0:'2 cfr part 200 up to date as of 1/08/2025 2 cfr part 200 jan. 8, 2025 uniform administrative requirements,',
1:'cost principles, and audit this content is from the ecfr and is authoritative but unofficial. title 2 —federal financial assistance',
2:'subtitle a —office of management and budget guidance for federal financial assistance chapter ii —office of management and budget guidance',
3:'part 200 uniform administrative requirements, cost principles, and audit requirements for federal awards subpart a acronyms and definitions acronyms §',
4:'200.0 acronyms. § 200.1 definitions. subpart b general provisions § 200.100 purpose. § 200.101 applicability. § 200.102 exceptions. § 200.103',
5:'authorities. § 200.104 supersession. § 200.105 effect on other issuances. § 200.106 agency implementation. § 200.107 omb responsibilities. § 200.108',
6:'inquiries. § 200.109 review date. § 200.110 effective date. § 200.111 english language. § 200.112 conflict of interest. § 200.113',
7:'mandatory disclosures. subpart c prefederal award requirements and contents of federal awards § 200.200 purpose. § 200.201 use of grants,',
8:'cooperative agreements, fixed amount awards, and contracts. § 200.202 program planning and design. § 200.203 requirement to provide public notice',
9:'of federal financial assistance programs. § 200.204 notices of funding opportunities. § 200.205 federal agency review of merit of proposals.',
10:'§ 200.206 federal agency review of risk posed by applicants. § 200.207 standard application requirements. § 200.208 specific conditions. §',
11:'200.209 certifications and representations. § 200.210 preaward costs. 2 cfr part 200 jan. 8, 2025 enhanced display page 1 of',
12:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr part 200 jan. 8, 2025 uniform administrative',
13:'requirements, cost principles, and audit § 200.211 information contained in a federal award. § 200.212 public access to federal award',
14:'information. § 200.213 reporting a determination that an applicant is not qualified for a federal award. § 200.214 suspension and',
15:'debarment. § 200.215 never contract with the enemy. § 200.216 prohibition on certain telecommunications and video surveillance equipment or services.',
16:'§ 200.217 whistleblower protections. subpart d post federal award requirements § 200.300 statutory and national policy requirements. § 200.301 performance',
17:'measurement. § 200.302 financial management. § 200.303 internal controls. § 200.304 bonds. § 200.305 federal payment. § 200.306 cost sharing.',
18:'§ 200.307 program income. § 200.308 revision of budget and program plans. § 200.309 modifications to period of performance. property',
19:'standards § 200.310 insurance coverage. § 200.311 real property. § 200.312 federally owned and exempt property. § 200.313 equipment. §',
20:'200.314 supplies. § 200.315 intangible property. § 200.316 property trust relationship. procurement standards § 200.317 procurements by states and indian',
21:'tribes. § 200.318 general procurement standards. § 200.319 competition. § 200.320 procurement methods. § 200.321 contracting with small businesses, minority',
22:'businesses, womens business enterprises, veteranowned businesses, and labor surplus area firms. § 200.322 domestic preferences for procurements. § 200.323 procurement',
23:'of recovered materials. § 200.324 contract cost and price. § 200.325 federal agency or passthrough entity review. § 200.326 bonding',
24:'requirements. 2 cfr part 200 jan. 8, 2025 enhanced display page 2 of 208 2 cfr part 200 up to',
25:'date as of 1/08/2025 2 cfr part 200 jan. 8, 2025 uniform administrative requirements, cost principles, and audit § 200.327',
26:'contract provisions. performance and financial monitoring and reporting § 200.328 financial reporting. § 200.329 monitoring and reporting program performance. §',
27:'200.330 reporting on real property. subrecipient monitoring and management § 200.331 subrecipient and contractor determinations. § 200.332 requirements for passthrough',
28:'entities. § 200.333 fixed amount subawards. record retention and access § 200.334 record retention requirements. § 200.335 requests for transfer',
29:'of records. § 200.336 methods for collection, transmission, and storage of information. § 200.337 access to records. § 200.338 restrictions',
30:'on public access to records. remedies for noncompliance § 200.339 remedies for noncompliance. § 200.340 termination. § 200.341 notification of',
31:'termination requirement. § 200.342 opportunities to object, hearings, and appeals. § 200.343 effects of suspension and termination. closeout § 200.344',
32:'closeout. postcloseout adjustments and continuing responsibilities § 200.345 postcloseout adjustments and continuing responsibilities. collection of amounts due § 200.346 collection',
33:'of amounts due. subpart e cost principles general provisions § 200.400 policy guide. § 200.401 application. basic considerations § 200.402',
34:'composition of costs. § 200.403 factors affecting allowability of costs. § 200.404 reasonable costs. § 200.405 allocable costs. § 200.406',
35:'applicable credits. § 200.407 prior written approval prior approval. § 200.408 limitation on allowance of costs. 2 cfr part 200',
36:'jan. 8, 2025 enhanced display page 3 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
37:'cfr part 200 jan. 8, 2025 uniform administrative requirements, cost principles, and audit § 200.409 special considerations. § 200. collection',
38:'of unallowable costs. § 200.411 adjustment of previously negotiated indirect cost rates containing unallowable costs. direct and indirect costs §',
39:'200.412 classification of costs. § 200.413 direct costs. § 200.414 indirect costs. § 200. required certifications. special considerations for states,',
40:'local governments and indian tribes § 200.416 cost allocation plans and indirect cost proposals. § 200.417 interagency service. § 200.418',
41:'costs incurred by states and local governments. § 200.419 cost accounting standards. general provisions for selected items of cost §',
42:'200. considerations for selected items of cost. § 200.421 advertising and public relations. § 200.422 advisory councils. § 200.423 alcoholic',
43:'beverages. § 200.424 alumni activities. § 200. audit services. § 200.426 bad debts. § 200.427 bonding costs. § 200.428 collections',
44:'of improper payments. § 200.429 commencement and convocation costs. § 200. compensation—personal services. § 200.431 compensation—fringe benefits. § 200.432 conferences.',
45:'§ 200.433 contingency provisions. § 200.434 contributions and donations. § 200. defense and prosecution of criminal and civil proceedings, claims,',
46:'appeals and patent infringements. § 200.436 depreciation. § 200.437 employee health and welfare costs. § 200.438 entertainment and prizes. §',
47:'200.439 equipment and other capital expenditures. § 200. exchange rates. § 200.441 fines, penalties, damages and other settlements. 2 cfr',
48:'part 200 jan. 8, 2025 enhanced display page 4 of 208 2 cfr part 200 up to date as of',
49:'1/08/2025 2 cfr part 200 jan. 8, 2025 uniform administrative requirements, cost principles, and audit § 200.442 fundraising and investment',
50:'management costs. § 200.443 gains and losses on the disposition of depreciable assets. § 200.444 general costs of government. §',
51:'200. goods or services for personal use. § 200.446 idle facilities and idle capacity. § 200.447 insurance and indemnification. §',
52:'200.448 intellectual property. § 200.449 interest. § 200. lobbying. § 200.451 losses on other awards or contracts. § 200.452 maintenance',
53:'and repair costs. § 200.453 materials and supplies costs, including costs of computing devices. § 200.454 memberships, subscriptions, and professional',
54:'activity costs. § 200. organization costs. § 200.456 participant support costs. § 200.457 plant and security costs. § 200.458 preaward',
55:'costs. § 200.459 professional service costs. § 200. proposal costs. § 200.461 publication and printing costs. § 200.462 rearrangement and',
56:'reconversion costs. § 200.463 recruiting costs. § 200.464 relocation costs of employees. § 200. rental costs of real property and',
57:'equipment. § 200.466 scholarships, student aid costs, and tuition remission. § 200.467 selling and marketing costs. § 200.468 specialized service',
58:'facilities. § 200.469 student activity costs. § 200. taxes including value added tax. § 200.471 telecommunication and video surveillance costs.',
59:'§ 200.472 termination and standard closeout costs. § 200.473 training and education costs. § 200.474 transportation costs. § 200. travel',
60:'costs. § 200.476 trustees. subpart f audit requirements 2 cfr part 200 jan. 8, 2025 enhanced display page 5 of',
61:'208 2 cfr part 200 up to date as of 1/08/2025 uniform administrative requirements, cost principles, and audit general §',
62:'200.500 purpose. audits § 200.501 audit requirements. § 200.502 basis for determining federal awards expended. § 200.503 relation to other',
63:'audit requirements. § 200.504 frequency of audits. § 200.505 remedies for audit noncompliance. § 200.506 audit costs. § 200.507 programspecific',
64:'audits. auditees § 200.508 auditee responsibilities. § 200.509 auditor selection. § 200.510 financial statements. § 200.511 audit findings followup. §',
65:'200.512 report submission. federal agencies § 200.513 responsibilities. auditors § 200.514 standards and scope of audit. § 200.515 audit reporting.',
66:'§ 200.516 audit findings. § 200.517 audit documentation. § 200.518 major program determination. § 200.519 criteria for federal program risk.',
67:'§ 200.520 criteria for a lowrisk auditee. management decisions § 200.521 management decisions. appendix i to part 200 full text',
68:'of notice of funding opportunity appendix ii to part 200 contract provisions for nonfederal entity contracts under federal awards appendix',
69:'iii to part 200 indirect f&a costs identification and assignment, and rate determination for institutions of higher education ihes appendix',
70:'iv to part 200 indirect f&a costs identification and assignment, and rate 2 cfr part 200 jan. 8, 2025 2',
71:'cfr part 200 jan. 8, 2025 enhanced display page 6 of 208 2 cfr part 200 up to date as',
72:'of 1/08/2025 2 cfr part 200 jan. 8, 2025 uniform administrative requirements, cost principles, and audit determination for nonprofit organizations',
73:'appendix v to part 200 state/local governmentwide central service cost allocation plans appendix vi to part 200 public assistance cost',
74:'allocation plans appendix vii to part 200 states and local government and indian tribe indirect cost proposals appendix viii to',
75:'part 200 nonprofit organizations exempted from subpart e of part 200 appendix ix to part 200 hospital cost principles appendix',
76:'x to part 200 data collection form appendix xi to part 200 compliance supplement appendix xii to part 200 award',
77:'term and condition for recipient integrity and performance matters part 200—uniform administrative requirements, cost principles, and audit requirements for federal',
78:'awards authority: 31 u.s.c. 503;31 u.s.c. 61016106;31 u.s.c. 6307;31 u.s.c. 75017507. source: 89 fr 30136, apr. 22, 2024, unless otherwise',
79:'noted. subpart a—acronyms and definitions acronyms § 200.0 acronyms. a cas cost accounting standards b cfr code of federal regulations',
80:'c f&a facilities and administration d fac federal audit clearinghouse 2 cfr 200.0d enhanced display page 7 of 208 2',
81:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.0e uniform administrative requirements, cost principles, and audit e',
82:'fain federal award identification number f far federal acquisition regulation g fasb financial accounting standards board h ffata federal funding',
83:'accountability and transparency act of 2006 or transparency act,public law 109282, as amended see31 u.s.c. 6101, statutory note i foia',
84:'freedom of information act j fr federal register k gaap generally accepted accounting principles l gagas generally accepted government auditing',
85:'standards m gasb government accounting standards board n gao government accountability office o gsa general services administration p ibs institutional',
86:'base salary q ihe institutions of higher education r irc internal revenue code s isdeaa indian selfdetermination and education and',
87:'assistance act t mtc modified total cost u mtdc modified total direct cost v nfe nonfederal entity w nofo notice',
88:'of funding opportunity x omb office of management and budget y pii personally identifiable information z pms payment management system',
89:'aa sam system for award management sam.gov bb uei unique entity identifier cc u.s.c. united states code dd vat value',
90:'added tax § 200.1 definitions. the following is a list of definitions of key terms frequently used in2 cfr part',
91:'200. definitions found in federal statutes or regulations that apply to particular programs take precedence over the following definitions. however,',
92:'where the following definitions implement specific statutory requirements that apply governmentwide, such as the single audit act, the following definitions',
93:'take precedence over federal regulations. for purposes of this part, the following definitions apply: 2 cfr 200.1 enhanced display page',
94:'8 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “acquisition cost” uniform administrative',
95:'requirements, cost principles, and audit acquisition cost means the total cost of the asset including the cost to ready the',
96:'asset for its intended use. for example, acquisition cost for equipment means the net invoice price of the equipment, including',
97:'the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which',
98:'it is acquired. acquisition costs for software include those development costs capitalized in accordance with generally accepted accounting principles gaap.',
99:'ancillary charges such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from',
100:'the acquisition cost in accordance with the recipients or subrecipients regular accounting practices. advance payment means a payment that a',
101:'federal agency or passthrough entity makes by any appropriate payment mechanism and payment method before the recipient or subrecipient disburses',
102:'the funds for program purposes. allocation means the process of assigning a cost, or a group of costs, to one',
103:'or more cost objectives, in reasonable proportion to the benefit provided or other equitable relationship. the process may entail assigning',
104:'a costs directly to a final cost objective or through one or more intermediate cost objectives. assistance listings refer to',
105:'the publicly available listing of federal assistance programs managed and administered by the general services administration gsa atsam.gov. assistance listing',
106:'number means a unique number assigned to identify an assistance listing. assistance listing program title means the title that corresponds',
107:'to the assistance listing number. audit finding means deficiencies which the auditor is required to report in the schedule of',
108:'findings and questioned costs. see§ 200.516a auditee means any nonfederal entity that must be audited under this part. see§ 200.501',
109:'auditor means an auditor who is a public accountant or a federal, state, local government, or indian tribe audit organization',
110:'that meets the general standards specified for external auditors in generally accepted government auditing standards gagas. the term auditor does',
111:'not include internal auditors of nonprofit organizations. budget means the financial plan for the federal award that the federal agency',
112:'or passthrough entity approves during the federal award process or in subsequent amendments to the federal award. it may include',
113:'the federal and nonfederal share or only the federal share, as determined by the federal agency or pass through entity.',
114:'budget period means the time interval from the start date of a funded portion of an award to the end',
115:'date of that funded portion, during which recipients and subrecipients are authorized to incur financial obligations of the funds awarded,',
116:'including any funds carried forward or other revisions pursuant to§ 200.308. capital assets means: 1 tangible or intangible assets used',
117:'in operations having a useful life of more than one year which are capitalized in accordance with gaap. capital assets',
118:'include: i land, buildings facilities, equipment, and intellectual property including software, whether acquired by purchase, construction, manufacture, exchange, or through',
119:'a lease accounted for as financed purchase under government accounting standards board gasb standards or a finance lease under financial',
120:'accounting standards board fasb standards; and 2 cfr 200.1 “capital assets” 1i enhanced display page 9 of 208 2 cfr',
121:'part 200 up to date as of 1/08/2025 2 cfr 200.1 “capital assets” 1ii uniform administrative requirements, cost principles, and',
122:'audit ii additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or',
123:'useful life not ordinary repairs and maintenance. 2 for purpose of this part, capital assets do not include intangible righttouse',
124:'assets per gasb and righttouse operating lease assets per fasb. for example, assets capitalized that recognize a lessees right to',
125:'control the use of property or equipment for a period of time under a lease contract. see§ 200.465. capital expenditures',
126:'means expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to',
127:'capital assets that materially increase their value or useful life. central service cost allocation plan means the documentation identifying, accumulating,',
128:'and allocating or developing billing rates based on the allowable costs of services provided by a state, local government, or',
129:'indian tribe to its departments and agencies on a centralized basis. the costs of these services may be allocated or',
130:'billed to users. claim means, depending on the context, either: 1 a written demand or assertion by one of the',
131:'parties to a federal award seeking as a matter of right: i the payment of money; ii the adjustment or',
132:'interpretation of the terms and conditions of the federal award; or iii other relief arising under or relating to a',
133:'federal award. 2 a request for payment not in dispute when submitted. class of federal awards means a group of',
134:'federal awards either awarded under a specific program or group of programs or to a specific type of recipient or',
135:'group of recipients to which specific provisions or exceptions may apply. closeout means the process by which the federal agency',
136:'or passthrough entity determines that all applicable administrative actions and all required work of the federal award have been completed',
137:'and takes actions as described in§ 200.344. cluster of programs means a grouping of closely related programs that share common',
138:'compliance requirements. the types of clusters of programs are research and development r&d, student financial aid sfa, and other clusters.',
139:'“other clusters” are defined by omb in the compliance supplement or designated by a state for federal awards the state',
140:'provides to its subrecipients that meet the definition of a cluster of programs. when designating “other clusters,” a state must',
141:'identify the federal awards included in the cluster and advise the subrecipients of compliance requirements applicable to the cluster, consistent',
142:'with§ 200.332. a cluster of programs must be considered one program when determining major programs as described in§ 200.518, and',
143:'with the exception of r&d as described in§ 200.501d, whether a programspecific audit may be elected. cognizant agency for audit',
144:'means the federal agency designated to carry out the responsibilities described in§ 200.513a. the cognizant agency for audit is not',
145:'necessarily the same as the cognizant agency for indirect costs. a list of federal agency single audit contacts can be',
146:'found on the federal audit clearinghouse fac website. 2 cfr 200.1 “cognizant agency for audit” enhanced display page 10 of',
147:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “cognizant agency for indirect costs” uniform',
148:'administrative requirements, cost principles, and audit cognizant agency for indirect costs means the federal agency responsible for reviewing, negotiating and',
149:'approving cost allocation plans or indirect cost proposals on behalf of all federal agencies. the cognizant agency for indirect cost',
150:'is not necessarily the same as the cognizant agency for audit. for assignments of cognizant agencies, see the following: 1',
151:'for institutions of higher education ihes: appendix iii, paragraph c.11. 2 for nonprofit organizations: appendix iv, paragraph c.2.a. 3 for',
152:'state and local governments: appendix v, paragraph f.1. 4 for indian tribes: appendix vii, paragraph d.1. compliance supplement means an',
153:'annually updated authoritative source of information for auditors that identifies existing important compliance requirements that the federal government expects to',
154:'be considered as part of an audit. auditors use it to understand the federal programs objectives, procedures, and compliance requirements,',
155:'as well as audit objectives and suggested audit procedures for determining compliance with the relevant federal program. computing devices means',
156:'machines that acquire, store, analyze, process, and publish data and other information electronically, including accessories or “peripherals” for printing, transmitting',
157:'and receiving, or storing electronic information. see also the definitions ofsuppliesandinformation technology systems in this section. contract means, for the',
158:'purpose of federal financial assistance, a legal instrument by which a recipient or subrecipient conducts procurement transactions under a federal',
159:'award. for additional information on subrecipient and contractor determinations, see§ 200.331. see also the definition ofsubawardin this section. contractor means',
160:'an entity that receives a contract. continuation funding means the second or subsequent budget period within an identified period of',
161:'performance. cooperative agreement means a legal instrument of financial assistance between a federal agency and a recipient or between a',
162:'passthrough entity and subrecipient, consistent with31 u.s.c. 63026305: 1 is used to enter into a relationship the principal purpose of',
163:'which is to transfer anything of value to carry out a public purpose authorized by a law of the united',
164:'states see31 u.s.c. 61013; and not to acquire property or services for the federal government or passthrough entitys direct benefit',
165:'or use; 2 is distinguished from a grant in that it provides for substantial involvement of the federal agency or',
166:'passthrough entity in carrying out the activity contemplated by the federal award. 3 the term does not include: i a',
167:'cooperative research and development agreement as defined in15 u.s.c. 3710a; or ii an agreement that provides only: a direct united',
168:'states government cash assistance to an individual; b a subsidy; c a loan; d a loan guarantee; or 2 cfr',
169:'200.1 “cooperative agreement” 3iid enhanced display page 11 of 208 2 cfr part 200 up to date as of 1/08/2025',
170:'2 cfr 200.1 “cooperative agreement” 3iie uniform administrative requirements, cost principles, and audit e insurance. corrective action means action taken',
171:'by the auditee that: 1 corrects identified deficiencies; 2 produces recommended improvements; or 3 demonstrates that audit findings are either',
172:'invalid or do not warrant auditee action. cost allocation plan means a central service or public assistance cost allocation plan.',
173:'cost objective means a program, function, activity, award, organizational subdivision, contract, or work unit for which cost data are desired',
174:'and for which provision is made to accumulate and measure the cost of processes, products, jobs, and capital projects. a',
175:'cost objective may be a major function of the recipient or subrecipient, a particular service or project, a federal award,',
176:'or an indirect cost activity, as described in subpart e. see also the definitions offinal cost objectiveandintermediate cost objectivein this',
177:'section. cost sharing means the portion of project costs not paid by federal funds or contributions unless authorized by federal',
178:'statute. this term includesmatching,which refers to required levels of cost share that must be provided. see§ 200.306. disallowed cost means',
179:'charges to a federal award that the federal agency or passthrough entity determines to be unallowable in accordance with applicable',
180:'federal statutes, regulations, the provisions of this part, or the terms and conditions of the federal award. discretionary award means',
181:'an award in which the federal agency, in keeping with specific statutory authority that enables the agency to exercise judgment',
182:'“discretion”, selects the recipient or the amount of federal funding awarded through a competitive process or based on merit of',
183:'proposals. a discretionary award may be selected on a noncompetitive basis, as appropriate. equipment means tangible personal property including information',
184:'technology systems having a useful life of more than one year and a perunit acquisition cost that equals or exceeds',
185:'the lesser of the capitalization level established by the recipient or subrecipient for financial statement purposes, or $10,000. see the',
186:'definitions ofcapital assets, computing devices, general purpose equipment, information technology systems, special purpose equipment,andsuppliesin this section. expenditures means charges made',
187:'by a recipient or subrecipient to a project or program for which a federal award is received. 1 the charges',
188:'may be reported on a cash or accrual basis as long as the methodology is disclosed and consistently applied. 2',
189:'for reports prepared on a cash basis, expenditures are the sum of: i cash disbursements for direct charges for property',
190:'and services; ii the amount of indirect expense charged; iii the value of thirdparty inkind contributions applied; and iv the',
191:'amount of cash advance payments and payments made to subrecipients. 3 for reports prepared on an accrual basis, expenditures are',
192:'the sum of: i cash disbursements for direct charges for property and services; 2 cfr 200.1 “expenditures” 3i enhanced display',
193:'page 12 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “expenditures” 3ii uniform',
194:'administrative requirements, cost principles, and audit ii the amount of indirect expense incurred; iii the value of thirdparty inkind contributions',
195:'applied; and iv the net increase or decrease in the amounts owed by the recipient or subrecipient for: a goods',
196:'and other property received; b services performed by employees, contractors, subrecipients, and other payees; and c programs for which no',
197:'current services or performance are required, such as annuities, insurance claims, or other benefit payments. federal agency means an “agency”',
198:'as defined at5 u.s.c. 5511and further clarified by5 u.s.c. 552f. the term generally refers to the agency that provides a',
199:'federal award directly to a recipient unless the context indicates otherwise. see also definitions of federal award and recipient. federal',
200:'audit clearinghouse fac means the repository of record designated by omb where nonfederal entities must transmit the information required by',
201:'subpart f. federal award has the meaning, depending on the context, in either paragraph 1 or 2 of this definition:',
202:'1 i the federal financial assistance that a recipient receives directly from a federal agency or indirectly from a passthrough',
203:'entity, as described in§ 200.101; or ii the costreimbursement contract under the federal acquisition regulation that a nonfederal entity receives',
204:'directly from a federal agency or indirectly from a passthrough entity, as described in§ 200.101. 2 the instrument setting forth',
205:'the terms and conditions. the instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph 2',
206:'of the definition of federal financial assistancein this section, or the costreimbursement contract awarded under the federal acquisition regulations. 3',
207:'federal award does not include other contracts that a federal agency uses to buy goods or services from a contractor',
208:'or a contract to operate governmentowned, contractor operated goco facilities. 4 see also definitions of federal financial assistance, grant agreement,',
209:'and cooperative agreement. federal award date means the date when the authorized official of the federal agency signed physically or',
210:'digitally the federal award or when an alternative, consistent with the requirements of31 u.s.c. 1501, is reached with the recipient.',
211:'federal financial assistance means: 1 assistance that recipients or subrecipients receive or administer in the form of: i grants; ii',
212:'cooperative agreements; iii noncash contributions or donations of property including donated surplus property; iv direct appropriations; 2 cfr 200.1 “federal',
213:'financial assistance” 1iv enhanced display page 13 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
214:'cfr 200.1 “federal financial assistance” 1v uniform administrative requirements, cost principles, and audit v food commodities; and vi other financial',
215:'assistance except assistance listed in paragraph 2 of this definition. 2 for§ 200.203andsubpart f of this part,federal financial assistancealso includes',
216:'assistance that recipients or subrecipients receive or administer in the form of: i loans; ii loan guarantees; iii interest subsidies;',
217:'and iv insurance. 3 for§ 200.216, federal financial assistance includes assistance that recipients or subrecipients receive or administer in the',
218:'form of: i grants; ii cooperative agreements; iii loans; and iv loan guarantees. 4 federal financial assistance does not include',
219:'amounts received as reimbursement for services rendered to individuals as described in§ 200.502handi. 5 forpart 184 of this title, in',
220:'addition to the forms of assistance listed in paragraph 1 of this definition,federal financial assistancealso includes assistance that recipients or',
221:'subrecipients receive or administer in the form of: i loans; and ii loan guarantees. federal interest means, for purposes of§',
222:'200.330or when used in connection with the acquisition or improvement of real property, equipment, or supplies under a federal award,',
223:'the dollar amount that is the product of the: 1 the percentage of federal participation in the total cost of',
224:'the real property, equipment, or supplies; and 2 current fair market value of the property, improvements, or both, to the',
225:'extent the costs of acquiring or improving the property were included as project costs. federal program means: 1 all federal',
226:'awards which are assigned a single assistance listings number. 2 when no assistance listings number is assigned, all federal awards',
227:'from the same agency made for the same purpose must be combined and considered one program. 3 notwithstanding paragraphs 1',
228:'and 2 of this definition, a cluster of programs. the types of clusters of programs are: i research and development',
229:'r&d; 2 cfr 200.1 “federal program” 3i enhanced display page 14 of 208 2 cfr part 200 up to date',
230:'as of 1/08/2025 2 cfr 200.1 “federal program” 3ii uniform administrative requirements, cost principles, and audit ii student financial aid',
231:'sfa; and iii “other clusters,” as described in the definition ofcluster of programsin this section.federal sharemeans the portion of the',
232:'federal award costs paid using federal funds. final cost objective means a cost objective that has allocated to it both',
233:'direct and indirect costs and, in the recipients or subrecipients accumulation system, is one of the final accumulation points, such',
234:'as a particular award, internal project, or other direct activity of a recipient or subrecipient. see also the definitions ofcost',
235:'objectiveandintermediate cost objectivein this section. financial obligations means orders placed for property and services, contracts and subawards made, and similar',
236:'transactions that require payment by a recipient or subrecipient under a federal award that will result in expenditures by a',
237:'recipient or subrecipient under a federal award. fixed amount award means a type of grant or cooperative agreement pursuant to',
238:'which the federal agency or passthrough entity provides a specific amount of funding without regard to actual costs incurred under',
239:'the federal award. this type of federal award reduces some of the administrative burden and record keeping requirements for both',
240:'the recipient or subrecipient and the federal agency or passthrough entity. accountability is based primarily on performance and results. see§§',
241:'200.102c,200.101b,200.201b, and200.333. forprofit organization generally means an organization or entity organized for the purpose of earning a profit. the term',
242:'includes but is not limited to: 1 an “s corporation” incorporated under subchapter s of the internal revenue code; 2',
243:'a corporation incorporated under another authority; 3 a partnership; 4 a limited liability company or partnership; and 5 a sole',
244:'proprietorship. foreign organization means an entity that is: 1 a public or private organization located in a country other than',
245:'the united states and its territories that is subject to the laws of the country in which it is located,',
246:'irrespective of the citizenship of project staff or place of performance; 2 a private nongovernmental organization located in a country',
247:'other than the united states that solicits and receives cash contributions from the general public; 3 a charitable organization located',
248:'in a country other than the united states that is nonprofit and tax exempt under the laws of the country',
249:'where it is registered and is not a university, college, accredited degreegranting institution of education, private foundation, hospital, an organization',
250:'engaged exclusively in research or scientific activities, church, synagogue, mosque or other similar entities organized primarily for religious purposes; or',
251:'4 an organization located in a country other than the united states not recognized as a foreign public entity. foreign',
252:'public entity means: 1 a foreign government or foreign governmental entity; 2 cfr 200.1 “foreign public entity” 1 enhanced display',
253:'page 15 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “foreign public entity”',
254:'2 uniform administrative requirements, cost principles, and audit 2 a public international organization, which is an organization entitled to enjoy',
255:'privileges, exemptions, and immunities as an international organization under the international organizations immunities act 22 u.s.c. 288288f; 3 an entity',
256:'owned in whole or in part or controlled by a foreign government; or 4 any other entity consisting wholly or',
257:'partially of one or more foreign governments or foreign governmental entities. general purpose equipment means equipment that is not limited',
258:'to research, medical, scientific, or other technical activities. examples include office equipment and furnishings, modular offices, telephone networks, information technology',
259:'equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. see also the definitions ofequipmentandspecial purpose equipmentin',
260:'this section. generally accepted accounting principles gaap has the meaning specified in accounting standards issued by the government accounting standards',
261:'board gasb and the financial accounting standards board fasb. generally accepted government auditing standards gagas, also known as the yellow',
262:'book, means generally accepted government auditing standards issued by the comptroller general of the united states, which apply to financial',
263:'audits. grant agreement or grant means a legal instrument of financial assistance between a federal agency and a recipient or',
264:'between a passthrough entity and a subrecipient, consistent with31 u.s.c. 6302,6304: 1 is used to enter into a relationship, the',
265:'principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law',
266:'of the united states see31 u.s.c. 61013; and not to acquire property or services for the federal agency or passthrough',
267:'entitys direct benefit or use; 2 is distinguished from a cooperative agreement in that it does not provide for substantial',
268:'involvement of the federal agency in carrying out the activity contemplated by the federal award. 3 does not include an',
269:'agreement that provides only: i direct united states government cash assistance to an individual; ii a subsidy; iii a loan;',
270:'v insurance. vi a loan guarantee; or highestlevel owner means the entity that owns or controls an immediate owner of',
271:'an applicant or that owns or controls one or more entities that control an immediate owner of an applicant. no',
272:'entity owns or exercises control of the highestlevel owner as defined in the federal acquisition regulations far 48 cfr 52.20417.',
273:'hospital means a facility licensed as a hospital under the law of any state or a facility operated as a',
274:'hospital by the united states, a state, or a subdivision of a state. improper payment means a payment that should',
275:'not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable',
276:'requirements. the term improper payment includes: any payment to an ineligible recipient; any payment for an ineligible good or service;',
277:'2 cfr 200.1 “improper payment” enhanced display page 16 of 208 2 cfr part 200 up to date as of',
278:'1/08/2025 2 cfr 200.1 “indian tribe” uniform administrative requirements, cost principles, and audit any duplicate payment; any payment for a',
279:'good or service not received, except for those payments where authorized by law; any payment that is not authorized by',
280:'law; and any payment that does not account for credit for applicable discounts. see omb circular a123 appendix c,requirements for',
281:'payment integrity improvementfor additional definitions and guidance on the requirements for payment integrity. indian tribe means any indian tribe, band,',
282:'nation, or other organized group or community, including any alaska native village or regional or village corporation as defined in',
283:'or established pursuant to the alaska native claims settlement act 43 u.s.c. chapter 33, which is recognized as eligible for',
284:'the special programs and services provided by the united states to indians because of their status as indians. see25 u.s.c.',
285:'5304e. this includes any indian tribe identified in the annually published bureau of indian affairs list of “indian entities recognized',
286:'and eligible to receive services”and other entities that qualify as an alaska native village or regional village corporation as defined',
287:'in or established pursuant to the alaska native claims settlement act. indirect cost means those costs incurred for a common',
288:'or joint purpose benefitting more than one cost objective and not readily assignable to the cost objectives specifically benefitted, without',
289:'effort disproportionate to the results achieved. it may be necessary to establish multiple pools of indirect costs to facilitate equitable',
290:'distribution of indirect expenses to the cost objectives served. indirect cost pools must be distributed to benefitted cost objectives on',
291:'basis that will produce an equitable result in consideration of relative benefits derived. for institutions of higher education ihe, the',
292:'term facilities and administrative f&a cost is often used to refer to indirect costs. indirect cost rate proposal means the',
293:'documentation prepared by a recipient to substantiate its request to establish an indirect cost rate as described in appendices iii',
294:'through vii and appendix ix to this part. information technology systems means computing devices, ancillary equipment, software, firmware, and related',
295:'procedures, services including support services, and resources. see also the definitions ofcomputing devicesandequipmentin this section. institution of higher education ihe',
296:'is defined at20 u.s.c. 1001. intangible property means property having no physical existence, such as trademarks, copyrights, data including data',
297:'licenses, websites, ip licenses, trade secrets, patents, patent applications, and property such as loans, notes and other debt instruments, lease',
298:'agreements, stocks and other instruments of property ownership of either tangible or intangible property, such as intellectual property, software, or',
299:'software subscriptions or licenses. intermediate cost objective means a cost objective that is used to accumulate indirect costs or service',
300:'center costs that are subsequently allocated to one or more indirect cost pools or final cost objectives. see this sections',
301:'definitions ofcost objectiveandfinal cost objective. internal control for recipients and subrecipients means processes designed and implemented by recipients and subrecipients',
302:'to provide reasonable assurance regarding the achievement of objectives in the following categories: 1 effectiveness and efficiency of operations; 2',
303:'reliability of reporting for internal and external use; and 3 compliance with applicable laws and regulations. loan means a federal',
304:'loan or loan guarantee received or administered by a recipient or subrecipient, except as used in this sections definition ofprogram',
305:'income. 2 cfr 200.1 “loan” enhanced display page 17 of 208 2 cfr part 200 up to date as of',
306:'1/08/2025 2 cfr 200.1 “loan” 1 uniform administrative requirements, cost principles, and audit 1 the term “direct loan” means a',
307:'disbursement of funds by the federal government to a nonfederal borrower under a contract that requires the repayment of such',
308:'funds with or without interest. the term includes the purchase of, or participation in, a loan made by another lender',
309:'and financing arrangements that defer payment for more than 90 days, including the sale of a federal government asset on',
310:'credit terms. the term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or',
311:'the price support loans of the commodity credit corporation. 2 the term “direct loan obligation” means a binding agreement by',
312:'a federal agency to make a direct loan when specified conditions are fulfilled by the borrower. 3 the term “loan',
313:'guarantee” means any federal government guarantee, insurance, or other pledges for the payment of all or a part of the',
314:'principal or interest on any debt obligation of a nonfederal borrower to a nonfederal lender but does not include the',
315:'insurance of deposits, shares, or other withdrawable accounts in financial institutions. 4 the term “loan guarantee commitment” means a binding',
316:'agreement by a federal agency to make a loan guarantee when specified conditions are fulfilled by the borrower, the lender,',
317:'or any other party to the guarantee agreement. local government means any unit of government within a state, including a:',
318:'1 county; 2 borough; 3 municipality; 4 city; 5 town; 6 township; 7 parish; 8 local public authority, including any',
319:'public housing agency under the united states housing act of 1937; 9 special district; 10 school district; 11 intrastate district;',
320:'12 council of governments, whether or not incorporated as a nonprofit corporation under state law; and 13 any other agency',
321:'or instrumentality of a multi, regional, or intrastate or local government. major program means a federal program determined by the',
322:'auditor to be a major program in accordance with§ 200.518or a program identified as a major program by a federal',
323:'agency or passthrough entity in accordance with§ 200.503e. management decision means the federal agencys or passthrough entitys written determination, provided',
324:'to the auditee, of the adequacy of the auditees proposed corrective actions to address the findings based on its evaluation',
325:'of the audit findings and proposed corrective actions. 2 cfr 200.1 “management decision” enhanced display page 18 of 208 2',
326:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “micropurchase” uniform administrative requirements, cost principles, and audit',
327:'micropurchase means an individual procurement transaction for supplies or services, the aggregate amount of which does not exceed the micropurchase',
328:'threshold. micropurchases comprise a subset of a recipients or subrecipients small purchases using informal procurement methods as set forth in§',
329:'200.320. micropurchase threshold means the dollar amount at or below which a recipient or subrecipient may purchase property, or services',
330:'using micropurchase procedures see§ 200.320. generally, except as provided in§ 200.320, the micropurchase threshold for procurement activities administered under federal',
331:'awards is not to exceed the amount set by the far at48 cfr part 2, subpart 2.1, unless a higher',
332:'threshold is requested by the recipient or subrecipient and approved by the cognizant agency for indirect costs. modified total direct',
333:'cost mtdc means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the',
334:'first $50,000 of each subaward regardless of the period of performance of the subawards under the award. mtdc excludes equipment,',
335:'capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of',
336:'each subaward in excess of $50,000. other items may only be excluded when necessary to avoid a serious inequity in',
337:'the distribution of indirect costs and with the approval of the cognizant agency for indirect costs. nondiscretionary award means an',
338:'award made by the federal agency to specific recipients in accordance with statutory, eligibility, and compliance requirements, such that in',
339:'keeping with specific statutory authority, the federal agency cannot exercise judgment “discretion”. a nondiscretionary award amount could be specifically determined',
340:'or by formula. nonfederal entity nfe means a state, local government, indian tribe, institution of higher education ihe, or nonprofit',
341:'organization that carries out a federal award as a recipient or subrecipient. nonprofit organization means any organization that: 1 is',
342:'operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; 2 is not organized primarily for',
343:'profit; 3 uses net proceeds to maintain, improve, or expand the organizations operations; and 4 is not an ihe. notice',
344:'of funding opportunity means a formal announcement of the availability of federal funding through a financial assistance program from a',
345:'federal agency. the notice of funding opportunity provides information on the award, such as who is eligible to apply, the',
346:'evaluation criteria for selecting a recipient or subrecipient, the required components of an application, and how to submit the application.',
347:'the notice of funding opportunity is any paper or electronic issuance that an agency uses to announce a funding opportunity,',
348:'whether it is called a “program announcement,” “notice of funding availability,” “broad agency announcement,” “research announcement,” “solicitation,” or some other',
349:'term. office of management and budget omb means the executive office of the president, office of management and budget. oversight',
350:'agency for audit means the federal agency that provides the predominant amount of funding directly direct funding as listed on',
351:'the schedule of expenditures of federal awards, see§ 200.510b to a recipient or subrecipient unless omb designates a specific cognizant',
352:'agency for audit. when the direct funding represents less than 25 percent of the total federal expenditures as direct and',
353:'subawards by the recipient or subrecipient, then the federal agency with the predominant amount of total funding is the 2',
354:'cfr 200.1 “oversight agency for audit” enhanced display page 19 of 208 2 cfr part 200 up to date as',
355:'of 1/08/2025 2 cfr 200.1 “participant” uniform administrative requirements, cost principles, and audit designated oversight agency for audit. when there',
356:'is no direct funding, the federal agency that is the predominant source of passthrough funding must assume the oversight responsibilities.',
357:'the duties of the oversight agency for audit and the process for any reassignments are described in§ 200.513b. participant generally',
358:'means an individual participating in or attending program activities under a federal award, such as trainings or conferences, but who',
359:'is not responsible for implementation of the federal award. individuals committing effort to the development or delivery of program activities',
360:'under a federal award such as consultants, project personnel, or staff members of a recipient or subrecipient are not participants.',
361:'examples of participants may include community members participating in a community outreach program, members of the public whose perspectives or',
362:'input are sought as part of a program, students, or conference attendees. participant support costs means direct costs that support',
363:'participants see definition forparticipantin§ 200.1 and their involvement in a federal award, such as stipends, subsistence allowances, travel allowances, registration',
364:'fees, temporary dependent care, and per diem paid directly to or on behalf of participants. passthrough entity means a recipient',
365:'or subrecipient that provides a subaward to a subrecipient including lower tier subrecipients to carry out part of a federal',
366:'program. the authority of the passthrough entity under this part flows through the subaward agreement between the passthrough entity and',
367:'subrecipient. performance goal means a measurable target level of performance expressed as a tangible, measurable objective, against which actual achievement',
368:'can be compared, including a goal expressed as a quantitative standard, value, or rate. in some instances for example, discretionary',
369:'research awards, this may be limited to the requirement to submit technical performance reports to be evaluated in accordance with',
370:'agency policy. period of performance means the time interval between the start and end date of a federal award, which',
371:'may include one or more budget periods. identification of the period of performance in the federal award consistent with§ 200.211b5does',
372:'not commit the federal agency to fund the award beyond the currently approved budget period. personal property means property other',
373:'than real property. it may be tangible or intangible. personally identifiable information pii means information that can be used to',
374:'distinguish or trace an individuals identity, either alone or when combined with other personal or identifying information that is linked',
375:'or linkable to a specific individual. some pii is available in public sources such as telephone books, websites, and university',
376:'listings. the definition of pii is not attached to any single category of information or technology. instead, it requires a',
377:'casebycase assessment of the specific risk that an individual can be identified. nonpii can become pii whenever additional information is',
378:'made publicly available, in any medium and from any source, that could be used to identify an individual when combined',
379:'with other available information. prior approval means the written approval obtained in advance by an authorized official of a federal',
380:'agency or passthrough entity of certain costs or programmatic decisions. program income means gross income earned by the recipient or',
381:'subrecipient that is directly generated by a supported activity or earned as a result of the federal award during the',
382:'period of performance except as provided in§ 200.307c. program income includes but is not limited to income from fees for',
383:'services performed, the use or rental of real or personal property acquired under federal awards, the sale of commodities or',
384:'items fabricated under a federal award, license fees, and royalties on patents and copyrights, and principal and interest on loans',
385:'made with federal award funds. interest earned on advances of federal funds is not program income. except as otherwise provided',
386:'in federal statutes, 2 cfr 200.1 “program income” enhanced display page 20 of 208 2 cfr part 200 up to',
387:'date as of 1/08/2025 2 cfr 200.1 “project cost” uniform administrative requirements, cost principles, and audit regulations, or the terms',
388:'and conditions of the federal award, program income does not include rebates, credits, discounts, and interest earned on any of',
389:'them. see§ 200.407. see also35 u.s.c. 200212 “disposition of rights in educational awards,” which applies to inventions made under federal',
390:'awards. project cost means total allowable costs incurred under a federal award and all cost sharing, including third party contributions.',
391:'property means real property or personal property. see this sections definitions ofreal propertyandpersonal property. protected personally identifiable information protected pii',
392:'means pii see definition in this section, except for pii that must be disclosed by law. examples of pii include,',
393:'but are not limited to, social security number; passport number; credit card numbers; clearances, bank numbers; biometrics; date and place',
394:'of birth; mothers maiden name; criminal, medical and financial records; and educational transcripts. questioned cost has the meaning given in',
395:'paragraphs 1 through 3. 1 questioned costmeans an amount, expended or received from a federal award, that in the auditors',
396:'judgment: i is noncompliant or suspected noncompliant with federal statutes, regulations, or the terms and conditions of the federal award;',
397:'ii at the time of the audit, lacked adequate documentation to support compliance; or iii appeared unreasonable and did not',
398:'reflect the actions a prudent person would take in the circumstances. 2 the questioned cost amount under 1ii is calculated',
399:'as if the portion of a transaction that lacked adequate documentation were confirmed noncompliant. 3 there is no questioned cost',
400:'solely because of: i deficiencies in internal control; or ii noncompliance with the reporting type of compliance requirement described in',
401:'the compliance supplement if this noncompliance does not affect the amount expended or received from the federal award. 4 known',
402:'questioned costmeans a questioned cost specifically identified by the auditor. known questioned costs are a subset of likely questioned costs.',
403:'5 likely questioned costmeans the auditors best estimate of total questioned costs, not just the known questioned costs. likely questioned',
404:'costs are developed by extrapolating from audit evidence obtained, for example, by projecting known questioned costs identified in an audit',
405:'sample to the entire population from which the sample was drawn. in evaluating the effect of questioned costs on the',
406:'opinion on compliance, the auditor considers the likely questioned costs, not just the known questioned costs. 6 questioned costs are',
407:'not improper payments until reviewed and confirmed to be improper payments as defined in omb circular a123 appendix c. real',
408:'property means land, including land improvements, structures, and appurtenances thereto, and legal interests in land, including fee interest, licenses, rights',
409:'of way, and easements. real property excludes moveable machinery and equipment. 2 cfr 200.1 “real property” enhanced display page 21',
410:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.1 “recipient” uniform administrative requirements, cost',
411:'principles, and audit recipient means an entity that receives a federal award directly from a federal agency to carry out',
412:'an activity under a federal program. the term recipient does not include subrecipients or individuals that are participants or beneficiaries',
413:'of the award. renewal award means a federal award for which the start date is contiguous with, or closely follows,',
414:'the end of the expiring federal award. the start date of a renewal award begins a new and distinct period',
415:'of performance. research and development r&d means all basic and applied research activities and all development activities performed by a',
416:'recipient or subrecipient. the term research also includes activities involving the training of individuals in research techniques where such activities',
417:'use the same facilities as other research and development activities and where such activities are not included in the instruction',
418:'function. “research” is the systematic study directed toward fuller scientific knowledge or understanding of the subject studied. “development” is the',
419:'systematic use of knowledge and understanding gained from research to produce useful materials, devices, systems, or methods, including designing and',
420:'developing prototypes and processes. simplified acquisition threshold means the dollar amount below which a recipient or subrecipient may purchase property',
421:'or services using small purchase methods see§ 200.320. recipients and subrecipients adopt small purchase procedures to expedite the purchase of',
422:'items at or below the simplified acquisition threshold. the simplified acquisition threshold set in the far at48 cfr part 2,',
423:'subpart 2.1is used in this part as the simplified acquisition threshold for secondary procurement activities administered under federal awards. the',
424:'recipient or subrecipient is responsible for determining an appropriate simplified acquisition threshold, which is less than or equal to the',
425:'dollar value established in the far, based on internal controls, an evaluation of risk, and its documented procurement procedures. recipients',
426:'and subrecipients should also determine if local government purchasing laws apply. this threshold must never exceed the dollar value established',
427:'in the far. special purpose equipment means equipment that is used only for research, medical, scientific, or other similar technical',
