
FHWA does not view the requirement in 2 CFR 200.210(a)(5) and 200.309 
that Federal awards have end dates as duplicative of other requirements 
on MoDOT. Instead, the requirement is an additional internal control 
that complements existing stewardship and oversight responsibilities 
held by State departments of transportation. The FHWA anticipates 
issuing additional guidance about using project agreement end dates to 
improve funds management.
    Regulatory analyses and notices for this final rule were published 
with the joint interim final rule.
    For the reasons stated in the preamble, the Department of 
Transportation adopts without change the addition of 2 CFR part 1201 
and the removal and reservation of 49 CFR parts 18 and 19 that were 
published in the joint interim final rule at 79 FR 75871 on December 
19, 2014.

    Issued in Washington, DC, on November 30, 2015.
Anthony R. Foxx,
Secretary of Transportation.
[FR Doc. 2015-31076 Filed 12-16-15; 8:45 am]
 BILLING CODE 4910-9X-P