Source: https://eclkc.ohs.acf.hhs.gov/hslc/tta-system/operations/mang-sys/fiscal-mang/webinars/uniform-requirements-faq.html
Timestamp: 2017-04-26 06:00:16
Document Index: 609140702

Matched Legal Cases: ['art 200', 'art 75', 'art 74', 'art 75', '§75', '§75', 'art 75', 'art 75', 'art 75', 'art 200', 'art 75', 'art 75', '§75', '§75', '§75', '§75', '§75']

Uniform Administrative Requirements (FAQs)
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Find in text: Note: These resources are under review.
When does the new Uniform Guidance take effect? 2 CFR Part 200
offers Uniform Guidance from OMB, and 45 CFR Part 75
describes how HHS will carry out the requirements of the Uniform Guidance.
Is it possible for a non-federal entity to be subject to both the Uniform Guidance and the previous fiscal regulations at the same time? A non-federal entity may have awards that are covered by the prior regulations and the current uniform guidance in the same fiscal year. For example, if a nonprofit grantee received an award on Nov. 1, 2014, that award is subject to 45 CFR Part 74. Let's say the grantee's fiscal year begins Jan. 1, 2015. That same grantee gets another award on Feb. 1, 2015. The February award is subject to 45 CFR Part 75 and the new audit requirements apply to the fiscal year beginning Jan. 1, 2015.
Be sure to look at the auditee responsibilities
set out in the new HHS implementing regulations at §75.508 - §75.512. Auditors will rely on the Notice of Award to identify which regulations apply to the major programs and awards they are auditing. Non-federal entities won't need to do anything to formally adopt the Uniform Guidance, since its application date is established in the regulation. However, the Office of Head Start (OHS) has given grantees the ability to group Head Start awards and choose a transition date, in which case the non-federal entity would need to specify an adoption date in in its fiscal policies and procedures, as described in ACF-IM-HS-14-07. They also must be sure to share the Information Memorandum (IM) and adoption date with their auditor.
The regulations also includes new and updated definitions that will apply to Head Start grantees, such as defining the term "prior approval" and revising terms like "cost sharing and matching" to be fully applicable in the HHS context. In this case, "cost sharing and matching" would refer to non-federal share match.
Are all grantees required to obtain a negotiated indirect cost rate? No, grantees are not required to obtain a negotiated indirect cost rate. Grantees who have never had a negotiated indirect cost rate have three options for dealing with indirect costs:
Direct Allocation: This method is acceptable, provided each joint cost is prorated using a base which accurately measures the benefits provided to each federal award or other activity. The bases must be established in accordance with reasonable criteria and be supported by current data. For an example using nonprofit organizations, see Appendix IV to Part 75(B)(1-5). How is the cognizant agency for indirect cost rate purposes identified?
Is cost allocation a thing of the past? As organizations continue to grow in complexity and access multiple funding sources, cost allocation is becoming even more important for non-federal entities to understand and effectively implement. The Uniform Guidance and Part 75 provide more information and options than grantees had in the past to support differentiating between direct and indirect costs, identifying funding and administrative costs, and making sure that shared costs are charged to programs using methods that reasonably align with program benefit. So, cost allocation is definitely not a thing of the past; it is the way of the future for most organizations.
Comply with the established accounting policies and practices of the non-federal entity. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one federal award.
Are the individual items of cost that used to be in Appendix B for most grantees different in the new regulations? Overall, there are more identified individual items of cost in the Uniform Guidance and the HHS implementing regulations at Part 75. In Appendix B to 2 CFR 230, we had items 1 through 52. In Part 200, we have 54 items, plus one added by HHS in Part 75 around independent research and development costs, for a total of 55. These items are found in the body of Part 75 from §75.421 through §75.476.
Can proposal costs now be charged to our Head Start award? §75.460 Proposal costs.
Is an inventory of real property at the program level also required? An inventory of real property must be kept at the program level if depreciation is being charged against the Head Start award. In addition, awardees must maintain sufficient information about real property at the program level to support filing of the new SF-429 cover page and Attachment A, which must be submitted annually.
Is permission still required for purchase and sale of equipment? If so, what are the associated dollar amounts? Yes, prior written approval is required for purchase or sale of equipment, defined as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-federal entity for financial statement purposes, or $5,000. Uniform Guidance §75.439 addresses equipment and other capital expenditures. Prior approval is defined in §75.2 as written approval by an authorized HHS (ACF) official evidencing prior consent before a recipient undertakes certain activities or incurs specific costs.