428:'activities. examples of special purpose equipment include microscopes, xray machines, surgical instruments, spectrometers, and associated software. see also the definitions',
429:'ofequipmentand general purpose equipmentin this section. state means any state of the united states, the district of columbia, the commonwealth',
430:'of puerto rico, u.s. virgin islands, guam, american samoa, the commonwealth of the northern mariana islands, and any agency or',
431:'instrumentality thereof exclusive of local governments. student financial aid sfa means federal awards under those programs of general student assistance,',
432:'such as those authorized by title iv of the higher education act of 1965, as amended 20 u.s.c. 10701099d, which',
433:'the u.s. department of education administers, and similar programs provided by other federal agencies. it does not include federal awards',
434:'under programs that provide fellowships or similar federal awards to students on a competitive basis or for specified studies or',
435:'research. subaward means an award provided by a passthrough entity to a subrecipient for the subrecipient to contribute to the',
436:'goals and objectives of the project by carrying out part of a federal award received by the pass through entity.',
437:'it does not include payments to a contractor, beneficiary, or participant. a subaward may be provided through any form of',
438:'legal agreement consistent with criteria in with§ 200.331, including an agreement the passthrough entity considers a contract. subrecipient means an',
439:'entity that receives a subaward from a passthrough entity to carry out part of a federal award. the term subrecipient',
440:'does not include a beneficiary or participant. a subrecipient may also be a recipient of other federal awards directly from',
441:'a federal agency. 2 cfr 200.1 “subrecipient” enhanced display page 22 of 208 2 cfr part 200 up to date',
442:'as of 1/08/2025 2 cfr 200.1 “subsidiary” uniform administrative requirements, cost principles, and audit subsidiary means an entity in which',
443:'more than 50 percent of the entity is owned or controlled directly by a parent corporation or through another subsidiary',
444:'of a parent corporation. supply means all tangible personal property other than those described in theequipmentdefinition. a computing device is',
445:'a supply if the acquisition cost is below the lesser of the capitalization level established by the recipient or subrecipient',
446:'for financial statement purposes or $10,000, regardless of the length of its useful life. see this sections definitions ofcomputing devicesandequipment.',
447:'telecommunications cost means the cost of using communication technologies such as mobile phones, landlines, and the internet. termination means the',
448:'action a federal agency or passthrough entity takes to discontinue a federal award, in whole or in part, at any',
449:'time before the planned end date of the period of performance. termination does not include discontinuing a federal award due',
450:'to a lack of available funds. thirdparty inkind contributions means the value of noncash contributions meaning,property or services that: 1',
451:'benefit a project or program funded by a federal award; and 2 are contributed by nonfederal third parties, without charge,',
452:'to a recipient or subrecipient under a federal award. unliquidated financial obligation means financial obligations incurred by the recipient or',
453:'subrecipient but not paid liquidated for financial reports prepared on a cash basis. for reports prepared on an accrual basis,',
454:'these are financial obligations incurred by the recipient or subrecipient but for which expenditures have not been recorded. unobligated balance',
455:'means the amount of funds under a federal award that the recipient or subrecipient has not obligated. the amount is',
456:'computed by subtracting the cumulative amount of the recipients or subrecipients unliquidated financial obligations and expenditures under the federal award',
457:'from the cumulative amount of funds the federal agency or passthrough entity authorized the recipient or subrecipient to obligate. see§',
458:'200.306. [89 fr 30136, apr. 22, 2024, as amended at89 fr 79732, oct. 1, 2024] subpart b—general provisions § 200.100',
459:'purpose. voluntary committed cost sharing means cost sharing specifically pledged voluntarily in the proposals budget on the part of the',
460:'recipient or subrecipient, which becomes a binding requirement of the federal award. a purpose. 1 this part establishes uniform administrative',
461:'requirements, cost principles, and audit requirements for federal awards. federal agencies must not impose additional requirements except as allowed in',
462:'§§ 200.102,200.211, or unless specifically required by federal statute, regulation, or executive order. 2 this part provides federal agencies with',
463:'the policy for collecting and submitting information on all federal financial assistance programs to the office of management and budget',
464:'omb and communicating this information to the public. it also establishes federal policies related to the 2 cfr 200.100a2 enhanced',
465:'display page 23 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.100b uniform administrative',
466:'requirements, cost principles, and audit delivery of this information to the public, including through the use of electronic media. it',
467:'also sets forth how the general services administration gsa, omb, and federal agencies implement the federal program information act 31',
468:'u.s.c. 61016106. b administrative requirements.subparts b through d set forth the uniform administrative requirements for federal financial assistance. this includes',
469:'establishing requirements for federal agencies management of federal financial assistance programs before a federal award is made, and requirements that',
470:'federal agencies may impose on recipients and subrecipients throughout the lifecycle of a federal award. c cost principles.subpart e establishes',
471:'principles for determining allowable costs incurred by recipients and subrecipients under federal awards. these principles are for the purpose of',
472:'cost determination. they do not address the circumstances nor dictate the extent of federal government funding of a particular program',
473:'or project. d single audit requirements and audit followup.subpart f is issued pursuant to the single audit act amendments of',
474:'1996 31 u.s.c. 75017507. subpart f sets forth the standards for achieving consistency and uniformity among federal agencies for the',
475:'audit of nonfederal entities expending federal awards. subpart f also provides the policies and procedures for federal agencies or passthrough',
476:'entities when using the results of these audits. § 200.101 applicability. a general applicability to federal agencies. 1 subparts a',
477:'through f apply to federal agencies that make federal awards to nonfederal entities. as provided in paragraph a2, subparts a',
478:'through e may also apply to federal agencies that make federal awards to other entities. 2 federal agencies must apply',
479:'subparts a though f of this part to nonfederal entities unless a particular section of this part or federal statute',
480:'provides otherwise. federal agencies may apply subparts athroughe of this partto federal agencies, forprofit organizations, foreign public entities, or foreign',
481:'organizations as permitted in agency regulations or program statutes, except when a federal agency determines that the application of these',
482:'subparts would be inconsistent with the international responsibilities of the united states or the laws of a foreign government. subpart',
483:'f only applies to nonfederal entities as defined in the single audit act amendments of 1996 31 u.s.c. 75017507. federal',
484:'agencies should apply the requirements to all recipients in a consistent and equitable manner to the extent permitted within applicable',
485:'statutes, regulations, and policies. 3 throughout subparts a through f, the word “must” indicates a requirement. the words “should” or',
486:'“may” indicate a recommended approach and permit discretion. 4 throughout subparts a through e, when the word “or” is used',
487:'between the terms “recipient” and “subrecipient,” any requirements or recommendations in the relevant provisions of this part apply to the',
488:'recipient, the subrecipient, or both, as applicable. the use of “or” between recipient and subrecipient does not mean that applicable',
489:'requirements or recommendations only apply to one of these entities unless the context clearly indicates otherwise. b applicability to federal',
490:'financial assistance. 1 paragraphs b2throughb5of this section describe what portions of this part apply to specific types of federal financial',
491:'assistance.paragraphs dandeof this section explain additional exceptions related to governing provisions and federal program applicability. the terms and conditions of',
492:'federal awards including this part flow down to subawards to subrecipients unless a 2 cfr 200.101b1 enhanced display page 24',
493:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.101b2 uniform administrative requirements, cost principles,',
494:'and audit particular section of this part or the terms and conditions of the federal award specifically indicate otherwise. passthrough',
495:'entities must comply with the requirements described in subpart d,§§ 200.331through200.333, and any other sections of this part addressing passthrough',
496:'entities. 2 subpart a acronyms and definitions and subpart b general provisions apply to all federal financial assistance, except that§§',
497:'200.111english language, 200.112 conflict of interest, and 200.113 mandatory disclosures do not apply to agreements for loans, loan guarantees, interest',
498:'subsidies, and insurance. 3 subpart c prefederal award requirements and contents of federal awards and subpart d post federal award',
499:'requirements only apply to grants and cooperative agreements with the following exceptions: i section 200.203 requirement to provide public notice',
500:'of federal financial assistance programs also applies to agreements for loans, loan guarantees, interest subsidies, and insurance; ii section 200.216',
501:'prohibition on certain telecommunications and video surveillance equipment or services applies to loans and grants seepub. l. 115232, div. a,',
502:'title viii, § 889, as amended; and iii sections 200.303 internal controls and 200.331 through 200.333 subrecipient monitoring and management',
503:'also apply to all types of federal financial assistance. 4 subpart e cost principles applies to grants and cooperative agreements,',
504:'but does not apply to the following: i food commodities provided through grants and cooperative agreements; ii fixed amount awards,',
505:'except for§§ 200.400g,200.402through200.405, and200.407d, which do apply; iii agreements for loans, loan guarantees, interest subsidies, and insurance; and iv federal',
506:'awards to hospitals see appendix ix—hospital cost principles. 5 subpart f audit requirements only applies to the following items when',
507:'awarded to a nonfederal entity: i grants and cooperative agreements including fixed amount awards; ii contracts and subcontracts awarded under',
508:'the far except for fixed price contracts and subcontracts; iii agreements for loans, loan guarantees, interest subsidies, and insurance; and',
509:'iv any other form of federal financial assistance as defined by the single audit act amendment of 1996 codified at31',
510:'u.s.c. 75017507. c applicability to different types of contracts and subcontracts awarded by a federal agency to a nonfederal entity',
511:'under the federal acquisition regulations far. 1 paragraphs c2andc3of this section describe what portions of this part apply to specific',
512:'types of contracts and subcontracts awarded by a federal agency to a nonfederal entity. see also paragraph b5ii on audit',
513:'requirements. for both paragraphs c2 and c3: 2 cfr 200.101c1 enhanced display page 25 of 208 2 cfr part 200',
514:'up to date as of 1/08/2025 2 cfr 200.101c1i uniform administrative requirements, cost principles, and audit i in cases of',
515:'conflict between the requirements of applicable portions of this part and the terms and conditions of the contract, the terms',
516:'and conditions of the contract and the far prevail. ii when the cost accounting standards cas are applicable to the',
517:'contract or subcontract, they also take precedence over this part. iii in addition, costs that are identified as unallowable under41',
518:'u.s.c. 4304aand as stated in the far 48 cfr part 31, subpart 31.2, and48cfr 31.603 are always unallowable. 2 costreimbursement',
519:'contract under the far awarded to a nonfederal entity.when a nonfederal entity is awarded a costreimbursement contract under the far,',
520:'only subpart d,§§ 200.331through 200.333, and subparts e and f are applicable. 3 fixedprice contract or subcontract under the far',
521:'awarded to a nonfederal entity.when a non federal entity is awarded a fixedprice contract or subcontract under the far, only',
522:'subpart a, subpart b except for§§ 200.111,200.112, and200.113, subpart d only at§ 200.303and§§ 200.331 through200.333, and subpart e are applicable',
523:'to the contract, except that subpart e is not applicable to fixedprice contracts and subcontracts that are not negotiated. d',
524:'governing provisions.with the exception of subpart f, which is required by the single audit act, federal statutes or regulations govern',
525:'in any circumstances where they conflict with the provisions of this part. for agreements with indian tribes, this includes the',
526:'provisions of the indian selfdetermination and education and assistance act isdeaa, as amended see25 u.s.c. 53015423. e program applicability.except for§§',
527:'200.203,200.216, and200.331through200.333, the requirements in subparts c, d, and e do not apply to the following programs: 1 the block',
528:'grant awards authorized by the omnibus budget reconciliation act of 1981 including community services, except to the extent that subpart',
529:'e apply to subrecipients of community services block grant funds pursuant to42 u.s.c. 9916a1b; 2 federal awards to local education',
530:'agencies under20 u.s.c. 77027703b, portions of the impact aid program; 3 payments under the department of veterans affairs state home',
531:'per diem program 38 u.s.c. 1741; and 4 federal awards authorized under the child care and development block grant act',
532:'of 1990, as amended: i child care and development block grant 42 u.s.c. 9858. ii child care mandatory and matching',
533:'funds of the child care and development fund 42 u.s.c. 9858. f additional program applicability.except for§§ 200.203and200.216, the guidance in',
534:'subpart c does not apply to the following programs: 1 entitlement federal awards to carry out the following programs of',
535:'the social security act: i temporary assistance for needy families title iva of the social security act,42 u.s.c. 601619; ii',
536:'child support enforcement and establishment of paternity title ivd of the social security act, 42 u.s.c. 651669b; 2 cfr 200.101f1ii',
537:'enhanced display page 26 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.101f1iii uniform',
538:'administrative requirements, cost principles, and audit iii federal payments for foster care, prevention, and permanency title ive of the act,42',
539:'u.s.c. 670679c; iv aid to the aged, blind, and disabled titles i, x, xiv, and xviaabd of the act, as',
540:'amended; v medical assistance medicaid title xix of the act,42 u.s.c. 13961396w5 not including the state medicaid fraud control program',
541:'authorized by section 1903a6b of the social security act 42 u.s.c. 1396ba6b; and vi children s health insurance program title',
542:'xxi of the act,42 u.s.c. 1397aa1397mm. 2 a federal award for an experimental, pilot, or demonstration project that is also',
543:'supported by a federal award listed inparagraph f1of this section. 3 federal awards under subsection 412e of the immigration and',
544:'nationality act and subsection 501a of the refugee education assistance act of 1980 pub. l. 96422, 94 stat. 1809, for',
545:'cash assistance, medical assistance, and supplemental security income benefits to refugees and entrants and the administrative costs of providing the',
546:'assistance and benefits 8 u.s.c. 1522e. 4 entitlement awards under the following programs of the national school lunch act: i',
547:'national school lunch program section 4 of the act,42 u.s.c. 1753; ii commodity assistance section 6 of the act,42 u.s.c.',
548:'1755; iii special meal assistance section 11 of the act,42 u.s.c. 1759a; iv summer food service program for children section',
549:'13 of the act,42 u.s.c. 1761; and v child and adult care food program section 17 of the act,42 u.s.c.',
550:'1766. 5 entitlement awards under the following programs of the child nutrition act of 1966: i special milk program section',
551:'3 of the act,42 u.s.c. 1772; ii school breakfast program section 4 of the act,42 u.s.c. 1773; and iii state',
552:'administrative expenses section 7 of the act,42 u.s.c. 1776. 6 entitlement awards for state administrative expenses under the food and',
553:'nutrition act of 2008 section 16 of the act,7 u.s.c. 2025. 7 nondiscretionary federal awards under the following nonentitlement programs:',
554:'i special supplemental nutrition program for women, infants and children section 17 of the child nutrition act of 196642 u.s.c.',
555:'1786; ii the emergency food assistance programs emergency food assistance act of 19837 u.s.c. 7501 note; and iii commodity supplemental',
556:'food program section 5 of the agriculture and consumer protection act of 19737 u.s.c. 612c note. § 200.102 exceptions. a',
557:'omb class exceptions.except for subpart f, omb may allow exceptions from requirements of this part for classes of federal awards,',
558:'recipients, or subrecipients when the exceptions are not prohibited by statute. for example, federal agencies may request exceptions in support',
559:'of innovative program designs that 2 cfr 200.102a enhanced display page 27 of 208 2 cfr part 200 up to',
560:'date as of 1/08/2025 2 cfr 200.102b uniform administrative requirements, cost principles, and audit apply a riskbased, datadriven framework to',
561:'alleviate select compliance requirements and hold recipients accountable for good performance. see also§ 200.206. federal agencies may also request exceptions',
562:'in emergency situations. when omb allows an exception to requirements of this part, the federal agency remains responsible for ensuring',
563:'the exception is applied to federal awards in a manner consistent with federal statutes and regulations. b statutory and regulatory',
564:'exceptions.a federal agency may adjust requirements to a class of federal awards, recipients, or subrecipients when required by federal statutes',
565:'or regulations, except for the requirements in subpart f. except for provisions in subpart f, when a federal statute requires',
566:'exceptions to requirements of this part for a class of federal awards, recipients, or subrecipients, a federal agency does not',
567:'need omb approval to allow those exceptions. see also§ 200.106. c federal agency exceptions.federal agencies may allow exceptions to requirements',
568:'of this part on a caseby case basis for individual federal awards, recipients, or subrecipients, except when the exceptions are',
569:'prohibited by law or other approval is expressly required by this part. only the cognizant agency for indirect costs may',
570:'authorize exceptions related to cost allocation plans or indirect cost rate proposals. a federal agency may also apply less restrictive',
571:'requirements when issuing fixed amount awards see§ 200.1, except for those requirements imposed by statute or in subpart f. §',
572:'200.103 authorities. this part is issued under the following authorities. a subparts b through d are authorized under31 u.s.c. 503the',
573:'chief financial officers act, functions of the deputy director for management; the federal program information act pub, l. 95220 and',
574:'pub. l. 98169, as amended, codified at31 u.s.c. 61016106; the federal grant and cooperative agreement act of 1977 pub. l.',
575:'95224, as amended, codified at31 u.s.c. 63016309;41 u.s.c. 11011131the office of federal procurement policy act; reorganization plan no. 2 of',
576:'1970 and executive order 11541 “prescribing the duties of the office of management and budget and the domestic policy council',
577:'in the executive office of the president”; and the single audit act amendments of 1996 31 u.s.c. 75017507. b subpart',
578:'e is authorized under the budget and accounting act of 1921, as amended; the budget and accounting procedures act of',
579:'1950, as amended 31 u.s.c. 11011126; the chief financial officers act of 1990 31 u.s.c. 503504; reorganization plan no. 2',
580:'of 1970; and executive order 11541, “prescribing the duties of the office of management and budget and the domestic policy',
581:'council in the executive office of the president.” omb also relies on authority under31 u.s.c. 503and31 u.s.c. 6307. c subpart',
582:'f is authorized under the single audit act amendments of 1996 codified at31 u.s.c. 75017507. omb also relies on authority',
583:'under31 u.s.c. 503and31 u.s.c. 6307. § 200.104 supersession. this part superseded previous omb guidance issued under title 2, subtitle a,',
584:'chapter ii of the code of federal regulations and certain omb circulars related to uniform administrative requirements, cost principles, and',
585:'audit requirements for federal awards. 2 cfr 200.104 enhanced display page 28 of 208 2 cfr part 200 up to',
586:'date as of 1/08/2025 2 cfr 200.105 uniform administrative requirements, cost principles, and audit § 200.105 effect on other issuances.',
587:'a superseding inconsistent requirements.for federal awards made subject to this part by a federal agency, this part takes precedence over',
588:'any administrative requirements, program manuals, handbooks, and other nonregulatory materials that are inconsistent with the requirements of this part upon',
589:'implementation by the federal agency, except to the extent that they are required by statute or authorized in accordance with',
590:'§ 200.102. b imposition of requirements on recipients.agencies may only impose legally binding requirements on recipients and subrecipients through: 1',
591:'notice and public comment procedures through an approved agency process, including as authorized by this part, other statutes, or regulations;',
592:'or 2 incorporating requirements into the terms and conditions of a federal award as permitted by federal statute, regulation, or',
593:'this part. § 200.106 agency implementation. the specific requirements and responsibilities of federal agencies, nonfederal entities, recipients, and subrecipients are',
594:'set forth in this part. federal agencies making federal awards to nonfederal entities must implement the language insubparts cthroughf of',
595:'this partin codified regulations unless different provisions are required by federal statute or are approved by omb. § 200.107 omb',
596:'responsibilities. omb will review federal agency regulations and implementation of this part. omb will provide interpretations of policy requirements and',
597:'assistance to ensure effective, efficient, and consistent implementation. any exceptions will be subject to approval by omb and only with',
598:'adequate justification from the federal agency. § 200.108 inquiries. inquiries from federal agencies concerning this part may be directed to',
599:'omb. inquiries from recipients or subrecipients should be addressed to the federal agency, the cognizant agency for indirect costs, the',
600:'cognizant agency for audit, or the passthrough entity as appropriate. § 200.109 review date. omb will review this part periodically.',
601:'§ 200.110 effective date. a the standards set forth in this part affecting the administration of federal awards by federal',
602:'agencies become effective once implemented by federal agencies or when any future amendment to this part becomes final. b existing',
603:'negotiated indirect cost rates will remain in place until they expire. the effective date of changes to indirect cost rates',
604:'must be based upon the date a newly renegotiated rate goes into effect for the recipients or subrecipients fiscal year.',
605:'therefore, for indirect cost rates and cost allocation plans, the revisions to this part as of the publication date for',
606:'revisions to this guidance become effective in generating proposals and negotiating a new rate when the rate is renegotiated. 2',
607:'cfr 200.110b enhanced display page 29 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
608:'200.111 uniform administrative requirements, cost principles, and audit § 200.111 english language. a all federal financial assistance announcements, applications, and',
609:'federal award information should be in the english language and must be in terms of u.s. dollars. however, federal agencies,',
610:'recipients, and subrecipients may issue or translate a federal award or other documents into another language. a federal agency may',
611:'translate formal or informal announcements of the availability of federal funding through a financial assistance program, such as a notice',
612:'of funding opportunity, when translations may serve to increase the pool of applicants or the participation of a specific community',
613:'for example, programs administered in foreign countries where the primary language is not english. federal agencies must maintain an official',
614:'controlling english version of the federal financial assistance announcement and the federal award, including the terms and conditions. b applications,',
615:'reports, and official correspondence may be submitted in languages other than english if specified in the notice of funding opportunity',
616:'or the terms and conditions of the federal award. c in the event of inconsistency between english and another language,',
617:'the english language meaning will control. when a significant portion of the recipients or subrecipients employees administering a federal award',
618:'are not fluent in english, the federal award should be provided in english and the languages with which employees are',
619:'more familiar. § 200.112 conflict of interest. federal agencies must establish conflict of interest policies for federal awards. a recipient',
620:'or subrecipient must disclose in writing any potential conflict of interest to the federal agency or passthrough entity in accordance',
621:'with the established federal agency policies. § 200.113 mandatory disclosures. an applicant, recipient, or subrecipient of a federal award must',
622:'promptly disclose whenever, in connection with the federal award including any activities or subawards thereunder, it has credible evidence of',
623:'the commission of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in',
624:'title 18 of the united states code or a violation of the civil false claims act 31 u.s.c. 37293733. the',
625:'disclosure must be made in writing to the federal agency, the agencys office of inspector general, and passthrough entity if',
626:'applicable. recipients and subrecipients are also required to report matters related to recipient integrity and performance in accordance withappendix xii',
627:'of this part. failure to make required disclosures can result in any of the remedies described in§ 200.339. see also2',
628:'cfr part 180,31 u.s.c. 3321, and41 u.s.c. 2313. subpart c—prefederal award requirements and contents of federal awards § 200.200 purpose.',
629:'sections 200.201 through 200.217 prescribe instructions and other preaward matters to be used by federal agencies in the program planning,',
630:'announcement, application, and award processes. § 200.201 use of grants, cooperative agreements, fixed amount awards, and contracts. a federal awards.the',
631:'federal agency or passthrough entity must decide on the appropriate type of agreement for a federal award for example, a',
632:'grant, cooperative agreement, subaward, or contract in accordance with this guidance. see the federal grant and cooperative agreement act 31',
633:'u.s.c. 63016309. 2 cfr 200.201a enhanced display page 30 of 208 2 cfr part 200 up to date as of',
634:'1/08/2025 2 cfr 200.201b uniform administrative requirements, cost principles, and audit b fixed amount awards.the federal agency or passthrough entity',
635:'see§ 200.333 may use fixed amount awards see the definition offixed amount awardsin§ 200.1 for which the following conditions apply:',
636:'1 the federal award amount is negotiated using the cost principles or other pricing information as a guide. see§ 200.101b4iifor',
637:'further information on which provisions in subpart e cost principles apply to fixed amount awards. the federal agency or passthrough',
638:'entity may use fixed amount awards if the project scope has measurable goals and objectives and if accurate cost, historical,',
639:'or unit pricing data is available to establish a fixed budget based on a reasonable estimate of actual costs. budgets',
640:'for fixed amount awards are negotiated with the recipient or subrecipient and the total amount of federal funding is determined',
641:'in accordance with the recipients or subrecipients proposal, available pricing data, and subpart e. accountability must be based on performance',
642:'and results, which can be communicated in performance reports or through routine monitoring. there is no expected routine monitoring of',
643:'the actual costs incurred by the recipient or subrecipient under the federal award. therefore, no financial reporting is required. this',
644:'does not absolve the recipient or subrecipient from the record retention requirements contained in§§ 200.334through200.338; nor does it absolve the',
645:'recipient or subrecipient of the responsibilities of making records available for review during an audit. see§ 200.101b5i. payments must be',
646:'based on meeting specific requirements of the federal award. some of the ways in which the federal award may be',
647:'paid include, but are not limited to: i in several partial payments. the amount of each payment as well as',
648:'the “milestone” or event triggering the payment, should be agreed to in advance and included in the federal award; ii',
649:'on a unit price basis. the defined units or prices should be agreed to in advance and included in the',
650:'federal award; or iii in one payment at the completion of the federal award. 2 a fixed amount award must',
651:'not be used in programs that require cost sharing. 3 a fixed amount award may generate and use program income',
652:'in accordance with the terms and conditions of the federal award; however, the requirements of§ 200.307do not apply. 4 at',
653:'the end of a fixed amount award, the recipient or subrecipient must certify in writing to the federal agency or',
654:'passthrough entity that the project was completed as agreed to in the federal award, or identify those activities that were',
655:'not completed, and that all expenditures were incurred in accordance with§ 200.403. when the required activities were not carried out,',
656:'including fixed amount awards paid on a unit price basis under200.201b1ii, the amount of the federal award must be reduced',
657:'by the amount that reflects the activities that were not completed in accordance with the federal award. when the required',
658:'activities were completed in accordance with the terms and conditions of the federal award, the recipient or subrecipient is entitled',
659:'to any unexpended funds. 5 periodic reports may be established for fixed amount awards. 6 prior approval requirements that apply',
660:'to fixed amount awards are§ 200.308fparagraphs 1 through 3, 6 through 8, and 10 and§ 200.333. § 200.202 program planning',
661:'and design. a the federal agency must design a program and create an assistance listing before announcing the notice of',
662:'funding opportunity. a program must be designed: 2 cfr 200.202a enhanced display page 31 of 208 2 cfr part 200',
663:'up to date as of 1/08/2025 2 cfr 200.202a1 uniform administrative requirements, cost principles, and audit 1 with clear goals',
664:'and objectives that provide meaningful results and be consistent with the federal authorizing legislation of the program; 2 to measure',
665:'performance based on the goals and objectives developed during program planning and design. performance measures may differ depending on the',
666:'type of program. see§ 200.301for more information on performance measurement; 3 to align with the strategic goals and objectives within',
667:'the federal agencys performance plan and support the federal agencys performance measurement, management, customer service initiatives, and reporting as required',
668:'by part 6 of omb circular a11 preparation, submission, and execution of the budget; 4 to align with the program',
669:'management improvement accountability act pub. l. 114264 as well as the foundations for evidencebased policymaking act pub. l. 115435, as',
670:'applicable; and 5 to encourage applicants to engage, when practicable, during the design phase, members of the community that will',
671:'benefit from or be impacted by a program. b federal agencies should develop programs in consultation with communities benefiting from',
672:'or impacted by the program. in addition, federal agencies should consider available data, evidence, and evaluation results from past programs',
673:'and make every effort to extend eligibility requirements to all potential applicants. federal agencies are encouraged to coordinate with other',
674:'agencies during program planning and design, particularly when the goals and objectives of a program or project align with those',
675:'of other agencies. § 200.203 requirement to provide public notice of federal financial assistance programs. a the federal agency must',
676:'maintain an accurate list of federal programs in the assistance listings maintained by the general services administration gsa atsam.gov. 1',
677:'the assistance listings is the comprehensive governmentwide source of federal financial assistance program information produced by the executive branch of',
678:'the federal government. 2 the information that the federal agency must submit to gsa for approval by omb is listed',
679:'in paragraph b. gsa must prescribe the format for the submission in coordination with omb. 3 the federal agency must',
680:'assign the appropriate assistance listing before making the federal award unless exigent circumstances require otherwise for example, timing requirements imposed',
681:'by a federal statute. b to the extent practicable, the federal agency must create, update, and manage assistance listing entries',
682:'based on the authorizing statute for the program and comply with additional guidance provided by gsa in consultation with omb',
683:'to ensure consistent and accurate information is available to prospective applicants. assistance listings should be communicated to the public in',
684:'plain language. accordingly, federal agencies must submit the following information to gsa when creating an assistance listing: 1 program description,',
685:'purpose, goals, and measurement.a brief summary of the statutory or regulatory requirements of the program and its intended outcome. where',
686:'appropriate, the program description, purpose, goals, and performance measurement should align with the strategic goals and objectives within the federal',
687:'agencys performance plan and should support the federal agencys performance measurement, management, customer experience initiatives, and reporting as required by',
688:'part 6 of omb circular a11; 2 cfr 200.203b1 enhanced display page 32 of 208 2 cfr part 200 up',
689:'to date as of 1/08/2025 2 cfr 200.203b2 uniform administrative requirements, cost principles, and audit 2 identification.identification of whether the',
690:'program will issue federal awards on a discretionary or nondiscretionary basis; 3 projected total amount of funds available for the',
691:'program.estimates based on previous year funding are acceptable if current appropriations are not available at the time of the submission;',
692:'4 anticipated source of available funds.the statutory authority for funding the program and the agency, subagency, or specific program unit',
693:'that will issue the federal awards to the extent possible and associated funding identifier for example, treasury account symbols; 5',
694:'general eligibility requirements.the statutory, regulatory, or other eligibility factors or considerations that determine the applicants qualification for federal awards under',
695:'the program for example, type of recipient; and 6 applicability of single audit requirements.applicability of single audit requirements as required',
696:'by subpart f. § 200.204 notices of funding opportunities. the federal agency must announce specific funding opportunities for federal financial',
697:'assistance that will be openly competed. the term openly competed means opportunities that are not directed to one or more',
698:'specifically identified applicants. to the extent possible, the federal agency should communicate opportunities to the public in plain language to',
699:'ensure the announcement is accessible to diverse communities of eligible applicants, including underserved communities. the federal agency should also make',
700:'efforts to limit the length and complexity of the announcement and only include the information that is necessary for the',
701:'effective communication of the program objectives. federal agencies may offer preapplication technical assistance or provide clarifying information for funding opportunities.',
702:'however, federal agencies must ensure these resources are made accessible and widely available to all potential applicants for example, by',
703:'posting answers to questions and requests ongrants.gov. the federal agency should make every effort to identify in the nofo all',
704:'eligible applicants for example, different types of nonprofit organizations such as labor unions and tribal organizations. the following information must',
705:'be provided in a public notice: a summary information in notices of funding opportunities.the federal agency must display the following',
706:'information ongrants.gov,in a location preceding the full text of the announcement: 1 federal agency name; 2 funding opportunity title; 3',
707:'announcement type whether the funding opportunity is the initial announcement or a modification of a previously announced opportunity; 4 funding',
708:'opportunity number required, if the federal agency has assigned a number to the funding opportunity announcement; 5 assistance listing numbers;',
709:'6 funding details. to the extent appropriate, the total amount of funding that the federal agency expects to award, the',
710:'anticipated number of awards, and the expected dollar values of individual awards, which may be a range or average; 7',
711:'key dates. key dates include due dates for submitting applications or executive order 12372 submissions, as well as for any',
712:'letters of intent or preapplications. for any announcement issued before a programs application materials are available, key dates also include',
713:'the date on which 2 cfr 200.204a7 enhanced display page 33 of 208 2 cfr part 200 up to date',
714:'as of 1/08/2025 2 cfr 200.204a8 uniform administrative requirements, cost principles, and audit those materials will be released; and any',
715:'other additional information, as deemed applicable by the federal agency. if possible, the federal agency should provide an anticipated award',
716:'date. if the nofo states that applications will be evaluated on a “rolling” basis that is, at different points during',
717:'a specified period of time, the federal agency should provide an estimate of the time needed to process an application',
718:'and notify the applicant of the federal agencys decision; 8 executive summary. a brief description that is written in plain',
719:'language and summarizes the goals and objectives of the program, the target audience, and eligible applicants. the text of the',
720:'executive summary should not exceed 500 words; and 9 agency contact information. b availability period.the federal agency should make all',
721:'funding opportunities available for application for at least 60 calendar days. however, the federal agency may modify the availability period',
722:'of an opportunity as needed. for example, extending the period may be necessary to provide technical assistance to an applicant',
723:'pool that was not anticipated when the announcement was made or has less experience with applying for federal financial assistance.',
724:'the federal agency may also determine that an availability period of less than 60 days is sufficient for a particular',
725:'funding opportunity. however, no funding opportunity should be available for less than 30 calendar days unless the federal agency determines',
726:'that exigent circumstances justify this. c full text of funding opportunities. 1 the federal agency must include the information in',
727:'appendix i for every funding opportunity. 2 federal agencies should ensure that funding opportunities are written using plain language. to',
728:'the extent possible federal agencies must streamline opportunities to make them accessible, particularly for funding opportunities that are new, targeted',
729:'to underserved communities, or intended to reach inexperienced applicants. 3 to reduce application burden, federal agencies should consider whether programmatic',
730:'or administrative requirements specific to the agency, program, or funding opportunity must be met at the time of application or',
731:'as a requirement of receiving a federal award. § 200.205 federal agency review of merit of proposals. unless prohibited by',
732:'federal statute, the federal agency must design and execute a merit review process of applications for discretionary federal awards. the',
733:'objective of a merit review process is to select recipients most likely to be successful in delivering results based on',
734:'the program objectives as outlined in section§ 200.202. a merit review is an objective process of evaluating federal award applications',
735:'in accordance with the written standards of the federal agency. these standards should identify the number of people the agency',
736:'requires to participate in the merit review process and provide opportunities for a diverse group of participants, including those representing',
737:'underserved communities. the merit review process explained in this section must be described or incorporated by reference in the applicable',
738:'funding opportunity. see appendix i to this part. see also§ 200.204. the federal agency must also periodically review its merit',
739:'review process. § 200.206 federal agency review of risk posed by applicants. a review of ombdesignated repositories of governmentwide data.',
740:'2 cfr 200.206a enhanced display page 34 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
741:'cfr 200.206a1 uniform administrative requirements, cost principles, and audit 1 prior to making a federal award, the federal agency is',
742:'required to review eligibility information for applicants and financial integrity information for applicants available in ombdesignated databases per the payment',
743:'integrity information act of 2019 pub. l. 116117, the “do not pay initiative” 31 u.s.c. 3354, and41 u.s.c. 2313. 2',
744:'the federal agency is required to review the responsibility and qualification records available in the nonpublic segment of the system',
745:'for award management sam.gov prior to making a federal award where the federal share is expected to exceed the simplified',
746:'acquisition threshold, defined at 41 u.s.c. 134, over the period of performance. see41 u.s.c. 2313. the federal agency must consider',
747:'all of the information available insam.govwith regard to the applicant and any immediate highestlevel owner, predecessor meaning, an organization that',
748:'is replaced by a successor, or subsidiary, identified for that applicant insam.gov. seepublic law 112239, national defense authorization act for',
749:'fiscal year 2013;41 u.s.c. 2313d. the information in the system for a prior recipient of a federal award must demonstrate',
750:'a satisfactory record of administering programs or activities under federal financial assistance or procurement awards, and integrity and business ethics.',
751:'the federal agency may make a federal award to a recipient that does not fully meet these standards if it',
752:'is determined that the information is not relevant to the federal award under consideration or there are specific conditions that',
753:'can appropriately mitigate the risk associated with the recipient in accordance with§ 200.208. b risk assessment. 1 the federal agency',
754:'must establish and maintain policies and procedures for conducting a risk assessment to evaluate the risks posed by applicants before',
755:'issuing federal awards. this assessment helps identify risks that may affect the advancement toward or the achievement of a projects',
756:'goals and objectives. risk assessments assist federal managers in determining appropriate resources and time to devote to project oversight and',
757:'monitor recipient progress. this assessment may incorporate elements such as the quality of the application, award amount, risk associated with',
758:'the program, cybersecurity risks, fraud risks, and impacts on local jobs and the community. if the federal agency determines that',
759:'the federal award will be made, specific conditions that address the assessed risk may be implemented in the federal award.',
760:'the risk criteria to be evaluated must be described in the announcement of the funding opportunity described in§ 200.204. 2',
761:'in evaluating risks posed by applicants, the federal agency should consider the following items: i financial stability.the applicants record of',
762:'effectively managing financial risks, assets, and resources; ii management systems and standards.quality of management systems and ability to meet the',
763:'management standards prescribed in this part; iii history of performance.the applicants record of managing previous and current federal awards, including',
764:'compliance with reporting requirements and conformance to the terms and conditions of federal awards, if applicable; iv audit reports and',
765:'findings.reports and findings from audits performed under subpart f or the reports and findings of any other available audits, if',
766:'applicable; and v ability to effectively implement requirements.the applicants ability to effectively implement statutory, regulatory, or other requirements imposed on',
767:'recipients of federal awards. 2 cfr 200.206b2v enhanced display page 35 of 208 2 cfr part 200 up to date',
768:'as of 1/08/2025 2 cfr 200.206c uniform administrative requirements, cost principles, and audit c adjustments to the risk assessment.the federal',
769:'agency may modify the risk assessment at any time during the period of performance, which may justify changes to the',
770:'terms and conditions of the federal award. see§ 200.208. d suspension and debarment compliance.the federal agency must comply with the',
771:'governmentwide suspension and debarment guidance in2 cfr part 180and individual federal agency suspension and debarment requirements intitle 2 of the',
772:'code of federal regulations. federal agencies must also require recipients to comply with these requirements. these requirements restrict making federal',
773:'awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving federal awards or participating',
774:'in federal awards. § 200.207 standard application requirements. a paperwork clearances.the federal agency may only use application information collections approved',
775:'by omb under the paperwork reduction act of 1995 and ombs implementing regulations in5 cfr part 1320 and in alignment',
776:'with ombapproved, governmentwide data elements available from the omb designated standards lead. examples of application information collections approved by omb',
777:'include the standard forms 424 sf424, which is available ongrants.gov, and the biographical sketch common form omb control number 31450279,',
778:'which federal agencies should use to collect biographical sketches and other disclosure information from award applicants. omb will authorize additional',
779:'information collections only on a limited basis and consistent with these requirements. b information collection.the federal agency may inform applicants',
780:'that they do not need to provide certain information already being collected through other means. § 200.208 specific conditions. a',
781:'federal agencies are responsible for ensuring that specific federal award conditions and performance expectations are consistent with the program design',
782:'see§ 200.202and§ 200.301. b the federal agency or passthrough entity may adjust specific conditions in the federal award based on',
783:'an analysis of the following factors: 1 review of ombdesignated repositories of governmentwide data for example,sam.gov or review of its',
784:'risk assessment see§ 200.206; 2 the recipients or subrecipients history of compliance with the terms and conditions of federal awards;',
785:'3 the recipients or subrecipients ability to meet expected performance goals as described in§ 200.211; or 4 a determination of',
786:'whether a recipient or subrecipient has inadequate financial capability to perform the federal award. c specific conditions may include the',
787:'following: 1 requiring payments as reimbursements rather than advance payments; 2 withholding authority to proceed to the next phase until',
788:'receipt of evidence of acceptable performance; 3 requiring additional or more detailed financial reports; 4 requiring additional project monitoring; 2',
789:'cfr 200.208c4 enhanced display page 36 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
790:'200.208c5 uniform administrative requirements, cost principles, and audit 5 requiring the recipient or subrecipient to obtain technical or management assistance;',
791:'or 6 establishing additional prior approvals. d prior to imposing specific conditions, the federal agency or passthrough entity must notify',
792:'the recipient or subrecipient as to: 1 the nature of the specific conditions; 2 the reason why the specific conditions',
793:'is being imposed; 3 the nature of the action needed to remove the specific conditions; 4 the time allowed for',
794:'completing the actions; and 5 the method for requesting the federal agency or passthrough entity to reconsider imposing a specific',
795:'condition. e any specific conditions must be promptly removed once the conditions that prompted them have been satisfied. § 200.209',
796:'certifications and representations. unless prohibited by the u.s. constitution, federal statutes, or regulations, a federal agency or passthrough entity is',
797:'authorized to require a recipient to submit annual certifications and representations. submission may be required more frequently if a recipient',
798:'or subrecipient fails to meet a requirement of a federal award. when a recipient is provided an exception to the',
799:'requirements of2 cfr 25.110, the recipient must submit the appropriate assurance form for example, sf424b. § 200.210 preaward costs. for',
800:'requirements on costs incurred by the applicant prior to the start date of the period of performance of the federal',
801:'award, see§ 200.458. § 200.211 information contained in a federal award. the federal award must include the following information: a',
802:'federal award performance goals.where applicable, performance goals, indicators, targets, and baseline data must be included in the federal award. the',
803:'federal agency must also specify in the terms and conditions of the federal award how performance will be assessed, including',
804:'the timing and scope of expected performance. see§§ 200.202and200.301for more information on federal award performance goals. b general federal award',
805:'information.the federal agency must include the following information in each federal award: 1 recipient name which must match the name',
806:'associated with its unique entity identifier as defined at2 cfr 25.400; 2 recipients unique entity identifier; 3 unique federal award',
807:'identification number fain; 4 federal award date see federal award date in§ 200.1; 2 cfr 200.211b4 enhanced display page 37',
808:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.211b5 uniform administrative requirements, cost principles,',
809:'and audit 5 period of performance start and end date; 6 budget period start and end date; 7 amount of',
810:'federal funds obligated by this action; 8 total amount of federal funds obligated; 9 total approved cost sharing, where applicable;',
811:'10 total amount of the federal award including approved cost sharing; 11 budget approved by the federal agency; 12 federal',
812:'award description to comply with statutory requirements for example, ffata; 13 name of the federal agency including contact information for',
813:'the awarding official; 14 assistance listings number and title; 15 identification of whether the award is r&d; and 16 indirect',
814:'cost rate for the federal award including if the de minimis rate is charged per§ 200.414. c general terms and',
815:'conditions. 1 federal agencies must incorporate the following general terms and conditions either in the federal award or by reference,',
816:'as applicable: i administrative requirements.administrative requirements implemented by the federal agency as specified in this part. ii national policy requirements.these',
817:'include statutory, executive order, other presidential directive, or regulatory requirements that apply by specific reference and are not program specific.',
818:'see§ 200.300statutory and national policy requirements. iii recipient integrity and performance matters.when the total federal share of the federal award',
819:'may include more than $500,000 over the period of performance, the federal agency must include the terms and conditions available',
820:'in appendix xii. see also§ 200.113. iv future budget periods.when it is anticipated that the period of performance will include',
821:'multiple budget periods, the federal agency must indicate that subsequent budget periods are subject to the availability of funds, program',
822:'authority, satisfactory performance, and compliance with the terms and conditions of the federal award. v termination provisions.federal agencies must inform',
823:'recipients of the termination provisions in § 200.340, including the applicable termination provisions in the federal agencys regulations or terms',
824:'and conditions of the federal award. 2 the federal award must incorporate, by reference, all general terms and conditions of',
825:'the federal award, which must be maintained on the federal agencys website. 3 the federal agency must provide a copy',
826:'of the full text of the general terms and conditions if a recipient requests it. 2 cfr 200.211c3 enhanced display',
827:'page 38 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.211c4 uniform administrative requirements,',
828:'cost principles, and audit 4 the federal agency must maintain an archive of previous versions of the general terms and',
829:'conditions, with effective dates, for use by a recipient, auditors, or others. the archive should be located on the federal',
830:'agencys website in the same place where current terms and conditions are available. d federal award specific terms and conditions.the',
831:'federal agency must include in each federal award any specific terms and conditions that are in addition to the general',
832:'terms and conditions. see also§ 200.208. for loan and loan guarantee programs, the federal agency must specify whether or not',
833:'the federal award has continuing compliance requirements. whenever practicable, these specific terms and conditions should also be available on the',
834:'federal agencys website and in notices of funding opportunities as outlined in§ 200.204. e federal agency requirements.any other information required',
835:'by the federal agency. § 200.212 public access to federal award information. a except as noted inparagraph cof this section,',
836:'the federal agency must publish the required federal award information onusaspending.govin accordance with the guidance provided by omb and the',
837:'u.s. department of the treasurys governmentwide spending data model gsdm. b all responsibility and qualification records posted insam.govwill be publicly',
838:'available after a waiting period of 14 calendar days, except for: 1 past performance reviews required by federal government contractors',
839:'see federal acquisition regulation far48 cfr part 42, subpart 42.15; 2 information that was entered prior to april 15, 2011;',
840:'or 3 information that is withdrawn during the 14calendar day waiting period by a federal agency. c nothing in this',
841:'section may be construed as requiring the publication of information otherwise exempt under the freedom of information act 5 u.s.c.',
842:'552, or controlled unclassified information pursuant to executive order 13556. § 200.213 reporting a determination that an applicant is not',
843:'qualified for a federal award. a the federal agency must report insam.govif it does not make a federal award to',
844:'an applicant because it determines that the applicant does not meet the minimum qualification standards as described in§ 200.206a2. the',
845:'federal agency must report that determination only if all of the following apply: 1 the only basis for the determination',
846:'is the applicants prior record of performance on administering federal awards or its record of integrity and business ethics, as',
847:'described in§ 200.206a2 meaning, the applicant was determined to be qualified based on all factors other than those two standards;',
848:'and 2 the total federal share of the federal award was expected to exceed the simplified acquisition threshold over the',
849:'period of performance. b the federal agency is not required to report a determination that an applicant is not qualified',
850:'for a federal award if they issue the federal award in accordance with the requirements of§ 200.208. c if the',
851:'federal agency reports a determination that an applicant is not qualified for a federal award, the federal agency also must',
852:'notify the applicant that: 2 cfr 200.213c enhanced display page 39 of 208 2 cfr part 200 up to date',
853:'as of 1/08/2025 2 cfr 200.213c1 uniform administrative requirements, cost principles, and audit 1 the determination was made and reported',
854:'insam.gov. the notification from the federal agency to the applicant should also provide a brief explanation for the determination; 2',
855:'the information will be kept in the system for a period of five years from the date of the determination',
856:'and then archived see section 872 ofpublic law 110417, as amended, codified at41 u.s.c. 2313; 3 each federal agency that',
857:'considers making a federal award to the applicant during that fiveyear period will consider that information in determining the applicants',
858:'qualification to receive a federal award when the total federal share of a federal award is expected to exceed the',
859:'simplified acquisition threshold over the period of performance; 4 the applicant may review the responsibility and qualification records accessible insam.govand',
860:'comment on any information the system contains about the applicant; and 5 federal agencies must consider the applicants comments in',
861:'determining whether the applicant is qualified for a future federal award. d if the federal agency enters information intosam.govabout a',
862:'determination that an applicant is not qualified for a federal award and subsequently: 1 learns that any of that information',
863:'is erroneous, the federal agency must correct the information in the system within three business days; and 2 obtains an',
864:'update to that information that could be helpful to other federal agencies, the federal agency should amend the information in',
865:'the system within 30 days. e federal agencies must not post any information that will be made publicly available in',
866:'the nonpublic segment of the responsibility and qualification records that is covered by a disclosure exemption under the freedom of',
867:'information act. if a recipient asserts within seven calendar days to a federal agency that some or all of the',
868:'publicly available information is covered by a disclosure exemption under the freedom of information act, the federal agency that posted',
869:'the information must remove the posting within seven calendar days of receiving the assertion. prior to reposting the releasable information,',
870:'the federal agency must resolve the issue in accordance with the agencys freedom of information act procedures. § 200.214 suspension',
871:'and debarment. recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations implementing executive orders 12549 and 12689,',
872:'as well as2 cfr part 180. the regulations in2 cfr part 180 restrict making federal awards, subawards, and contracts with',
873:'certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. § 200.215 never contract',
874:'with the enemy. federal agencies, recipients, and subrecipients are subject to the guidance implementing never contract with the enemy in2',
875:'cfr part 183. the guidance in2 cfr part 183affects covered contracts, grants, and cooperative agreements that are expected to exceed',
876:'$50,000 during the period of performance, are performed outside the united states and its territories, and are in support of',
877:'a contingency operation in which members of the armed forces are actively engaged in hostilities. 2 cfr 200.215 enhanced display',
878:'page 40 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.216 uniform administrative requirements,',
879:'cost principles, and audit § 200.216 prohibition on certain telecommunications and video surveillance equipment or services. a recipients and subrecipients',
880:'are prohibited from obligating or expending loan or grant funds to: 1 procure or obtain covered telecommunications equipment or services;',
881:'2 extend or renew a contract to procure or obtain covered telecommunications equipment or services; or 3 enter into a',
882:'contract or extend or renew a contract to procure or obtain covered telecommunications equipment or services. b as described in',
883:'section 889 ofpublic law 115232, “covered telecommunications equipment or services” means any of the following: 1 telecommunications equipment produced by',
884:'huawei technologies company or zte corporation or any subsidiary or affiliate of such entities; 2 for the purpose of public',
885:'safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications',
886:'equipment produced by hytera communications corporation, hangzhou hikvision digital technology company, or dahua technology company or any subsidiary or affiliate',
887:'of such entities; 3 telecommunications or video surveillance services provided by such entities or using such equipment; 4 telecommunications or',
888:'video surveillance equipment or services produced or provided by an entity that the secretary of defense, in consultation with the',
889:'director of the national intelligence or the director of the federal bureau of investigation, reasonably believes to be an entity',
890:'owned or controlled by, or otherwise connected to, the government of a covered foreign country; c for the purposes of',
891:'this section, “covered telecommunications equipment or services” also include systems that use covered telecommunications equipment or services as a substantial',
892:'or essential component of any system, or as critical technology as part of any system. d in implementing the prohibition',
893:'under section 889 ofpublic law 115232, heads of executive agencies administering loan, grant, or subsidy programs must prioritize available funding',
894:'and technical support to assist affected businesses, institutions, and organizations as is reasonably necessary for those affected entities to transition',
895:'from covered telecommunications equipment or services, to procure replacement equipment or services, and to ensure that communications service to users',
896:'and customers is sustained. e when the recipient or subrecipient accepts a loan or grant, it is certifying that it',
897:'will comply with the prohibition on covered telecommunications equipment and services in this section. the recipient or subrecipient is not',
898:'required to certify that funds will not be expended on covered telecommunications equipment or services beyond the certification provided upon',
899:'accepting the loan or grant and those provided upon submitting payment requests and financial reports. f for additional information, see',
900:'section 889 ofpublic law 115232and§ 200.471. 2 cfr 200.216f enhanced display page 41 of 208 2 cfr part 200 up',
901:'to date as of 1/08/2025 2 cfr 200.217 uniform administrative requirements, cost principles, and audit § 200.217 whistleblower protections. an',
902:'employee of a recipient or subrecipient must not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing',
903:'to a person or body described inparagraph a2 of 41 u.s.c. 4712information that the employee reasonably believes is evidence of',
904:'gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to',
905:'a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law,',
906:'rule, or regulation related to a federal contract including the competition for or negotiation of a contract or grant. the',
907:'recipient and subrecipient must inform their employees in writing of employee whistleblower rights and protections under41 u.s.c. 4712. see statutory',
908:'requirements for whistleblower protections at10 u.s.c. 4701,41 u.s.c. 4712,41 u.s.c. 4304, and10 u.s.c. 4310. subpart d—post federal award requirements §',
909:'200.300 statutory and national policy requirements. a the federal agency or passthrough entity must manage and administer the federal award',
910:'in a manner so as to ensure that federal funding is expended and associated programs are implemented in full accordance',
911:'with the u.s. constitution, applicable federal statutes and regulations—including provisions protecting free speech, religious liberty, public welfare, and the environment,',
912:'and those prohibiting discrimination—and the requirements of this part. the federal agency or passthrough entity must communicate to a recipient',
913:'or subrecipient all relevant requirements, including those contained in general appropriations provisions, and incorporate them directly or by reference in',
914:'the terms and conditions of the federal award. b in administering federal awards that are subject to a federal statute',
915:'prohibiting discrimination based on sex, the federal agency or passthrough entity must ensure that the award is administered in a',
916:'way that does not unlawfully discriminate based on sexual orientation or gender identity if the statutes prohibition on sex discrimination',
917:'encompasses discrimination based on sexual orientation and gender identity consistent with the supreme courts reasoning inbostockv.clayton county,140 s. ct. 1731',
918:'2020. c in administering awards in accordance with the u.s. constitution, the federal agency must take account of the heightened',
919:'constitutional scrutiny that may apply under the constitutions equal protection guarantee for government action that provides differential treatment based on',
920:'protected characteristics. § 200.301 performance measurement. a the federal agency must measure the recipients performance to show achievement of program',
921:'goals and objectives, share lessons learned, improve program outcomes, and foster the adoption of promising practices. the federal agency should',
922:'establish program goals and objectives during program planning and design see§ 200.202. the federal agency should clearly communicate the specific',
923:'program goals and objectives in the federal award, including how the federal agency will measure the achievement of the goals',
924:'and objectives, the expected timeline, and information on how the recipient must report the achievement of program goals and objectives.',
925:'the federal agency should also clearly communicate in the federal award any expected outcomes such as outputs, service performance, or',
926:'public impacts of any of these, indicators, targets, baseline data, or data collections that the recipient is responsible for measuring',
927:'and reporting. the federal agency must ensure all requirements for measuring performance align with the federal agencys strategic goals, strategic',
928:'objectives, or performance goals relevant to a program see omb circular a11, preparation, submission, and execution of the budget part',
929:'6. 2 cfr 200.301a enhanced display page 42 of 208 2 cfr part 200 up to date as of 1/08/2025',
930:'2 cfr 200.301b uniform administrative requirements, cost principles, and audit b when establishing performance reporting frequency and content, the federal',
931:'agency should consider what information will be necessary to measure the recipients progress, to identify promising practices of recipients, and',
932:'build the evidence upon which the federal agency makes program and performance decisions. the federal agency should not require additional',
933:'information that is not necessary for measuring program performance and evaluation. see§ 200.329for more information on reporting program performance. c',
934:'the federal agency should also specify in the federal award any requirements of the recipients participation in federally funded evaluations.',
935:'§ 200.302 financial management. a each state must expend and account for the federal award in accordance with state laws',
936:'and procedures for expending and accounting for the states funds. all recipient and subrecipient financial management systems, including records documenting',
937:'compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the',
938:'preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in',
939:'accordance with federal statutes, regulations, and the terms and conditions of the federal award. see§ 200.450. b the recipients and',
940:'subrecipients financial management system must provide for the following see§§ 200.334,200.335,200.336, and200.337: 1 identification of all federal awards received and',
941:'expended and the federal programs under which they were received. federal program and federal award identification must include, as applicable,',
942:'the assistance listings title and number, federal award identification number, year the federal award was issued, and name of the',
943:'federal agency or passthrough entity. 2 accurate, current, and complete disclosure of the financial results of each federal award or',
944:'program in accordance with the reporting requirements in§§ 200.328and200.329. when a federal agency or passthrough entity requires reporting on an',
945:'accrual basis from a recipient or subrecipient that maintains its records other than on an accrual basis, the recipient or',
946:'subrecipient must not be required to establish an accrual accounting system. this recipient or subrecipient may develop accrual data for',
947:'its reports based on an analysis of the documentation on hand. 3 maintaining records that sufficiently identify the amount, source,',
948:'and expenditure of federal funds for federal awards. these records must contain information necessary to identify federal awards, authorizations, financial',
949:'obligations, unobligated balances, as well as assets, expenditures, income, and interest. all records must be supported by source documentation. 4',
950:'effective control over and accountability for all funds, property, and assets. the recipient or subrecipient must safeguard all assets and',
951:'ensure they are used solely for authorized purposes. see § 200.303. 5 comparison of expenditures with budget amounts for each',
952:'federal award. 6 written procedures to implement the requirements of§ 200.305. 7 written procedures for determining the allowability of costs',
953:'in accordance with subpart e and the terms and conditions of the federal award. § 200.303 internal controls. the recipient',
954:'and subrecipient must: 2 cfr 200.303 enhanced display page 43 of 208 2 cfr part 200 up to date as',
955:'of 1/08/2025 2 cfr 200.303a uniform administrative requirements, cost principles, and audit a establish, document, and maintain effective internal control',
956:'over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance',
957:'with federal statutes, regulations, and the terms and conditions of the federal award. these internal controls should align with the',
958:'guidance in “standards for internal control in the federal government” issued by the comptroller general of the united states or',
959:'the “internal controlintegrated framework” issued by the committee of sponsoring organizations of the treadway commission coso. b comply with the',
960:'u.s. constitution, federal statutes, regulations, and the terms and conditions of the federal award. c evaluate and monitor the recipients',
961:'or subrecipients compliance with statutes, regulations, and the terms and conditions of federal awards. d take prompt action when instances',
962:'of noncompliance are identified. e take reasonable cybersecurity and other measures to safeguard information including protected personally identifiable information pii',
963:'and other types of information. this also includes information the federal agency or passthrough entity designates as sensitive or other',
964:'information the recipient or subrecipient considers sensitive and is consistent with applicable federal, state, local, and tribal laws regarding privacy',
965:'and responsibility over confidentiality. § 200.304 bonds. a where the federal government guarantees or insures the repayment of money borrowed',
966:'by the recipient, the federal agency may require adequate bonding and insurance if the bonding and insurance requirements of the',
967:'recipient are not deemed adequate to protect the interest of the federal government. b the federal agency may require adequate',
968:'fidelity bond coverage where the recipient lacks coverage to protect the interest of the federal government. c where bonds, insurance,',
969:'or both are required in the situations described above, the bonds and insurance must be obtained from companies holding certificates',
970:'of authority issued by the u.s. department of treasury see31 cfr part 223. § 200.305 federal payment. a payments for',
971:'states.payments for states are governed by treasurystate cash management improvement act cmia agreements and default procedures codified at31 cfr part',
972:'205and treasury financial manual tfm 4a2000, “overall disbursing rules for all federal agencies.” b payments for recipients and subrecipients other',
973:'than states.for recipients and subrecipients other than states, payment methods must minimize the time elapsing between the transfer of funds',
974:'from the federal agency or the passthrough entity and the disbursement of funds by the recipient or subrecipient regardless of',
975:'whether the payment is made by electronic funds transfer or by other means. see§ 200.302b6. except as noted in this',
976:'part, the federal agency must require recipients to use only omb approved, governmentwide information collections to request payment. 1 the',
977:'recipient or subrecipient must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures',
978:'that minimize the time elapsing between the transfer of funds and disbursement by the recipient or subrecipient, and financial management',
979:'systems that meet the standards for fund control and accountability as established in this part. advance payments to a recipient',
980:'or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the',
981:'recipient or subrecipient in carrying 2 cfr 200.305b1 enhanced display page 44 of 208 2 cfr part 200 up to',
982:'date as of 1/08/2025 2 cfr 200.305b2 uniform administrative requirements, cost principles, and audit out the purpose of the approved',
983:'program or project. the timing and amount of advance payments must be as close as is administratively feasible to the',
984:'actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable',
985:'indirect costs. the recipient or subrecipient must make timely payments to contractors in accordance with the contract provisions. 2 whenever',
986:'possible, advance payment requests by the recipient or subrecipient must be consolidated to cover anticipated cash needs for all federal',
987:'awards received by the recipient from the awarding federal agency or passthrough entity. i advance payment mechanisms must comply with31',
988:'cfr part 208and include, but are not limited to, treasury checks and electronic funds transfers. ii recipients and subrecipients must',
989:'be authorized to submit payment requests as often as necessary when electronic fund transfers are used or at least monthly',
990:'when electronic transfers are not used. see electronic fund transfer act 15 u.s.c. 16931693r. 3 reimbursement is preferred when the',
991:'requirements in paragraph b cannot be met, when the federal agency or passthrough entity sets a specific condition per§ 200.208,',
992:'when requested by the recipient or subrecipient, when a federal award is for construction, or when a significant portion of',
993:'the construction project is accomplished through private market financing or federal loans and the federal award constitutes a minor portion',
994:'of the project. when the reimbursement method is used, the federal agency or passthrough entity must make payment within 30',
995:'calendar days after receipt of the payment request unless the federal agency or passthrough entity reasonably believes the request to',
996:'be improper. 4 if the recipient or subrecipient cannot meet the criteria for advance payments and the federal agency or',
997:'passthrough entity has determined that reimbursement is not feasible because the recipient or subrecipient lacks sufficient working capital, the federal',
998:'agency or passthrough entity may provide cash on a working capital advance basis. under this procedure, the federal agency or',
999:'passthrough entity must advance cash payments to the recipient or subrecipient to cover its estimated disbursement needs for an initial',
1000:'period generally aligned to the recipients or subrecipients disbursing cycle. after that, the federal agency or passthrough entity must reimburse',
1001:'the recipient or subrecipient for its actual cash disbursements. use of the working capital advance payment method requires that the',
1002:'passthrough entity provide timely advance payments to any subrecipients to meet the subrecipients actual cash disbursements. the passthrough entity must',
1003:'not use the working capital advance method of payment if the reason for using this method is the unwillingness or',
1004:'inability of the passthrough entity to provide timely advance payments to the subrecipient to meet the subrecipients actual cash disbursements.',
1005:'5 if available, the recipient or subrecipient must disburse funds available from program income including repayments to a revolving fund,',
1006:'rebates, refunds, contract settlements, audit recoveries, and interest earned on federal funds before requesting additional cash payments. 6 payments for',
1007:'allowable costs must not be withheld at any time during the period of performance unless required by federal statute, regulations,',
1008:'or in one of the following instances: i the recipient or subrecipient has failed to comply with the terms and',
1009:'conditions of the federal award; or 2 cfr 200.305b6i enhanced display page 45 of 208 2 cfr part 200 up',
1010:'to date as of 1/08/2025 2 cfr 200.305b6ii uniform administrative requirements, cost principles, and audit ii the recipient or subrecipient',
1011:'is delinquent in a debt to the united states as defined in omb circular a129, “policies for federal credit programs',
1012:'and nontax receivables.” under such conditions, the federal agency or passthrough entity may, after providing reasonable notice, withhold payments to',
1013:'the recipient or subrecipient for financial obligations incurred after a specified date until the conditions are corrected or the debt',
1014:'is repaid to the federal government. 7 a payment withheld for failure to comply with the terms and conditions of',
1015:'the federal award must be released to the recipient or subrecipient upon subsequent compliance. when a federal award is suspended,',
1016:'payment adjustments must be made in accordance with§ 200.343. 8 a payment must not be made to a recipient or',
1017:'subrecipient for amounts that the recipient or subrecipient withholds from contractors to assure satisfactory completion of work. payment must be',
1018:'made when the recipient or subrecipient disburses the withheld funds to the contractors or to escrow accounts established to ensure',
1019:'satisfactory completion of work. 9 the federal agency or passthrough entity must not require separate depository accounts for funds provided',
1020:'to the recipient or subrecipient or establish any eligibility requirements for depositories. however, the recipient or subrecipient must be able',
1021:'to account for all federal funds received, obligated, and expended. 10 advance payments of federal funds must be deposited and',
1022:'maintained in insured accounts whenever possible. 11 the recipient or subrecipient must maintain advance payments of federal funds in interestbearing',
1023:'accounts unless one of the following applies: i the recipient or subrecipient receives less than $250,000 in federal funding per',
1024:'year; ii the best available interestbearing account would not reasonably be expected to earn interest in excess of $500 per',
1025:'year on federal cash balances; iii the depository would require an average or minimum balance so high that it would',
1026:'not be feasible with the expected federal and nonfederal cash resources; iv a foreign government or banking system prohibits or',
1027:'precludes interestbearing accounts; or v an interestbearing account is not readily accessible for example, due to public or political unrest',
1028:'in a foreign country. 12 the recipient or subrecipient may retain up to $500 per year of interest earned on',
1029:'federal funds to use for administrative expenses of the recipient or subrecipient. any additional interest earned on federal funds must',
1030:'be returned annually to the department of health and human services payment management system pms through either the automated clearing',
1031:'house ach network or a fedwire funds service payment. all interest in excess of $500 per year must be returned',
1032:'to pms regardless of whether the recipient or subrecipient was paid through pms. instructions for returning interest can be found',
1033:'athttps://pms.psc.gov/grantrecipients/returningfundsinterest.html. 13 all other federal funds must be returned to the payment system of the federal agency. returns should follow',
1034:'the instructions provided by the federal agency. all returns to pms should follow the instructions provided athttps://pms.psc.gov/grantrecipients/returningfundsinterest.html. 2 cfr 200.305b13',
1035:'enhanced display page 46 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.306 uniform',
1036:'administrative requirements, cost principles, and audit § 200.306 cost sharing. a voluntary committed cost sharing is not expected under federal',
1037:'research grants. the federal agency may not use voluntary committed cost sharing as a factor during the merit review of',
1038:'applications or proposals for federal research grants unless authorized by federal statutes or agency regulations and specified in the notice',
1039:'of funding opportunity. federal agencies are also discouraged from using voluntary committed cost sharing as a factor during the merit',
1040:'review of applications for other federal financial assistance programs. if voluntary committed cost sharing is used for this purpose for',
1041:'other programs, the notice of funding opportunity must specify how an applicants proposed cost sharing will be considered. see§§ 200.414,200.204,',
1042:'and appendix i. b for all federal awards, the federal agency or passthrough entity must accept any cost sharing funds',
1043:'including cash and thirdparty inkind contributions, and also including funds committed by the recipient, subrecipient, or third parties as part',
1044:'of the recipients or subrecipients contributions to a program when the funds: 1 are verifiable in the recipients or subrecipients',
1045:'records; 2 are not included as contributions for any other federal award; 3 are necessary and reasonable for achieving the',
1046:'objectives of the federal award; 4 are allowable under subpart e; 5 are not paid by the federal government under',
1047:'another federal award, except where the programs federal authorizing statute specifically provides that federal funds made available for the program',
1048:'can be applied to cost sharing requirements of other federal programs; 6 are provided for in the approved budget when',
1049:'required by the federal agency; and 7 conform to other applicable provisions of this part. c unrecovered indirect costs, including',
1050:'indirect costs on cost sharing, may be included as part of cost sharing with the prior approval of the federal',
1051:'agency or passthrough entity. unrecovered indirect cost means the difference between the amount charged to the federal award and the',
1052:'amount which could have been charged to the federal award under the recipients or subrecipients approved indirect cost rate. d',
1053:'values for recipient or subrecipient contributions of services and property must be established in accordance with the cost principles in',
1054:'subpart e. when a federal agency or passthrough entity authorizes the recipient or subrecipient to donate buildings or land for',
1055:'construction/facilities acquisition projects or longterm use, the value of the donated property for cost sharing must be the lesser of',
1056:'paragraph d1 or 2 below. 1 the value of the remaining life of the property recorded in the recipients or',
1057:'subrecipients accounting records at the time of donation. 2 the current fair market value. however, when there is sufficient justification,',
1058:'the federal agency or passthrough may approve using the current fair market value of the donated property, even if it',
1059:'exceeds the value described in paragraph d1 at the time of donation. e volunteer services furnished by thirdparty professional and',
1060:'technical personnel, consultants, and other labor may be counted as cost sharing if the service is necessary for the program.',
1061:'rates for thirdparty volunteer services must be consistent with those paid for similar work by the recipient or subrecipient. when',
1062:'the required skills are not found in the recipients or subrecipients workforce, rates must be 2 cfr 200.306e enhanced display',
1063:'page 47 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.306f uniform administrative requirements,',
1064:'cost principles, and audit consistent with those paid for similar work in the labor market where the recipient or subrecipient',
1065:'competes for the services involved. in either case, fringe benefits that are allowable, allocable, and reasonable may be included in',
1066:'the valuation. f when a thirdparty organization furnishes the services of an employee, these services must be valued at the',
1067:'employees regular rate of pay plus an amount of fringe benefits that is reasonable, necessary, allocable, and otherwise allowable, and',
1068:'indirect costs at either the thirdparty organizations approved federallynegotiated indirect cost rate or, a rate in accordance with§ 200.414dprovided these',
1069:'services employ the same skills for which the employee is normally paid. where donated services are treated as indirect costs,',
1070:'indirect cost rates will separate the value of the donated services so that reimbursement for the donated services will not',
1071:'be made. g donated property from third parties may include items such as equipment, office supplies, laboratory supplies, or workshop',
1072:'and classroom supplies. the assessed value of donated property included as cost sharing must not exceed the propertys fair market',
1073:'value at the time of the donation. h the method used for determining the value of donated equipment, buildings, and',
1074:'land for which title passes to the recipient or subrecipient may differ according to the following: 1 if the purpose',
1075:'of the federal award is to assist the recipient or subrecipient in acquiring equipment, buildings, or land, the aggregate value',
1076:'of the donated property may be claimed as cost sharing. 2 if the purpose of the federal award is to',
1077:'support activities that require the use of equipment, buildings, or land, only depreciation charges for equipment and buildings may be',
1078:'made. however, the fair market value of equipment or other capital assets and fair rental charges for land may be',
1079:'allowed if provided in the terms and conditions of the federal award. see§ 200.420. i the value of donated property',
1080:'must be determined in accordance with the accounting policies of the recipient or subrecipient with the following qualifications: 1 the',
1081:'value of donated land and buildings must not exceed its fair market value at the time of donation to the',
1082:'recipient or subrecipient as established by an independent appraiser for example, certified real property appraiser or general services administration representative',
1083:'and certified by a responsible official of the recipient or subrecipient as required by the uniform relocation assistance and real',
1084:'property acquisition policies act of 1970, as amended, 42 u.s.c. 46014655 except as provided in the implementing regulations at49 cfr',
1085:'part 24, “uniform relocation assistance and real property acquisition for federal and federallyassisted programs.” 2 the value of donated equipment',
1086:'must not exceed the fair market value at the time of donation. 3 the value of donated space must not',
1087:'exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in',
1088:'a privatelyowned building in the same locality. 4 the value of loaned equipment must not exceed its fair rental value.',
1089:'j the fair market value of thirdparty inkind contributions must be documented and, to the extent feasible, supported by the',
1090:'same methods used internally by the recipient or subrecipient. k for institutions of higher education ihe, voluntary uncommitted cost sharing',
1091:'should be treated differently from mandatory or voluntary committed cost sharing. voluntary uncommitted cost sharing should not be included in',
1092:'the organized research base for computing the indirect cost rate or reflected in any allocation of indirect costs. voluntary uncommitted',
1093:'cost sharing includes facultydonated additional 2 cfr 200.306k enhanced display page 48 of 208 2 cfr part 200 up to',
1094:'date as of 1/08/2025 2 cfr 200.307 uniform administrative requirements, cost principles, and audit time above that agreed to as',
1095:'part of the award. see omb memorandum m0106, dated january 5, 2001, clarification of omb a21 treatment of voluntary uncommitted',
1096:'cost sharing and tuition remission costs. § 200.307 program income. a general.the recipient or subrecipient is encouraged to earn income',
1097:'to defray program costs when appropriate. program income must be used for the original purpose of the federal award. program',
1098:'income earned during the period of performance may only be used for costs incurred during the period of performance or',
1099:'allowable closeout costs. see§ 200.472b. program income must be expended prior to requesting additional federal funds. program income exceeding amounts',
1100:'specified in the federal award may be added to or deducted from the total allowable costs in accordance with the',
1101:'terms and conditions of the federal award. b use of program income.there are three methods of applying program income: deduction;',
1102:'addition; and costsharing. the federal agency should specify what program income methods will be used in the terms and conditions',
1103:'of the federal award. the deduction method will be used if the federal agency does not specify a method for',
1104:'applying program income. when no program income method is specified in the federal award, prior approval is required to use',
1105:'the addition or cost sharing methods. however, the addition method will be used when no method is specified for awards',
1106:'made to institutions of higher education ihe and nonprofit research institutions. in specifying alternatives to the deduction and addition methods,',
1107:'the federal agency may distinguish between income earned by the recipient and income earned by subrecipients as well as between',
1108:'the sources, kinds, or amounts of income. 1 deduction.program income is deducted from the total allowable costs, reducing the overall',
1109:'total amount of the federal award. 2 addition.program income is added to the total allowable costs, increasing the overall total',
1110:'amount of the federal award. 3 cost sharing.program income is used to meet the federal awards cost sharing requirement. c',
1111:'income after the period of performance.there are no requirements governing the disposition of program income earned after the end of',
1112:'the period of performance of the federal award unless stipulated in the federal agency regulations or the terms and conditions',
1113:'of the federal award. the federal agency may negotiate agreements with recipients regarding appropriate uses of income earned after the',
1114:'end of the period of performance as part of the closeout process. see§ 200.344. d cost of generating program income.if',
1115:'authorized by federal regulations or the federal award, costs incidental to generating program income may be deducted from gross income',
1116:'to determine program income, provided these costs have not been charged to the federal award. e not considered program income.the',
1117:'following are not considered program income unless specified in federal statutes, regulations, or the terms and conditions of the federal',
1118:'award: 1 governmental revenues.taxes, special assessments, levies, fines, and similar revenues the recipient or subrecipient raised. 2 property.proceeds from the',
1119:'sale of real property, equipment, or supplies. the proceeds must be handled in accordance with the requirements of the property',
1120:'standards of§§ 200.311,200.313, 200.314, or as explicitly identified in federal statutes, regulations, or the terms and conditions of the federal',
1121:'award. 2 cfr 200.307e2 enhanced display page 49 of 208 2 cfr part 200 up to date as of 1/08/2025',
1122:'2 cfr 200.307e3 uniform administrative requirements, cost principles, and audit 3 license fees and royalties.license fees and royalties for copyrighted',
1123:'material, patents, patent applications, trademarks, and inventions made under the federal award subject to37 cfr part 401. § 200.308 revision',
1124:'of budget and program plans. a approved budget in general.the approved budget for the federal award summarizes the financial aspects',
1125:'of the project or program as approved during the federal award process. it may include the federal share and nonfederal',
1126:'share or only the federal share, as determined by the federal agency or passthrough entity. b deviations from approved budget.the',
1127:'recipient or subrecipient must report deviations from the approved budget, project or program scope, or objectives in accordance with§ 200.329.',
1128:'the recipient or subrecipient must request prior approvals from the federal agency or passthrough entity for budget and program plan',
1129:'revisions in accordance with this section. c requesting approval for budget revisions.when requesting approval for budget revisions, the recipient or',
1130:'subrecipient must use the same format for budget information that was used in their application, except if the federal agency',
1131:'has approved an alternative format. alternative formats may include the use of electronic systems, email, or other agencyapproved mechanisms that',
1132:'document the request. d federal agency or passthrough entity review.the federal agency or passthrough entity must review the request for',
1133:'budget or program plan revision and should notify the recipient or subrecipient whether the revisions have been approved within 30',
1134:'days of receipt of the request. the federal agency or pass through entity must inform the recipient or subrecipient in',
1135:'writing when a decision can be expected if more than 30 days is required for a review. e limitation on',
1136:'other prior approval requirements.unless specified in this guidance, the federal agency must not impose additional prior approval requirements without omb',
1137:'approval. see also§§ 200.102and 200.407. f revisions requiring prior approval.a recipient or subrecipient must request prior written approval from the',
1138:'federal agency or passthrough entity for the following program and budgetrelated reasons: 1 change in the scope or the objective',
1139:'of the project or program even if there is no associated budget revision requiring prior written approval. 2 change in',
1140:'key personnel including employees and contractors that are identified by name or position in the federal award. 3 the disengagement',
1141:'from a project for more than three months, or a 25 percent reduction in time and effort devoted to the',
1142:'federal award over the course of the period of performance, by the approved project director or principal investigator. 4 the',
1143:'inclusion, unless waived by the federal agency, of costs that require prior approval in accordance with subpart e as applicable.',
1144:'5 the transfer of funds budgeted for participant support costs to other budget categories. 6 subaward activities not proposed in',
1145:'the application and approved in the federal award. a change of subrecipient only requires prior approval if the federal agency',
1146:'or passthrough entity includes the requirement in the terms and conditions of the federal award. in general, a federal agency',
1147:'or pass through entity should not require prior approval of a change of subrecipient unless the inclusion was a determining',
1148:'factor in the merit review or eligibility process. this requirement does not apply to procurement transactions for goods and services.',
1149:'2 cfr 200.308f6 enhanced display page 50 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
1150:'cfr 200.308f7 uniform administrative requirements, cost principles, and audit 7 changes in the total approved costsharing amount. 8 the need',
1151:'arises for additional federal funds to complete the project. before providing approval, the federal agency must ensure that adequate funds',
1152:'are available to avoid a violation of the antideficiency act. 9 transferring funds between the construction and nonconstruction work under',
1153:'a federal award. 10 a nocost extension meaning, an extension of time that does not require the obligation of additional',
1154:'federal funds of the period of performance, other than any onetime extension authorized by the federal agency in accordance with',
1155:'paragraph g2. all requests for nocost extensions should be submitted at least 10 calendar days before the conclusion of the',
1156:'period of performance. the federal agency may approve multiple nocost extensions under a federal award if not prohibited by federal',
1157:'statute or regulation. g waiver of certain prior approvals.except for the requirements listed in paragraphs f1 through 10, the federal',
1158:'agency is authorized to waive other costrelated and administrative prior written approval requirements contained in subparts d and e. such',
1159:'waivers may include authorizing recipients to do one or more of the following: 1 preaward costs.incur project costs 90 calendar',
1160:'days before the federal award date. expenses incurred more than 90 calendar days before the federal award date require prior',
1161:'approval of the federal agency. all costs incurred before the federal award date are at the recipients own risk for',
1162:'example,the federal agency is not required to reimburse such costs if the recipient does not receive the federal award or',
1163:'if the federal award is less than anticipated and inadequate to cover such costs. preaward costs must be charged to',
1164:'the initial budget period of the federal award unless otherwise specified by the federal agency. see also§ 200.458. 2 onetime',
1165:'extensions.initiate a onetime extension of the period of performance by up to 12 months unless one or more of the',
1166:'conditions outlined inparagraphs g2ithroughiiiof this section apply. prior approval is not required if a recipient is authorized in the terms',
1167:'and conditions of the federal award to initiate a onetime extension. however, the recipient must notify the federal agency in',
1168:'writing with the supporting justification and a revised period of performance at least 10 calendar days before the conclusion of',
1169:'the period of performance. a onetime extension may not be exercised for the sole purpose of using unobligated balances. this',
1170:'paragraph does not preclude the federal agency from approving further nocost extensions to the federal award. onetime extensions require prior',
1171:'approval from the federal agency when: i the terms and conditions of the federal award prohibit the extension; ii the',
1172:'extension requires additional federal funds; or iii the extension involves any change in the approved scope of the project. 3',
1173:'unobligated balances.carry forward unobligated balances to subsequent budget periods. h prior approvals for research awards.the prior approval requirements for the',
1174:'actions described in paragraph gof this section are automatically waived for federal awards that support research unless stipulated in the',
1175:'federal agencys regulations or terms and conditions of the federal award. however, onetime extensions require the federal agencys prior approval',
1176:'when one of the conditions inparagraph g2 of this section applies. 2 cfr 200.308h enhanced display page 51 of 208',
1177:'2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.308i uniform administrative requirements, cost principles, and audit',
1178:'i transfer of funds.the federal agency must not permit a transfer of funds that would cause any federal appropriation to',
1179:'be used for purposes other than those consistent with the appropriation. the federal agency may also, at its option, restrict',
1180:'the transfer of funds among direct cost categories for example, personnel, travel, and supplies or programs, functions, and activities when:',
1181:'1 the federal share of the federal award exceeds the simplified acquisition threshold; and 2 the cumulative amount of a',
1182:'transfer exceeds or is expected to exceed 10 percent of the total budget, including cost share, as last approved by',
1183:'the federal agency. § 200.309 modifications to period of performance. when the federal agency or passthrough entity approves an extension',
1184:'to a federal award, or if a recipient extends under§ 200.308g2, the period of performance will be amended to end',
1185:'at the completion of the extension. if termination occurs, the period of performance will be amended to end upon the',
1186:'effective date of termination. the start date of a renewal award begins a new and distinct period of performance. property',
1187:'standards § 200.310 insurance coverage. the recipient or subrecipient must, at a minimum, provide the equivalent insurance coverage for real',
1188:'property and equipment acquired or improved with federal funds as provided to property and equipment owned by the recipient or',
1189:'subrecipient. insurance is not required for federally owned property unless required by the terms and conditions of the federal award.',
1190:'§ 200.311 real property. a title.subject to the requirements and conditions set forth in this section, title to real property',
1191:'acquired or improved under the federal award will vest upon acquisition in the recipient or subrecipient. b use.except as otherwise',
1192:'provided by federal statutes or the federal agency, real property must be used for the originally authorized purpose as long',
1193:'as it is needed for that purpose. while the property is being used for the originally authorized purpose, the recipient',
1194:'or subrecipient must not dispose of or encumber its title or other interests except as provided by the federal agency.',
1195:'easements for utility, cable, and similar services that benefit the real property and are consistent with the authorized use are',
1196:'not considered an encumbrance. c appraisals.when an appraisal of real property is required and obtained by the recipient or subrecipient,',
1197:'it must be conducted by an independent appraiser for example, certified real property appraiser or general services administration representative and',
1198:'certified by a responsible official of the recipient or subrecipient as required by the uniform relocation assistance and real property',
1199:'acquisition policies act of 1970, as amended, 42 u.s.c. 46014655 except as provided in the implementing regulations at49 cfr part',
1200:'24, “uniform relocation assistance and real property acquisition for federal and federally assisted programs.” d disposition.when real property is no',
1201:'longer needed for the originally authorized purpose, the recipient or subrecipient must obtain disposition instructions from the federal agency or',
1202:'passthrough entity. the instructions must specify one of the following disposition methods: 2 cfr 200.311d enhanced display page 52 of',
1203:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.311d1 uniform administrative requirements, cost principles, and',
1204:'audit 1 retain title after compensating the federal agency.when the recipient or subrecipient retains title to the property, it must',
1205:'pay the federal agency an amount calculated by multiplying the percentage of the federal agencys contribution towards the original purchase',
1206:'and costs of any improvements by the current fair market value of the property. however, in situations where the recipient',
1207:'or subrecipient is disposing of real property acquired or improved with the federal award and acquiring replacement real property under',
1208:'the same federal award, the net proceeds from the disposition may be used as an offset to the cost of',
1209:'the replacement property. 2 sell the property and compensate the federal agency.when a recipient or subrecipient sells the property, it',
1210:'must pay the federal agency an amount calculated by multiplying the percentage of the federal agencys contribution towards the original',
1211:'purchase and cost of any improvements by the proceeds of the sale after deducting any actual and reasonable expenses paid',
1212:'to sell or fix up the property for sale. when the federal award has not been closed out, the net',
1213:'proceeds from the sale may be offset against the original cost of the property. when directed to sell the property,',
1214:'the recipient or subrecipient must sell the property utilizing procedures that provide for competition to the extent practicable and that',
1215:'result in the highest possible return. 3 transfer title to the federal agency or a third party designated/approved by the',
1216:'federal agency.when a recipient or subrecipient transfers title to the property to a federal agency or third party designated or',
1217:'approved by the federal agency, the recipient or subrecipient is entitled to be paid an amount calculated by multiplying the',
1218:'percentage of the recipients or subrecipients contribution towards the original purchase of the real property and cost of any improvements',
1219:'by the current fair market value of the property. § 200.312 federally owned and exempt property. a title to federally',
1220:'owned property remains vested in the federal government. the recipient or subrecipient must submit an inventory listing of federally owned',
1221:'property in its custody to the federal agency or pass through entity on an annual basis. the recipient or subrecipient',
1222:'must request disposition instructions from the federal agency or passthrough entity upon completion of the federal award or when the',
1223:'property is no longer needed. b if the federal agency has no further need for the property, it must declare',
1224:'the property excess and report it for disposal to the appropriate federal disposal authority unless the federal agency has statutory',
1225:'authority to dispose of the property by alternative methods for example,the authority provided by the federal technology transfer act 15',
1226:'u.s.c. 3710i. the federal agency or passthrough entity must issue appropriate instructions to the recipient or subrecipient. c exempt property',
1227:'means property acquired under the federal award where the federal agency has chosen to vest title to the property to',
1228:'the recipient or subrecipient without further responsibility to the federal government. the federal agency may only exercise this option when',
1229:'permitted by federal statute and set forth in the terms and conditions of the federal award. absent statutory authority and',
1230:'specific terms and conditions of the federal award, the title to exempt property acquired under the federal award remains with',
1231:'the federal government. § 200.313 equipment. see also§ 200.439. 2 cfr 200.313 enhanced display page 53 of 208 2 cfr',
1232:'part 200 up to date as of 1/08/2025 2 cfr 200.313a uniform administrative requirements, cost principles, and audit a title.title',
1233:'to equipment acquired under the federal award will vest upon acquisition in the recipient or subrecipient subject to the conditions',
1234:'of this section. this title must be a conditional title unless a federal statute specifically authorizes the federal agency to',
1235:'vest title in the recipient or subrecipient without further responsibility to the federal government and the federal agency elects to',
1236:'do so. a conditional title means a clear title is withheld by the federal agency until conditions and requirements specified',
1237:'in the terms and conditions of a federal award have been fulfilled. title for equipment vested in a recipient or',
1238:'subrecipient is subject to the following conditions: 1 use the equipment for the authorized purposes of the project during the',
1239:'period of performance or until the property is no longer needed for the purposes of the project. 2 while the',
1240:'equipment is being used for the originallyauthorized purpose, the recipient or subrecipient must not dispose of or encumber its title',
1241:'or other interests without the approval of the federal agency or passthrough entity. 3 use and dispose of the property',
1242:'in accordance withparagraphs b,c, andeof this section. b general.a state must use, manage and dispose of equipment acquired under a',
1243:'federal award in accordance with state laws and procedures. indian tribes must use, manage, and dispose of equipment acquired under',
1244:'a federal award in accordance with tribal laws and procedures. if such laws and procedures do not exist, indian tribes',
1245:'must follow the guidance in this section. other recipients and subrecipients, including subrecipients of a state or indian tribe, must',
1246:'followparagraphs cthrougheof this section. c use. 1 the recipient or subrecipient must use equipment for the project or program for',
1247:'which it was acquired and for as long as needed, whether or not the project or program continues to be',
1248:'supported by the federal award. the recipient or subrecipient must not encumber the equipment without prior approval of the federal',
1249:'agency or passthrough entity. the federal agency may require the submission of the applicable common forms for reporting on equipment.',
1250:'when no longer needed for the original project or program, the equipment may be used in other activities in the',
1251:'following order of priority: i activities under other federal awards from the federal agency that funded the original program or',
1252:'project; then ii activities under federal awards from other federal agencies. these activities include consolidated equipment for information technology systems.',
1253:'2 during the time that equipment is used on the project or program for which it was acquired, the recipient',
1254:'or subrecipient must also make the equipment available for use on other programs or projects supported by the federal government,',
1255:'provided that such use will not interfere with the purpose for which it was originally acquired. first preference for other',
1256:'use of the equipment must be given to other programs or projects supported by the federal agency that financed the',
1257:'equipment. second preference must be given to programs or projects under federal awards from other federal agencies. use for nonfederallyfunded',
1258:'projects is also permissible, provided such use will not interfere with the purpose for which it was originally acquired. the',
1259:'recipient or subrecipient should consider charging user fees as appropriate. 2 cfr 200.313c2 enhanced display page 54 of 208 2',
1260:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.313c3 uniform administrative requirements, cost principles, and audit 3',
1261:'notwithstanding the encouragement in§ 200.307to earn program income, the recipient or subrecipient must not use equipment acquired with the federal',
1262:'award to provide services for a fee that is less than a private company would charge for similar services unless',
1263:'specifically authorized by federal statute. this restriction is effective as long as the federal government retains an interest in the',
1264:'equipment. 4 when acquiring replacement equipment, the recipient or subrecipient may either tradein or sell the equipment and use the',
1265:'proceeds to offset the cost of the replacement equipment. d management requirements.regardless of whether equipment is acquired in part or',
1266:'its entirety under the federal award, the recipient or subrecipient must manage equipment including replacement equipment utilizing procedures that meet',
1267:'the following requirements: 1 property records must include a description of the property, a serial number or another identification number,',
1268:'the source of funding for the property including the fain, the title holder, the acquisition date, the cost of the',
1269:'property, the percentage of the federal agency contribution towards the original purchase, the location, use and condition of the property,',
1270:'and any disposition data including the date of disposal and sale price of the property. the recipient and subrecipient are',
1271:'responsible for maintaining and updating property records when there is a change in the status of the property. 2 a',
1272:'physical inventory of the property must be conducted, and the results must be reconciled with the property records at least',
1273:'once every two years. 3 a control system must be in place to ensure safeguards for preventing property loss, damage,',
1274:'or theft. any loss, damage, or theft of equipment must be investigated. the recipient or subrecipient must notify the federal',
1275:'agency or passthrough entity of any loss, damage, or theft of equipment that will have an impact on the program.',
1276:'4 regular maintenance procedures must be in place to ensure the property is in proper working condition. 5 if the',
1277:'recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure',
1278:'the highest possible return. e disposition.when equipment acquired under a federal award is no longer needed for the original project,',
1279:'program, or for other activities currently or previously supported by a federal agency, the recipient or subrecipient must request disposition',
1280:'instructions from the federal agency or passthrough entity if required by the terms and conditions of the federal award. disposition',
1281:'of the equipment will be made as follows, in accordance with federal agency or passthrough entity disposition instructions: 1 equipment',
1282:'with a current fair market value of $10,000 or less per unit may be retained, sold, or otherwise disposed of',
1283:'with no further responsibility to the federal agency or passthrough entity. 2 except as provided in§ 200.312b, or if the',
1284:'federal agency or passthrough entity fails to provide requested disposition instructions within 120 days, items of equipment with a current',
1285:'fair market value in excess of $10,000 perunit may be retained or sold by the recipient or subrecipient. however, the',
1286:'federal agency is entitled to an amount calculated by multiplying the percentage of the federal agencys contribution towards the original',
1287:'purchase by the current market value or proceeds from the sale. if the equipment is sold, the federal agency or',
1288:'passthrough entity may permit the recipient or subrecipient to retain, from the federal share, $1,000 of the proceeds to cover',
1289:'expenses associated with the selling and handling of the equipment. 2 cfr 200.313e2 enhanced display page 55 of 208 2',
1290:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.313e3 uniform administrative requirements, cost principles, and audit 3',
1291:'the recipient or subrecipient may transfer title to the property to the federal government or to an eligible third party',
1292:'provided that the recipient or subrecipient must be entitled to compensation for its attributable percentage of the current fair market',
1293:'value of the property. 4 in cases where a recipient or subrecipient fails to take appropriate disposition actions, the federal',
1294:'agency or passthrough entity may direct the recipient or subrecipient to take disposition actions. f equipment retention.when included in the',
1295:'terms and conditions of the federal award, the federal agency may permit the recipient to retain equipment, or authorize a',
1296:'passthrough entity to permit the subrecipient to retain equipment, with no further obligation to the federal government unless prohibited by',
1297:'federal statute or regulation. § 200.314 supplies. see also§ 200.453. a title to supplies acquired under the federal award will',
1298:'vest upon acquisition in the recipient or subrecipient. when there is a residual inventory of unused supplies exceeding $10,000 in',
1299:'aggregate value at the end of the period of performance, and the supplies are not needed for any other federal',
1300:'award, the recipient or subrecipient may retain or sell the unused supplies. unused supplies means supplies that are in new',
1301:'condition, not having been used or opened before. the aggregate value of unused supplies consists of all supply types, not',
1302:'just likeitem supplies. the federal agency or passthrough entity is entitled to compensation in an amount calculated by multiplying the',
1303:'percentage of the federal agencys or passthrough entitys contribution towards the cost of the original purchases by the current market',
1304:'value or proceeds from the sale. if the supplies are sold, the federal agency or passthrough entity may permit the',
1305:'recipient or subrecipient to retain, from the federal share, $1,000 of the proceeds to cover expenses associated with the selling',
1306:'and handling of the supplies. b unless expressly authorized by federal statute, the recipient or subrecipient must not use supplies',
1307:'acquired with the federal award to provide services for a fee that is less than a private company would charge',
1308:'for similar services. this restriction is effective as long as the federal government retains an interest in the supplies or',
1309:'as authorized by federal statute. § 200.315 intangible property. a title to intangible property acquired under a federal award vests',
1310:'upon acquisition in the recipient or subrecipient. the recipient or subrecipient must use that intangible property for the originally authorized',
1311:'purpose and must not encumber the property without the approval of the federal agency or passthrough entity. when no longer',
1312:'needed for the originally authorized purpose, disposition of the intangible property must occur in accordance with the provisions in§ 200.313e.',
1313:'b to the extent permitted by law, the recipient or subrecipient may copyright any work that is subject to copyright',
1314:'and was developed, or for which ownership was acquired, under a federal award. the federal agency reserves a royaltyfree, nonexclusive,',
1315:'and irrevocable right to reproduce, publish, or otherwise use the work for federal purposes and to authorize others to do',
1316:'so. this includes the right to require recipients and subrecipients to make such works available through agencydesignated public access repositories.',
1317:'c the recipient or subrecipient is subject to applicable regulations governing patents and inventions, including governmentwide regulations in37 cfr part',
1318:'401. d the federal government has the right to: 2 cfr 200.315d enhanced display page 56 of 208 2 cfr',
1319:'part 200 up to date as of 1/08/2025 2 cfr 200.315d1 uniform administrative requirements, cost principles, and audit 1 obtain,',
1320:'reproduce, publish, or otherwise use the data produced under a federal award; and 2 authorize others to receive, reproduce, publish,',
1321:'or otherwise use the data for federal purposes. e 1 the recipient or subrecipient must provide research data relating to',
1322:'published research findings produced under the federal award and that were used by the federal government in developing an agency',
1323:'action that has the force and effect of law if requested by the federal agency in response to a freedom',
1324:'of information act foia request. when the federal agency obtains the research data solely in response to a foia request,',
1325:'the federal agency may charge the requester a fee for the cost of obtaining the research data. this fee should',
1326:'reflect the costs incurred by the federal agency and the recipient or subrecipient. this fee is in addition to any',
1327:'fees the federal agency may assess under the foia 5 u.s.c. 552a4a. 2 published research findings mean: i research findings',
1328:'published in a peerreviewed scientific or technical journal; or ii research findings publicly cited by a federal agency in developing',
1329:'an agency action that has the force and effect of law. 3 research data means the recorded factual material commonly',
1330:'accepted in the scientific community as necessary to validate research findings. research data does not include any of the following:',
1331:'i preliminary analyses, drafts of scientific papers, plans for future research, peer reviews, or communications with colleagues. this “recorded” material',
1332:'excludes physical objects for example, laboratory samples. ii trade secrets, commercial information, materials necessary to be held confidential by a',
1333:'researcher until they are published, or similar information which is protected under law; and iii personnel, medical, and other personally',
1334:'identifiable information that, if disclosed, would constitute an invasion of personal privacy. information that could identify a particular person in',
1335:'a research study is not considered research data. f federal agencies should work with recipients to maximize public access to',
1336:'federally funded research results and data in a manner that protects data providers confidentiality, privacy, and security. agencies should provide',
1337:'guidance to recipients to make restrictedaccess data available through a variety of mechanisms. foia may not be the most appropriate',
1338:'mechanism for providing access to intangible property, including federally funded research results and data. § 200.316 property trust relationship. real',
1339:'property, equipment, and intangible property acquired or improved with the federal award must be held in trust by the recipient',
1340:'or subrecipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved.',
1341:'the federal agency or passthrough entity may require the recipient or subrecipient to record liens or other appropriate notices of',
1342:'record to indicate that personal or real property has been acquired or improved with a federal award and that use',
1343:'and disposition conditions apply to the property. procurement standards 2 cfr 200.316 enhanced display page 57 of 208 2 cfr',
1344:'part 200 up to date as of 1/08/2025 2 cfr 200.317 uniform administrative requirements, cost principles, and audit § 200.317',
1345:'procurements by states and indian tribes. when conducting procurement transactions under a federal award, a state or indian tribe must',
1346:'follow the same policies and procedures it uses for procurements with nonfederal funds. if such policies and procedures do not',
1347:'exist, states and indian tribes must follow the procurement standards in§§ 200.318through200.327. in addition to its own policies and procedures,',
1348:'a state or indian tribe must also comply with the following procurement standards:§§ 200.321,200.322,200.323, and200.327. all other recipients and subrecipients,',
1349:'including subrecipients of a state or indian tribe, must follow the procurement standards in§§ 200.318through200.327. § 200.318 general procurement standards.',
1350:'a documented procurement procedures.the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a federal award',
1351:'or subaward, including for acquisition of property or services. these documented procurement procedures must be consistent with state, local, and',
1352:'tribal laws and regulations and the standards identified in§§ 200.317through200.327. b oversight of contractors.recipients and subrecipients must maintain oversight to',
1353:'ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. see also§',
1354:'200.501h. c conflicts of interest. 1 the recipient or subrecipient must maintain written standards of conduct covering conflicts of interest',
1355:'and governing the actions of its employees engaged in the selection, award, and administration of contracts. no employee, officer, agent,',
1356:'or board member with a real or apparent conflict of interest may participate in the selection, award, or administration of',
1357:'a contract supported by the federal award. a conflict of interest includes when the employee, officer, agent, or board member,',
1358:'any member of their immediate family, their partner, or an organization that employs or is about to employ any of',
1359:'the parties indicated herein, has a financial or other interest in or a tangible personal benefit from an entity considered',
1360:'for a contract. an employee, officer, agent, and board member of the recipient or subrecipient may neither solicit nor accept',
1361:'gratuities, favors, or anything of monetary value from contractors. however, the recipient or subrecipient may set standards for situations where',
1362:'the financial interest is not substantial or a gift is an unsolicited item of nominal value. the recipients or subrecipients',
1363:'standards of conduct must also provide for disciplinary actions to be applied for violations by its employees, officers, agents, or',
1364:'board members. 2 if the recipient or subrecipient has a parent, affiliate, or subsidiary organization that is not a state,',
1365:'local government, or indian tribe, the recipient or subrecipient must also maintain written standards of conduct covering organizational conflicts of',
1366:'interest. organizational conflicts of interest mean that because of relationships with a parent company, affiliate, or subsidiary organization, the recipient',
1367:'or subrecipient is unable or appears to be unable to be impartial in conducting a procurement action involving a related',
1368:'organization. d avoidance of unnecessary or duplicative items.the recipients or subrecipients procedures must avoid the acquisition of unnecessary or duplicative',
1369:'items. consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. when appropriate, an',
1370:'analysis should be made between leasing and purchasing property or equipment to determine the most economical approach. 2 cfr 200.318d',
1371:'enhanced display page 58 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.318e uniform',
1372:'administrative requirements, cost principles, and audit e procurement arrangements using strategic sourcing.when appropriate for the procurement or use of common',
1373:'or shared goods and services, recipients and subrecipients are encouraged to enter into state and local intergovernmental agreements or interentity',
1374:'agreements for procurement transactions. these or similar procurement arrangements using strategic sourcing may foster greater economy and efficiency. documented procurement',
1375:'actions of this type using strategic sourcing, shared services, and other similar procurement arrangements will meet the competition requirements of',
1376:'this part. f use of excess and surplus federal property.the recipient or subrecipient is encouraged to use excess and surplus',
1377:'federal property instead of purchasing new equipment and property when it is feasible and reduces project costs. g use of',
1378:'value engineering clauses.when practical, the recipient or subrecipient is encouraged to use value engineering clauses in contracts for construction projects',
1379:'of sufficient size to offer reasonable opportunities for cost reductions. value engineering means analyzing each contract item or task to',
1380:'ensure its essential function is provided at the overall lowest cost. h responsible contractors.the recipient or subrecipient must award contracts',
1381:'only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract.',
1382:'the recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees see the fair labor standards',
1383:'act,29 u.s.c. 201, chapter 8, past performance record, and financial and technical resources when conducting a procurement transaction. see also§',
1384:'200.214. i procurement records.the recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. these',
1385:'records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for',
1386:'the contract price. j timeandmaterials type contracts. 1 the recipient or subrecipient may use a timeandmaterials type contract only after',
1387:'a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds',
1388:'at its own risk. timeandmaterials type contract means a contract whose cost to a recipient or subrecipient is the sum',
1389:'of: i the actual cost of materials; and ii direct labor hours charged at fixed hourly rates that reflect wages,',
1390:'general and administrative 2 because this formula generates an openended contract price, a timeandmaterials contract expenses, and profit. provides no',
1391:'positive profit incentive to the contractor for cost control or labor efficiency. therefore, each contract must set a ceiling price',
1392:'that the contractor exceeds at its own risk. further, the recipient or subrecipient awarding such a contract must assert a',
1393:'high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. k',
1394:'settlement of contractual and administrative issues.the recipient or subrecipient is responsible for the settlement of all contractual and administrative issues',
1395:'arising out of its procurement transactions. these issues include, but are not limited to, source evaluation, protests, disputes, and claims.',
1396:'these standards do not relieve the recipient or subrecipient of any contractual responsibilities under its contracts. the federal agency will',
1397:'not substitute its judgment for that of the recipient or subrecipient unless the matter is primarily a federal concern. the',
1398:'recipient or subrecipient must report violations of law to the federal, state, or local authority with proper jurisdiction. 2 cfr',
1399:'200.318k enhanced display page 59 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.318l',
1400:'uniform administrative requirements, cost principles, and audit l examples of labor and employment practices. 1 the procurement standards in this',
1401:'subpart do not prohibit recipients or subrecipients from: i using project labor agreements plas or similar forms of prehire collective',
1402:'bargaining agreements; ii requiring construction contractors to use hiring preferences or goals for people residing in highpoverty areas, disadvantaged communities',
1403:'as defined by the justice40 initiative see omb memorandum m2128, or highunemployment census tracts within a region no smaller than',
1404:'the county where a federally funded construction project is located. the hiring preferences or goals should be consistent with the',
1405:'policies and procedures of the recipient or subrecipient, and must not prohibit interstate hiring; iii requiring a contractor to use',
1406:'hiring preferences or goals for individuals with barriers to employment as defined in section 3 of the workforce innovation and',
1407:'opportunity act 29 u.s.c. 310224, including women and people from underserved communities as defined by executive order 14091; iv using',
1408:'agreements intended to ensure uninterrupted delivery of services; using agreements intended to ensure community benefits; or v offering employees of',
1409:'a predecessor contractor rights of first refusal under a new contract. 2 recipients and subrecipients may use the practices listed',
1410:'in paragraph 1 if consistent with the u.s. constitution, applicable federal statutes and regulations, the objectives and purposes of the',
1411:'applicable federal financial assistance program, and other requirements of this part. § 200.319 competition. a all procurement transactions under the',
1412:'federal award must be conducted in a manner that provides full and open competition and is consistent with the standards',
1413:'of this section and§ 200.320. b to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or',
1414:'draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements. c examples',
1415:'of situations that may restrict competition include, but are not limited to: 1 placing unreasonable requirements on firms for them',
1416:'to qualify to do business; 2 requiring unnecessary experience and excessive bonding; 3 noncompetitive pricing practices between firms or between',
1417:'affiliated companies; 4 noncompetitive contracts to consultants that are on retainer contracts; 5 organizational conflicts of interest; 6 specifying only',
1418:'a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant',
1419:'requirements of the procurement; and 7 any arbitrary action in the procurement process. d the recipient or subrecipient must have',
1420:'written procedures for procurement transactions. these procedures must ensure that all solicitations: 2 cfr 200.319d enhanced display page 60 of',
1421:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.319d1 uniform administrative requirements, cost principles, and',
1422:'audit 1 are made in accordance with§ 200.319b; 2 incorporate a clear and accurate description of the technical requirements for',
1423:'the property, equipment, or service being procured. the description may include a statement of the qualitative nature of the property,',
1424:'equipment, or service to be procured. when necessary, the description must provide minimum essential characteristics and standards to which the',
1425:'property, equipment, or service must conform. detailed product specifications should be avoided if at all possible. when it is impractical',
1426:'or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be',
1427:'used to provide procurement requirements. the specific features of the named brand must be clearly stated; and 3 identify any',
1428:'additional requirements which the offerors must fulfill and all other factors that will be used in evaluating bids or proposals.',
1429:'e the recipient or subrecipient must ensure that all prequalified lists of persons, firms, or products used in procurement transactions',
1430:'are current and include enough qualified sources to ensure maximum open competition. when establishing or amending prequalified lists, the recipient',
1431:'or subrecipient must consider objective factors that evaluate price and cost to maximize competition. the recipient or subrecipient must not',
1432:'preclude potential bidders from qualifying during the solicitation period. f to the extent consistent with established practices and legal requirements',
1433:'applicable to the recipient or subrecipient, this subpart does not prohibit recipients or subrecipients from developing written procedures for procurement',
1434:'transactions that incorporate a scoring mechanism that rewards bidders that commit to specific numbers and types of u.s. jobs, minimum',
1435:'compensation, benefits, onthejobtraining for employees making work products or providing services on a contract, and other worker protections. this subpart',
1436:'also does not prohibit recipients and subrecipients from making inquiries of bidders about these subjects and assessing the responses. any',
1437:'scoring mechanism must be consistent with the u.s. constitution, applicable federal statutes and regulations, and the terms and conditions of',
1438:'the federal award. g noncompetitive procurements can only be awarded in accordance with§ 200.320c. § 200.320 procurement methods. there are',
1439:'three types of procurement methods described in this section: informal procurement methods for micro purchases and simplified acquisitions; formal procurement',
1440:'methods through sealed bids or proposals; and noncompetitive procurement methods. for any of these methods, the recipient or subrecipient must',
1441:'maintain and use documented procurement procedures, consistent with the standards of this section and§§ 200.317,200.318, and200.319. a informal procurement methods',
1442:'for small purchases.these procurement methods expedite the completion of transactions, minimize administrative burdens, and reduce costs. informal procurement methods may',
1443:'be used when the value of the procurement transaction under the federal award does not exceed the simplified acquisition threshold',
1444:'as defined in§ 200.1. recipients and subrecipients may also establish a lower threshold. informal procurement methods include: 1 micropurchases— i',
1445:'distribution.the aggregate amount of the procurement transaction does not exceed the micro purchase threshold defined in§ 200.1. to the extent',
1446:'practicable, the recipient or subrecipient should distribute micropurchases equitably among qualified suppliers. 2 cfr 200.320a1i enhanced display page 61 of',
1447:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.320a1ii uniform administrative requirements, cost principles, and',
1448:'audit ii micropurchase awards.micropurchases may be awarded without soliciting competitive price or rate quotations if the recipient or subrecipient considers',
1449:'the price reasonable based on research, experience, purchase history, or other information; and maintains documents to support its conclusion. purchase',
1450:'cards may be used as a method of payment for micro purchases. iii micropurchase thresholds.the recipient or subrecipient is responsible',
1451:'for determining and documenting an appropriate micropurchase threshold based on internal controls, an evaluation of risk, and its documented procurement',
1452:'procedures. the micropurchase threshold used by the recipient or subrecipient must be authorized or not prohibited under state, local, or',
1453:'tribal laws or regulations. the recipient or subrecipient may establish a threshold higher than the federal threshold established in the',
1454:'federal acquisition regulations far in accordance withparagraphs a1ivandvof this section. iv recipient or subrecipient increase to the micropurchase threshold up',
1455:'to $50,000.the recipient or subrecipient may establish a threshold higher than the micropurchase threshold identified in the far in accordance',
1456:'with the requirements of this section. the recipient or subrecipient may selfcertify a threshold up to $50,000 on an annual',
1457:'basis and must maintain documentation to be made available to the federal agency or passthrough entity and auditors in accordance',
1458:'with § 200.334. the selfcertification must include a justification, clear identification of the threshold, and supporting documentation of any of',
1459:'the following: a a qualification as a lowrisk auditee, in accordance with the criteria in§ 200.520for the most recent audit;',
1460:'b an annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or, c for public institutions, a',
1461:'higher threshold is consistent with state law. v recipient or subrecipient increase to the micropurchase threshold over $50,000.micropurchase thresholds higher',
1462:'than $50,000 must be approved by the cognizant agency for indirect costs. the recipient or subrecipient must submit a request',
1463:'that includes the requirements in paragraph a1ivof this section. the increased threshold is valid until any factor that was relied',
1464:'on in the establishment and rationale of the threshold changes. 2 simplified acquisitions— i simplified acquisition procedures.the aggregate dollar amount',
1465:'of the procurement transaction is higher than the micropurchase threshold but does not exceed the simplified acquisition threshold. if simplified',
1466:'acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. unless specified',
1467:'by the federal agency, the recipient or subrecipient may exercise judgment in determining what number is adequate. ii simplified acquisition',
1468:'thresholds.the recipient or subrecipient is responsible for determining an appropriate simplified acquisition threshold based on internal controls, an evaluation of',
1469:'risk, and its documented procurement procedures, which may be lower than, but must not exceed, the threshold established in the',
1470:'far. 2 cfr 200.320a2ii enhanced display page 62 of 208 2 cfr part 200 up to date as of 1/08/2025',
1471:'2 cfr 200.320b uniform administrative requirements, cost principles, and audit b formal procurement methods.formal procurement methods are required when the',
1472:'value of the procurement transaction under a federal award exceeds the simplified acquisition threshold of the recipient or subrecipient. formal',
1473:'procurement methods are competitive and require public notice. the following formal methods of procurement are used for procurement transactions above',
1474:'the simplified acquisition threshold determined by the recipient or subrecipient in accordance withparagraph a2ii of this section: 1 sealed bids.this',
1475:'is a procurement method in which bids are publicly solicited through an invitation and a firm fixedprice contract lump sum',
1476:'or unit price is awarded to the responsible bidder whose bid conforms with all the material terms and conditions of',
1477:'the invitation and is the lowest in price. the sealed bids procurement method is preferred for procuring construction services. i',
1478:'for sealed bidding to be feasible, the following conditions should be present: a a complete, adequate, and realistic specification or',
1479:'purchase description is available; b two or more responsible bidders have been identified as willing and able to compete effectively',
1480:'for the business; and c the procurement lends itself to a firmfixedprice contract, and the selection of the successful bidder',
1481:'can be made principally based on price. ii if sealed bids are used, the following requirements apply: a bids must',
1482:'be solicited from an adequate number of qualified sources, providing them with sufficient response time prior to the date set',
1483:'for opening the bids. unless specified by the federal agency, the recipient or subrecipient may exercise judgment in determining what',
1484:'number is adequate. for local governments, the invitation for bids must be publicly advertised. b the invitation for bids must',
1485:'define the items or services with specific information, including any required specifications, for the bidder to properly respond; c all',
1486:'bids will be opened at the time and place prescribed in the invitation for bids. for local governments, the bids',
1487:'must be opened publicly. d a firmfixedprice contract is awarded in writing to the lowest responsive bid and responsible bidder.',
1488:'when specified in the invitation for bids, factors such as discounts, transportation cost, and lifecycle costs must be considered in',
1489:'determining which bid is the lowest. payment discounts must only be used to determine the low bid when the recipient',
1490:'or subrecipient determines they are a valid factor based on prior experience. e the recipient or subrecipient must document and',
1491:'provide a justification for all bids it rejects. 2 proposals.this is a procurement method used when conditions are not appropriate',
1492:'for using sealed bids. this procurement method may result in either a fixedprice or costreimbursement contract. they are awarded in',
1493:'accordance with the following requirements: i requests for proposals require public notice, and all evaluation factors and their relative importance',
1494:'must be identified. proposals must be solicited from multiple qualified entities. to the maximum extent practicable, any proposals submitted in',
1495:'response to the public notice must be considered. 2 cfr 200.320b2i enhanced display page 63 of 208 2 cfr part',
1496:'200 up to date as of 1/08/2025 2 cfr 200.320b2ii uniform administrative requirements, cost principles, and audit ii the recipient',
1497:'or subrecipient must have written procedures for conducting technical evaluations and making selections. iii contracts must be awarded to the',
1498:'responsible offeror whose proposal is most advantageous to the recipient or subrecipient considering price and other factors; and iv the',
1499:'recipient or subrecipient may use competitive proposal procedures for qualificationsbased procurement of architectural/engineering a/e professional services whereby the offerors qualifications',
1500:'are evaluated, and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation. the method, where',
1501:'the price is not used as a selection factor, can only be used to procure architectural/engineering a/e professional services. the',
1502:'method may not be used to purchase other services provided by a/e firms that are a potential source to perform',
1503:'the proposed effort. c noncompetitive procurement.there are specific circumstances in which the recipient or subrecipient may use a noncompetitive procurement',
1504:'method. the noncompetitive procurement method may only be used if one of the following circumstances applies: 1 the aggregate amount',
1505:'of the procurement transaction does not exceed the micropurchase threshold seeparagraph a1of this section; 2 the procurement transaction can only',
1506:'be fulfilled by a single source; 3 the public exigency or emergency for the requirement will not permit a delay',
1507:'resulting from providing public notice of a competitive solicitation; 4 the recipient or subrecipient requests in writing to use a',
1508:'noncompetitive procurement method, and the federal agency or passthrough entity provides written approval; or 5 after soliciting several sources, competition',
1509:'is determined inadequate. § 200.321 contracting with small businesses, minority businesses, womens business enterprises, veteranowned businesses, and labor surplus area',
1510:'firms. a when possible, the recipient or subrecipient should ensure that small businesses, minority businesses, womens business enterprises, veteranowned businesses,',
1511:'and labor surplus area firms see u.s. department of labors list are considered as set forth below. b such consideration',
1512:'means: 1 these business types are included on solicitation lists; 2 these business types are solicited whenever they are deemed',
1513:'eligible as potential sources; 3 dividing procurement transactions into separate procurements to permit maximum participation by these business types; 4',
1514:'establishing delivery schedules for example, the percentage of an order to be delivered by a given date of each month',
1515:'that encourage participation by these business types; 5 utilizing organizations such as the small business administration and the minority business',
1516:'development agency of the department of commerce; and 6 requiring a contractor under a federal award to apply this section',
1517:'to subcontracts. 2 cfr 200.321b6 enhanced display page 64 of 208 2 cfr part 200 up to date as of',
1518:'1/08/2025 2 cfr 200.322 uniform administrative requirements, cost principles, and audit § 200.322 domestic preferences for procurements. a the recipient',
1519:'or subrecipient should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or',
1520:'use of goods, products, or materials produced in the united states including but not limited to iron, aluminum, steel, cement,',
1521:'and other manufactured products. the requirements of this section must be included in all subawards, contracts, and purchase orders under',
1522:'federal awards. b for purposes of this section: 1 “produced in the united states” means, for iron and steel products,',
1523:'that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the united states. 2',
1524:'“manufactured products” means items and construction materials composed in whole or in part of nonferrous metals such as aluminum; plastics',
1525:'and polymerbased products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber. c federal',
1526:'agencies providing federal financial assistance for infrastructure projects must implement the buy america preferences set forth in2 cfr part 184.',
1527:'§ 200.323 procurement of recovered materials. a a recipient or subrecipient that is a state agency or agency of a',
1528:'political subdivision of a state and its contractors must comply with section 6002 of the solid waste disposal act, as',
1529:'amended by the resource conservation and recovery act of 1976 as amended,42 u.s.c. 6962. the requirements of section 6002 include',
1530:'procuring only items designated in the guidelines of the environmental protection agency epa at40 cfr part 247that contain the highest',
1531:'percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item',
1532:'exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management',
1533:'services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered',
1534:'materials identified in the epa guidelines. b the recipient or subrecipient should, to the greatest extent practicable and consistent with',
1535:'law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled; contain recycled content, are biobased,',
1536:'or are energy and water efficient; and are sustainable. this may include purchasing compostable items and other products and services',
1537:'that reduce the use of singleuse plastic products. see executive order 14057, section 101, policy. § 200.324 contract cost and',
1538:'price. a the recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications,',
1539:'in excess of the simplified acquisition threshold. the method and degree of analysis conducted depend on the facts surrounding the',
1540:'particular procurement transaction. for example, the recipient or subrecipient should consider potential workforce impacts in their analysis if the procurement',
1541:'transaction will displace public sector employees. however, as a starting point, the recipient or subrecipient must make independent estimates before',
1542:'receiving bids or proposals. b costs or prices based on estimated costs for contracts under the federal award are allowable',
1543:'only to the extent that the costs incurred or cost estimates included in negotiated prices would be allowable for the',
1544:'recipient or subrecipient undersubpart e of this part. the recipient or subrecipient may reference its own cost principles as long',
1545:'as they comply withsubpart e of this part. 2 cfr 200.324b enhanced display page 65 of 208 2 cfr part',
1546:'200 up to date as of 1/08/2025 2 cfr 200.324c uniform administrative requirements, cost principles, and audit c the recipient',
1547:'or subrecipient must not use the “cost plus a percentage of cost” and “percentage of construction costs” methods of contracting.',
1548:'§ 200.325 federal agency or passthrough entity review. a the federal agency or passthrough entity may review the technical specifications',
1549:'of proposed procurements under the federal award if the federal agency or passthrough entity believes the review is needed to',
1550:'ensure that the item or service specified is the one being proposed for acquisition. the recipient or subrecipient must submit',
1551:'the technical specifications of proposed procurements when requested by the federal agency or passthrough entity. this review should take place',
1552:'prior to the time the specifications are incorporated into a solicitation document. when the recipient or subrecipient desires to accomplish',
1553:'the review after a solicitation has been developed, the federal agency or passthrough entity may still review the specifications. in',
1554:'those cases, the review should be limited to the technical aspects of the proposed purchase. b when requested, the recipient',
1555:'or subrecipient must provide procurement documents such as requests for proposals, invitations for bids, or independent cost estimates to the',
1556:'federal agency or passthrough entity for preprocurement review. the federal agency or passthrough entity may conduct a preprocurement review when:',
1557:'1 the recipients or subrecipients procurement procedures or operation fails to comply with the procurement standards in this part; 2',
1558:'the procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition, or only one',
1559:'bid is expected to be received in response to a solicitation; 3 the procurement is expected to exceed the simplified',
1560:'acquisition threshold and specifies a “brand name” product; 4 the procurement is expected to exceed the simplified acquisition threshold, and',
1561:'a sealed bid procurement is to be awarded to an entity other than the apparent low bidder; or 5 a',
1562:'proposed contract modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition',
1563:'threshold. c the recipient or subrecipient is exempt from the preprocurement review inparagraph bof this section if the federal agency',
1564:'or passthrough entity determines that its procurement systems comply with the standards of this part. 1 the recipient or subrecipient',
1565:'may request that the federal agency or passthrough entity review its procurement system to determine whether it meets these standards',
1566:'for its system to be certified. generally, these reviews must occur where there is continuous highdollar funding and thirdparty contracts',
1567:'are awarded regularly. 2 the recipient or subrecipient may selfcertify its procurement system. however, selfcertification does not limit the federal',
1568:'agencys or passthrough entitys right to review the system. under a self certification procedure, the federal agency or passthrough entity',
1569:'may rely on written assurances from the recipient or subrecipient that it is complying with the standards of this part.',
1570:'the recipient or subrecipient must cite specific policies, procedures, regulations, or standards as complying with these requirements and have its',
1571:'system available for review. 2 cfr 200.325c2 enhanced display page 66 of 208 2 cfr part 200 up to date',
1572:'as of 1/08/2025 2 cfr 200.326 uniform administrative requirements, cost principles, and audit § 200.326 bonding requirements. the federal agency',
1573:'or passthrough entity may accept the recipients or subrecipients bonding policy and requirements for construction or facility improvement contracts or',
1574:'subcontracts exceeding the simplified acquisition threshold. before doing so, the federal agency or passthrough entity must determine that the federal',
1575:'interest is adequately protected. if such a determination has not been made, the minimum requirements must be as follows: a',
1576:'a bid guarantee from each bidder equivalent to five percent of the bid price. the bid guarantee must consist of',
1577:'a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that',
1578:'the bidder will, upon acceptance of the bid, execute any required contractual documents within the specified timeframe. b a performance',
1579:'bond on the contractors part for 100 percent of the contract price. a performance bond is a bond executed in',
1580:'connection with a contract to secure the fulfillment of all the contractors requirements under a contract. c a payment bond',
1581:'on the contractors part for 100 percent of the contract price. a payment bond is a bond executed in connection',
1582:'with a contract to assure payment as required by the law of all persons supplying labor and material in the',
1583:'execution of the work provided for under a contract. § 200.327 contract provisions. the recipients or subrecipients contracts must contain',
1584:'the applicable provisions described inappendix ii of this part. performance and financial monitoring and reporting § 200.328 financial reporting. a',
1585:'the federal agency must require only ombapproved governmentwide data elements on recipient financial reports. at the time of publication, this',
1586:'consists of the federal financial report sf425; however, this also applies to any future ombapproved governmentwide data elements available from',
1587:'the ombdesignated standards lead. b the federal agency or passthrough entity must collect financial reports no less than annually. the',
1588:'federal agency or passthrough entity may not collect financial reports more frequently than quarterly unless a specific condition has been',
1589:'implemented in accordance with§ 200.208. to the extent practicable, the federal agency or passthrough entity should collect financial reports in',
1590:'coordination with performance reports. c the recipient or subrecipient must submit financial reports as required by the federal award. reports',
1591:'submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period.',
1592:'reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. d the',
1593:'final financial report submitted by the recipient must be due no later than 120 calendar days after the conclusion of',
1594:'the period of performance. a subrecipient must submit a final financial report to a pass through entity no later than',
1595:'90 calendar days after the conclusion of the period of performance. see also § 200.344. the federal agency or passthrough',
1596:'entity may extend the due date for any financial report with justification from the recipient or subrecipient. 2 cfr 200.328d',
1597:'enhanced display page 67 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.329 uniform',
1598:'administrative requirements, cost principles, and audit § 200.329 monitoring and reporting program performance. a monitoring by the recipient and subrecipient.the',
1599:'recipient and subrecipient are responsible for the oversight of the federal award. the recipient and subrecipient must monitor their activities',
1600:'under federal awards to ensure they are compliant with all requirements and meeting performance expectations. monitoring by the recipient and',
1601:'subrecipient must cover each program, function, or activity. see also§ 200.332. b reporting program performance.the federal agency must use ombapproved',
1602:'common information collections for example, research performance progress reports when requesting performance reporting information. the federal agency or passthrough entity',
1603:'may not collect performance reports more frequently than quarterly unless a specific condition has been implemented in accordance with§ 200.208.',
1604:'to the extent practicable, the federal agency or passthrough entity should align the due dates of performance reports and financial',
1605:'reports. when reporting program performance, the recipient or subrecipient must relate financial data and project or program accomplishments to the',
1606:'performance goals and objectives of the federal award. also, the recipient or subrecipient must provide cost information to demonstrate costeffective',
1607:'practices for example, through unit cost data when required by the terms and conditions of the federal award. in some',
1608:'instances for example, discretionary research awards, this may be limited to the requirement to submit technical performance reports. reporting requirements',
1609:'must clearly indicate a standard against which the recipients or subrecipients performance can be measured. reporting requirements should not solicit',
1610:'information from the recipient or subrecipient that is not necessary for the effective monitoring or evaluation of the federal award.',
1611:'federal agencies should consult monitoring framework documents such as the agencys evaluation plan to make that determination. as noted in',
1612:'omb circular a11, part 6, section 280, measures of customer experience are of coequal importance as traditional measures of financial',
1613:'and operational performance. c submitting performance reports. 1 the recipient or subrecipient must submit performance reports as required by the',
1614:'federal award. intervals must be no less frequent than annually nor more frequent than quarterly except if specific conditions are',
1615:'applied see§ 200.208. reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days',
1616:'after the reporting period. reports submitted quarterly or semiannually must be due no later than 30 calendar days after the',
1617:'reporting period. alternatively, the federal agency or passthrough entity may require annual reports before the anniversary dates of multipleyear federal',
1618:'awards. the final performance report submitted by the recipient must be due no later than 120 calendar days after the',
1619:'period of performance. a subrecipient must submit a final performance report to a passthrough entity no later than 90 calendar',
1620:'days after the conclusion of the period of performance. see also§ 200.344. the federal agency or passthrough entity may extend',
1621:'the due date for any performance report with justification from the recipient or subrecipient. 2 as applicable, performance reports should',
1622:'contain information on the following: i a comparison of accomplishments to the objectives of the federal award established for the',
1623:'reporting period for example, comparing costs to units of accomplishment. where performance trend data and analysis would be informative to',
1624:'the federal agency program, the federal agency should include this as a performance reporting requirement. ii explanations on why established',
1625:'goals or objectives were not met; and iii additional information, analysis, and explanation of cost overruns or higherthanexpected unit costs.',
1626:'2 cfr 200.329c2iii enhanced display page 68 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
1627:'cfr 200.329d uniform administrative requirements, cost principles, and audit d construction performance reports.federal agencies or passthrough entities rely on onsite',
1628:'technical inspections and certified percentage of completion data to monitor progress under federal awards for construction. therefore, the federal agency',
1629:'or passthrough entity may require additional performance reports when necessary to ensure the goals and objectives of federal awards are',
1630:'met. e significant developments.when a significant development that could impact the federal award occurs between performance reporting due dates, the',
1631:'recipient or subrecipient must notify the federal agency or passthrough entity. significant developments include events that enable meeting milestones and',
1632:'objectives sooner or at less cost than anticipated or that produce different beneficial results than originally planned. significant developments also',
1633:'include problems, delays, or adverse conditions which will impact the recipients or subrecipients ability to meet milestones or the objectives',
1634:'of the federal award. when significant developments occur that negatively impact the federal award, the recipient or subrecipient must include',
1635:'information on their plan for corrective action and any assistance needed to resolve the situation. f site visits.the federal agency',
1636:'or passthrough entity may conduct inperson or virtual site visits as warranted. g performance report requirement waiver.the federal agency may',
1637:'waive any performance report that is not necessary to ensure the goals and objectives of the federal award are being',
1638:'achieved. § 200.330 reporting on real property. the federal agency or passthrough entity must require the recipient or subrecipient to',
1639:'submit reports on the status of real property in which the federal government retains an interest. such reports must be',
1640:'submitted at least annually. in instances where the federal governments interest in the real property extends for 15 years or',
1641:'more, the federal agency or passthrough entity may require the recipient or subrecipient to report at various multiyear frequencies. reports',
1642:'submitted at multiyear frequencies may not exceed a fiveyear reporting period. the federal agency must only require ombapproved governmentwide data',
1643:'elements on recipient real property reports. subrecipient monitoring and management § 200.331 subrecipient and contractor determinations. an entity may concurrently',
1644:'receive federal awards as a recipient, a subrecipient, and a contractor. the passthrough entity is responsible for making casebycase determinations',
1645:'to determine whether the entity receiving federal funds is a subrecipient or a contractor. the federal agency may require the',
1646:'passthrough entity to comply with additional guidance to make these determinations, provided such guidance does not conflict with this section.',
1647:'the federal agency does not have a direct legal relationship with subrecipients or contractors of any tier; however, the federal',
1648:'agency is responsible for monitoring the passthrough entitys oversight of firsttier subrecipients. all of the characteristics listed below may not',
1649:'be present in all cases, and some characteristics from both categories may be present at the same time. no single',
1650:'factor or any combination of factors is necessarily determinative. the pass through entity must use judgment in classifying each agreement',
1651:'as a subaward or a procurement contract. in making this determination, the substance of the relationship is more important than',
1652:'the form of the agreement. a subrecipients.a subaward is for the purpose of carrying out a portion of the federal',
1653:'award and creates a federal financial assistance relationship with a subrecipient. see the definition ofsubawardin§ 200.1. characteristics that support the',
1654:'classification of the entity as a subrecipient include, but are not limited to, when the entity: 2 cfr 200.331a enhanced',
1655:'display page 69 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.331a1 uniform administrative',
1656:'requirements, cost principles, and audit 1 determines who is eligible to receive what federal assistance; 2 has its performance measured',
1657:'in relation to whether the objectives of a federal program were met; 3 has responsibility for programmatic decisionmaking; 4 is',
1658:'responsible for adherence to applicable federal program requirements specified in the federal award; and 5 implements a program for a',
1659:'public purpose specified in authorizing statute, as opposed to providing goods or services for the benefit of the passthrough entity.',
1660:'b contractors.a contract is for the purpose of obtaining goods and services for the recipients or subrecipients use and creates',
1661:'a procurement relationship with a contractor. see the definition ofcontract in§ 200.1. characteristics that support a procurement relationship between the',
1662:'recipient or subrecipient and a contractor include, but are not limited to, when the contractor: 1 provides the goods and',
1663:'services within normal business operations; 2 provides similar goods or services to many different purchasers; 3 normally operates in a',
1664:'competitive environment; 4 provides goods or services that are ancillary to the implementation of a federal program; and 5 is',
1665:'not subject to compliance requirements of a federal program as a result of the agreement. however, similar requirements may apply',
1666:'for other reasons. § 200.332 requirements for passthrough entities. a passthrough entity must: a verify that the subrecipient is not',
1667:'excluded or disqualified in accordance with§ 180.300. verification methods are provided in§ 180.300, which include confirming insam.govthat a potential subrecipient',
1668:'is not suspended, debarred, or otherwise excluded from receiving federal funds. b ensure that every subaward is clearly identified to',
1669:'the subrecipient as a subaward and includes the information provided below. a passthrough entity must provide the best available information',
1670:'when some of the information below is unavailable. a passthrough entity must provide the unavailable information when it is obtained.',
1671:'required information includes: 1 federal award identification. i subrecipients name must match the name associated with its unique entity identifier;',
1672:'ii subrecipients unique entity identifier; iii federal award identification number fain; iv federal award date; v subaward period of performance',
1673:'start and end date; vi subaward budget period start and end date; vii amount of federal funds obligated in the',
1674:'subaward; 2 cfr 200.332b1vii enhanced display page 70 of 208 2 cfr part 200 up to date as of 1/08/2025',
1675:'2 cfr 200.332b1viii uniform administrative requirements, cost principles, and audit viii total amount of federal funds obligated to the subrecipient',
1676:'by the passthrough entity, including the current financial obligation; ix total amount of the federal award committed to the subrecipient',
1677:'by the passthrough entity; x federal award project description, as required by the federal funding accountability and transparency act ffata;',
1678:'xi name of the federal agency, passthrough entity, and contact information for awarding official of the passthrough entity; xii assistance',
1679:'listings title and number; the passthrough entity must identify the dollar amount made available under each federal award and the',
1680:'assistance listings number at the time of disbursement; xiii identification of whether the federal award is for research and development;',
1681:'and xiv indirect cost rate for the federal award including if the de minimis rate is used in accordance with§',
1682:'200.414. 2 all requirements of the subaward, including requirements imposed by federal statutes, regulations, and the terms and conditions of',
1683:'the federal award; 3 any additional requirements that the passthrough entity imposes on the subrecipient for the pass through entity',
1684:'to meet its responsibilities under the federal award. this includes information and certifications see§ 200.415 required for submitting financial and',
1685:'performance reports that the passthrough entity must provide to the federal agency; 4 indirect cost rate: i an approved indirect',
1686:'cost rate negotiated between the subrecipient and the federal government. if no approved rate exists, a passthrough entity must determine',
1687:'the appropriate rate in collaboration with the subrecipient. the indirect cost rate may be either: a an indirect cost rate',
1688:'negotiated between the passthrough entity and the subrecipient. these rates may be based on a prior negotiated rate between a',
1689:'different passthrough entity and the subrecipient, in which case the passthrough entity is not required to collect information justifying the',
1690:'rate but may elect to do so; or b the de minimis indirect cost rate. ii the passthrough entity must',
1691:'not require the use of the de minimis indirect cost rate if the subrecipient has an approved indirect cost rate',
1692:'negotiated with the federal government. subrecipients may elect to use the cost allocation method to account for indirect costs in',
1693:'accordance with§ 200.405d. 5 a requirement that the subrecipient permit the passthrough entity and auditors to access the subrecipients records',
1694:'and financial statements for the passthrough entity to fulfill its monitoring requirements; and 6 appropriate terms and conditions concerning the',
1695:'closeout of the subaward. c evaluate each subrecipients fraud risk and risk of noncompliance with a subaward to determine the',
1696:'appropriate subrecipient monitoring described inparagraph fof this section. when evaluating a subrecipients risk, a passthrough entity should consider the following:',
1697:'2 cfr 200.332c enhanced display page 71 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
1698:'cfr 200.332c1 uniform administrative requirements, cost principles, and audit 1 the subrecipients prior experience with the same or similar subawards;',
1699:'2 the results of previous audits. this includes considering whether or not the subrecipient receives a single audit in accordance',
1700:'with subpart f and the extent to which the same or similar subawards have been audited as a major program;',
1701:'3 whether the subrecipient has new personnel or new or substantially changed systems; and 4 the extent and results of',
1702:'any federal agency monitoring for example, if the subrecipient also receives federal awards directly from the federal agency. d if',
1703:'appropriate, consider implementing specific conditions in a subaward as described in§ 200.208and notify the federal agency of the specific conditions.',
1704:'e monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with federal statutes, regulations, and',
1705:'the terms and conditions of the subaward. the passthrough entity is responsible for monitoring the overall performance of a subrecipient',
1706:'to ensure that the goals and objectives of the subaward are achieved. in monitoring a subrecipient, a passthrough entity must:',
1707:'1 review financial and performance reports. 2 ensure that the subrecipient takes corrective action on all significant developments that negatively',
1708:'affect the subaward. significant developments include single audit findings related to the subaward, other audit findings, site visits, and written',
1709:'notifications from a subrecipient of adverse conditions which will impact their ability to meet the milestones or the objectives of',
1710:'a subaward. when significant developments negatively impact the subaward, a subrecipient must provide the pass through entity with information on',
1711:'their plan for corrective action and any assistance needed to resolve the situation. 3 issue a management decision for audit',
1712:'findings pertaining only to the federal award provided to the subrecipient from the passthrough entity as required by§ 200.521. 4',
1713:'resolve audit findings specifically related to the subaward. however, the passthrough entity is not responsible for resolving crosscutting audit findings',
1714:'that apply to the subaward and other federal awards or subawards. if a subrecipient has a current single audit report',
1715:'and has not been excluded from receiving federal funding meaning, has not been debarred or suspended, the passthrough entity may',
1716:'rely on the subrecipients cognizant agency for audit or oversight agency for audit to perform audit followup and make management',
1717:'decisions related to crosscutting audit findings in accordance with section§ 200.513a4viii. such reliance does not eliminate the responsibility of the',
1718:'passthrough entity to issue subawards that conform to agency and awardspecific requirements, to manage risk through ongoing subaward monitoring, and',
1719:'to monitor the status of the findings that are specifically related to the subaward. f depending upon the passthrough entitys',
1720:'assessment of the risk posed by the subrecipient as described inparagraph cof this section, the following monitoring tools may be',
1721:'useful for the passthrough entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: 1',
1722:'providing subrecipients with training and technical assistance on programrelated matters; 2 performing site visits to review the subrecipients program operations;',
1723:'and 3 arranging for agreeduponprocedures engagements as described in§ 200.425. 2 cfr 200.332f3 enhanced display page 72 of 208 2',
1724:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.332g uniform administrative requirements, cost principles, and audit g',
1725:'verify that a subrecipient is audited as required bysubpart f of this part. h consider whether the results of a',
1726:'subrecipients audit, site visits, or other monitoring necessitate adjustments to the passthrough entitys records. i consider taking enforcement action against',
1727:'noncompliant subrecipients as described in§ 200.339and in program regulations. § 200.333 fixed amount subawards. with prior written approval from the',
1728:'federal agency, the recipient may provide subawards based on fixed amounts up to $500,000. fixed amount subawards must meet the',
1729:'requirements of§ 200.201. record retention and access § 200.334 record retention requirements. the recipient and subrecipient must retain all federal',
1730:'award records for three years from the date of submission of their final financial report. for awards that are renewed',
1731:'quarterly or annually, the recipient and subrecipient must retain records for three years from the date of submission of their',
1732:'quarterly or annual financial report, respectively. records to be retained include but are not limited to, financial records, supporting documentation,',
1733:'and statistical records. federal agencies or passthrough entities may not impose any other record retention requirements except for the following:',
1734:'a the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and',
1735:'final action taken if any litigation, claim, or audit is started before the expiration of the three year period. b',
1736:'when the recipient or subrecipient is notified in writing by the federal agency or passthrough entity, cognizant agency for audit,',
1737:'oversight agency for audit, or cognizant agency for indirect costs to extend the retention period. c the records for property',
1738:'and equipment acquired with the support of federal funds must be retained for three years after final disposition. d the',
1739:'threeyear retention requirement does not apply to the recipient or subrecipient when records are transferred to or maintained by the',
1740:'federal agency. e the records for program income earned after the period of performance must be retained for three years',
1741:'from the end of the recipients or subrecipients fiscal year in which the program income is earned. this only applies',
1742:'if the federal agency or passthrough entity requires the recipient or subrecipient to report on program income earned after the',
1743:'period of performance in the terms and conditions of the federal award. f the records for indirect cost rate computations',
1744:'or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs',
1745:'is chargeable such as computer usage chargeback rates or composite fringe benefit rates must be retained according to the applicable',
1746:'option below: 1 if submitted for negotiation.when a proposal, plan, or other computation must be submitted to the federal government',
1747:'to form the basis for negotiation of an indirect cost rate or other standard rates, then the threeyear retention period',
1748:'for its supporting records starts from the date of submission. 2 cfr 200.334f1 enhanced display page 73 of 208 2',
1749:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.334f2 uniform administrative requirements, cost principles, and audit 2',
1750:'if not submitted for negotiation.when a proposal, plan, or other computation is not required to be submitted to the federal',
1751:'government to form the basis for negotiation of an indirect cost rate or other standard rates, then the threeyear retention',
1752:'period for its supporting records starts from the end of the fiscal year or other accounting period covered by the',
1753:'proposal, plan, or other computation. § 200.335 requests for transfer of records. the federal agency must request the transfer of',
1754:'records to its custody from the recipient or subrecipient when it determines that the records possess longterm retention value. however,',
1755:'the federal agency may arrange for the recipient or subrecipient to retain the records that have longterm retention value so',
1756:'long as they are continuously available to the federal government. § 200.336 methods for collection, transmission, and storage of information.',
1757:'when practicable, the federal agency or passthrough entity and the recipient or subrecipient must collect, transmit, and store federal award',
1758:'information in open and machinereadable formats. a machinereadable format is a format in a standard computer language not english text',
1759:'that can be read automatically by a computer system. upon request, the federal agency or passthrough entity must always provide',
1760:'or accept paper versions of federal award information to and from the recipient or subrecipient. the federal agency or passthrough',
1761:'entity must not require additional copies of federal award information submitted in paper versions. the recipient or subrecipient does not',
1762:'need to create and retain paper copies when original records are electronic and cannot be altered. in addition, the recipient',
1763:'or subrecipient may substitute electronic versions of original paper records through duplication or other forms of electronic conversion, provided that',
1764:'the procedures are subject to periodic quality control reviews. quality control reviews must ensure that electronic conversion procedures provide safeguards',
1765:'against the alteration of records and assurance that records remain in a format that is readable by a computer system.',
1766:'§ 200.337 access to records. a records of recipients and subrecipients.the federal agency or passthrough entity, inspectors general, the comptroller',
1767:'general of the united states, or any of their authorized representatives must have the right of access to any records',
1768:'of the recipient or subrecipient pertinent to the federal award to perform audits, execute site visits, or for any other',
1769:'official use. this right also includes timely and reasonable access to the recipients or subrecipients personnel for the purpose of',
1770:'interview and discussion related to such documents or the federal award in general. b extraordinary and rare circumstances.the recipient or',
1771:'subrecipient and federal agency or passthrough entity must take measures to protect the name of victims of a crime when',
1772:'access to the victims name is necessary. only under extraordinary and rare circumstances would such access include a review of',
1773:'the true name of victims of a crime. routine monitoring cannot be considered extraordinary and rare circumstances that would necessitate',
1774:'access to this information. any such access, other than under a court order or subpoena pursuant to a bona fide',
1775:'confidential investigation, must be approved by the head or delegate of the federal agency. c expiration of right of access.the',
1776:'federal agencys or passthrough entitys rights of access are not limited to the required retention period of this part but',
1777:'last as long as the records are retained. federal agencies or passthrough entities must not impose any other access requirements',
1778:'upon recipients and subrecipients. 2 cfr 200.337c enhanced display page 74 of 208 2 cfr part 200 up to date',
1779:'as of 1/08/2025 2 cfr 200.338 uniform administrative requirements, cost principles, and audit § 200.338 restrictions on public access to',
1780:'records. federal agencies may not place restrictions on the recipient or subrecipient that limit public access to the records of',
1781:'the recipient or subrecipient pertinent to a federal award, except for protected personally identifiable information pii or other sensitive information',
1782:'when the federal agency can demonstrate that such records will be kept confidential and would have been exempted from disclosure',
1783:'pursuant to the freedom of information act 5 u.s.c. 552 or controlled unclassified information pursuant to executive order 13556 if',
1784:'the records had belonged to the federal agency. the freedom of information act 5 u.s.c. 552 foia does not apply',
1785:'to records that remain under the recipients or subrecipients control except as required by§ 200.315. unless required by federal, state,',
1786:'local, or tribal law, recipients and subrecipients are not required to permit public access to their records. the recipients or',
1787:'subrecipients records provided to a federal agency generally will be subject to foia and applicable exemptions. remedies for noncompliance §',
1788:'200.339 remedies for noncompliance. the federal agency or passthrough entity may implement specific conditions if the recipient or subrecipient fails',
1789:'to comply with the u.s. constitution, federal statutes, regulations, or terms and conditions of the federal award. see§ 200.208for additional',
1790:'information on specific conditions. when the federal agency or passthrough entity determines that noncompliance cannot be remedied by imposing specific',
1791:'conditions, the federal agency or pass through entity may take one or more of the following actions: a temporarily withhold',
1792:'payments until the recipient or subrecipient takes corrective action. b disallow costs for all or part of the activity associated',
1793:'with the noncompliance of the recipient or subrecipient. c suspend or terminate the federal award in part or in its',
1794:'entirety. d initiate suspension or debarment proceedings as authorized in2 cfr part 180and the federal agencys regulations, or for passthrough',
1795:'entities, recommend suspension or debarment proceedings be initiated by the federal agency. e withhold further federal funds new awards or',
1796:'continuation funding for the project or program. f pursue other legally available remedies. § 200.340 termination. a the federal award',
1797:'may be terminated in part or its entirety as follows: 1 by the federal agency or passthrough entity if the',
1798:'recipient or subrecipient fails to comply with the terms and conditions of the federal award; 2 by the federal agency',
1799:'or passthrough entity with the consent of the recipient or subrecipient, in which case the two parties must agree upon',
1800:'the termination conditions. these conditions include the effective date and, in the case of partial termination, the portion to be',
1801:'terminated; 3 by the recipient or subrecipient upon sending the federal agency or passthrough entity a written notification of the',
1802:'reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. however,',
1803:'if the federal agency or passthrough entity 2 cfr 200.340a3 enhanced display page 75 of 208 2 cfr part 200',
1804:'up to date as of 1/08/2025 2 cfr 200.340a4 uniform administrative requirements, cost principles, and audit determines that the remaining',
1805:'portion of the federal award will not accomplish the purposes for which the federal award was made, the federal agency',
1806:'or passthrough entity may terminate the federal award in its entirety; or 4 by the federal agency or passthrough entity',
1807:'pursuant to the terms and conditions of the federal award, including, to the extent authorized by law, if an award',
1808:'no longer effectuates the program goals or agency priorities. b the federal agency or passthrough entity must clearly and unambiguously',
1809:'specify all termination provisions in the terms and conditions of the federal award. c when the federal agency terminates the',
1810:'federal award prior to the end of the period of performance due to the recipients material failure to comply with',
1811:'the terms and conditions of the federal award, the federal agency must report the termination insam.gov. a federal agency must',
1812:'use the contractor performance assessment reporting system cpars to enter information insam.gov. 1 the information required underparagraph cof this section',
1813:'is not to be reported insam.govuntil the recipient has either: i exhausted its opportunities to object or challenge the decision',
1814:'see§ 200.342; or ii has not, within 30 calendar days after being notified of the termination, informed the federal agency',
1815:'that it intends to appeal the decision to terminate. 2 if a federal agency, after entering information about a termination',
1816:'insam.gov, subsequently: i learns that any of that information is erroneous, the federal agency must correct the information in the',
1817:'system within three business days; ii obtains an update to that information that could be helpful to other federal agencies,',
1818:'the federal agency is strongly encouraged to amend the information in the system to incorporate the update in a timely',
1819:'way. 3 the federal agency must not post any information that will be made publicly available in the nonpublic segment',
1820:'ofsam.govthat is covered by a disclosure exemption under the freedom of information act foia. when the recipient asserts within seven',
1821:'calendar days to the federal agency which posted the information that a disclosure exemption under foia covers some of the',
1822:'information made publicly available, the federal agency that posted the information must remove the posting within seven calendar days of',
1823:'receiving the assertion. before reposting the releasable information, the federal agency must resolve the issue in accordance with the agencys',
1824:'foia procedures. d when the federal award is terminated in part or its entirety, the federal agency or passthrough entity',
1825:'and recipient or subrecipient remain responsible for compliance with the requirements in§§ 200.344and 200.345. § 200.341 notification of termination requirement.',
1826:'a the federal agency or passthrough entity must provide written notice of termination to the recipient or subrecipient. the written',
1827:'notice of termination should include the reasons for termination, the effective date, and the portion of the federal award to',
1828:'be terminated, if applicable. b if the federal award is terminated for the recipients material failure to comply with a',
1829:'federal award, the notification must state the following: 2 cfr 200.341b enhanced display page 76 of 208 2 cfr part',
1830:'200 up to date as of 1/08/2025 2 cfr 200.341b1 uniform administrative requirements, cost principles, and audit 1 the termination',
1831:'decision will be reported insam.gov; 2 the information will be available insam.govfor five years from the date of the termination',
1832:'and then archived; 3 federal agencies that consider making a federal award to the recipient during the five year period',
1833:'must consider this information in judging whether the recipient is qualified to receive the federal award when the federal share',
1834:'of the federal award is expected to exceed the simplified acquisition threshold over the period of performance; 4 the recipient',
1835:'may comment on any information insam.govabout the recipient for future consideration by federal agencies. the recipient may submit comments insam.gov.',
1836:'5 federal agencies should consider the recipients comments when determining whether the recipient is qualified for a federal award. c',
1837:'upon termination of the federal award, the federal agency must provide the information required by the federal funding accountability and',
1838:'transparency act ffata tousaspending.gov.in addition, the federal agency must update or notify any other relevant governmentwide systems or entities of',
1839:'any indications of poor performance as required by41 u.s.c. 2313and31 u.s.c. 3321. § 200.342 opportunities to object, hearings, and appeals.',
1840:'the federal agency must maintain written procedures for processing objections, hearings, and appeals. upon initiating a remedy for noncompliance for',
1841:'example, disallowed costs, a corrective action plan, or termination, the federal agency must provide the recipient with an opportunity to',
1842:'object and provide information challenging the action. the federal agency or passthrough entity must comply with any requirements for hearings,',
1843:'appeals, or other administrative proceedings to which the recipient or subrecipient is entitled under any statute or regulation applicable to',
1844:'the action involved. § 200.343 effects of suspension and termination. costs to the recipient or subrecipient resulting from financial obligations',
1845:'incurred by the recipient or subrecipient during a suspension or after the termination of a federal award are not allowable',
1846:'unless the federal agency or passthrough entity expressly authorizes them in the notice of suspension or termination or subsequently. however,',
1847:'costs during suspension or after termination are allowable if: a the costs result from financial obligations which were properly incurred',
1848:'by the recipient or subrecipient before the effective date of suspension or termination, and not in anticipation of it; and',
1849:'b the costs would be allowable if the federal award was not suspended or expired normally at the end of',
1850:'the period of performance in which the termination takes effect. closeout § 200.344 closeout. a the federal agency or passthrough',
1851:'entity must close out the federal award when it determines that all administrative actions and required work of the federal',
1852:'award have been completed. when the recipient or subrecipient fails to complete the necessary administrative actions or the required work',
1853:'for an award, the federal agency or passthrough entity must proceed with closeout based on the information available. this section',
1854:'specifies the administrative actions required at the end of the period of performance. 2 cfr 200.344a enhanced display page 77',
1855:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.344b uniform administrative requirements, cost principles,',
1856:'and audit b a recipient must submit all reports financial, performance, and other reports required by the federal award no',
1857:'later than 120 calendar days after the conclusion of the period of performance. a subrecipient must submit all reports financial,',
1858:'performance, and other reports required by a subaward to the pass through entity no later than 90 calendar days after',
1859:'the conclusion of the period of performance of the subaward or an earlier date as agreed upon by the passthrough',
1860:'entity and subrecipient. when justified, the federal agency or passthrough entity may approve extensions for the recipient or subrecipient. when',
1861:'the recipient does not have a final indirect cost rate covering the period of performance, a final financial report must',
1862:'still be submitted to fulfill the requirements of this section. the recipient must submit a revised final financial report when',
1863:'all applicable indirect cost rates have been finalized. c the recipient must liquidate all financial obligations incurred under the federal',
1864:'award no later than 120 calendar days after the conclusion of the period of performance. a subrecipient must liquidate all',
1865:'financial obligations incurred under a subaward no later than 90 calendar days after the conclusion of the period of performance',
1866:'of the subaward or an earlier date as agreed upon by the passthrough entity and subrecipient. when justified, the federal',
1867:'agency or passthrough entity may approve extensions for the recipient or subrecipient. d the federal agency or passthrough entity must',
1868:'not delay payments to the recipient or subrecipient for costs meeting the requirements ofsubpart e of this part. e the',
1869:'recipient or subrecipient must promptly refund any unobligated funds that the federal agency or passthrough entity paid and that are',
1870:'not authorized to be retained. see omb circular a129 and§ 200.346. f the federal agency or passthrough entity must make',
1871:'all necessary adjustments to the federal share of costs after closeout reports are received for example, to reflect the disallowance',
1872:'of any costs or the deobligation of an unliquidated balance. g the recipient or subrecipient must account for any property',
1873:'acquired with federal funds or received from the federal government in accordance with§§ 200.310through200.316and200.330. h the federal agency must make',
1874:'every effort to complete all closeout actions no later than one year after the end of the period of performance.',
1875:'if the indirect cost rate has not been finalized and would delay closeout, the federal agency is authorized to mutually',
1876:'agree with the recipient to close an award using the current or most recently negotiated rate. however, the recipient is',
1877:'not required to agree to a final rate for a federal award for the purpose of prompt closeout. i if',
1878:'the recipient does not comply with the requirements of this section, including submitting all final reports, the federal agency must',
1879:'report the recipients material failure to comply with the terms and conditions of the federal award insam.gov. a federal agency',
1880:'must use the contractor performance assessment reporting system cpars to enter or amend information insam.gov. federal agencies may also pursue',
1881:'other enforcement actions as appropriate. see§ 200.339. postcloseout adjustments and continuing responsibilities § 200.345 postcloseout adjustments and continuing responsibilities. a',
1882:'the closeout of the federal award does not affect any of the following: 2 cfr 200.345a enhanced display page 78',
1883:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.345a1 uniform administrative requirements, cost principles,',
1884:'and audit 1 the right of the federal agency or passthrough entity to disallow costs and recover funds on the',
1885:'basis of a later audit or review. however, the federal agency or passthrough entity must make determinations to disallow costs',
1886:'and notify the recipient or subrecipient within the record retention period. 2 the recipients or subrecipients requirement to return funds',
1887:'or right to receive any remaining and available funds as a result of refunds, corrections, final indirect cost rate adjustments',
1888:'unless the federal award in closed in accordance with§ 200.344h, or other transactions. 3 the ability of the federal agency',
1889:'or passthrough entity to make financial adjustments to a previously closed federal award, such as resolving indirect cost payments and',
1890:'making final payments. 4 audit requirements insubpart f of this part. 5 property management and disposition requirements in§§ 200.310through200.316. 6',
1891:'records retention as required in§§ 200.334through200.337. b after the closeout of the federal award, a relationship created under the federal',
1892:'award may be modified or ended in whole or in part. this may only be done with the consent of',
1893:'the awarding federal agency or passthrough entity and the recipient or subrecipient, provided the responsibilities of the recipient or subrecipient',
1894:'referred to inparagraph aof this section, including those for property management as applicable, are considered and provisions are made for',
1895:'continuing responsibilities of the recipient or subrecipient, as appropriate. collection of amounts due § 200.346 collection of amounts due. any',
1896:'federal funds paid to the recipient or subrecipient in excess of the amount that the recipient or subrecipient is determined',
1897:'to be entitled to under the federal award constitute a debt to the federal government. the federal agency must collect',
1898:'all debts arising out of its federal awards in accordance with the standards for the administrative collection of claims 31',
1899:'cfr part 901. subpart e—cost principles general provisions § 200.400 policy guide. the application of these cost principles is based',
1900:'on the fundamental premises that: a the recipient and subrecipient are responsible for the efficient and effective administration of the',
1901:'federal award through sound management practices. b the recipient and subrecipient are responsible for administering federal funds in a manner',
1902:'consistent with federal statutes, regulations, and the terms and conditions of the federal award. c the recipient and subrecipient, in',
1903:'recognition of their unique combination of staff, facilities, and experience, are responsible for employing organization and management techniques necessary to',
1904:'ensure the proper and efficient administration of the federal award. 2 cfr 200.400c enhanced display page 79 of 208 2',
1905:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.400d uniform administrative requirements, cost principles, and audit d',
1906:'the accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of',
1907:'costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the federal award. e',
1908:'when reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, the cognizant agency for indirect costs should ensure',
1909:'that the recipient consistently applies these cost principles. where wide variations exist in the treatment of a given cost item',
1910:'by the recipient, the reasonableness and equity of such treatments should be fully considered. see the definition ofindirect costsin§ 200.1.',
1911:'f for recipients and subrecipients that educate and engage students in research, the dual role of students as both trainees',
1912:'and employees including pre and postdoctoral staff contributing to the completion of federal awards for research must be recognized in',
1913:'the application of these principles. g the recipient or subrecipient must not earn or keep any profit resulting from federal',
1914:'financial assistance unless explicitly authorized by the terms and conditions of the federal award. see also§ 200.307. when the required',
1915:'activities of a fixed amount award were completed in accordance with the terms and conditions of the award, the unexpended',
1916:'funds retained by the recipient or subrecipient are not considered profit. § 200.401 application. a general.the recipient and subrecipient must',
1917:'apply these principles in determining allowable costs under federal awards. the recipient and subrecipient must also use these principles as',
1918:'a guide in pricing fixed price contracts and subcontracts when costs are used in determining the appropriate price. these cost',
1919:'principles do not apply to: 1 arrangements under which federal financing is in the form of loans, scholarships, fellowships, traineeships,',
1920:'or other fixed amounts based on items such as education allowance or published tuition rates and fees. 2 capitation awards',
1921:'based on case counts or the number of beneficiaries. 3 fixed amount awards, except as provided in§ 200.101b. see also§',
1922:'200.201. 4 federal awards to hospitals seeappendix ix of this part. 5 food commodities provided through grants and cooperative agreements.',
1923:'6 other awards under which the recipient or subrecipient is not required to account for actual costs incurred. b federal',
1924:'contract.a federal contract awarded to a recipient is subject to the cost accounting standards cas. it must incorporate the applicable',
1925:'cas requirements per48 cfr chapter 99and48 cfr part 30 far part 30. with respect to the allocation of costs, the',
1926:'cost accounting standards at48 cfr parts 9904or9905take precedence over the cost principles in subpart e. when a contract with a',
1927:'recipient is subject to full cas coverage, the allowability of certain costs under the cost principles will be affected by',
1928:'the allocation provisions of the cost accounting standards for example, cas 414—48 cfr 9904.414—cost of money as an element of',
1929:'the cost of facilities capital, and cas 417—48 cfr 9904.417—cost of money as an element of the cost of capital',
1930:'assets under construction, apply instead of the allowability provisions of§ 200.449. for example, the allowability of costs in cascovered contracts',
1931:'is determined first by the allocation provisions of the cost accounting standards rather than the allowability provisions in§ 200.449unless the',
1932:'cas does not address the specific costs. in complying with those requirements, the recipients application of cost accounting practices for',
1933:'estimating, 2 cfr 200.401b enhanced display page 80 of 208 2 cfr part 200 up to date as of 1/08/2025',
1934:'2 cfr 200.401c uniform administrative requirements, cost principles, and audit accumulating, and reporting costs for federal awards and cascovered contracts',
1935:'must be consistent with 48 cfr. the recipient only needs to maintain one set of accounting records supporting the allocation',
1936:'of costs if the recipient administers both federal awards and cascovered contracts. c exemptions.some nonprofit organizations, because of their size',
1937:'and nature of operations, can be considered to be similar to forprofit organizations in terms of the applicability of cost',
1938:'principles. these nonprofit organizations must operate under federal cost principles that apply to forprofit organizations located at48 cfr 31.2. appendix',
1939:'viii contains a list of these nonprofit organizations. other organizations may be added to this list if approved by the',
1940:'cognizant agency for indirect costs. basic considerations § 200.402 composition of costs. the total cost of a federal award is',
1941:'the sum of the allowable direct and allocable indirect costs minus any applicable credits § 200.403 factors affecting allowability of',
1942:'costs. except where otherwise authorized by statute, costs must meet the following criteria to be allowable under federal awards: a',
1943:'be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. b conform',
1944:'to any limitations or exclusions set forth in these principles or in the federal award as to types or amount',
1945:'of cost items. c be consistent with policies and procedures that apply uniformly to both federally financed and other activities',
1946:'of the recipient or subrecipient. d be accorded consistent treatment. for example, a cost must not be assigned to a',
1947:'federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been',
1948:'allocated to the federal award as an indirect cost. e be determined in accordance with generally accepted accounting principles gaap,',
1949:'except, for state and local governments and indian tribes only, as otherwise provided for in this part. f not be',
1950:'included as a cost or used to meet cost sharing requirements of any other federallyfinanced program in either the current',
1951:'or a prior period. see§ 200.306b. g be adequately documented. see§§ 200.300through200.309. h administrative closeout costs may be incurred until',
1952:'the due date of the final reports. if incurred, these costs must be liquidated prior to the due date of',
1953:'the final reports and charged to the final budget period of the award unless otherwise specified by the federal agency.',
1954:'all other costs must be incurred during the approved budget period. at its discretion, the federal agency is authorized to',
1955:'waive prior written approvals to carry forward unobligated balances to subsequent budget periods. see§ 200.308g3. 2 cfr 200.403h enhanced display',
1956:'page 81 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.404 uniform administrative requirements,',
1957:'cost principles, and audit § 200.404 reasonable costs. a cost is reasonable if it does not exceed an amount that',
1958:'a prudent person would incur under the circumstances prevailing when the decision was made to incur the cost. in determining',
1959:'the reasonableness of a given cost, consideration must be given to the following: a whether the cost is generally recognized',
1960:'as ordinary and necessary for the recipients or subrecipients operation or the proper and efficient performance of the federal award;',
1961:'b the restraints or requirements imposed by such factors as sound business practices; armslength bargaining; federal, state, local, tribal, and',
1962:'other laws and regulations; and terms and conditions of the federal award; c market prices for comparable costs for the',
1963:'geographic area; d whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the recipient or',
1964:'subrecipient, its employees, its students or membership if applicable, the public at large, and the federal government; and e whether',
1965:'the cost represents a deviation from the recipients or subrecipients established written policies and procedures for incurring costs. § 200.405',
1966:'allocable costs. a allocable costs in general.a cost is allocable to a federal award or other cost objective if the',
1967:'cost is assignable to that federal award or other cost objective in accordance with the relative benefits received. this standard',
1968:'is met if the cost satisfies any of the following criteria: 1 is incurred specifically for the federal award; 2',
1969:'benefits both the federal award and other work of the recipient or subrecipient and can be distributed in proportions that',
1970:'may be approximated using reasonable methods; or 3 is necessary to the overall operation of the recipient or subrecipient and',
1971:'is assignable in part to the federal award in accordance with these cost principles. b allocation of indirect costs.all activities',
1972:'which benefit from the recipients or subrecipients indirect cost, including unallowable activities and donated services by the recipient or subrecipient',
1973:'or third parties, will receive an appropriate allocation of indirect costs. c limitation on charging certain allocable costs to other',
1974:'federal awards.a cost allocable to a particular federal award may not be charged to other federal awards for example, to',
1975:'overcome fund deficiencies or to avoid restrictions imposed by federal statutes, regulations, or the terms and conditions of the federal',
1976:'awards. however, this prohibition would not preclude the recipient or subrecipient from shifting costs that are allowable under two or',
1977:'more federal awards in accordance with existing federal statutes, regulations, or the terms and conditions of the federal awards. d',
1978:'direct cost allocation principles.if a cost benefits two or more projects or activities in proportions that can be determined without',
1979:'undue effort or cost, the cost must be allocated to the projects based on the proportional benefit however, when those',
1980:'proportions cannot be determined because of the interrelationship of the work involved, then, notwithstanding paragraph c, the costs may be',
1981:'allocated or transferred to benefitted projects on any reasonable documented basis. where the purchase of equipment or other capital asset',
1982:'is specifically authorized under a federal award, the costs are 2 cfr 200.405d enhanced display page 82 of 208 2',
1983:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.405e uniform administrative requirements, cost principles, and audit assignable',
1984:'to the federal award regardless of the use that may be made of the equipment or other capital asset involved,',
1985:'when no longer needed for the purpose for which it was originally required. see also§§ 200.310through200.316and200.439. e costs of contracts',
1986:'subject to cas.if a contract is subject to cas, costs must be allocated to that contract according to the cost',
1987:'accounting standards, which take precedence over the allocation provisions in this part. § 200.406 applicable credits. a applicable credits refer',
1988:'to transactions that offset or reduce direct or indirect costs allocable to a federal award. examples of such transactions are',
1989:'purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous',
1990:'charges. to the extent that such credits accruing to or received by the recipient or subrecipient relate to allowable costs,',
1991:'they must be credited to the federal award either as a cost reduction or cash refund, as appropriate. b in',
1992:'some instances, the amounts received from the federal government to finance activities or service operations of the recipient or subrecipient',
1993:'should be treated as applicable credits. specifically, the concept of netting such credit items including any amounts used to meet',
1994:'cost sharing requirements must be recognized in determining the rates or amounts to be charged to the federal award. see§§',
1995:'200.436and200.468for potential application areas. § 200.407 prior written approval prior approval. the reasonableness and allocability of certain costs under federal',
1996:'awards may be difficult to determine. to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, the recipient may',
1997:'seek the prior written approval of the federal agency or, for indirect costs, the cognizant agency for indirect costs before',
1998:'incurring the cost. the absence of prior written approval on any element of cost will not, in itself, affect the',
1999:'reasonableness or allocability of that cost unless prior approval is specifically required for allowability as described under certain circumstances in',
2000:'the following sections: a section 200.306 cost sharing; b section 200.307 program income; c section 200.308 revision of budget and',
2001:'program plans; d section 200.333 fixed amount subawards; e section 200.430 compensation—personal services, paragraph h; f section 200.431 compensation—fringe benefits;',
2002:'g section 200.439 equipment and other capital expenditures; h section 200.440 exchange rates; i section 200.441 fines, penalties, damages and',
2003:'other settlements; j section 200.442 fund raising and investment management costs; k section 200.445 goods or services for personal use;',
2004:'l section 200.447 insurance and indemnification; 2 cfr 200.407l enhanced display page 83 of 208 2 cfr part 200 up',
2005:'to date as of 1/08/2025 2 cfr 200.407m uniform administrative requirements, cost principles, and audit m section 200.455 organization costs;',
2006:'n section 200.458 preaward costs; o section 200.462 rearrangement and reconversion costs; p section 200.475 travel costs. § 200.408 limitation',
2007:'on allowance of costs. statutory requirements may limit the allowability of costs. any costs that exceed the maximum amount allowed',
2008:'by statute may not be charged to the federal award. only the amount allowable by statute may be charged to',
2009:'the federal award. § 200.409 special considerations. other sections in this part describe special considerations and requirements applicable to states,',
2010:'local governments, indian tribes, and ihes. in addition, certain provisions among the items of cost in this subpart are only',
2011:'applicable to certain types of recipients and subrecipients, as specified in the following sections: a direct and indirect costs §§',
2012:'200.412200.415; b special considerations for states, local governments and indian tribes §§ 200.416and200.417; and c special considerations for institutions of',
2013:'higher education §§ 200.418and200.419. § 200.410 collection of unallowable costs. payments made for costs determined to be unallowable by either',
2014:'the awarding federal agency, cognizant agency for indirect costs, or passthrough entity must be refunded with interest to the federal',
2015:'government. unless directed by federal statute or regulation, repayments must be made in accordance with the instructions provided by the',
2016:'federal agency or passthrough entity that made the allowability determination. see§§ 200.300through200.309, and§ 200.346. § 200.411 adjustment of previously negotiated',
2017:'indirect cost rates containing unallowable costs. a negotiated indirect cost rates based on a proposal later found to have included',
2018:'costs that: 1 are unallowable as specified by federal statutes, regulations or the terms and conditions of a federal award;',
2019:'or 2 are unallowable because they are not allocable to the federal awards, must be adjusted, or a refund must',
2020:'be made in accordance with the requirements of this section. these adjustments or refunds are intended to correct the proposals',
2021:'used to establish the rates and do not constitute a reopening of the rate negotiation. the adjustments or refunds must',
2022:'be made regardless of the type of rate negotiated predetermined, final, fixed, or provisional. b for rates covering a future',
2023:'fiscal year of the recipient or subrecipient, the unallowable costs must be removed from the indirect cost pools and the',
2024:'rates must be adjusted. 2 cfr 200.411b enhanced display page 84 of 208 2 cfr part 200 up to date',
2025:'as of 1/08/2025 2 cfr 200.411c uniform administrative requirements, cost principles, and audit c for rates covering a past period,',
2026:'the federal share of the unallowable costs must be computed for each year involved, and a cash refund including interest',
2027:'must be made to the federal government in accordance with the directions provided by the cognizant agency for indirect costs.',
2028:'when cash refunds are made for past periods covered by provisional or fixed rates, appropriate adjustments must be made when',
2029:'the rates are finalized to avoid duplicate recovery of the unallowable costs. d for rates covering the current period, either',
2030:'a rate adjustment or a refund, as described inparagraphs b andcof this section, must be required by the cognizant agency',
2031:'for indirect costs. the choice of method must be at the discretion of the cognizant agency for indirect costs, based',
2032:'on its judgment as to which method would be most practical. e the amount or proportion of unallowable costs included',
2033:'in each years rate will be assumed to be the same as the amount or proportion of unallowable costs included',
2034:'in the base year proposal used to establish the rate. direct and indirect costs § 200.412 classification of costs. there',
2035:'is no universal rule for classifying certain costs as direct or indirect costs. a cost may be direct for some',
2036:'specific service or function but indirect for the federal award or other final cost objective. therefore, each cost incurred for',
2037:'the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid',
2038:'possible doublecharging of federal awards. guidelines for determining direct and indirect costs charged to federal awards are provided in this',
2039:'subpart. § 200.413 direct costs. a general.direct costs are those costs that can be identified specifically with a particular final',
2040:'cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned',
2041:'to such activities relatively easily with a high degree of accuracy. costs incurred for the same purpose in like circumstances',
2042:'must be treated consistently as direct or indirect costs. see§ 200.405. b application to federal awards.the association of costs with',
2043:'a federal award determines whether costs are direct or indirect. costs charged directly to a federal award are typically incurred',
2044:'specifically for that federal award including, for example, supplies needed to achieve the awards objectives and the proportion of employee',
2045:'compensation and fringe benefits expended in relation to that specific award. costs that otherwise would be treated as indirect costs',
2046:'may also be considered direct costs if they are directly related to a specific award including, for example, extraordinary utility',
2047:'consumption, the cost of materials supplied from stock or services rendered by specialized facilities, cybersecurity, integrated data systems, asset management',
2048:'systems, performance management costs, program evaluation costs, or other institutional service operations. c administrative and clerical staff salaries.administrative and clerical',
2049:'staff salaries should normally be treated as indirect costs. direct charging of these costs may be appropriate only if they',
2050:'meet all of the following conditions: 1 the administrative or clerical services are integral to a federal award; 2 individuals',
2051:'involved can be specifically identified with a federal award; and 3 the costs are not also recovered as indirect costs.',
2052:'2 cfr 200.413c3 enhanced display page 85 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
2053:'cfr 200.413d uniform administrative requirements, cost principles, and audit d minor items.a direct cost of a minor amount may be',
2054:'treated as an indirect cost, for reasons of practicality, provided that it is treated consistently for all federal and nonfederal',
2055:'purposes. e treatment of unallowable costs in determining indirect cost rates.the costs of certain activities are not allowable as charges',
2056:'to federal awards. even though these costs are unallowable, they must be treated as direct costs for purposes of determining',
2057:'indirect cost rates and be allocated their equitable share of the recipients or subrecipients indirect costs if they represent activities',
2058:'which: 1 include the salaries of personnel; 2 occupy space; and 3 benefit from the recipients or subrecipients indirect costs.',
2059:'f treatment of certain costs for nonprofit organizations.for nonprofit organizations, the costs of activities performed by the nonprofit organization primarily',
2060:'as a service to members, clients, or the general public when significant and necessary to the organizations mission must be',
2061:'treated as direct costs whether or not allowable, and be allocated an equitable share of indirect costs. some examples of',
2062:'these types of activities include: 1 maintenance of membership rolls, subscriptions, publications, and related functions. see§ 200.454. 2 providing services',
2063:'and information to members, the government, or the public. see§§ 200.454and 200.450. 3 promotion, lobbying, and other forms of public',
2064:'relations. see§§ 200.421and200.450. 4 conferences except those held to conduct the general administration of the recipient or subrecipient. see also§',
2065:'200.432. 5 maintenance, protection, and investment of special funds not used in the recipients or subrecipients operation. see also§ 200.442.',
2066:'6 administration of group benefits on behalf of members or clients, including life and hospital insurance, annuity or retirement plans,',
2067:'and financial aid. see also§ 200.431. § 200.414 indirect costs. a facilities and administration classification.for major institutions of higher education',
2068:'ihe and major nonprofit organizations, indirect costs must be classified within two broad categories: “facilities” and “administration.” “facilities” is defined',
2069:'as depreciation on buildings, equipment and capital improvements, interest on debt associated with certain buildings, equipment and capital improvements, and',
2070:'operations and maintenance expenses.“administration” is defined as general administration and general expenses such as the directors office, accounting, personnel, and',
2071:'all other types of expenditures not listed specifically under one of the subcategories of “facilities” including cross allocations from other',
2072:'pools, where applicable. for nonprofit organizations, library expenses are included in the “administration” category; for ihes, they are included in',
2073:'the “facilities” category. major ihes are defined as those required to use the standard format for submission as noted in',
2074:'appendix iii. major nonprofit organizations are those which receive more than $10 million in direct federal funding. b diversity of',
2075:'nonprofit organizations.it is not always possible to specify the types of costs that may be classified as indirect costs for',
2076:'nonprofit organizations due to the diversity of their accounting practices. the association of a cost with a federal award is',
2077:'the determining factor in distinguishing direct from indirect costs. however, typical examples of indirect cost for many nonprofit organizations may',
2078:'include 2 cfr 200.414b enhanced display page 86 of 208 2 cfr part 200 up to date as of 1/08/2025',
2079:'2 cfr 200.414c uniform administrative requirements, cost principles, and audit depreciation on buildings and equipment, the costs of operating and',
2080:'maintaining facilities, and general administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and',
2081:'accounting. c federal agency acceptance of negotiated indirect cost rates.see§ 200.306. 1 negotiated indirect cost rates must be accepted by',
2082:'all federal agencies. a federal agency may use a rate different from the negotiated rate for either a class of',
2083:'federal awards or a single federal award only when required by federal statute or regulation, or when approved by the',
2084:'awarding federal agency in accordance withparagraph c3of this section. 2 the federal agency must notify omb of any approved deviations.',
2085:'the recipient or subrecipient may notify omb of any disputes with federal agencies regarding the application of a federally negotiated',
2086:'indirect cost rate. 3 the federal agency must implement, and make publicly available, the policies, procedures and general decisionmaking criteria',
2087:'that their programs will follow to seek and justify deviations from negotiated rates. 4 the federal agency must include, in',
2088:'the notice of funding opportunity, the policies relating to indirect cost rate reimbursement or cost share as approved under paragraph',
2089:'e. as appropriate, the federal agency should incorporate discussion of these policies into its outreach activities with applicants before posting',
2090:'a notice of funding opportunity. see§ 200.204. d passthrough entities.passthrough entities are subject to the requirements in§ 200.332b4and must accept',
2091:'all federally negotiated indirect costs rates for subrecipients. e appendices.requirements for development and submission of indirect cost rate proposals and',
2092:'cost allocation plans are contained in the following appendices: 1 appendix iii to part 200—indirect f&a costs identification and assignment,',
2093:'and rate determination for institutions of higher education ihes; 2 appendix iv to part 200—indirect f&a costs identification and assignment,',
2094:'and rate determination for nonprofit organizations; 3 appendix v to part 200—state/local governmentwide central service cost allocation plans; 4 appendix',
2095:'vi to part 200—public assistance cost allocation plans; 5 appendix vii to part 200—states and local government and indian tribe',
2096:'indirect cost proposals; and 6 appendix ix to part 200—hospital cost principles. f de minimis rate.recipients and subrecipients that do',
2097:'not have a current federal negotiated indirect cost rate including provisional rate may elect to charge a de minimis rate',
2098:'of up to 15 percent of modified total direct costs mtdc. the recipient or subrecipient is authorized to determine the',
2099:'appropriate rate up to this limit. federal agencies and passthrough entities may not require recipients and subrecipients to use a',
2100:'de minimis rate lower than the negotiated indirect cost rate or the rate elected pursuant to this subsection unless required',
2101:'by federal statute or regulation. the de minimis rate must not be applied to cost reimbursement contracts issued directly by',
2102:'the federal government in accordance with the far. recipients and subrecipients are not required to use the de minimis rate.',
2103:'when applying the de minimis rate, costs must be consistently charged as either direct or indirect costs and may not',
2104:'be double charged 2 cfr 200.414f enhanced display page 87 of 208 2 cfr part 200 up to date as',
2105:'of 1/08/2025 2 cfr 200.414g uniform administrative requirements, cost principles, and audit or inconsistently charged as both. the de minimis',
2106:'rate does not require documentation to justify its use and may be used indefinitely. once elected, the recipient or subrecipient',
2107:'must use the de minimis rate for all federal awards until the recipient or subrecipient chooses to receive a negotiated',
2108:'rate. g onetime extension of indirect rates.a recipient or subrecipient with a current federal negotiated indirect cost rate may apply',
2109:'for a onetime extension of that agreement for up to four years. this extension will be subject to review and',
2110:'approval by the cognizant agency for indirect costs. if this extension is granted, the recipient or subrecipient may not request',
2111:'a rate review until the extension period ends. the recipient or subrecipient must reapply to negotiate a new rate when',
2112:'the extension ends. after a new rate has been negotiated, the recipient or subrecipient may again apply for a onetime',
2113:'extension of the new rate in accordance with this paragraph. § 200.415 required certifications. a financial reports must include a',
2114:'certification, signed by an official who is authorized to legally bind the recipient, which reads as follows: “by signing this',
2115:'report, i certify to the best of my knowledge and belief that the report is true, complete, and accurate, and',
2116:'the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of',
2117:'the federal award. i am aware that any false, fictitious, or fraudulent information, or the omission of any material fact,',
2118:'may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. u.s. code title',
2119:'18, section 1001 and title 31, sections 37293730 and 38013812.” b subrecipients under the federal award must certify to the',
2120:'passthrough entity whenever applying for funds, requesting payment, and submitting financial reports: “i certify to the best of my knowledge',
2121:'and belief that the information provided herein is true, complete, and accurate. i am aware that the provision of false,',
2122:'fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil, or administrative consequences',
2123:'including, but not limited to violations of u.s. code title 18, sections 2, 1001, 1343 and title 31, sections 37293730',
2124:'and 38013812.” each such certification must be maintained pursuant to the requirements of§ 200.334. this paragraph applies to all tiers',
2125:'of subrecipients. c certification of cost allocation plan or indirect cost rate proposal. each cost allocation plan or indirect cost',
2126:'rate proposal must comply with the following: 1 a proposal to establish a cost allocation plan or an indirect cost',
2127:'rate, whether submitted to a federal cognizant agency for indirect costs or maintained on file by the recipient, must be',
2128:'certified by the recipient using thecertificate of cost allocation planorcertificate of indirect costsas set forth in appendices iii through vii,',
2129:'and ix of this part. the certificate must be signed on behalf of the recipient by an individual at a',
2130:'level no lower than the vice president or chief financial officer of the recipient that submits the proposal. 2 the',
2131:'federal government may either disallow all indirect costs or unilaterally establish an indirect cost rate when the recipient fails to',
2132:'submit a certified proposal for establishing a rate. this rate should be based upon audited historical data or other data',
2133:'furnished to the cognizant agency for indirect costs and for which it can be demonstrated that all unallowable costs have',
2134:'been excluded. the rate established must ensure that potentially unallowable costs are not reimbursed. alternatively, the recipient may use the',
2135:'de minimis indirect cost rate. see§ 200.414f. d nonprofit organizations must certify that they did not meet the definition of',
2136:'a major nonprofit organization as defined in§ 200.414a, if applicable. 2 cfr 200.415d enhanced display page 88 of 208 2',
2137:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.415e uniform administrative requirements, cost principles, and audit e',
2138:'the recipient must certify that the requirements and standards for lobbying see§ 200.450 have been met when submitting its indirect',
2139:'cost rate proposal. special considerations for states, local governments and indian tribes § 200.416 cost allocation plans and indirect cost',
2140:'proposals. a awards to states, local governments, and indian tribes are often implemented at the level of department within the',
2141:'state, local government, or indian tribe. a central service cost allocation plan is established to allow such department to claim',
2142:'a portion of centralized service costs that are incurred in proportion to the awards activities. examples of centralized service costs',
2143:'may include motor pools, computer centers, purchasing, and accounting. since federal awards are performed within the individual operating agencies, there',
2144:'needs to be a process whereby these central service costs can be identified and assigned to benefitted activities on a',
2145:'reasonable and consistent basis. the central service cost allocation plan establishes this process. b individual departments typically charge federal awards',
2146:'for indirect costs through an indirect cost rate. a separate indirect cost rate proposal for each operating department is usually',
2147:'necessary to claim indirect costs under federal awards. indirect costs include: 1 the indirect costs originating in each operating department',
2148:'of the state, local government, or indian tribe carrying out federal awards; and 2 the costs of central governmental services',
2149:'distributed through the central service cost allocation plan and not otherwise treated as direct costs. c the requirements for developing',
2150:'and submitting cost allocation plans for central service costs and public assistance programs and indirect cost rate proposals are contained',
2151:'in appendices v, vi, and vii of this part. § 200.417 interagency service. an operating department may provide services to',
2152:'another operating department of the same state, local government, or indian tribe. in these instances, the cost of services provided',
2153:'may include allowable direct costs of the service plus a prorated share of indirect costs. a standard indirect cost rate',
2154:'equal to 15 percent of the direct salaries and wages for providing the service excluding overtime, shift premiums, and fringe',
2155:'benefits may be used instead of determining the actual indirect costs of the service. these services do not include centralized',
2156:'services that are included in central service cost allocation plans described inappendix v of this part. special considerations for institutions',
2157:'of higher education § 200.418 costs incurred by states and local governments. costs incurred or paid by a state or',
2158:'local government on behalf of and in direct benefit to its ihes are allowable. these costs include but are not',
2159:'limited to fringe benefit programs such as pension costs and federal insurance contributions act fica costs. these costs are allowable',
2160:'regardless of whether they are recorded in the accounting records of the institutions, subject to the following conditions: a the',
2161:'costs meet the requirements of§ 200.402200.411; 2 cfr 200.418a enhanced display page 89 of 208 2 cfr part 200 up',
2162:'to date as of 1/08/2025 2 cfr 200.418b uniform administrative requirements, cost principles, and audit b the costs are properly',
2163:'supported by approved cost allocation plans in accordance with the applicable cost accounting principles of this part; and c the',
2164:'costs are not otherwise borne directly or indirectly by the federal government. § 200.419 cost accounting standards. an ihe that',
2165:'receive an aggregate total $50 million or more in federal awards and instruments subject to this subpart as specified in§',
2166:'200.101 in its most recently completed fiscal year must comply with the cost accounting standards boards cost accounting standards located',
2167:'at48 cfr 9905.501,9905.502,9905.505, and 9905.506. cascovered contracts and subcontracts awarded to the ihes are subject to the broader range of',
2168:'cas requirements at48 cfr 9900through9999and48 cfr part 30far part 30. general provisions for selected items of cost § 200.420 considerations',
2169:'for selected items of cost. a this section provides principles to be applied in establishing the allowability of certain items',
2170:'involved in determining cost, in addition to other requirements of this subpart. these principles apply whether or not a particular',
2171:'cost item is properly treated as a direct or indirect cost. b the following sections are not intended to be',
2172:'a comprehensive list of potential items of cost encountered under federal awards. failure to mention a particular item of cost,',
2173:'including as an example in certain sections, is not intended to imply that it is either allowable or unallowable. when',
2174:'determining the allowability for an item of cost, each case should be based on the treatment provided for similar or',
2175:'related items of cost and based on the principles described in§§ 200.402through200.411. in case of a discrepancy between the provisions',
2176:'of a specific federal award and the provisions below, the federal award governs. criteria outlined in§ 200.403must be applied in',
2177:'determining allowability. § 200.421 advertising and public relations. a the term advertising costs means the costs of advertising media and',
2178:'corollary administrative costs. advertising media includes, but is not limited to, magazines, newspapers, radio and television, direct mail, exhibits, and',
2179:'electronic or computer transmittals. b the only allowable advertising costs are those which are solely for: 1 the recruitment of',
2180:'personnel required by the recipient or subrecipient for the performance of a federal award see also§ 200.463; 2 the procurement',
2181:'of goods and services for the performance of a federal award; 3 the disposal of scrap or surplus materials acquired',
2182:'in the performance of a federal award except when the recipient or subrecipient is reimbursed for disposal costs at a',
2183:'predetermined amount; or 4 program outreach for example, recruiting project participants and other specific purposes necessary to meet the federal',
2184:'award requirements. c the term “public relations” includes community relations and means those activities dedicated to maintaining the recipients or',
2185:'subrecipients image or maintaining or promoting understanding and favorable relations with the community or public at large or any segment',
2186:'of the public. d the only allowable public relations costs are: 2 cfr 200.421d enhanced display page 90 of 208',
2187:'2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.421d1 uniform administrative requirements, cost principles, and audit',
2188:'1 costs specifically required by the federal award; 2 costs of communicating with the public and press about specific activities',
2189:'or accomplishments which result from the performance of the federal award these costs are considered necessary as part of the',
2190:'outreach effort for the federal award; or 3 costs of conducting general liaison with news media and government public relations',
2191:'officers, to the extent that such activities are limited to communication and liaison necessary to keep the public informed on',
2192:'matters of public concern, such as notices of funding opportunities or financial matters. e unallowable advertising and public relations costs',
2193:'include the following: 1 all advertising and public relations costs other than as specified inparagraphs banddof this section; 2 costs',
2194:'of meetings, conventions, conferences, or other events related to other activities of the entity see also§ 200.432, including: i costs',
2195:'of displays, demonstrations, and exhibits; ii costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with',
2196:'shows and other special events; and iii salaries and wages of employees engaged in setting up and displaying exhibits, making',
2197:'demonstrations, and providing briefings; 3 costs of promotional items and memorabilia; 4 costs of advertising and public relations designed solely',
2198:'to promote the recipient or subrecipient. § 200.422 advisory councils. an advisory council or committee is a body that provides',
2199:'advice to the management of such entities as corporations, organizations, or foundations. costs incurred by both internal and external advisory',
2200:'councils or committees are allowable if authorized by statute, the federal agency, or as an indirect cost where allocable to',
2201:'federal awards. see§ 200.444, which applies to states, local governments, and indian tribes. § 200.423 alcoholic beverages. the cost of',
2202:'alcoholic beverages is unallowable. § 200.424 alumni activities. costs incurred by ihes for, or in support of, alumni activities are',
2203:'unallowable. § 200.425 audit services. a a reasonably proportionate share of the costs of audits required by and performed in',
2204:'accordance with the single audit act amendments of 1996 31 u.s.c. 75017507, and the requirements of this part are allowable.',
2205:'however, the following audit costs are unallowable: 1 any costs when audits required by the single audit act andsubpart f',
2206:'of this parthave not been conducted, or have been conducted but not in accordance with the requirements; and 2 cfr',
2207:'200.425a1 enhanced display page 91 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.425a2',
2208:'uniform administrative requirements, cost principles, and audit 2 except as provided for inparagraph cof this section, any costs of auditing',
2209:'a nonfederal entity that is exempted from having an audit conducted under the single audit act andsubpart f of this',
2210:'part because its expenditures under federal awards are less than $1,000,000 during its fiscal year.” b the costs of a',
2211:'financial statement audit of a recipient or subrecipient that does not currently have a federal award may be included in',
2212:'the indirect cost pool for a cost allocation plan or indirect cost proposal. c passthrough entities may charge federal awards',
2213:'for the cost of agreedupon procedures engagements to monitor subrecipients in accordance with§§ 200.331333 exempt from having an audit conducted',
2214:'under the single audit act and therequirements of this part.this cost is allowable only if the agreedupon procedures engagements are:',
2215:'1 conducted in accordance with gagas or applicable international attestation standards, as 2 paid for and arranged by the passthrough',
2216:'entity; and 3 limited in scope to one or more of the following types of compliance requirements: activities appropriate; allowed',
2217:'or unallowed; allowable costs/cost principles; eligibility; and reporting. § 200.426 bad debts. bad debts debts determined to be uncollectable, including',
2218:'losses whether actual or estimated arising from uncollectable accounts and other claims, are unallowable. related collection costs, and related legal',
2219:'costs, arising from such debts are also unallowable. see§ 200.428. § 200.427 bonding costs. a bonding costs arise when the',
2220:'federal agency requires assurance against financial loss to itself or others because of an act or default of the recipient',
2221:'or subrecipient. they also arise when the recipient or subrecipient requires similar assurance, including bonds as bid, performance, payment, advance',
2222:'payment, infringement, and fidelity bonds for employees and officials. b costs of bonding required under the federal awards terms and',
2223:'conditions are allowable. c costs of bonding required by the recipient or subrecipient in the general conduct of its operations',
2224:'are allowable as an indirect cost to the extent that such bonding is in accordance with sound business practice and',
2225:'the rates and premiums are reasonable under the circumstances. § 200.428 collections of improper payments. the costs incurred by a',
2226:'recipient or subrecipient to recover improper payments, including improper overpayments, are allowable as either direct or indirect costs, as appropriate.',
2227:'the recipient or subrecipient may use the amounts collected in accordance with cash management standards described in§ 200.305. § 200.429',
2228:'commencement and convocation costs. for ihes, costs incurred for commencements and convocations are unallowable, except as activity costs provided for',
2229:'in appendix iii, b9 student administration and services. 2 cfr 200.429 enhanced display page 92 of 208 2 cfr part',
2230:'200 up to date as of 1/08/2025 2 cfr 200.430 uniform administrative requirements, cost principles, and audit § 200.430 compensation—personal',
2231:'services. a general.compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the',
2232:'period of performance under the federal award, including but not necessarily limited to wages and salaries. compensation for personal services',
2233:'may also include fringe benefits addressed in§ 200.431. costs of compensation are allowable to the extent that they satisfy the',
2234:'specific requirements of this part and that the total compensation for individual employees: 1 is reasonable for the services rendered',
2235:'and conforms to the established written policy of the recipient or subrecipient consistently applied to both federal and nonfederal activities;',
2236:'2 follows an appointment made in accordance with the recipients or subrecipients laws, rules, or written policies and meets the',
2237:'requirements of federal statute, where applicable; and 3 is determined and supported as provided inparagraph gof this section, when applicable.',
2238:'b reasonableness.compensation for employees engaged in work on federal awards will be reasonable to the extent that it is consistent',
2239:'with that paid for similar work in other activities of the recipient or subrecipient. in cases where the kinds of',
2240:'employees required for federal awards are not found in the other activities of the recipient or subrecipient, compensation will be',
2241:'considered reasonable to the extent that it is comparable to that paid for similar work in the labor market in',
2242:'which the recipient or subrecipient competes for the kind of employees involved. c professional activities outside the recipient or subrecipient.unless',
2243:'the federal agency expressly authorizes an arrangement, a recipient or subrecipient must follow its written policies and procedures concerning the',
2244:'permissible extent of professional services that can be provided outside the recipient or subrecipient for nonorganizational compensation. where the recipient',
2245:'or subrecipient does not have written policies or procedures, or they do not adequately define the permissible extent of consulting',
2246:'or other nonorganizational activities undertaken for extra outside pay, the federal government may require the recipient or subrecipient to allocate',
2247:'the effort of professional staff working on federal awards between: 1 recipient or subrecipient activities, and 2 nonorganizational professional activities.',
2248:'appropriate arrangements governing compensation must be negotiated on a casebycase basis if the federal agency considers the extent of non',
2249:'organizational professional effort excessive or inconsistent with the conflictsofinterest terms and conditions of the federal award. d unallowable costs. 1',
2250:'costs unallowable under other sections of these principles must not be allowable under this section solely because they constitute personnel',
2251:'compensation. 2 the allowable compensation for certain employees is subject to a ceiling in accordance with federal statute. see10 u.s.c.',
2252:'3744a16,41 u.s.c. 1127, and41 u.s.c. 4304a16for the ceiling amount, covered compensation subject to the ceiling, covered employees, and other relevant',
2253:'provisions for costreimbursement contracts. for other types of federal awards, other statutory ceilings may apply. 2 cfr 200.430d2 enhanced display',
2254:'page 93 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.430e uniform administrative requirements,',
2255:'cost principles, and audit e special considerations.special considerations in determining the allowability of compensation will be given to any change',
2256:'in a recipients or subrecipients compensation policy resulting in a substantial increase in its employees level of compensation particularly when',
2257:'the change was concurrent with an increase in the ratio of federal awards to other activities or any change in',
2258:'the treatment of allowability of specific types of compensation due to changes in federal policy. f incentive compensation.incentive compensation to',
2259:'employees based on cost reduction, efficient performance, suggestion awards, or safety awards is allowable to the extent that the overall',
2260:'compensation is determined to be reasonable and such costs are paid or accrued according to an agreement entered into in',
2261:'good faith between the recipient or subrecipient and the employees before the services were rendered, or according to an established',
2262:'plan followed by the recipient or subrecipient so consistently as to imply, in effect, an agreement to make such payment.',
2263:'g standards for documentation of personnel expenses. 1 charges to federal awards for salaries and wages must be based on',
2264:'records that accurately reflect the work performed. these records must: i be supported by a system of internal control that',
2265:'provides reasonable assurance that the charges are accurate, allowable, and properly allocated; ii be incorporated into the official records of',
2266:'the recipient or subrecipient; iii reasonably reflect the total activity for which the employee is compensated by the recipient or',
2267:'subrecipient, not exceeding 100 percent of compensated activities for ihes, this is the ibs; iv encompass federallyassisted and all other',
2268:'activities compensated by the recipient or subrecipient on an integrated basis but may include the use of subsidiary records as',
2269:'defined in the recipients or subrecipients written policy; v comply with the established accounting policies and procedures of the recipient',
2270:'or subrecipient seeparagraph i1iiof this section for treatment of incidental work for ihes. ; and vi support the distribution of',
2271:'the employees salary or wages among specific activities or cost objectives if the employee works on more than one federal',
2272:'award; a federal award and non federal award; an indirect cost activity and a direct cost activity; two or more',
2273:'indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. vii budget',
2274:'estimates meaning, estimates determined before the services are performed alone do not qualify as support for charges to federal awards,',
2275:'but may be used for interim accounting purposes, provided that: a the system for establishing the estimates produces reasonable approximations',
2276:'of the activity performed; b significant changes in the related work activity as defined by the recipients or subrecipients written',
2277:'policies are promptly identified and entered into the records. short term such as one or two months fluctuations between workload',
2278:'categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the',
2279:'longer term; and 2 cfr 200.430g1viib enhanced display page 94 of 208 2 cfr part 200 up to date as',
2280:'of 1/08/2025 2 cfr 200.430g1viic uniform administrative requirements, cost principles, and audit c the recipients or subrecipients system of internal',
2281:'controls includes processes to perform periodic afterthefact reviews of interim charges made to a federal award based on budget estimates.',
2282:'all necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and',
2283:'properly allocated. viii because practices vary as to the activity constituting a full workload for example, the institutional base salary',
2284:'ibs for ihes, records may reflect categories of activities expressed as a percentage distribution of total activities. ix it is',
2285:'recognized that teaching, research, service, and administration are often inextricably intermingled in an academic setting. therefore, a precise assessment of',
2286:'factors contributing to costs is not required when ihes record salaries and wages charged to federal awards. 2 for records',
2287:'that meet the standards required inparagraph g1of this section, the recipient or subrecipient is not required to provide additional support',
2288:'or documentation for the work performed other than that referenced inparagraph g3of this section. 3 in accordance with department of',
2289:'labor regulations implementing the fair labor standards act flsa 29 cfr part 516, charges for the salaries and wages of',
2290:'nonexempt employees, in addition to the supporting documentation described in this section, must also be supported by records indicating the',
2291:'total number of hours worked each day. 4 salaries and wages of employees used in meeting cost sharing requirements on',
2292:'federal awards must be supported in the same manner as salaries and wages claimed for reimbursement from federal awards. 5',
2293:'states, local governments, and indian tribes may use substitute processes or systems for allocating salaries and wages to federal awards',
2294:'either in place of or in addition to the records described in paragraph g1of this section if approved by the',
2295:'cognizant agency for indirect cost. such systems may include, but are not limited to, random moment sampling, “rolling” time studies,',
2296:'case counts, or other quantifiable measures of work performed. i substitute systems that use sampling methods primarily for temporary assistance',
2297:'for needy families tanf, the supplemental nutrition assistance program snap, medicaid, and other public assistance programs must meet acceptable statistical',
2298:'sampling standards, including: a the sampling universe must include all of the employees whose salaries and wages are to be',
2299:'allocated based on sample results except as provided in paragraph g5iii; b the sample must cover the entire period involved;',
2300:'and c the results must be statistically valid and applied to the period being sampled. ii allocating charges for the',
2301:'sampled employees supervisors and clerical and support staff, based on the results of the sampled employees, will be acceptable. iii',
2302:'less than full compliance with the statistical sampling standards noted in paragraph 5i may be accepted by the cognizant agency',
2303:'for indirect costs if it concludes that the amounts allocated to federal awards will be minimal or if it concludes',
2304:'that the system proposed by the recipient or subrecipient will result in lower costs to federal awards than a system',
2305:'which complies with the standards. 2 cfr 200.430g5iii enhanced display page 95 of 208 2 cfr part 200 up to',
2306:'date as of 1/08/2025 2 cfr 200.430g6 uniform administrative requirements, cost principles, and audit 6 cognizant agencies for indirect costs',
2307:'are encouraged to approve alternative proposals based on outcomes and milestones for program performance when these are clearly documented. these',
2308:'plans are acceptable as an alternative to requirements inparagraph g1of this section when approved by the cognizant agency for indirect',
2309:'costs. 7 for federal awards of similar purpose activity or instances of approved blended funding, a recipient or subrecipient may',
2310:'submit performance plans that incorporate funds from multiple federal awards and account for their combined use based on performanceoriented metrics,',
2311:'provided the plans are approved in advance by all involved federal agencies. in these instances, the recipient or subrecipient must',
2312:'submit a request for waiver of the requirements based on documentation that describes the method of charging costs, relates the',
2313:'charging of costs to the specific activity that is applicable to all fund sources, and is based on quantifiable measures',
2314:'of the activity in relation to time charged. 8 for a recipient or subrecipient whose records do not meet the',
2315:'standards described in this section, the federal government may require personnel activity reports, including prescribed certifications, or equivalent documentation supporting',
2316:'the records as required in this section. h nonprofit organizations.thisparagraph hprovides guidance specific to only nonprofit organizations. for compensation to',
2317:'members of nonprofit organizations, trustees, directors, associates, officers, or the immediate families thereof, a determination must be made that the',
2318:'compensation is reasonable for the actual personal services rendered rather than a distribution of earnings above actual costs. compensation may',
2319:'include directors and executive committee members fees, incentive awards, offsite or incentive pay, location allowances, hardship pay, and costofliving differentials.',
2320:'i institutions of higher education ihes.this paragraph provides guidance specific to only ihes. 1 determining allowable personnel costs.certain conditions require',
2321:'special consideration and possible limitations in determining allowable personnel compensation costs under federal awards. among such conditions are the following:',
2322:'i allowable activities. charges to federal awards may include reasonable amounts for activities contributing and directly related to work under',
2323:'an agreement, such as delivering special lectures about specific aspects of the ongoing activity, writing reports and articles, developing and',
2324:'maintaining protocols human, animals, etcetera, managing substances/chemicals, managing and securing projectspecific data, coordinating research subjects, participating in appropriate seminars, consulting',
2325:'with colleagues and graduate students, and attending meetings and conferences. ii incidental activities. incidental activities for which supplemental compensation is',
2326:'allowable under the written institutional policy at a rate not to exceed institutional base salary do not need to be',
2327:'included in the records described in paragraph g. to charge payments of incidental activities directly, such activities must either be',
2328:'expressly authorized in the federal award budget or receive prior written approval by the federal agency. 2 salary basis.charges for',
2329:'work performed on federal awards by faculty members during the academic year are allowable at the institutional base salary ibs',
2330:'rate. except as noted in paragraph i1ii, in no event will charges to federal awards, irrespective of the basis of',
2331:'computation, exceed the proportionate share of the ibs for that period. this principle applies to all members of the faculty',
2332:'at an institution. ibs is the annual compensation paid by an ihe for an individuals appointment, whether that individuals time',
2333:'is spent on research, instruction, administration, or other activities. ibs excludes any income an individual earns outside of duties performed',
2334:'for the ihe. unless there is 2 cfr 200.430i2 enhanced display page 96 of 208 2 cfr part 200 up',
2335:'to date as of 1/08/2025 2 cfr 200.430i3 uniform administrative requirements, cost principles, and audit prior approval by the federal',
2336:'agency, charges of a faculty members salary to a federal award may not exceed the proportionate share of the ibs',
2337:'for the period during which the faculty member worked on the federal award. 3 intrainstitution of higher education ihe consulting.intraihe',
2338:'consulting by faculty should be undertaken as an ihe responsibility requiring no compensation in addition to ibs. however, in unusual',
2339:'cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the',
2340:'faculty members is in addition to their regular responsibilities, any charges for such work representing additional compensation above ibs are',
2341:'allowable provided that such consulting arrangements are expressly authorized in the federal award or approved in writing by the federal',
2342:'agency. 4 extra service pay.extra service pay typically represents overload compensation, subject to institutional compensation policies for services above and',
2343:'beyond ibs. where extra service pay results from intraihe consulting, it is subject to the same requirements ofparagraph bof this',
2344:'section. it is allowable if all of the following conditions are met: i the ihe establishes consistent written policies which',
2345:'apply uniformly to all faculty members, not just those working on federal awards. ii the ihe establishes a consistent written',
2346:'definition of work covered by ibs, which is specific enough to determine conclusively when work beyond that level has occurred.',
2347:'this definition may be described in appointment letters or other documentation. iii the supplementation amount paid is commensurate with the',
2348:'ibs pay rate and additional work performed. seeparagraph i2of this section. iv the salaries, as supplemented, fall within the salary',
2349:'structure and pay ranges established by and documented in writing or otherwise applicable to the ihe. v the total salaries',
2350:'charged to federal awards, including extra service payments, are subject to the standards of documentation as described in paragraph g.',
2351:'5 periods outside the academic year. i except as specified for teaching activity inparagraph i5iiof this section, charges for work',
2352:'performed by faculty members on federal awards during periods not included in the base salary period must be at a',
2353:'rate not more than the ibs. ii charges for teaching activities performed by faculty members on federal awards during periods',
2354:'not included in ibs period must be based on the written policy of the ihe governing compensation to faculty members',
2355:'for teaching assignments during such periods. 6 parttime faculty.charges for work performed on federal awards by faculty members having only',
2356:'parttime appointments must be determined at a rate not more than that regularly paid for parttime assignments. 7 sabbatical leave',
2357:'costs.rules for sabbatical leave are as follows: i costs of leaves of absence by employees for performance of graduate work',
2358:'or sabbatical study, travel, or research are allowable, provided the ihe has a uniform written policy on sabbatical leave for',
2359:'persons engaged in instruction and persons engaged in research. these costs must be allocated equitably among all related activities of',
2360:'the ihe. 2 cfr 200.430i7i enhanced display page 97 of 208 2 cfr part 200 up to date as of',
2361:'1/08/2025 2 cfr 200.430i7ii uniform administrative requirements, cost principles, and audit ii where sabbatical leave is included in fringe benefits',
2362:'for which a cost is determined for assessment as a direct charge, the aggregate amount of such assessments applicable to',
2363:'all work of the institution during the base period must be reasonable in relation to the ihes actual experience under',
2364:'its sabbatical leave policy. 8 salary rates for nonfaculty members.nonfaculty fulltime professional personnel may also earn “extra service pay” in',
2365:'accordance with the ihes written policy and paragraph i1i. § 200.431 compensation—fringe benefits. a general.fringe benefits are allowances and services',
2366:'employers provide to their employees as compensation in addition to regular salaries and wages. fringe benefits include, but are not',
2367:'limited to, the costs of leave, employee insurance, pensions, and unemployment benefits. except as provided elsewhere in these principles, the',
2368:'costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, an organizationemployee agreement,',
2369:'or an established policy of the recipient or subrecipient. b leave.the cost of fringe benefits in the form of regular',
2370:'compensation paid to employees during periods of authorized absences from the job, such as for annual leave, familyrelated leave, sick',
2371:'leave, holidays, court leave, military leave, administrative leave, and other similar benefits, are allowable if all of the following criteria',
2372:'are met: 1 they are provided under established written leave policies; 2 the costs are equitably allocated to all related',
2373:'activities, including federal awards; and, 3 the accounting basis cash or accrual selected for costing each type of leave is',
2374:'consistently followed by the recipient or subrecipient or a specified grouping of employees. i when a recipient or subrecipient uses',
2375:'the cash basis of accounting, the cost of leave is recognized in the period that the leave is taken and',
2376:'paid for. payments for unused leave when an employee retires or terminates employment are allowable in the year of payment',
2377:'and should be allocated as a general administrative expense to all activities or included in the fringe benefit rate. ii',
2378:'the accrual basis may be only used for those types of leave for which a liability as defined by gaap',
2379:'exists when the leave is earned. when a recipient or subrecipient uses the accrual basis of accounting, allowable leave costs',
2380:'are the lesser of the amount accrued or funded. c fringe benefits.the cost of fringe benefits in the form of',
2381:'employer contributions or expenses for social security; employee life, health, unemployment, and workers compensation insurance except as indicated in§ 200.447;',
2382:'pension plan costs; and other similar benefits are allowable, provided such benefits are permitted under established written policies. the recipient',
2383:'or subrecipient must allocate fringe benefits to federal awards and all other activities in a manner consistent with the pattern',
2384:'of benefits attributable to the individuals or groups of employees whose salaries and wages are chargeable to such federal awards',
2385:'and other activities, and charged as direct or indirect costs following the recipients or subrecipients accounting practices. d cost objectives.the',
2386:'recipient or subrecipient may assign fringe benefits to cost objectives by identifying specific benefits to specific individual employees or by',
2387:'allocating them based on entitywide salaries and wages of the employees receiving the benefits. when the allocation method is used,',
2388:'separate allocations must be made to selective groupings of employees unless the recipient or subrecipient demonstrates that costs in relationship',
2389:'to salaries and wages do not differ significantly for different groups of employees. 2 cfr 200.431d enhanced display page 98',
2390:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.431e uniform administrative requirements, cost principles,',
2391:'and audit e insurance.see also§ 200.447d1and2. 1 provisions for a reserve under a selfinsurance program for unemployment compensation or workers',
2392:'compensation are allowable to the extent that the provisions represent reasonable estimates of the liabilities for such compensation and the',
2393:'types of coverage, the extent of coverage, and rates and premiums would have been allowable had insurance been purchased to',
2394:'cover the risks. however, provisions for selfinsured liabilities which do not become payable for more than one year after the',
2395:'provision is made must not exceed the present value of the liability. 2 insurance costs on the lives of trustees,',
2396:'officers, or other employees holding positions of similar responsibility are allowable only to the extent that the insurance represents additional',
2397:'compensation. the cost of such insurance is unallowable when the recipient or subrecipient is named as beneficiary. 3 actual claims',
2398:'paid to or on behalf of employees or former employees for workers compensation, unemployment compensation, severance pay, and similar employee',
2399:'benefits for example,postretirement health benefits are allowable in the year of payment provided that the recipient or subrecipient follows a',
2400:'consistent costing policy. f automobiles.that portion of automobile costs furnished by the recipient or subrecipient that relates to personal use',
2401:'by employees including transportation to and from work is unallowable as a fringe benefit or indirect costs regardless of whether',
2402:'the cost is reported as taxable income to the employees. g pension plan costs.pension plan costs incurred in accordance with',
2403:'the established written policies of the recipient or subrecipient are allowable, provided that: 1 such policies meet the test of',
2404:'reasonableness. 2 the methods of cost allocation are not discriminatory. 3 the cost assigned to each fiscal year should be',
2405:'determined in accordance with gaap, except for 4 the costs assigned to a given fiscal year are funded for all',
2406:'plan participants within six months after state and local governments. the end of that year. however, increases to normal and',
2407:'past service pension costs caused by a delay in funding the actuarial liability beyond 30 calendar days after each quarter',
2408:'of the year to which such costs are assignable are unallowable. the recipient or subrecipient may follow the “cost accounting',
2409:'standard for composition and measurement of pension costs” 48 cfr 9904.412. 5 premiums for pension plan termination insurance that are',
2410:'paid according to the employee retirement income security act erisa of 1974 29 u.s.c. 13011461 are allowable. late payment charges',
2411:'on such premiums are unallowable. excise taxes on accumulated funding deficiencies and other penalties imposed under erisa are unallowable. 6',
2412:'pension plan costs may be computed using a payasyougo method or an actuarial cost method recognized by gaap and following',
2413:'the recipients or subrecipients established written policies. i for pension plans financed on a payasyougo method, allowable costs will be',
2414:'limited to those ii pension costs calculated using an actuarial cost method recognized by gaap are allowable for representing actual',
2415:'payments to retirees or their beneficiaries. a given fiscal year if they are funded for that year within six months',
2416:'after the end of that year. costs funded after six months or a later period agreed to by the cognizant',
2417:'agency for indirect costs are allowable in the year funded. the cognizant agency for indirect costs may agree to 2',
2418:'cfr 200.431g6ii enhanced display page 99 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
2419:'200.431g6iii uniform administrative requirements, cost principles, and audit an extension if an appropriate adjustment is made to compensate for the',
2420:'timing of the charges to the federal government and related federal reimbursement and the recipients or subrecipients contribution to the',
2421:'pension fund. adjustments may be made by cash refund or other equitable procedures to compensate the federal government for the',
2422:'time value of federal reimbursements in excess of contributions to the pension fund. iii amounts funded by the recipient or',
2423:'subrecipient in excess of the actuarially determined amount for a fiscal year may be used as the recipients or subrecipients',
2424:'contribution in future periods. iv when a recipient or subrecipient establishes or converts to an acceptable actuarial cost method, as',
2425:'defined by gaap, and funds pension costs in accordance with this method, the unfunded liability at the time of conversion',
2426:'is allowable if amortized over a period of years in accordance with gaap. v payments for unfunded pension costs must',
2427:'be charged in accordance with the allocation principles of this subpart. specifically, the recipient or subrecipient may not charge unfunded',
2428:'pension costs directly to a federal award if those unfunded pension costs are not allocable to that award. vi the',
2429:'recipient or subrecipient must provide the federal government an equitable share of any previously allowed pension costs including subsequent earnings',
2430:'that revert or inure to the recipient or subrecipient through a refund, withdrawal, or other credit. h postretirement health.a postretirement',
2431:'health plan prhp refers to the costs of health insurance or health services not included in a pension plan covered',
2432:'by paragraph g for retirees and their spouses, dependents, and survivors. prhp costs may be computed using a payasyougo method',
2433:'or an actuarial cost method recognized by gaap and following the recipients or subrecipients established written policies. 1 for prhp',
2434:'financed on a payasyougo method, allowable costs will be limited to those representing actual payments to retirees or their beneficiaries.',
2435:'2 prhp costs calculated using an actuarial cost method recognized by gaap are allowable for a given fiscal year if',
2436:'they are funded for that year within six months after the end of that year. costs funded after six months',
2437:'or a later period agreed to by the cognizant agency for indirect costs are allowable in the year funded. the',
2438:'cognizant agency for indirect costs may agree to an extension if an appropriate adjustment is made to compensate for the',
2439:'timing of the charges to the federal government and related federal reimbursement and the recipients or subrecipients contributions to the',
2440:'prhp fund. adjustments may be made by cash refund, reduction in the current years prhp costs, or other equitable procedures',
2441:'to compensate the federal government for the time value of federal reimbursements in excess of contributions to the prhp fund.',
2442:'3 amounts funded by the recipient or subrecipient in excess of the actuarially determined amount for a fiscal year may',
2443:'be used as the recipients or subrecipients contribution in future periods. 4 if a recipient or subrecipient establishes or converts',
2444:'to an actuarial cost method and funds prhp costs in accordance with this method, the initial unfunded liability attributable to',
2445:'prior years is allowable if amortized over a period of years in accordance with gaap, or, if no such gaap',
2446:'period exists, over a period negotiated with the cognizant agency for indirect costs. 2 cfr 200.431h4 enhanced display page 100',
2447:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.431h5 uniform administrative requirements, cost principles,',
2448:'and audit 5 payments for unfunded prhp costs must be charged in accordance with the allocation principles of this subpart.',
2449:'specifically, the recipient or subrecipient may not charge unfunded prhp costs directly to a federal award if those unfunded prhp',
2450:'costs are not allocable to that award. 6 to be allowable in the current year, the prhp costs must be',
2451:'paid either to: i an insurer or other benefit provider as current year costs or premiums; or ii an insurer',
2452:'or trustee that will maintain a trust fund or reserve for the sole purpose of providing postretirement benefits to retirees',
2453:'and other beneficiaries. 7 the recipient or subrecipient must provide the federal government an equitable share of any previously allowed',
2454:'postretirement benefit costs including subsequent earnings that revert or inure to the recipient or subrecipient through a refund, withdrawal, or',
2455:'other credit. i severance pay. 1 severance pay, also commonly referred to as dismissal wages, is a payment in addition',
2456:'to regular salaries and wages, by recipients and subrecipients to workers whose employment is being terminated. severance pay is allowable',
2457:'only to the extent that, in each case, it is required by: i law; ii employeremployee agreement; iii established policy',
2458:'that constitutes, in effect, an implied agreement on the recipients or subrecipients part; or iv circumstances of the particular employment.',
2459:'2 costs of severance payments are divided into two categories as follows: i actual severance payments for normal turnover must',
2460:'be allocated to all activities; or, where the recipient or subrecipient provides for a reserve for normal severances, such method',
2461:'is acceptable if the charge to current operations is reasonable in light of payments made for normal severances over a',
2462:'representative past period, and if amounts charged are allocated to all activities of the recipient or subrecipient. ii measuring the',
2463:'costs of abnormal or mass severance pay by means of an accrual method will not achieve equity for both parties.',
2464:'therefore, accruals are not allowable. however, the federal government recognizes its responsibility to contribute its fair share toward a specific',
2465:'payment. prior approval by the federal agency or cognizant agency for indirect cost, as appropriate, is required. 3 costs incurred',
2466:'in severance pay packages that are in excess of the standard severance pay provided by the recipient or subrecipient to',
2467:'an employee upon termination of employment and that are paid to the employee contingent upon a change in management control',
2468:'over, or ownership of, the recipients or subrecipients assets, are unallowable. 4 severance payments to foreign nationals employed by the',
2469:'recipient or subrecipient outside the united states, to the extent that the amount exceeds the customary or prevailing practices for',
2470:'the recipient or subrecipient in the united states, are unallowable unless they are required by applicable foreign law or necessary',
2471:'for the performance of federal programs and approved by the federal agency. 2 cfr 200.431i4 enhanced display page 101 of',
2472:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.431i5 uniform administrative requirements, cost principles, and',
2473:'audit 5 severance payments to foreign nationals employed by the recipient or subrecipient outside the united states due to the',
2474:'termination of the foreign national as a result of the closing of, or curtailment of activities by, the recipient or',
2475:'subrecipient in that country, are unallowable unless they are either: i required by applicable foreign law; or ii necessary for',
2476:'the performance of federal programs and approved by the federal agency. j for ihes only. 1 fringe benefits in the',
2477:'form of undergraduate and graduate tuition or tuition remission for individual employees are allowable, provided such benefits are granted in',
2478:'accordance with established written policies of the ihe and are distributed to all ihe activities on an equitable basis. tuition',
2479:'benefits for family members other than the employee are unallowable. 2 fringe benefits in the form of undergraduate and graduate',
2480:'tuition or tuition remission for individual employees not employed by the ihe are limited to the taxfree amount allowed by',
2481:'the internal revenue code as amended 26 u.s.c. 127. 3 ihes may offer employees tuition waivers or reductions, provided that',
2482:'the benefit does not discriminate in favor of highly compensated employees. employees can exercise these benefits at other institutions according',
2483:'to institutional policy. see§ 200.466, for treatment of tuition remission provided to students. k fringe benefit programs and other benefit',
2484:'costs. 1 for ihes whose costs are paid by a state or local government, fringe benefit programs such as pension',
2485:'costs and fica and any other benefits costs incurred specifically on behalf of, and in direct benefit to, the ihe,',
2486:'are allowable, subject to the following: i the costs meet the requirements of basic considerations in§§ 200.402through200.411; ii the costs',
2487:'are properly supported by approved cost allocation plans in accordance with applicable federal cost accounting principles; and iii the costs',
2488:'are not otherwise borne directly or indirectly by the federal government. 2 the allowability of these costs for the ihe',
2489:'does not depend on whether they are recorded in the accounting records of the ihe. [89 fr 30136, apr. 22,',
2490:'2024, as amended at89 fr 79732, oct. 1, 2024] § 200.432 conferences. a conference means an event whose primary purpose',
2491:'is to disseminate technical information beyond the recipient or subrecipient and is necessary and reasonable for successful performance under the',
2492:'federal award. allowable conference costs may include the rental of facilities, speakers fees, attendance fees, costs of meals and refreshments,',
2493:'local transportation, and other items incidental to such conferences unless further restricted by the terms and conditions of the federal',
2494:'award. the costs of identifying and providing locally available dependentcare resources for participants are allowable as needed. conference hosts/sponsors must',
2495:'exercise discretion and judgment in ensuring that conference costs are appropriate, necessary, and managed to minimize costs to the federal',
2496:'award. the federal agency may authorize exceptions for programs including indian tribes, children, and the elderly. see also§§ 200.438,200.456, and200.475.',
2497:'2 cfr 200.432 enhanced display page 102 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
2498:'cfr 200.433 uniform administrative requirements, cost principles, and audit § 200.433 contingency provisions. a contingency provisions are part of a',
2499:'budget estimate of future costs typically of large construction projects, it systems, or other items approved by the federal agency',
2500:'which are associated with possible events or conditions arising from causes for which the precise outcome is indeterminable at the',
2501:'time of estimate and that are likely to result, in the aggregate, in additional costs for the approved activity or',
2502:'project. contingency amounts for major project scope changes, unforeseen risks, or extraordinary events must not be included in the budget',
2503:'estimates for a federal award. b it is permissible for contingency amounts other than those excluded inparagraph aof this section',
2504:'to be explicitly included in budget estimates to the extent necessary to improve their precision. contingency amounts must be estimated',
2505:'using broadlyaccepted cost estimating methodologies, specified in the budget documentation of the federal award, and accepted by the federal agency.',
2506:'as such, contingency amounts are to be included in the federal award. in order for actual costs incurred to be',
2507:'allowable, they must comply with the cost principles and other requirements of this part see§§ 200.300and200.403, be necessary and reasonable',
2508:'for proper and efficient accomplishment of project or program objectives, and be verifiable from the recipients or subrecipients records. c',
2509:'payments to a recipients or subrecipients “contingency reserve” or any similar payment made for events the occurrence of which cannot',
2510:'be foretold with certainty as to the time or intensity, or with an assurance of their happening, are unallowable, except',
2511:'as noted in§§ 200.431and200.447. § 200.434 contributions and donations. a costs of contributions and donations, including cash, property, and services,',
2512:'from the recipient or subrecipient to other entities are unallowable. b the value of services and property donated that is,',
2513:'inkind donations to the recipient or subrecipient may not be charged to the federal award either as a direct or',
2514:'indirect cost. the value of donated services and property may be used to meet cost sharing requirements see§ 200.306. depreciation',
2515:'on donated assets is permitted so long as the donated property is not counted towards meeting cost sharing requirements see§',
2516:'200.436. c services donated or volunteered to the recipient or subrecipient may be provided by professional and technical personnel, consultants,',
2517:'and other skilled and unskilled labor. the value of these services may not be charged to the federal award as',
2518:'a direct or indirect cost. however, the value of donated services may be used to meet cost sharing requirements in',
2519:'accordance with the provisions of§ 200.306. d to the extent feasible, services donated to the recipient or subrecipient will be',
2520:'supported by the same methods used to support the allocability of regular personnel services. e the following provisions apply to',
2521:'nonprofit organizations. the value of services donated to a nonprofit organization and used in the performance of a direct cost',
2522:'activity must be considered in the determination of the recipients or subrecipients indirect cost rates and, accordingly, must be allocated',
2523:'a proportionate share of applicable indirect costs when the following circumstances exist: 1 the aggregate value of the services is',
2524:'material; 2 the services are supported by a significant amount of the indirect costs incurred by the recipient or subrecipient;',
2525:'2 cfr 200.434e2 enhanced display page 103 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
2526:'cfr 200.434e2i uniform administrative requirements, cost principles, and audit i in those instances where there is no basis for determining',
2527:'the fair market value of the services rendered, the recipient or subrecipient and the cognizant agency for indirect costs must',
2528:'negotiate an appropriate allocation of indirect cost to the services. ii where donated services directly benefit a project supported by',
2529:'the federal award, the indirect costs allocated to the services will be considered as a part of the projects total',
2530:'costs. such indirect costs may be reimbursed under the federal award or used to meet cost sharing requirements. f fair',
2531:'market value of donated services must be computed as described in§ 200.306. g personal property and use of space. 1',
2532:'donated personal property and use of space may be furnished to a recipient or subrecipient. the value of the personal',
2533:'property and space may not be charged to the federal award either as a direct or indirect cost. 2 the',
2534:'value of the donations of personal property and use of space may be used to meet cost sharing requirements described',
2535:'in§ 200.300. the recipient or subrecipient must value the donations in accordance with§ 200.300. where the recipient or subrecipient treats',
2536:'donations as indirect costs, indirect cost rates must separate the value of the donations so that reimbursement is not made.',
2537:'§ 200.435 defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements. a definitions for this section—',
2538:'1 convictionmeans a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon verdict',
2539:'or a plea, including a conviction due to a plea of nolo contendere. 2 costsinclude the services that bear a',
2540:'direct relationship to a judicial or administrative proceeding and provided by inhouse or private counsel, accountants, consultants, or others engaged',
2541:'to assist the recipient or subrecipient before, during, or after the commencement of that proceeding. 3 fraudmeans: i acts of',
2542:'fraud or corruption or attempts to defraud the federal government or to corrupt its agents, ii acts that constitute a',
2543:'cause for debarment or suspension as specified in agency regulations, and iii acts that violate the false claims act 31',
2544:'u.s.c. 37293732 or the antikickback act 42 u.s.c. 1320a7bb. 4 penaltydoes not include restitution, reimbursement, or compensatory damages. 5 proceedingincludes',
2545:'an investigation. b costs. 1 except as otherwise described herein, costs incurred in connection with any criminal, civil, or administrative',
2546:'proceeding including the filing of a false certification commenced by the federal government, a state, local government, or foreign government,',
2547:'or joined by the federal government 2 cfr 200.435b1 enhanced display page 104 of 208 2 cfr part 200 up',
2548:'to date as of 1/08/2025 2 cfr 200.435b1i uniform administrative requirements, cost principles, and audit including a proceeding under the',
2549:'false claims act, against the recipient or subrecipient, or commenced by third parties or a current or former employee of',
2550:'the recipient or subrecipient who submits a whistleblower complaint of reprisal in accordance with10 u.s.c. 4701or41 u.s.c. 4712, are not',
2551:'allowable if the proceeding: i relates to a violation of, or failure to comply with, a federal, state, local or',
2552:'foreign statute, regulation, or the terms and conditions of the federal award by the recipient or subrecipient including its agents',
2553:'and employees; and ii results in any of the following dispositions: a in a criminal proceeding, a conviction. b in',
2554:'a civil or administrative proceeding involving an allegation of fraud or similar misconduct, a determination of recipient or subrecipient liability.',
2555:'c in the case of any civil or administrative proceeding, the disallowance of costs, the imposition of a monetary penalty,',
2556:'or an order issued by the federal agency head or delegate to the recipient or subrecipient to take corrective action',
2557:'under10 u.s.c. 4701or 41 u.s.c. 4712. d a final decision by an appropriate federal official to debar or suspend the',
2558:'recipient or subrecipient, to rescind or void a federal award, or to terminate a federal award because of a violation',
2559:'or failure to comply with a statute, regulation, or the terms and conditions of the federal award. e a disposition',
2560:'by consent or compromise if the action could have resulted in any of the dispositions described inparagraphs b1iiathroughdof this section.',
2561:'2 if more than one proceeding involves the same alleged misconduct, the costs of all such proceedings are unallowable if',
2562:'any results in one of the dispositions shown inparagraph bof this section. c allowability of costs for proceeding commenced by',
2563:'federal government.if a proceeding referred to in paragraph bof this section is commenced by the federal government and is resolved',
2564:'by consent or compromise pursuant to an agreement by the recipient or subrecipient and the federal government, then the costs',
2565:'incurred may be allowed to the extent expressly authorized in the agreement. d allowability of costs for proceeding commenced by',
2566:'state, local, or foreign government.if a proceeding referred to inparagraph bof this section is commenced by a state, local or',
2567:'foreign government, then the costs incurred may be allowed if the authorized federal official determines that the costs were incurred',
2568:'as a result of: 1 a specific term or condition of the federal award, or 2 specific written direction of',
2569:'an authorized official of the federal agency. e allowability of costs in general.costs incurred in connection with proceedings described in',
2570:'paragraph b, and not made unallowable by that paragraph, may be allowed to the extent that: 1 the costs are',
2571:'reasonable and necessary for the administration of the federal award and activities required to deal with the proceeding and the',
2572:'underlying cause of action; 2 payment of the reasonable, necessary, allocable and otherwise allowable costs incurred is not prohibited by',
2573:'any other provisions of the federal award; 2 cfr 200.435e2 enhanced display page 105 of 208 2 cfr part 200',
2574:'up to date as of 1/08/2025 2 cfr 200.435e3 uniform administrative requirements, cost principles, and audit 3 the costs are',
2575:'not recovered from the federal government or a third party, either directly as a result of the proceeding or otherwise;',
2576:'and, 4 an authorized federal official has determined the percentage of costs allowed considering the complexity of litigation, generally accepted',
2577:'principles governing the award of legal fees in civil actions involving the united states, and other factors that may be',
2578:'appropriate. this percentage must not exceed 80 percent unless an agreement under paragraph c has explicitly considered this limitation and',
2579:'permitted a higher percentage. in that case, the total amount of costs incurred may be allowable. f major fraud act.costs',
2580:'incurred by the recipient or subrecipient in connection with the defense of suits brought by its employees or exemployees under',
2581:'section 2 of the major fraud act of 1988 18 u.s.c. 1031, including the cost of all relief necessary to',
2582:'make the employee whole, where the recipient or subrecipient was found liable or settled, are unallowable. g unallowability of costs',
2583:'for prosecuting claims against federal government.costs for prosecuting claims against the federal government, including appeals of final federal agency decisions,',
2584:'are unallowable. h patent infringement litigation.costs of legal, accounting, and consultant services, and related costs incurred in connection with patent',
2585:'infringement litigation, are unallowable unless otherwise provided for in the federal award. i potentially unallowable costs.costs that may be unallowable',
2586:'under this section, including directly associated costs, must be segregated and accounted for separately. during the pendency of any proceeding',
2587:'covered byparagraphs bandfof this section, the federal government must generally withhold payment of such costs. however, if in its best',
2588:'interests, the federal government may provide for conditional payment upon provision of adequate security, or other adequate assurance, and agreement',
2589:'to repay all unallowable costs, plus interest, if the costs are subsequently determined to be unallowable. § 200.436 depreciation. a',
2590:'depreciation is the method for allocating the cost of fixed assets to periods benefitting from asset use. the recipient or',
2591:'subrecipient may be compensated for the use of its buildings, capital improvements, equipment, and software projects capitalized in accordance with',
2592:'gaap provided that they are needed and used in the recipients or subrecipients activities and correctly allocated to federal awards.',
2593:'the compensation must be made by computing the proper depreciation. b the allocation for depreciation must be made in accordance',
2594:'with appendices iii through ix of this part. c depreciation is computed applying the following rules. the computation of depreciation',
2595:'must be based on the acquisition cost of the assets involved. for an asset donated to the recipient or subrecipient',
2596:'by a third party, its fair market value at the time of the donation must be considered as the acquisition',
2597:'cost. such assets may be depreciated or claimed as cost sharing but not both. when computing depreciation charges, the acquisition',
2598:'cost will exclude: 1 the cost of land; 2 any portion of the cost of buildings and equipment borne by',
2599:'or donated by the federal government, irrespective of where the title was originally vested or is presently located; 3 any',
2600:'portion of the cost of buildings and equipment contributed by or for the recipient or subrecipient that is already claimed',
2601:'as cost sharing or where law or agreement prohibits recovery; and 4 any asset acquired solely for the performance of',
2602:'a nonfederal award. 2 cfr 200.436c4 enhanced display page 106 of 208 2 cfr part 200 up to date as',
2603:'of 1/08/2025 2 cfr 200.436d uniform administrative requirements, cost principles, and audit d when computing depreciation charges, the following must',
2604:'be observed: 1 the period of useful service or useful life established in each case for usable capital assets must',
2605:'take into consideration such factors as the type of construction, nature of the equipment, technological developments in the particular area,',
2606:'historical data, and the renewal and replacement policies followed for the individual items or classes of assets involved. 2 the',
2607:'depreciation method used to charge the cost of an asset or group of assets to accounting periods must reflect the',
2608:'pattern of consumption of the asset during its useful life. in the absence of clear evidence indicating that the expected',
2609:'consumption of the asset will be significantly greater in the early portions than in the later portions of its useful',
2610:'life, the straightline method must be presumed to be the appropriate method. once used, depreciation methods may not be changed',
2611:'unless approved in advance by the cognizant agency for indirect costs. the depreciation methods used to calculate the depreciation amounts',
2612:'for indirect cost rate purposes must be the same methods used by the recipient or subrecipient for its financial statements.',
2613:'3 the entire building, including the shell and all components, may be treated as a single asset and depreciated over',
2614:'a single useful life. a building may also be divided into multiple components. each component may be depreciated over its',
2615:'estimated useful life in this case. the building components must be grouped into three general components: building shell including construction',
2616:'and design costs, building services systems for example, elevators, hvac, and plumbing system, and fixed equipment for example, sterilizers, casework,',
2617:'fume hoods, cold rooms, and glassware/washers. a cognizant agency for indirect costs may authorize a recipient or subrecipient to use',
2618:'more than these three groupings in exceptional cases. when a recipient or subrecipient elects to depreciate its buildings by their',
2619:'components, the same depreciation method must be used for indirect and financial statements purposes, as described in paragraphs d1 and',
2620:'2. 4 no depreciation may be allowed on assets that have outlived their depreciable lives. 5 where the depreciation method',
2621:'is introduced to replace the use allowance method, depreciation must be computed as if the asset had been depreciated over',
2622:'its entire life meaning, from the date the asset was acquired and ready for use to the date of disposal',
2623:'or withdrawal from service. the total amount of use allowance and depreciation for an asset including imputed depreciation applicable to',
2624:'periods before the conversion from the use allowance method and depreciation after the conversion may not exceed the total acquisition',
2625:'cost of the asset. e adequate property records must support depreciation charges, and physical inventories must be taken at least',
2626:'once every two years to ensure that the assets exist and are usable, used, and needed. the recipient or subrecipient',
2627:'may use statistical sampling techniques when taking these inventories. in addition, the recipient or subrecipient must maintain adequate depreciation records',
2628:'showing the amount of depreciation. § 200.437 employee health and welfare costs. a costs incurred in accordance with the recipients',
2629:'or subrecipients established written policies for improving working conditions, employeremployee relations, employee health, and employee performance are allowable. b these',
2630:'costs must be equitably apportioned to all activities of the recipient or subrecipient. income generated from these activities must be',
2631:'credited to the cost thereof unless such income has been irrevocably sent to employee welfare organizations. 2 cfr 200.437b enhanced',
2632:'display page 107 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.437c uniform administrative',
2633:'requirements, cost principles, and audit c losses resulting from operating food services are allowable only if the recipients or subrecipients',
2634:'objective is to operate food services on a breakeven basis. losses sustained because of operating objectives other than the above',
2635:'are allowable only when: 1 the recipient or subrecipient can demonstrate unusual circumstances; and 2 approved by the cognizant agency',
2636:'for indirect costs. § 200.438 entertainment and prizes. a entertainment costs.costs of entertainment, including amusement, diversion, and social activities and',
2637:'any associated costs such as gifts, are unallowable unless they have a specific and direct programmatic purpose and are included',
2638:'in a federal award. b prizes.costs of prizes or challenges are allowable if they have a specific and direct programmatic',
2639:'purpose and are included in the federal award. federal agencies should refer to omb guidance in m1011 “guidance on the',
2640:'use of challenges and prizes to promote open government,” issued march 8, 2010, or its successor. § 200.439 equipment and',
2641:'other capital expenditures. a see§ 200.1for the definitions ofcapital expenditures, equipment, special purpose equipment, general purpose equipment, acquisition cost, and',
2642:'capital assets. b the following rules of allowability must apply to equipment and other capital expenditures: 1 capital expenditures for',
2643:'general purpose equipment, buildings, and land are allowable as direct costs, but only with the prior written approval of the',
2644:'federal agency or passthrough entity. 2 capital expenditures for special purpose equipment are allowable as direct costs, provided that items',
2645:'with a unit cost of $10,000 or more have the prior written approval of the federal agency or passthrough entity.',
2646:'3 capital expenditures for improvements to land, buildings, or equipment that materially increase their value or useful life are allowable',
2647:'as a direct cost, but only with the prior written approval of the federal agency or passthrough entity. see§ 200.436on',
2648:'the allowability of depreciation on buildings, capital improvements, and equipment. see§ 200.465on the allowability of real property and equipment rental',
2649:'costs. 4 when approved as a direct cost in accordance with paragraphs b1 through 3, capital expenditures must be charged',
2650:'in the period in which the expenditure is incurred or as otherwise determined appropriate and negotiated with the federal agency.',
2651:'5 the recipient or subrecipient may claim the unamortized portion of any equipment written off as a result of a',
2652:'change in capitalization levels by continuing to claim the otherwise allowable depreciation on the equipment or by amortizing the amount',
2653:'to be written off over a period of years negotiated with the cognizant agency for indirect cost. 6 cost of',
2654:'equipment disposal. if the federal agency instructs the recipient or subrecipient to otherwise dispose of or transfer the equipment, the',
2655:'costs of disposal or transfer are allowable. 7 equipment and other capital expenditures are unallowable as indirect costs. see§ 200.436.',
2656:'2 cfr 200.439b7 enhanced display page 108 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
2657:'cfr 200.440 uniform administrative requirements, cost principles, and audit § 200.440 exchange rates. a cost increases for fluctuations in exchange',
2658:'rates are allowable costs subject to the availability of funding. prior approval of exchange rate fluctuations is required only when',
2659:'the change results in the need for additional federal funding, or the increased costs result in the need to significantly',
2660:'reduce the scope of the project. before providing approval, the federal agency must ensure that adequate funds are available to',
2661:'cover currency fluctuations in order to avoid a violation of the antideficiency act. b the recipient or subrecipient is required',
2662:'to make reviews of local currency gains to determine the need for additional federal funding before the expiration date of',
2663:'the federal award. subsequent adjustments for currency increases may be allowable only when the recipient or subrecipient provides the federal',
2664:'agency with adequate source documentation from a commonly used source in effect at the time the expense was made, and',
2665:'to the extent that sufficient federal funds are available. § 200.441 fines, penalties, damages and other settlements. costs resulting from',
2666:'recipient or subrecipient violations of, alleged violations of, or failure to comply with, federal, state, local, tribal, or foreign laws',
2667:'and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the federal award, or',
2668:'with the prior written approval of the federal agency. see§ 200.435. § 200.442 fundraising and investment management costs. a costs',
2669:'of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital',
2670:'or obtain contributions, are unallowable. fundraising costs for meeting the federal program objectives are allowable with the prior written approval',
2671:'of the federal agency. b costs of investment counsel and staff and similar expenses incurred to enhance income from investments',
2672:'are unallowable except when associated with investments covering pension, selfinsurance, or other funds, which include federal participation allowed by this',
2673:'part. c costs related to the physical custody and control of monies and securities are allowable. d both allowable and',
2674:'unallowable fundraising and investment activities must be allocated an appropriate share of indirect costs in accordance with§ 200.413. § 200.443',
2675:'gains and losses on the disposition of depreciable assets. a the recipient or subrecipient must include gains and losses on',
2676:'the sale, retirement, or other disposition of depreciable property in the year they occur as credits or charges to the',
2677:'asset cost groupings of the property. the amount of the gain or loss is the difference between the amount realized',
2678:'on the property and the undepreciated basis of the property. b gains and losses from the disposition of depreciable property',
2679:'must not be recognized as a separate credit or charge under the following conditions: 1 the gain or loss is',
2680:'processed through a depreciation account and is reflected in the depreciation allowable under§§ 200.436and200.439. 2 the property is given in',
2681:'exchange as part of the purchase price of a similar item, and the gain or loss is taken into account',
2682:'in determining the depreciation cost basis of the new item. 3 a loss results from failing to maintain proper insurance,',
2683:'except as provided in§ 200.447. 2 cfr 200.443b3 enhanced display page 109 of 208 2 cfr part 200 up to',
2684:'date as of 1/08/2025 2 cfr 200.443b4 uniform administrative requirements, cost principles, and audit 4 compensation for the use of',
2685:'the property was provided through use allowances instead of depreciation. 5 gains and losses arising from extraordinary or bulk sales,',
2686:'retirements, or other dispositions must be considered on a casebycase basis. c gains or losses of any nature arising from',
2687:'the sale or exchange of property other than the property covered inparagraph aof this section must be excluded in computing',
2688:'federal award costs. d when assets acquired with federal funds, in part or wholly, are disposed of, the distribution of',
2689:'the proceeds must be made in accordance with§§ 200.310through200.316. § 200.444 general costs of government. a for states, local governments,',
2690:'and indian tribes, the general costs of government are unallowable except as provided in§ 200.475. unallowable costs include: 1 salaries',
2691:'and expenses of the office of the governor of a state or the chief executive of a local government or',
2692:'the chief executive of an indian tribe; 2 salaries and other expenses of a state legislature, tribal council, or similar',
2693:'local governmental body, such as a county supervisor, city council, or school board, whether incurred for purposes of legislation or',
2694:'executive direction; 3 costs of the judicial branch of a government; 4 costs of prosecutorial activities unless treated as a',
2695:'direct cost to a specific program if authorized by statute or regulation. however, this does not preclude the allowability of',
2696:'other legal activities of the attorney general as described in§ 200.435; and 5 costs of other general types of government',
2697:'services normally provided to the general public, such as fire and police, unless provided as a direct cost under a',
2698:'program statute or regulation. b indian tribes and councils of governments cogs see definition forlocal governmentin§ 200.1 may include up',
2699:'to 50 percent of salaries and expenses directly attributable to managing and operating federal programs by the chief executive and',
2700:'their staff in the indirect cost calculation without documentation. § 200.445 goods or services for personal use. a costs of',
2701:'goods or services for the personal use of the recipients or subrecipients employees are unallowable regardless of whether the cost',
2702:'is reported as taxable income to the employees. b housing costs for example, depreciation, maintenance, utilities, furnishings, rent, housing allowances,',
2703:'and personal living expenses for the recipients or subrecipients employees are only allowable as direct costs and must be approved',
2704:'in advance by the federal agency. § 200.446 idle facilities and idle capacity. a definitions for the purpose of this',
2705:'section: 1 facilities means land and buildings or any portion thereof, equipment individually or collectively, or any other tangible capital',
2706:'asset, wherever located, and whether owned or leased by the recipient or subrecipient. 2 idle facilities mean completely unused facilities',
2707:'that exceed the recipients or subrecipients current needs. 2 cfr 200.446a2 enhanced display page 110 of 208 2 cfr part',
2708:'200 up to date as of 1/08/2025 2 cfr 200.446a3 uniform administrative requirements, cost principles, and audit 3 idle capacity',
2709:'means the unused capacity of partially used facilities. it is the difference between: i that which a facility could achieve',
2710:'under 100 percent operating time on a oneshift basis less operating interruptions resulting from time lost for repairs, setups, unsatisfactory',
2711:'materials, and other normal delays; and ii the extent to which the facility was actually used to meet demands during',
2712:'the accounting period. a multishift basis should be used if it can be shown that this amount of usage would',
2713:'normally be expected for the type of facility involved. 4 cost of idle facilities or idle capacity means maintenance, repair,',
2714:'housing, rent, and other related costs for example, insurance, interest, and depreciation. these costs could include the costs of idle',
2715:'public safety emergency facilities, telecommunications, or information technology system capacity that is built to withstand major fluctuations in load for',
2716:'example, consolidated data centers. b the costs of idle facilities are unallowable except to the extent that: 1 they are',
2717:'necessary to meet workload requirements which may fluctuate, and are allocated appropriately to all benefiting programs; or 2 although not',
2718:'necessary to meet fluctuations in workload, they were necessary when acquired and are now idle because of changes in program',
2719:'requirements, efforts to achieve more economical operations, reorganization, termination, or other causes which could not have been reasonably foreseen. under',
2720:'this exception, costs of idle facilities are allowable for a reasonable period, ordinarily not to exceed one year, depending on',
2721:'the initiative taken to use, lease, or dispose of such facilities. c the costs of idle capacity are normal costs',
2722:'of doing business and are a factor in the normal fluctuations of usage or indirect cost rates from period to',
2723:'period. these costs are allowable, provided that the capacity is reasonably anticipated to be necessary to carry out the purpose',
2724:'of the federal award or was originally reasonable and is not subject to reduction or elimination by use on other',
2725:'federal awards, subletting, renting, or sale, in accordance with sound business, economic, or security practices. widespread idle capacity throughout an',
2726:'entire facility or among a group of assets having substantially the same function may be considered idle facilities. § 200.447',
2727:'insurance and indemnification. a costs of insurance required or approved and maintained by the terms and conditions of the federal',
2728:'award are allowable. b costs of other insurance in connection with the general conduct of activities are allowable subject to',
2729:'the following limitations: 1 the types, extent, and cost of coverage are in accordance with the recipients or subrecipients established',
2730:'written policy and sound business practices. 2 costs of insurance or contributions to any reserve covering the risk of loss',
2731:'of, or damage to, federal government property are unallowable except to the extent that the federal agency has approved the',
2732:'costs. 3 costs allowed for business interruption or other similar insurance must exclude coverage of management fees. 2 cfr 200.447b3',
2733:'enhanced display page 111 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.447b4 uniform',
2734:'administrative requirements, cost principles, and audit 4 insurance costs on the lives of trustees, officers, or other employees holding positions',
2735:'of similar responsibilities are allowable only when the insurance represents additional compensation see§ 200.431. this insurance is unallowable when the',
2736:'recipient or subrecipient is identified as the beneficiary. 5 insurance costs to correct defects in the recipients or subrecipients materials',
2737:'or workmanship are unallowable. 6 medical liability malpractice insurance is an allowable cost of a federal research program only when',
2738:'the program involves human subjects or training of participants in research techniques. medical liability insurance costs must be treated as',
2739:'a direct cost and assigned to individual projects based on how the insurer allocates the risk to the population covered',
2740:'by the insurance. c actual losses which could have been covered by permissible insurance through a selfinsurance program or otherwise',
2741:'are unallowable unless expressly authorized in the federal award. however, costs incurred because of losses not covered under nominal deductible',
2742:'insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance, such as spoilage, breakage,',
2743:'and disappearance of small hand tools, which occur in the ordinary course of operations, are allowable. d contributions to a',
2744:'reserve for a selfinsurance program, including workers compensation, unemployment compensation, and severance pay, are allowable subject to the following requirements:',
2745:'1 the type, extent, and cost of coverage and the rates and premiums would have been allowed had insurance including',
2746:'reinsurance been purchased to cover the risks. however, a provision for known or reasonably estimated selfinsured liabilities, which do not',
2747:'become payable for more than one year after the provision is made, must not exceed the discounted present value of',
2748:'the liability. the rate used for discounting the liability must be determined by considering factors such as the recipients or',
2749:'subrecipients settlement rate for those liabilities and its investment rate of return. 2 earnings or investment income on reserves must',
2750:'be credited to those reserves. 3 i contributions to reserves must be based on sound actuarial principles using historical experience',
2751:'and reasonable assumptions. reserve levels must be analyzed and updated at least biennially for each major risk being insured and',
2752:'take into account any reinsurance, coinsurance, and other relevant factors or information. reserve levels related to employeerelated coverages must normally',
2753:'be limited to the value of claims: a submitted and adjudicated but not paid; b submitted but not adjudicated; and',
2754:'c incurred but not submitted. ii reserve exceeding the levels described inparagraph d3iof this section must be identified and justified',
2755:'in the cost allocation plan or indirect cost rate proposal. 4 accounting records, actuarial studies, and cost allocations or billings',
2756:'must recognize any significant differences due to the types of insured risk and losses generated by the various insured activities',
2757:'or agencies of the recipient or subrecipient. if individual departments or agencies of the recipient or subrecipient experience significantly different',
2758:'levels of claims for a particular risk, those differences must be recognized by using separate allocations or other techniques resulting',
2759:'in an equitable allocation. 2 cfr 200.447d4 enhanced display page 112 of 208 2 cfr part 200 up to date',
2760:'as of 1/08/2025 2 cfr 200.447d5 uniform administrative requirements, cost principles, and audit 5 whenever funds are transferred from a',
2761:'selfinsurance reserve to other accounts for example, general fund or unrestricted account, refunds must be made to the federal government',
2762:'for its share of funds transferred, including earned or imputed interest from the date of transfer and debt interest, if',
2763:'applicable, chargeable in accordance with the claims collection regulations of the cognizant agency for indirect cost. e insurance refunds must',
2764:'be credited against insurance costs in the year the refund is received. f indemnification includes securing the recipient or subrecipient',
2765:'against liabilities to third persons and other losses not compensated by insurance or otherwise. the federal government is obligated to',
2766:'indemnify the recipient or subrecipient only to the extent expressly provided for in the federal award, except as provided in',
2767:'paragraph c. § 200.448 intellectual property. a patent and copyright costs. 1 the following costs related to securing patents and',
2768:'copyrights are allowable: i costs of preparing disclosures, reports, and other documents required by the federal award and of searching',
2769:'the art to the extent necessary to make such disclosures; ii costs of preparing documents and any other patent costs',
2770:'in connection with the filing and prosecution of a united states patent application where the federal government requires that a',
2771:'title or a royaltyfree license be conveyed to the federal government; and iii general counseling services relating to patent and',
2772:'copyright matters, such as advice on patent and copyright laws, regulations, clauses, and employee intellectual property agreements see§ 200.459. 2',
2773:'the following costs related to securing patents and copyrights are unallowable: i costs of preparing disclosures, reports, and other documents',
2774:'and of searching the art to make disclosures not required by the federal award; ii costs in connection with filing',
2775:'and prosecuting any foreign patent application, or any united states patent application, where the federal award does not require conveying',
2776:'title or a royalty free license to the federal government. b royalties and other costs for the use of patents',
2777:'and copyrights. 1 royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright,',
2778:'patent, or rights thereto, necessary for the proper performance of the federal award are allowable unless: i the federal government',
2779:'already has a license or the right to free use of the patent or copyright. ii the patent or copyright',
2780:'has been adjudicated to be invalid or administratively determined to be invalid. iii the patent or copyright is considered to',
2781:'be unenforceable. iv the patent or copyright is expired. 2 special care should be exercised in determining reasonableness when the',
2782:'royalties may have been obtained as a result of lessthanarmslength bargaining, such as: 2 cfr 200.448b2 enhanced display page 113',
2783:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.448b2i uniform administrative requirements, cost principles,',
2784:'and audit i royalties paid to persons, including corporations, affiliated with the recipient or subrecipient. ii royalties paid to unaffiliated',
2785:'parties, including corporations, under an agreement entered into in contemplation that a federal award would be made. iii royalties paid',
2786:'under an agreement entered into after a federal award is made to a recipient or subrecipient. 3 in any case',
2787:'involving a patent or copyright formerly owned by the recipient or subrecipient, the amount of royalty allowed must not exceed',
2788:'the cost which would have been allowed had the recipient or subrecipient retained ownership. § 200.449 interest. a general.costs incurred',
2789:'for interest on borrowed capital, temporary use of endowment funds, or the use of the recipients or subrecipients own funds',
2790:'are unallowable. financing costs including interest to acquire, construct, or replace capital assets are allowable, subject to the requirements of',
2791:'this section. b capital assets. 1 capital assets is defined in§ 200.1. an asset cost includes as applicable acquisition costs,',
2792:'construction costs, and other costs capitalized in accordance with gaap. 2 for recipient or subrecipient fiscal years beginning on or',
2793:'after january 1, 2016, intangible assets include patents and computer software. for software development projects, only interest attributable to the',
2794:'portion of the project costs capitalized in accordance with gaap is allowable. c requirements for all recipients and subrecipients. 1',
2795:'the recipient or subrecipient uses the capital assets in support of federal awards; 2 the allowable asset costs to acquire',
2796:'facilities and equipment are limited to a fair market value available to the recipient or subrecipient from an unrelated arms',
2797:'length third party. 3 the recipient or subrecipient obtains the financing via an armslength transaction meaning, a transaction with an',
2798:'unrelated third party; or claims reimbursement of actual interest cost at a rate available via such a transaction. 4 the',
2799:'recipient or subrecipient limits claims for federal reimbursement of interest costs to the least expensive alternative. for example, a lease',
2800:'contract that transfers ownership by the end of the contract may be determined less costly than purchasing through other types',
2801:'of debt financing, in which case reimbursement must be limited to the amount of interest determined if leasing had been',
2802:'used. 5 the recipient or subrecipient expenses or capitalizes allowable interest cost in accordance with gaap. 6 earnings generated by',
2803:'the investment of borrowed funds pending their disbursement for the asset costs are used to offset the current periods allowable',
2804:'interest cost, whether that cost is expensed or capitalized. earnings subject to being reported to the federal internal revenue service',
2805:'under arbitrage requirements are excludable. 2 cfr 200.449c6 enhanced display page 114 of 208 2 cfr part 200 up to',
2806:'date as of 1/08/2025 2 cfr 200.449c7 uniform administrative requirements, cost principles, and audit 7 the following conditions must apply',
2807:'to debt arrangements over $1 million to purchase or construct facilities unless the recipient or subrecipient makes an initial equity',
2808:'contribution to the purchase of 25 percent or more. for this purpose, “initial equity contribution” means the amount or value',
2809:'of contributions made by the recipient or subrecipient for the acquisition of facilities prior to occupancy. i the recipient or',
2810:'subrecipient must reduce claims for reimbursement of interest cost by an amount equal to imputed interest earnings on excess cash',
2811:'flow attributable to the portion of the facility used for federal awards. ii the recipient or subrecipient must impute interest',
2812:'on excess cash flow as follows: a annually, the recipient or subrecipient must prepare a cumulative from the projects inception',
2813:'report of monthly cash inflows and outflows, regardless of the funding source. for this purpose, inflows consist of federal reimbursement',
2814:'for depreciation, amortization of capitalized construction interest, and annual interest cost. outflows consist of initial equity contributions, debt principal payments',
2815:'less the prorata share attributable to the cost of land, and interest payments. b to compute monthly cash inflows and',
2816:'outflows, the recipient or subrecipient must divide the abovementioned annual amounts by the months in the year usually 12 that',
2817:'the building is in service. c for any month in which cumulative cash inflows exceed cumulative outflows, interest must be',
2818:'calculated on the excess inflows for that month and be treated as a reduction to allowable interest cost. the interest',
2819:'rate to be used must be the threemonth treasury bill closing rate as of the last business day of that',
2820:'month. 8 interest attributable to a fully depreciated asset is unallowable. d additional requirements for states, local governments and indian',
2821:'tribes.for interest costs to be allowable for states, local governments, and indian tribes, the recipient or subrecipient must have incurred',
2822:'the interest costs for buildings after october 1, 1980, or after september 1, 1995, for land and equipment. 1 the',
2823:'requirement to offset the interest earned on borrowed funds against allowable interest cost paragraph c5of this section also applies to',
2824:'earnings on debt service reserve funds. 2 the recipient or subrecipient must negotiate the amount of allowable interest cost related',
2825:'to the acquisition of facilities with asset costs of $1 million or more, as described inparagraph c7of this section. for',
2826:'this purpose, a recipient or subrecipient must consider only cash inflows and outflows attributable to that portion of the real',
2827:'property used for federal awards. e additional requirements for ihes.for interest costs to be allowable, the ihe must have incurred',
2828:'the interest costs after july 1, 1982, in connection with acquisitions of capital assets that occurred after that date. f',
2829:'additional requirements for nonprofit organizations.for interest costs to be allowable, the nonprofit organization must have incurred the interest costs after',
2830:'september 29, 1995, in connection with acquisitions of capital assets that occurred after that date. g requirements for nonprofit organizations',
2831:'subject to full coverage under cas.the interest allowability provisions of this section do not apply to a nonprofit organization subject',
2832:'to “full coverage” under the cost accounting standards cas, as defined at48 cfr 9903.2012a. the nonprofit organizations federal 2 cfr',
2833:'200.449g enhanced display page 115 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.450',
2834:'uniform administrative requirements, cost principles, and audit awards are instead subject to cas 414 48 cfr 9904.414, “cost of money',
2835:'as an element of the cost of facilities capital,” and cas 417 48 cfr 9904.417, “cost of money as an',
2836:'element of the cost of capital assets under construction.” § 200.450 lobbying. a lobbying costs associated with obtaining federal assistance',
2837:'awards.the costs of certain influencing activities associated with obtaining grants, cooperative agreements, contracts, or loans are unallowable. lobbying with respect',
2838:'to certain grants, cooperative agreements, contracts, and loans is governed by relevant statutes, including the provisions of31 u.s.c. 1352, as',
2839:'well as the common rule, “new restrictions on lobbying,” published on february 26, 1990, including definitions, and the office of',
2840:'management and budget “governmentwide guidance for new restrictions on lobbying” and notices published on december 20, 1989, june 15, 1990,',
2841:'january 15, 1992, and january 19, 1996. b executive lobbying costs.costs incurred in attempting to improperly influence, either directly or',
2842:'indirectly, an employee or officer of the executive branch of the federal government to give consideration or to act regarding',
2843:'a federal award or a regulatory matter are unallowable. improper influence means any influence that induces or tends to induce',
2844:'a federal employee or officer to give consideration or to act regarding a federal award or regulatory matter on any',
2845:'basis other than the merit. c restrictions on nonprofit organizations and ihes.in addition, the following restrictions apply to nonprofit organizations',
2846:'and ihes: 1 costs associated with the following activities are unallowable: i attempts to influence the outcomes of any federal,',
2847:'state, or local election, referendum, initiative, or similar procedure through inkind or cash contributions, endorsements, publicity, or similar activity; ii',
2848:'establishing, administering, contributing to, or paying the expenses of a political party, campaign, political action committee, or other organization established',
2849:'to influence the outcomes of elections in the united states; iii any attempt to influence: a the introduction of federal',
2850:'or state legislation; b the enactment or modification of any pending federal or state legislation through communication with any member',
2851:'or employee of the congress or state legislature including efforts to influence state or local officials to engage in similar',
2852:'lobbying activity; c the enactment or modification of any pending federal or state legislation by preparing, distributing, or using publicity',
2853:'or propaganda or by urging members of the general public, or any segment thereof, to contribute to or participate in',
2854:'any mass demonstration, march, rally, fundraising drive, lobbying campaign or letter writing or telephone campaign; or d any government official',
2855:'or employee in connection with a decision to sign or veto enrolled legislation; iv legislative liaison activities, including attendance at',
2856:'legislative sessions or committee hearings, gathering information regarding legislation, and analyzing the effect of legislation, when such activities are carried',
2857:'on in support of or in knowing preparation for an effort to engage in unallowable lobbying. 2 cfr 200.450c1iv enhanced',
2858:'display page 116 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.450c2 uniform administrative',
2859:'requirements, cost principles, and audit 2 the following activities are excepted from the coverage ofparagraph c1of this section: i technical',
2860:'and factual presentations on topics directly related to the performance of a grant, contract, or other agreement through hearing testimony,',
2861:'statements, or letters to the congress or a state legislature, or subdivision, member, or cognizant staff member thereof, in response',
2862:'to a documented request including a congressional record notice requesting testimony or statements for the record at a regularly scheduled',
2863:'hearing made by the recipients or subrecipients member of congress, legislative body, subdivision, or a cognizant staff member thereof, provided',
2864:'such information is readily obtainable and can be readily put in deliverable form, and further provided that costs under this',
2865:'section for travel, lodging or meals are unallowable unless incurred to offer testimony at a regularly scheduled congressional hearing pursuant',
2866:'to a written request for such presentation made by the chairman or ranking minority member of the committee or subcommittee',
2867:'conducting such hearings; ii any lobbying made unallowable byparagraph c1iiiof this section to influence state legislation to directly reduce the',
2868:'cost, or to avoid material impairment of the recipients or subrecipients authority to perform the grant, contract, or other agreement;',
2869:'iii any activity specifically authorized by statute to be undertaken with funds from the federal award; or iv any activity',
2870:'excepted from the definitions of “lobbying” or “influencing legislation” by the internal revenue code provisions that require nonprofit organizations to',
2871:'limit their participation in direct and “grass roots” lobbying activities to retain their charitable deduction status and avoid punitive excise',
2872:'taxes, 26 u.s.c. i.r.c. 501c3, 501h, 4911a, including: a nonpartisan analysis, study, or research reports; b examinations and discussions of',
2873:'broad social, economic, and similar problems; and c information provided upon request by a legislator for technical advice and assistance,',
2874:'as defined by i.r.c. 4911d2 and26 cfr 56.49112c1throughc3. 3 when a recipient or subrecipient seeks reimbursement for indirect costs, total',
2875:'lobbying costs must be identified separately in the indirect cost rate proposal and thereafter be treated as other unallowable activity',
2876:'costs in accordance with§ 200.413. 4 the recipient or subrecipient must submit a certification that the requirements and standards of',
2877:'this section have been complied with as part of its annual indirect cost rate proposal. see§ 200.415. 5 i time',
2878:'logs, calendars, or similar records are not required to be created for purposes of complying with the recordkeeping requirements in§',
2879:'200.302with respect to lobbying costs during a particular calendar month when: a the employee engages in lobbying as defined inparagraphs',
2880:'c1and2of this section for 25 percent or less of the employees compensated hours of employment during that calendar month; and',
2881:'b within the preceding fiveyear period, the recipient or subrecipient has not materially misstated allowable or unallowable costs of any',
2882:'nature, including legislative lobbying costs. 2 cfr 200.450c5ib enhanced display page 117 of 208 2 cfr part 200 up to',
2883:'date as of 1/08/2025 2 cfr 200.450c5ii uniform administrative requirements, cost principles, and audit ii when conditions inparagraph c5iaandbof this',
2884:'section are met, recipients and subrecipients are not required to establish records to support the allowability of claimed costs in',
2885:'addition to records already required or maintained. also, when conditions inparagraphs c5iaandbof this section are met, the absence of time',
2886:'logs, calendars, or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time',
2887:'spent by employees during a calendar month. iii in consultation with omb, the federal agency must establish procedures for resolving,',
2888:'in advance, any significant questions or disagreements concerning the interpretation or application of this section. any such advance resolutions must',
2889:'be binding in any subsequent settlements, audits, or investigations with respect to that grant or contract for purposes of interpretation',
2890:'of this part, provided, however, that this must not be construed to prevent a contractor or recipient or subrecipient from',
2891:'contesting the lawfulness of such a determination. § 200.451 losses on other awards or contracts. any excess costs over income',
2892:'under any other award or contract of any nature is unallowable. this includes, but is not limited to, the recipients',
2893:'or subrecipients contributed portion by reason of cost sharing agreements or any underrecoveries through negotiation of flat amounts for indirect',
2894:'costs. also, any excess of costs over authorized funding levels transferred from any award or contract to another is unallowable.',
2895:'all losses are not allowable indirect costs and must be included in the appropriate indirect cost rate base for allocating',
2896:'indirect costs. § 200.452 maintenance and repair costs. costs incurred for utilities, insurance, security, necessary maintenance, janitorial services, repair, or',
2897:'upkeep of buildings and equipment including federal property unless otherwise provided for which neither add to the permanent value of',
2898:'the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. costs incurred',
2899:'for improvements that add to the permanent value of the buildings and equipment or appreciably prolong their intended life must',
2900:'be treated as capital expenditures see§ 200.439. these costs are only allowable to the extent not paid through rental or',
2901:'other agreements. § 200.453 materials and supplies costs, including costs of computing devices. a costs incurred for materials, supplies, and',
2902:'fabricated parts necessary for the performance of a federal award are allowable. b purchased materials and supplies must be charged',
2903:'at their actual prices, net of applicable credits. withdrawals from general stores or stockrooms must be charged at their actual',
2904:'net cost under any recognized method of pricing inventory withdrawals, consistently applied. incoming transportation charges are an allowable part of',
2905:'materials and supplies costs. c materials and supplies used for the performance of a federal award may be charged as',
2906:'direct costs. charging computing devices as direct costs is allowable for devices that are essential and allocable, but not solely',
2907:'dedicated, to the performance of a federal award. d where federallydonated or furnished materials are used in performing the federal',
2908:'award, the materials will be used without charge. § 200.454 memberships, subscriptions, and professional activity costs. a costs of the',
2909:'recipients or subrecipients membership in business, technical, and professional organizations are allowable. 2 cfr 200.454a enhanced display page 118 of',
2910:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.454b uniform administrative requirements, cost principles, and',
2911:'audit b costs of the recipients or subrecipients subscriptions to business, professional, and technical periodicals are allowable. c costs of',
2912:'membership in any civic or community organization are allowable. d costs of membership in any country club or social or',
2913:'dining club or organization are unallowable. e costs of membership in organizations whose primary purpose is lobbying are unallowable. see§',
2914:'200.450. § 200.455 organization costs. a costs such as incorporation fees, brokers fees, fees to promoters, organizers or management consultants,',
2915:'attorneys, accountants, or investment counselors, whether or not employees of the recipient or subrecipient in connection with the establishment or',
2916:'reorganization of an organization, are unallowable except with prior approval of the federal agency. b the costs of any of',
2917:'the following activities are unallowable: activities undertaken to persuade employees of the recipient or subrecipient, or any other entity, to',
2918:'exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively through representatives',
2919:'of the employees own choosing. c the costs related to data and evaluation are allowable. data costs include but are',
2920:'not limited to the expenditures needed to gather, store, track, manage, analyze, disaggregate, secure, share, publish, or otherwise use data',
2921:'to administer or improve the program, such as data systems, personnel, data dashboards, cybersecurity, and related items. data costs may',
2922:'also include direct or indirect costs associated with building integrated data systems—data systems that link individuallevel data from multiple state',
2923:'and local government agencies for purposes of management, research, and evaluation. evaluation costs include but are not limited to evidence',
2924:'reviews, evaluation planning and feasibility assessment, conducting evaluations, sharing evaluation results, and other personnel or materials costs related to the',
2925:'effective building and use of evidence and evaluation for program design, administration, or improvement. § 200.456 participant support costs. participant',
2926:'support costs are allowable see§ 200.1.the classification of items as participant support costs must be documented in the recipients or',
2927:'subrecipients written policies and procedures and treated consistently across all federal awards. § 200.457 plant and security costs. necessary and',
2928:'reasonable expenses incurred for the protection and security of facilities, personnel, and work products are allowable. such costs include, but',
2929:'are not limited to, wages and uniforms of personnel engaged in security activities; equipment; barriers; protective nonmilitary gear, devices, and',
2930:'equipment; contractual security services; and consultants. capital expenditures for plant security purposes are subject to§ 200.439. § 200.458 preaward costs.',
2931:'preaward costs are those incurred before the start date of the federal award or subaward directly pursuant to the negotiation',
2932:'and in anticipation of the federal award where such costs are necessary for efficient and timely performance of the scope',
2933:'of work. these costs are allowable only to the extent that they would have been allowed 2 cfr 200.458 enhanced',
2934:'display page 119 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.459 uniform administrative',
2935:'requirements, cost principles, and audit if incurred after the start date of the federal award and only with the written',
2936:'approval of the federal agency. if approved, these costs must be charged to the initial budget period of the federal',
2937:'award unless otherwise specified by the federal agency or passthrough entity. § 200.459 professional service costs. a costs of professional',
2938:'and consultant services rendered by persons who are members of a particular profession or possess a special skill and who',
2939:'are not officers or employees of the recipient or subrecipient are allowable, subject toparagraphs bandcof this section when reasonable in',
2940:'relation to the services rendered and when not contingent upon recovery of the costs from the federal government. in addition,',
2941:'legal and related services are limited under§ 200.435. b in determining the allowability of costs in a particular case, no',
2942:'single factor or any combination of factors is necessarily determinative. however, the following factors are relevant: 1 the nature and',
2943:'scope of the service rendered in relation to the service required. 2 the necessity of contracting for the service, considering',
2944:'the recipients or subrecipients capability in the particular area. 3 the past pattern of such costs, particularly in the years',
2945:'prior to receiving a federal awards. 4 the impact of federal awards on the recipients or subrecipients business meaning, what',
2946:'new problems have arisen. 5 whether the proportion of federal work to the recipients or subrecipients total business influences the',
2947:'recipient or subrecipient in favor of incurring the cost, particularly where the services rendered are not of a continuing nature',
2948:'and have little relationship to work under federal awards. 6 whether the service can be performed more economically by direct',
2949:'employment rather than contracting. 7 the qualifications of the individual or entity providing the service and the customary fees charged,',
2950:'especially on nonfederally funded activities. 8 adequacy of the contractual agreement for the service for example, description of the service,',
2951:'estimate of the time required, rate of compensation, and termination provisions. c to be allowable, retainer fees must be supported',
2952:'by evidence of bona fide services available or rendered in addition to the factors inparagraph bof this section. § 200.460',
2953:'proposal costs. proposal costs are the costs of preparing bids, proposals, or applications on potential federal and nonfederal awards or',
2954:'projects, including developing data necessary to support the recipients or subrecipients bids or proposals. proposal costs of the current accounting',
2955:'period of both successful and unsuccessful bids and proposals normally should be treated as indirect costs and allocated to all',
2956:'current activities of the recipient or subrecipient. no proposal costs of past accounting periods may be allocated to the current',
2957:'period. § 200.461 publication and printing costs. a publication costs for electronic and print media, including distribution, promotion, and general',
2958:'handling, are allowable. these costs should be allocated as indirect costs to all benefiting activities of the recipient or subrecipient',
2959:'if they are not identifiable with a particular cost objective. 2 cfr 200.461a enhanced display page 120 of 208 2',
2960:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.461b uniform administrative requirements, cost principles, and audit b',
2961:'page charges, article processing charges apcs, or similar fees such as open access fees for professional journal publications and other',
2962:'peerreviewed publications resulting from a federal award are allowable where: 1 the publications report work supported by the federal government;',
2963:'and 2 the charges are levied impartially on all items published by the journal, whether or not under a federal',
2964:'award. 3 the recipient or subrecipient may charge the federal award during closeout for the costs of publication or sharing',
2965:'of research results if the costs were not incurred during the period of performance of the federal award. these costs',
2966:'must be charged to the final budget period of the award unless otherwise specified by the federal agency. § 200.462',
2967:'rearrangement and reconversion costs. a costs incurred for ordinary and normal rearrangement and alteration of facilities are allowable as indirect',
2968:'costs. special arrangements and alterations are allowable as a direct cost if the costs are incurred specifically for a federal',
2969:'award and with the prior approval of the federal agency or passthrough entity. b costs incurred in restoring or rehabilitating',
2970:'the recipients or subrecipients facilities to approximately the same condition existing immediately before the commencement of a federal awards, less',
2971:'costs related to normal wear and tear, are allowable. § 200.463 recruiting costs. a subject toparagraphs bandcof this section, and',
2972:'provided that the size of the staff recruited and maintained is in keeping with workload requirements, costs of “help wanted”',
2973:'advertising, operating costs of an employment office necessary to secure and maintain adequate staff, costs of operating an aptitude and',
2974:'educational testing program, travel costs of employees while engaged in recruiting personnel, travel costs of applicants for interviews for prospective',
2975:'employment, and relocation costs incurred incident to recruitment of new employees, are allowable to the extent that such costs are',
2976:'incurred pursuant to the recipients or subrecipients standard recruitment program. when the recipient or subrecipient uses employment agencies, costs not',
2977:'in excess of standard commercial rates for such services are allowable. b special emoluments, fringe benefits, and salary allowances incurred',
2978:'to attract professional personnel that do not meet the test of reasonableness or do not conform with the established practices',
2979:'of the recipient or subrecipient, are unallowable. c if relocation costs incurred incident to recruitment of a new employee have',
2980:'been funded in whole or in part by a federal award, and the newly hired employee resigns for reasons within',
2981:'the employees control within 12 months after hire, the recipient or subrecipient must refund or credit the federal government for',
2982:'its share of those relocation costs. see§ 200.464. d shortterm visas as opposed to longerterm immigration visas are generally an',
2983:'allowable cost and they may be proposed as a direct cost because they are issued for a specific period and',
2984:'purpose and can be clearly identified as directly connected to work performed on a federal award. for these costs to',
2985:'be directly charged to a federal award, they must: 1 be critical and necessary for the conduct of the project;',
2986:'2 be allowable under the applicable cost principles; 2 cfr 200.463d2 enhanced display page 121 of 208 2 cfr part',
2987:'200 up to date as of 1/08/2025 2 cfr 200.463d3 uniform administrative requirements, cost principles, and audit 3 be consistent',
2988:'with the recipients or subrecipients cost accounting practices and established written policy; and 4 meet the definition of “direct cost”',
2989:'as described in the applicable cost principles. § 200.464 relocation costs of employees. a relocation costs are costs incident to',
2990:'the permanent change of duty assignment for an indefinite period or a stated period of not less than 12 months',
2991:'of an existing employee or upon recruitment of a new employee. relocation costs are allowable, subject to the limitations described',
2992:'inparagraphs b,c, and dof this section, provided that: 1 the move is for the benefit of the employer. 2 reimbursement',
2993:'to the employee is in accordance with an established written policy consistently followed by the employer. 3 the reimbursement does',
2994:'not exceed the employees actual or reasonably estimated expenses. b allowable relocation costs for current employees are limited to the',
2995:'following: 1 the costs of transportation of the employee, members of their immediate family and their household, and personal effects',
2996:'to the new location. 2 the costs of finding a new home, such as advance trips by employees and spouses',
2997:'to locate living quarters and temporary lodging during the transition period, up to a maximum period of 30 calendar days.',
2998:'3 closing costs, such as brokerage, legal, and appraisal fees, incidental to the disposition of the employees former home. these',
2999:'costs, together with those described inparagraph b4of this section, are limited to eight percent of the sales price of the',
3000:'employees former home. 4 the continuing costs of ownership for up to six months of the vacant former home after',
3001:'the settlement or lease date of the employees new permanent home, such as maintenance of buildings and grounds exclusive of',
3002:'fixingup expenses, utilities, taxes, and property insurance. 5 other necessary and reasonable expenses normally incident to relocation, such as canceling',
3003:'an unexpired lease, transportation of personal property, and purchasing insurance against loss of or damages to personal property. the cost',
3004:'of canceling an unexpired lease is limited to three times the monthly rental. c allowable relocation costs for new employees',
3005:'are limited to those described inparagraphs b1and2 of this section. if relocation costs incurred incident to the recruitment of a',
3006:'new employee have been funded in whole or in part by a federal award, and the newly hired employee resigns',
3007:'for reasons within the employees control within 12 months after hire, the recipient or subrecipient must refund or credit the',
3008:'federal government for its share of the cost. if a new employee is relocating to an overseas location and dependents',
3009:'are not permitted for any reason, and the costs do not include transporting household goods, the costs must be considered',
3010:'travel costs in accordance with§ 200.474, not relocation costs underthis section. d the following costs related to relocation are unallowable:',
3011:'1 fees and other costs associated with acquiring a new home. 2 a loss on the sale of a former',
3012:'home. 2 cfr 200.464d2 enhanced display page 122 of 208 2 cfr part 200 up to date as of 1/08/2025',
3013:'2 cfr 200.464d3 uniform administrative requirements, cost principles, and audit 3 continuing mortgage principal and interest payments on a home',
3014:'being sold. 4 income taxes paid by an employee related to reimbursed relocation costs. § 200.465 rental costs of real',
3015:'property and equipment. a subject to the limitations described inparagraphs bthroughdof this section, rental costs are allowable to the extent',
3016:'that the rates are reasonable in light of such factors as costs of comparable rental properties; market conditions in the',
3017:'area; alternatives available; and the type, life expectancy, condition, and value of the property leased. rental arrangements should be reviewed',
3018:'periodically to determine if circumstances have changed and if other options are available. b rental costs under “sale and lease',
3019:'back” arrangements are allowable only up to the amount that would have been allowed if the recipient or subrecipient had',
3020:'continued to own the property. this amount would include expenses such as depreciation, maintenance, taxes, and insurance. c rental costs',
3021:'under “lessthanarmslength” leases are allowable only up to the amount described in paragraph bof this section. for this purpose, a',
3022:'lessthanarmslength lease is one under which one party to the lease agreement can control or substantially influence the actions of',
3023:'the other. such leases include, but are not limited to, those between: 1 divisions of the recipient or subrecipient; 2',
3024:'the recipient or subrecipient and another entity under common control through common officers, directors, or members; and 3 the recipient',
3025:'or subrecipient and a director, trustee, officer, or key employee of the recipient or subrecipient or an immediate family member,',
3026:'either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest. for example, the recipient',
3027:'or subrecipient may establish a separate corporation to own property and lease it back to the recipient or subrecipient. 4',
3028:'family members include one party with any of the following relationships to another party: i spouse and parents thereof; ii',
3029:'children and spouses thereof; iii parents and spouses thereof; iv siblings and spouses thereof; v grandparents and grandchildren and spouses',
3030:'thereof; vi domestic partner and parents thereof, including domestic partners of any individual in 2 through 5 of this definition;',
3031:'and vii any individual related by blood or affinity whose close association with the employee is the equivalent of a',
3032:'family relationship. d rental costs under leases which are required to be accounted for as a financed purchase under gasb',
3033:'standards or a finance lease under fasb standards are allowable only up to the amount described in paragraph bof this',
3034:'section that would have been allowed if the recipient or subrecipient had purchased the property on the date the lease',
3035:'agreement was executed. interest costs related to these leases are 2 cfr 200.465d enhanced display page 123 of 208 2',
3036:'cfr part 200 up to date as of 1/08/2025 2 cfr 200.465e uniform administrative requirements, cost principles, and audit allowable',
3037:'if they meet the criteria in§ 200.449. unallowable costs include costs that would not have been incurred if the recipient',
3038:'or subrecipient had purchased the property, such as amounts paid for profit, management fees, and taxes. e rental or lease',
3039:'payments are allowable under lease contracts where the recipient or subrecipient is required to recognize an intangible righttouse lease asset',
3040:'under gasb standards or rightofuse operating lease asset under fasb standards for purposes of financial reporting in accordance with gaap.',
3041:'f the rental of any property owned by any individuals or entities affiliated with the recipient or subrecipient, including commercial',
3042:'or residential real estate, for purposes such as the home office is unallowable. § 200.466 scholarships, student aid costs, and',
3043:'tuition remission. a costs of scholarships, fellowships, and student aid programs at ihes are allowable only when the purpose of',
3044:'the federal award is to provide training to participants, and the federal agency approves the cost. b tuition remission and',
3045:'other forms of compensation paid as, or instead of, wages to students performing necessary work are allowable provided that: 1',
3046:'the individual is conducting activities necessary to the federal award; 2 tuition remission and other support are provided in accordance',
3047:'with the established written policy of the ihe and consistently provided in a like manner to students in return for',
3048:'similar activities conducted under federal awards as well as other activities; and 3 the student is enrolled in an advanced',
3049:'degree program at the ihe or an affiliated institution during the academic period and the students activities under the federal',
3050:'award are related to their degree program; 4 the tuition or other payments are reasonable compensation for the work performed',
3051:'and are conditioned explicitly upon the performance of necessary work; and 5 the ihe compensates students under federal awards as',
3052:'well as other activities in similar manners. c charges for tuition remission and other forms of compensation paid to students',
3053:'as, or instead of, salaries and wages are subject to the reporting requirements in§ 200.430. the charges must be treated',
3054:'as a direct or indirect cost in accordance with the actual work performed. tuition remission may be charged on an',
3055:'average rate basis. see§ 200.431. § 200.467 selling and marketing costs. costs of selling and marketing any products or services',
3056:'of the recipient or subrecipient are unallowable unless they are allowed under§ 200.421and are necessary to meet the requirements of',
3057:'the federal award. § 200.468 specialized service facilities. a the costs of services provided by highly complex or specialized facilities',
3058:'operated by the recipient or subrecipient are allowable provided the charges for the services meet the conditions of eitherparagraph borcof',
3059:'this sectionandtake into account any items of income or federal financing that qualify as applicable credits under§ 200.406. these costs',
3060:'include charges for facilities such as computing facilities, wind tunnels, and reactors. 2 cfr 200.468a enhanced display page 124 of',
3061:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.468b uniform administrative requirements, cost principles, and',
3062:'audit b the costs of such services, when material, must be charged directly to the applicable federal awards based on',
3063:'actual usage of the services on the basis of a schedule of rates or established methodology that: 1 does not',
3064:'discriminate between activities under federal awards and other activities of the recipient or subrecipient, including usage by the recipient or',
3065:'subrecipient for internal purposes; and 2 is designed to recover only the aggregate costs of the services. each services costs',
3066:'must normally consist of its direct costs and an allocable share of all indirect costs. rates must be adjusted at',
3067:'least biennially and must consider any over or underapplied costs of the previous periods. c where the costs incurred for',
3068:'a service are not material, they may be allocated as indirect costs. d under extraordinary circumstances, the cognizant agency for',
3069:'indirect costs and the recipient or subrecipient may negotiate and establish an alternative costing arrangement if it is in the',
3070:'federal governments best interest. § 200.469 student activity costs. costs incurred for intramural activities, student publications, student clubs, and other',
3071:'student activities are unallowable unless expressly authorized in the federal award. § 200.470 taxes including value added tax. a for',
3072:'states, local governments, and indian tribes. 1 taxes that a governmental unit is legally required to pay are allowable, except',
3073:'for selfassessed taxes that disproportionately affect federal programs or changes in tax policies that disproportionately affect federal programs. 2 gasoline',
3074:'taxes, motor vehicle fees, and other taxes that are, in effect, user fees for benefits provided to the federal government',
3075:'are allowable. 3 this provision does not restrict the authority of the federal agency to identify taxes where federal participation',
3076:'is inappropriate. the cognizant agency for indirect costs may accept a reasonable approximation in circumstances where determining the amount of',
3077:'unallowable taxes would require an excessive amount of effort. b for nonprofit organizations and ihes. 1 taxes that the recipient',
3078:'or subrecipient is required to pay and which are paid or accrued in accordance with gaap are generally allowable. these',
3079:'costs include payments made to local governments instead of taxes and that are commensurate with the local government services received.',
3080:'the following taxes are unallowable: i taxes for which exemptions are available to the recipient or subrecipient directly or which',
3081:'are available to the recipient or subrecipient based on an exemption afforded the federal government and, in the latter case,',
3082:'when the federal agency makes available the necessary exemption certificates; ii special assessments on land which represent capital improvements; and',
3083:'iii federal income taxes. 2 cfr 200.470b1iii enhanced display page 125 of 208 2 cfr part 200 up to date',
3084:'as of 1/08/2025 2 cfr 200.470b2 uniform administrative requirements, cost principles, and audit 2 any refund of taxes and interest',
3085:'thereon, which were allowed as federal award costs, must be credited to the federal government as a cost reduction or',
3086:'cash refund, as appropriate. however, any interest paid or credited to a recipient or subrecipient incident to a refund of',
3087:'tax, interest, and penalty will be paid or credited to the federal government only to the extent that such interest',
3088:'accrued over the period during which the federal government has reimbursed the recipient or subrecipient for the taxes, interest, and',
3089:'penalties. c value added tax vat.foreign taxes charged for procurement transactions that a recipient or subrecipient is legally required to',
3090:'pay in a country are allowable. foreign tax refunds or applicable credits under federal awards refer to receipts or reduction',
3091:'of expenditures, which operate to offset or reduce expense items that are allocable to federal awards as direct or indirect',
3092:'costs. to the extent that such credits accrued or received by the recipient or subrecipient relate to allowable cost, these',
3093:'costs must be credited to the federal agency as a cost reduction or cash refunds, as appropriate. in cases where',
3094:'the costs are credited back to the federal award, the recipient or subrecipient may reduce the federal share of costs',
3095:'by the amount of the foreign tax reimbursement, or where federal award has not expired, the federal agency may allow',
3096:'the recipient or subrecipient to use the foreign government tax refund for approved activities under the federal award. § 200.471',
3097:'telecommunication and video surveillance costs. a costs incurred for telecommunications and video surveillance services or equipment such as phones, internet,',
3098:'video surveillance, and cloud servers are allowable except for the following circumstances: b obligating or expending covered telecommunications and video',
3099:'surveillance services or equipment or services as described in§ 200.216to: 1 procure or obtain, extend or renew a contract to',
3100:'procure or obtain; 2 enter into a contract or extend or renew a contract to procure; or 3 obtain the',
3101:'equipment, services, or systems. § 200.472 termination and standard closeout costs. a termination costs.termination of a federal award generally gives',
3102:'rise to the incurrence of costs or the need for special treatment of costs, which would not have arisen had',
3103:'the federal award not been terminated. cost principles covering these items are set forth in this section. they must be',
3104:'used in conjunction with the other termination requirements of this part. 1 the cost of items reasonably usable on the',
3105:'recipients or subrecipients other work is unallowable unless the recipient or subrecipient submits evidence that it would not retain such',
3106:'items without sustaining a loss. in deciding whether such items are reasonably usable on other work of the recipient or',
3107:'subrecipient, the federal agency or passthrough entity should consider the recipients or subrecipients plans and orders for current and scheduled',
3108:'activity. contemporaneous purchases of common items by the recipient or subrecipient must be considered evidence that the items are reasonably',
3109:'usable on the recipients or subrecipients other work. any acceptance of common items as allocable to the terminated portion of',
3110:'the federal award must be limited to the extent that the quantities of such items on hand, in transit, and',
3111:'on order do not exceed the reasonable quantitative requirements of other work. 2 cfr 200.472a1 enhanced display page 126 of',
3112:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.472a2 uniform administrative requirements, cost principles, and',
3113:'audit 2 if the recipient or subrecipient cannot discontinue certain costs immediately after the effective termination date, despite making all',
3114:'reasonable efforts, then the costs are generally allowable within the limitations of this part. any costs continuing after termination due',
3115:'to the negligent or willful failure of the recipient or subrecipient to immediately discontinue the costs are unallowable. 3 loss',
3116:'of useful value of special tooling, machinery, and equipment is generally allowable if: i such special tooling, special machinery, or',
3117:'equipment is not reasonably capable of use in the other work of the recipient or subrecipient; ii the interest of',
3118:'the federal government is protected by transfer of title or by other means deemed appropriate by the federal agency see§',
3119:'200.313 d; and iii the loss of useful value for any one terminated federal award is limited to the portion',
3120:'of the acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of the',
3121:'federal award bears to the entire terminated federal award and other federal awards for which the special tooling, machinery, or',
3122:'equipment was acquired. 4 if paragraph a4i and ii below are satisfied, rental costs under unexpired leases less the residual',
3123:'value of such leases are generally allowable where clearly shown to have been reasonably necessary for the performance of the',
3124:'terminated federal award. these rental costs may include the cost of alterations of the leased property and the cost of',
3125:'reasonable restoration required by the lease, provided the alterations were necessary for the performance of the federal award. i the',
3126:'amount of claimed rental costs does not exceed the reasonable use value of the property leased for the period of',
3127:'the federal award and a further period as may be reasonable; and ii the recipient or subrecipient makes all reasonable',
3128:'efforts to terminate, assign, settle, or otherwise reduce the cost of the lease. 5 the following settlement expenses are generally',
3129:'allowable. i accounting, legal, clerical, and similar costs that are reasonably necessary for: a the preparation and presentation to the',
3130:'federal agency or passthrough entity of settlement claims and supporting data with respect to the terminated portion of the federal',
3131:'award, unless the termination is for cause see§§ 200.339200.343; and b the termination and settlement of subawards. ii reasonable costs',
3132:'for the storage, transportation, protection, and disposition of property provided by the federal government or acquired or produced for the',
3133:'federal award. 6 claims under subawards, including the allocable portion of claims common to the federal award and other work',
3134:'of the recipient or subrecipient, are generally allowable. an appropriate share of the recipients or subrecipients indirect costs may be',
3135:'allocated to the amount of settlements with contractors and subrecipients, provided that the amount allocated is consistent with the requirements',
3136:'of§ 200.414. these allocated indirect costs must exclude the same and similar costs claimed directly or indirectly as settlement expenses.',
3137:'b closeout costs.administrative costs associated with the closeout activities of a federal award are allowable. the recipient or subrecipient may',
3138:'charge the federal award during the closeout for the necessary administrative costs of that federal award for example, salaries of',
3139:'personnel preparing final reports, publication and printing costs, costs associated with the disposition of equipment and property, 2 cfr 200.472b',
3140:'enhanced display page 127 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.473 uniform',
3141:'administrative requirements, cost principles, and audit and related indirect costs. these costs may be incurred until the due date of',
3142:'the final reports. if incurred, these costs must be liquidated prior to the due date of the final reports and',
3143:'charged to the final budget period of the award unless otherwise specified by the federal agency. § 200.473 training and',
3144:'education costs. the cost of training and education provided for employee development is allowable. § 200.474 transportation costs. costs incurred',
3145:'for freight, express, cartage, postage, and other transportation services relating to goods purchased, in process, or delivered, are allowable. when',
3146:'the costs can be readily identified with the items involved, they may be charged directly as transportation costs or added',
3147:'to the cost of such items. when identification with the materials received cannot be readily made, the inbound transportation cost',
3148:'may be charged to the appropriate indirect cost accounts if the recipient or subrecipient follows a consistent, equitable procedure in',
3149:'this respect. if reimbursable under the terms and conditions of the federal award, outbound freight should be treated as a',
3150:'direct cost. § 200.475 travel costs. a general.travel costs include the transportation, lodging, subsistence, and related items incurred by employees',
3151:'who are in travel status on official business of the recipient or subrecipient. these costs may be charged on an',
3152:'actual cost basis, on a per diem or mileage basis, or on a combination of the two, provided the method',
3153:'used is applied to an entire trip and not to selected days of the trip. the method used must be',
3154:'consistent with those normally allowed in like circumstances in the recipients or subrecipients other activities and in accordance with the',
3155:'recipients or subrecipients established written policies. notwithstanding the provisions of§ 200.444, travel costs of officials covered by that section are',
3156:'allowable with the prior written approval of the federal agency or passthrough entity when they are specifically related to the',
3157:'federal award. b lodging and subsistence.costs incurred by employees and officers for travel, including costs of lodging, other subsistence, and',
3158:'incidental expenses, must be considered reasonable and otherwise allowable only to the extent such costs do not exceed charges normally',
3159:'allowed by the recipient or subrecipient in its regular operations as the result of the recipients or subrecipients established written',
3160:'policy. in addition, if these costs are charged directly to the federal award documentation must justify that: 1 participation of',
3161:'the individual is necessary for the federal award; and 2 the costs are reasonable and consistent with the recipients or',
3162:'subrecipients established written policy. c dependents. 1 temporary dependent care costs dependent is defined in26 u.s.c. 152 above and beyond',
3163:'regular dependent care are allowable provided that these costs: i are a direct result of the individuals travel to a',
3164:'conference for the federal award; ii are consistent with the recipients or subrecipients established written policy for all travel; and',
3165:'iii are only temporary during the travel period. 2 travel costs for dependents are unallowable, except for travel of six',
3166:'months or more with prior approval of the federal agency. see§ 200.432. 2 cfr 200.475c2 enhanced display page 128 of',
3167:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.475d uniform administrative requirements, cost principles, and',
3168:'audit d establishing rates and amounts.in the absence of an established written policy regarding travel costs, the rates and amounts',
3169:'established under5 u.s.c. 570111 “travel and subsistence expenses; mileage allowances”, by the administrator of general services, or by the president',
3170:'or their designee pursuant to any provisions of such subchapter must apply to travel under federal awards 48 cfr 31.20546a.',
3171:'e commercial air travel. 1 airfare costs in excess of the basic least expensive unrestricted accommodations class offered by commercial',
3172:'airlines are unallowable except when such accommodations would: i require circuitous routing; ii require travel during unreasonable hours; iii excessively',
3173:'prolong travel; iv result in additional costs that would offset the transportation savings; or v offer accommodations not reasonably adequate',
3174:'for the travelers medical needs. the recipient or subrecipient must justify and document these conditions on a casebycase basis for',
3175:'the use of firstclass or businessclass airfare to be allowable in such cases. 2 unless a pattern of avoidance is',
3176:'detected, the federal government will generally not question a recipients or subrecipients determinations that customary standard airfare or other discount',
3177:'airfare is unavailable for specific trips if the recipient or subrecipient can demonstrate that such airfare was not available in',
3178:'the specific case. f air travel by other than commercial carrier.travel costs by recipient or subrecipientowned, leased, or chartered aircraft',
3179:'include the cost of the lease, charter, operation including personnel costs, maintenance, depreciation, insurance, and other related costs. the portion',
3180:'of these costs that exceeds the cost of airfare, as provided for in paragraph d, is unallowable. § 200.476 trustees.',
3181:'travel and subsistence costs of trustees or directors at ihes and nonprofit organizations are allowable. see§ 200.475. subpart f—audit requirements',
3182:'general § 200.500 purpose. this part sets forth standards for obtaining consistency and uniformity among federal agencies for the audit',
3183:'of nonfederal entities expending federal awards. audits § 200.501 audit requirements. a audit required.a nonfederal entity that expends $1,000,000 or',
3184:'more during the nonfederal entitys fiscal year in federal awards must have a single or programspecific audit conducted for that',
3185:'year in accordance with the provisions of this part. 2 cfr 200.501a enhanced display page 129 of 208 2 cfr',
3186:'part 200 up to date as of 1/08/2025 2 cfr 200.501b uniform administrative requirements, cost principles, and audit b single',
3187:'audit.a nonfederal entity that expends $1,000,000 or more in federal awards during the non federal entitys fiscal year must have',
3188:'a single audit conducted in accordance with§ 200.514except when it elects to have a programspecific audit conducted in accordance withparagraph',
3189:'cordof this section. c programspecific audit election in general.a nonfederal entity may elect to have a programspecific audit conducted in',
3190:'accordance with§ 200.507if the following conditions are met: 1 the nonfederal entity expends federal awards under only one federal program',
3191:'excluding research and development; and 2 the federal programs statutes or regulations, or terms and conditions of the federal award,',
3192:'do not require a financial statement audit of the nonfederal entity. d programspecific audit election for research and development.a nonfederal',
3193:'entity may elect to have a programspecific audit for research and development conducted in accordance with§ 200.507, but only if',
3194:'all of the following conditions are met: 1 the nonfederal entity expends federal awards only from the same federal agency,',
3195:'or the same federal agency and the same passthrough entity; and 2 the federal agency, or passthrough entity in the',
3196:'case of a subrecipient, approves a programspecific audit in advance. e exemption when federal awards expended are less than $1,000,000.a',
3197:'nonfederal entity that expends less than $1,000,000 in federal awards during its fiscal year is exempt from federal audit requirements',
3198:'for that year, except as noted in§ 200.503. however, in all instances, the records of the nonfederal entity must be',
3199:'available for review or audit by appropriate officials of the federal agency, passthrough entity, and the government accountability office gao.',
3200:'f federally funded research and development centers ffrdc.management of an auditee that owns or operates a ffrdc may elect to',
3201:'treat the ffrdc as a separate entity for purposes of this part. g subrecipients and contractors.an auditee may simultaneously be',
3202:'a recipient, a subrecipient, and a contractor. unless a program is exempt by federal statute, federal awards expended as a',
3203:'recipient or a subrecipient are subject to audit under this part. payments received for goods or services provided as a',
3204:'contractor under a federal award see§ 200.331 are not subject to audit under this part. h compliance responsibility for contractors.in',
3205:'most cases, the auditees compliance responsibility for contractors is to ensure that the procurement, receipt, and payment for goods and',
3206:'services comply with federal statutes, regulations, and the terms and conditions of a federal award. federal award compliance requirements normally',
3207:'do not flow down to contractors. however, for procurement transactions in which the contractor is made responsible for meeting program',
3208:'requirements, the auditee must ensure those requirements are met, including by clearly stating the contractors responsibilities within the contract and',
3209:'reviewing the contractors records to determine compliance. also, when these procurement transactions relate to a major program, the scope of',
3210:'the audit must include a determination of whether these transactions comply with federal statutes, regulations, and the terms and conditions',
3211:'of a federal award. see also§ 200.318b. i forprofit subrecipient.this subpart does not apply to forprofit organizations. as necessary, the',
3212:'pass through entity is responsible for establishing requirements to ensure compliance by forprofit subrecipients. the subaward with a forprofit subrecipient',
3213:'must describe applicable compliance 2 cfr 200.501i enhanced display page 130 of 208 2 cfr part 200 up to date',
3214:'as of 1/08/2025 2 cfr 200.502 uniform administrative requirements, cost principles, and audit requirements and the forprofit subrecipients compliance responsibility.',
3215:'methods to ensure compliance for federal awards made to forprofit subrecipients may include preaward audits, monitoring throughout the performance of',
3216:'the subaward, and postaward audits see§ 200.332. § 200.502 basis for determining federal awards expended. a determining federal awards expended.the',
3217:'determination of when a federal award is expended must be based on when the activity related to the federal award',
3218:'occurs. generally, the activity related to the federal award pertains to events that require the nonfederal entity to comply with',
3219:'federal statutes, regulations, and the terms and conditions of federal awards, such as: 1 expenditure/expense transactions associated with grants, cooperative',
3220:'agreements, cost reimbursement contracts under the far, compacts with indian tribes, and direct appropriations; 2 the disbursement of funds to',
3221:'subrecipients; 3 the use of loan proceeds under loan and loan guarantee programs; 4 the receipt of property including surplus',
3222:'property; 5 the receipt or use of program income; 6 the distribution or use of food commodities; 7 the disbursement',
3223:'of amounts entitling the nonfederal entity to an interest subsidy; and 8 the period when insurance is in force. b',
3224:'loan and loan guarantees loans.the federal government is at risk for loans until the debt is repaid. therefore, the following',
3225:'guidelines must be used to calculate the value of federal awards expended under loan programs except as noted in paragraphs',
3226:'c and d: 1 the value of new loans made or received during the audit period; plus 2 the balance',
3227:'of loans from previous years at the beginning of the audit period for which the federal government imposes continuing compliance',
3228:'requirements; plus 3 any interest subsidy, cash, or administrative cost allowance received. c loan and loan guarantees loans at institutions',
3229:'of higher education ihe.when loans are made to students of an ihe, but the ihe itself does not have continuing',
3230:'compliance requirements for the loans, then only the value of loans made during the audit period are considered federal awards',
3231:'expended in that audit period. the balance of loans for previous audit periods is not included as federal awards expended',
3232:'because the lender accounts for the prior balances. d prior loan and loan guarantees loans.loans, the proceeds of which were',
3233:'received and expended in prior years, are not considered federal awards expended under this part when federal statutes, regulations, and',
3234:'the terms and conditions of federal awards pertaining to such loans impose no continuing compliance requirements other than to repay',
3235:'the loans. e endowment funds.the cumulative balance of federal awards for endowment funds that are federally restricted is considered federal',
3236:'awards expended in each audit period in which the funds are still restricted. 2 cfr 200.502e enhanced display page 131',
3237:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.502f uniform administrative requirements, cost principles,',
3238:'and audit f free rent.free rent received by itself is not considered a federal award expended under this part. however,',
3239:'free rent received as part of a federal award to carry out a federal program must be included in determining',
3240:'federal awards expended and is subject to audit under this part. g valuing noncash assistance.federal noncash assistance such as free',
3241:'rent, food commodities, donated property, or donated surplus property that is received as part of a federal award to carry',
3242:'out a federal program must be valued at fair market value at the time of receipt or the assessed value',
3243:'provided by the federal agency and must be included in determining federal awards expended under this part. h medicare.medicare payments',
3244:'to a nonfederal entity for providing patient care services to medicare eligible individuals are not considered federal awards expended under',
3245:'this part. i medicaid.medicaid payments to a subrecipient for providing patient care services to medicaideligible individuals are not considered federal',
3246:'awards expended under this part unless a state requires the funds to be treated as federal awards expended because reimbursement',
3247:'is on a costreimbursement basis. j certain loans provided by the national credit union administration.for purposes of this part, loans',
3248:'from the national credit union share insurance fund and the central liquidity facility funded by contributions from insured nonfederal entities',
3249:'are not considered federal awards expended. § 200.503 relation to other audit requirements. a other financial audits.an audit conducted in',
3250:'accordance with this part must be in lieu of any financial audit of federal awards which a nonfederal entity is',
3251:'required to undergo under any other federal statute or regulation. to the extent that such an audit provides a federal',
3252:'agency with the information it requires to carry out its responsibilities under federal statute or regulation, a federal agency must',
3253:'rely upon and use that information. b conducting additional audits.notwithstandingparagraph aof this section, a federal agency, inspectors general, or gao',
3254:'may conduct or arrange additional audits to carry out its responsibilities under federal statute or regulation. the provisions of this',
3255:'part do not authorize any nonfederal entity to constrain, in any manner, such federal agency from carrying out or arranging',
3256:'for such additional audits, except that the federal agency must plan such audits not to be duplicative of other audits',
3257:'of federal awards. prior to commencing such an audit, the federal agency or passthrough entity must review the fac for',
3258:'recent audits submitted by the nonfederal entity, and to the extent such audits meet a federal agency or pass through',
3259:'entitys needs, the federal agency or passthrough entity must rely upon and use such audits. any additional audits must be',
3260:'planned and performed in such a way as to build upon work performed, including the audit documentation, sampling, and testing',
3261:'already performed by other auditors. c authority to conduct additional audits.the provisions of this part do not limit the authority',
3262:'of federal agencies to conduct, or arrange for the conduct of, audits and evaluations of federal awards, nor limit the',
3263:'authority of any federal agency inspector general or other federal officials. for example, requirements that may be applicable under the',
3264:'far or cas and the terms and conditions of a costreimbursement contract may include additional applicable audits to be conducted',
3265:'or arranged for by federal agencies. d federal agency to pay for additional audits.a federal agency that conducts or arranges',
3266:'for additional audits must, consistent with other applicable federal statutes and regulations, arrange for funding the full cost of such',
3267:'additional audits. e request for a program to be audited as a major program.a federal agency may request that an',
3268:'auditee have a particular federal program audited as a major program in lieu of the federal agency conducting or arranging',
3269:'for the additional audits. such requests should be made at least 180 calendar days prior to the 2 cfr 200.503e',
3270:'enhanced display page 132 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.504 uniform',
3271:'administrative requirements, cost principles, and audit end of the fiscal year to be audited to allow for planning. after consultation',
3272:'with its auditor, the auditee should promptly respond to such a request by informing the federal agency whether the program',
3273:'would otherwise be audited as a major program using the riskbased audit approach described in§ 200.518and, if not, the estimated',
3274:'incremental cost. the federal agency must then promptly confirm to the auditee whether it wants the program audited as a',
3275:'major program. if the program is to be audited as a major program based upon this federal agency request, and',
3276:'the federal agency agrees to pay the full incremental costs, then the auditee must have the program audited as a',
3277:'major program. with approval of the federal agency, a passthrough entity may use the provisions of this paragraph for a',
3278:'subrecipient. § 200.504 frequency of audits. audits required by this part must be performed annually unless biennial audits are permitted',
3279:'underparagraph aor bof this section. biennial audits must cover both fiscal years within the biennial period. a a state, local',
3280:'government, or indian tribe that is required by constitution or statute, in effect on january 1, 1987, to undergo its',
3281:'audits less frequently than annually, is permitted to undergo biennial every other year audits pursuant to this part. this requirement',
3282:'must still be in effect for the biennial period. b any nonprofit organization that had biennial audits for all biennial',
3283:'periods ending between july 1, 1992, and january 1, 1995, is permitted to undergo biennial audits pursuant to this part.',
3284:'§ 200.505 remedies for audit noncompliance. in cases of continued inability or unwillingness of a nonfederal entity to have an',
3285:'audit conducted in accordance with this part, federal agencies or passthrough entities must take appropriate action as provided in§ 200.339.',
3286:'§ 200.506 audit costs. see§ 200.425. § 200.507 programspecific audits. a programspecific audit guide available.in some cases, a programspecific audit',
3287:'guide will be available to provide specific guidance to the auditor concerning internal controls, compliance requirements, suggested audit procedures, and',
3288:'audit reporting requirements. a listing of current programspecific audit guides can be found in the compliance supplement appendix vi, programspecific',
3289:'audit guides. when a current programspecific audit guide is available, the auditor must follow generally accepted government auditing standards gagas',
3290:'and the guide when performing a programspecific audit. b programspecific audit guide not available. 1 when a current programspecific audit',
3291:'guide is not available, the auditee and auditor must have basically the same responsibilities for the federal program as they',
3292:'would have for an audit of a major program in a single audit. 2 the auditee must prepare the financial',
3293:'statements for the federal program that includes a schedule of expenditures of federal awards for the program and notes that',
3294:'describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the',
3295:'requirements of § 200.511b, and a corrective action plan consistent with the requirements of§ 200.511c. 3 the auditor must: 2',
3296:'cfr 200.507b3 enhanced display page 133 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
3297:'200.507b3i uniform administrative requirements, cost principles, and audit i perform an audit of the financial statements for the federal program',
3298:'in accordance with gagas; ii obtain an understanding of internal controls and perform tests of internal controls over the federal',
3299:'program consistent with the requirements for a major program in accordance with§ 200.514c; iii determine whether the auditee has complied',
3300:'with federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect',
3301:'on the federal program consistent with the requirements for a major program under§ 200.514d; iv follow up on prior audit',
3302:'findings and perform procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by the auditee',
3303:'in accordance with the requirements of§ 200.511when the auditor concludes that the summary schedule of prior audit findings materially misrepresents',
3304:'the status of any prior audit finding, the auditor must report this condition as a currentyear audit finding. ; and',
3305:'v report any audit findings consistent with the requirements of§ 200.516. 4 the auditor s reports may be in the',
3306:'form of either combined or separate reports. it may be organized differently from the manner presented in this section. the',
3307:'auditors reports must state that the audit was conducted in accordance with this part and include the following: i an',
3308:'opinion or disclaimer of opinion as to whether the financial statements of the federal program is presented fairly in all',
3309:'material respects in accordance with the stated accounting policies; ii a report on internal control related to the federal program,',
3310:'which must describe the scope of testing of internal control and the results of the tests; iii a report on',
3311:'compliance that includes an opinion or disclaimer of opinion as to whether the auditee complied with laws, regulations, and the',
3312:'terms and conditions of federal awards which could have a direct and material effect on the federal program; and iv',
3313:'a schedule of findings and questioned costs for the federal program that includes a summary of the auditors results relative',
3314:'to the federal program in a format consistent with§ 200.515d1and findings and questioned costs consistent with the requirements of§ 200.515d3.',
3315:'c report submission for programspecific audits. 1 submission deadline and public availability.the audit must be completed and submitted in accordance',
3316:'withparagraph c2orc3of this section. unless a different period is specified in the programspecific audit guide, the audit must be submitted',
3317:'within 30 calendar days after the auditee receives the auditors reports or nine months after the end of the audit',
3318:'period whichever is earlier. the submission is due the next business day when the due date falls on a saturday,',
3319:'sunday, or federal holiday. unless restricted by federal law or regulation, the auditee must make copies of the reporting package',
3320:'available for public inspection. auditees and auditors must ensure that their respective parts of the reporting package do not include',
3321:'protected personally identifiable information. 2 cfr 200.507c1 enhanced display page 134 of 208 2 cfr part 200 up to date',
3322:'as of 1/08/2025 2 cfr 200.507c2 uniform administrative requirements, cost principles, and audit 2 programspecific audit guide available.when a programspecific',
3323:'audit guide is available, the auditee must electronically submit the data collection form prepared in accordance with§ 200.512b, as applicable',
3324:'to the programspecific audit, to the federal audit clearinghouse fac. the submission must also include the reporting required by the',
3325:'programspecific audit guide. 3 programspecific audit guide not available.when a programspecific audit guide is not available, the auditee must electronically',
3326:'submit the data collection form prepared in accordance with§ 200.512bto the fac. the submission must also include the financial statements',
3327:'of the federal program, summary schedule of prior audit findings, and corrective action plan as described in paragraph§ 200.507b2and the',
3328:'auditors reports described in paragraph§ 200.507b4. d other sections of this part may apply.programspecific audits are subject to: 1 200.500',
3329:'purpose through 200.503 relation to other audit requirements, paragraph d; 2 200.504 frequency of audits through 200.506 audit costs; 3',
3330:'200.508 auditee responsibilities through 200.509 auditor selection; 4 200.511 audit findings followup; 5 200.512 report submission, paragraphs e through h;',
3331:'6 200.513 responsibilities; 7 200.516 audit findings through 200.517 audit documentation; 8 200.521 management decision; and 9 other referenced provisions',
3332:'of this part unless contrary to the provisions of this section, a program specific audit guide, or program statutes and',
3333:'regulations. auditees § 200.508 auditee responsibilities. the auditee must: a arrange for the audit required by this part in accordance',
3334:'with§ 200.509, and ensure it is properly performed and submitted in accordance with§ 200.512. b prepare financial statements, including the',
3335:'schedule of expenditures of federal awards in accordance with§ 200.510. c promptly follow up and take corrective action on audit',
3336:'findings. this includes preparing a summary schedule of prior audit findings and a corrective action plan in accordance with§ 200.511bandc,',
3337:'respectively. d provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the',
3338:'auditor to perform the audit required by this part. 2 cfr 200.508d enhanced display page 135 of 208 2 cfr',
3339:'part 200 up to date as of 1/08/2025 2 cfr 200.509 uniform administrative requirements, cost principles, and audit § 200.509',
3340:'auditor selection. a auditor procurement.when procuring audit services, the auditee must follow the procurement standards in§§ 200.317through200.327of subpart d or',
3341:'the far 48 cfr part 42, as applicable. when requesting proposals for audit services, the objectives and scope of the',
3342:'audit must be made clear, and the non federal entity must request a copy of the audit organizations peer review',
3343:'report, which the auditor must provide under gagas. factors to be considered in evaluating each proposal for audit services include',
3344:'the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results',
3345:'of peer and external quality control reviews, and price. whenever possible, the auditee must make efforts to contract with businesses',
3346:'as stated in§ 200.321or the far 48 cfr part 42, as applicable. b restriction on auditor preparing indirect cost proposals.an',
3347:'auditor who prepares the indirect cost proposal or cost allocation plan may not be selected to perform the audit required',
3348:'by this part when the indirect costs recovered by the auditee during the prior year exceed $1 million. this restriction',
3349:'applies to the base year used to prepare the indirect cost proposal or cost allocation plan and any subsequent years',
3350:'in which the resulting indirect cost agreement or cost allocation plan is used to recover costs. c use of federal',
3351:'auditors.federal auditors may perform all or part of the work required under this part if they fully comply with the',
3352:'requirements of this part. § 200.510 financial statements. a financial statements.the auditee must prepare financial statements that reflect its financial',
3353:'position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. the',
3354:'financial statements must be for the same organizational unit and fiscal year chosen to meet this parts requirements. however, organizationwide',
3355:'financial statements of the nonfederal entity may also include departments, agencies, and other organizational units that have separate audits in',
3356:'accordance with§ 200.514aand prepare separate financial statements. b schedule of expenditures of federal awards.the auditee must also prepare a schedule',
3357:'of expenditures of federal awards for the period covered by the auditees financial statements. the schedule must include the total',
3358:'federal awards expended as determined in accordance with§ 200.502. the auditee may choose to provide information requested by federal agencies',
3359:'or passthrough entities to make the schedule easier to use. for example, when a federal program has multiple federal award',
3360:'years, the auditee may separately list the amount of federal awards expended for each year of a federal award. the',
3361:'schedule must: 1 list individual federal programs by federal agency using the applicable assistance listing numbers. for a cluster of',
3362:'programs, the nonfederal entity must provide the cluster name, a list of individual federal programs within the cluster, and provide',
3363:'the federal agency name and the applicable assistance listing numbers. for research and development, total federal awards expended must be',
3364:'shown either by individual federal award or by federal agency and major subdivision within the federal agency. for example, the',
3365:'national institutes of health is a major subdivision within the department of health and human services. 2 for federal awards',
3366:'received as a subrecipient, the name of the passthrough entity and identifying number assigned by the passthrough entity must be',
3367:'included. 3 provide total federal awards expended for each individual federal program and the assistance listings number or other identifying',
3368:'number when the assistance listings information is unavailable. for a cluster of programs, the auditee must also provide the total',
3369:'for the cluster. 2 cfr 200.510b3 enhanced display page 136 of 208 2 cfr part 200 up to date as',
3370:'of 1/08/2025 2 cfr 200.510b4 uniform administrative requirements, cost principles, and audit 4 include the total amount provided to subrecipients',
3371:'from each federal program. 5 for loan or loan guarantee programs described in§ 200.502b, identify in the notes to the',
3372:'schedule the balances outstanding at the end of the audit period. this requirement is in addition to including the total',
3373:'federal awards expended for loan or loan guarantee programs in the schedule. 6 include notes describing the significant accounting policies',
3374:'used in preparing the schedule and whether the auditee elected to use the de minimis indirect cost rate of up',
3375:'to 15 percent see§ 200.414. § 200.511 audit findings followup. a general.the auditee is responsible for followup and corrective action',
3376:'on all audit findings. as part of this responsibility, the auditee must prepare a summary schedule of prior audit findings.',
3377:'the auditee must also prepare a corrective action plan for current year audit findings. the summary schedule of prior audit',
3378:'findings and the corrective action plan must include the reference numbers the auditor assigns to audit findings under§ 200.516c. since',
3379:'the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding',
3380:'initially occurred. the corrective action plan and summary schedule of prior audit findings must include financial statement findings that the',
3381:'auditor was required to report in accordance with gagas. b summary schedule of prior audit findings.the summary schedule of prior',
3382:'audit findings must report the status of all audit findings included in the prior audits schedule of findings and questioned',
3383:'costs. the summary schedule must also include audit findings reported in the prior audits summary schedule of prior audit findings',
3384:'except audit findings listed as corrected in accordance withparagraph b1of this section or no longer valid or not warranting further',
3385:'action in accordance withparagraph b3of this section. 1 when audit findings were fully corrected, the summary schedule need only list',
3386:'the audit findings and state that corrective action was taken. 2 when audit findings were not corrected or only partially',
3387:'corrected, the summary schedule must describe the reasons for the findings recurrence, planned corrective action, and any partial corrective action',
3388:'taken. when the corrective action taken significantly differs from the corrective action previously reported in a corrective action plan or',
3389:'the federal agencys or passthrough entitys management decision, the summary schedule must provide an explanation. 3 when the auditee believes',
3390:'the audit findings are no longer valid or do not warrant further action, the reasons for this position must be',
3391:'described in the summary schedule. a valid reason for considering an audit finding as not warranting further action is that',
3392:'all of the following have occurred: i two years have passed since the audit report in which the finding occurred',
3393:'was submitted to the fac; ii the federal agency or passthrough entity is not currently following up with the auditee',
3394:'on the audit finding; and iii a management decision was not issued. c corrective action plan.at the completion of the',
3395:'audit, the auditee must prepare a corrective action plan to address each audit finding included in the auditors report for',
3396:'the current year. the corrective action plan must be a document separate from the auditors findings described in§ 200.516. the',
3397:'corrective action plan must also provide the names of the contact persons responsible for the corrective action, the 2 cfr',
3398:'200.511c enhanced display page 137 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.512',
3399:'uniform administrative requirements, cost principles, and audit corrective action to be taken, and the anticipated completion date. when the auditee',
3400:'does not agree with the audit findings or believes corrective action is not required, the corrective action plan must include',
3401:'a detailed explanation of the reasons. § 200.512 report submission. a general. 1 the audit, the data collection form, and',
3402:'the reporting package must be submitted within 30 calendar days after the auditee receives the auditors reports or nine months',
3403:'after the end of the audit period whichever is earlier. the cognizant agency for audit or oversight agency for audit',
3404:'in the absence of a cognizant agency for audit may authorize an extension when the ninemonth timeframe would place an',
3405:'undue burden on the auditee. if the due date falls on a saturday, sunday, or federal holiday, the reporting package',
3406:'is due the next business day. 2 the auditee must make copies available for public inspection unless restricted by federal',
3407:'statute or regulation. auditees and auditors must ensure that their respective parts of the reporting package do not include protected',
3408:'personally identifiable information. b data collection.the fac is the repository of record for subpart f reporting packages and the data',
3409:'collection form. all federal agencies, passthrough entities and others interested in a reporting package and data collection form must obtain',
3410:'it by accessing the fac. 1 the auditee must submit the required data collection form described inappendix x of this',
3411:'part. this form provides information about the auditee, its federal programs, the results of the audit, and whether the audit',
3412:'was completed in accordance with this part. the form must include all information required by this part that is necessary',
3413:'for federal agencies to use the audit to ensure the integrity of federal programs. the form includes data elements and',
3414:'a format that omb must approve, is available from the fac, and include collections of information from the reporting package',
3415:'described in paragraph c. 2 a seniorlevel representative of the auditee for example, a state controller, director of finance, chief',
3416:'executive officer, or chief financial officer must sign a statement to be included as part of the data collection form',
3417:'stating that the auditee complied with the requirements of this part, including that: i the data collection form was prepared',
3418:'in accordance with this part and the instructions accompanying the form; ii the reporting package does not include protected personally',
3419:'identifiable information; iii the information included in its entirety is accurate and complete; and iv the fac is authorized to',
3420:'make the reporting package and the form publicly available on a website. 3 an auditee that is an indian tribe',
3421:'or a tribal organization as defined in the indian selfdetermination, education and assistance act isdeaa,25 u.s.c. 450bl may opt not',
3422:'to authorize the fac to make the reporting package publicly available on a website. to optout, an indian tribe or',
3423:'tribal organization must exclude the authorization described inparagraph b2ivof this section. in these instances, the indian tribe is responsible for',
3424:'submitting the reporting package directly to any passthrough entities through which it has received a federal award and to passthrough',
3425:'entities for which the summary schedule of prior audit findings reported the status of any findings related to 2 cfr',
3426:'200.512b3 enhanced display page 138 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.512b4',
3427:'uniform administrative requirements, cost principles, and audit those federal awards that the passthrough entity provided. unless restricted by federal statute',
3428:'or regulation, if the indian tribe opts not to authorize publication, it must make copies of the reporting package available',
3429:'for public inspection. 4 the auditor must complete the applicable data elements of the data collection form using the information',
3430:'included in the reporting package described inparagraph cof this section. the auditor must sign a statement to be included as',
3431:'part of the data collection form stating: i the source of information included in the data collection form; ii the',
3432:'auditor s responsibility for the information; iii the data collection form is not a substitute for the reporting package described',
3433:'in paragraph c; and iv the content of the form is limited to the collection of information prescribed by omb.',
3434:'c reporting package.the reporting package must include the following: 1 financial statements and schedule of expenditures of federal awards discussed',
3435:'in§ 200.510aand b, respectively; 2 summary schedule of prior audit findings discussed in§ 200.511b; 3 auditor s reports discussed in§',
3436:'200.515; and 4 corrective action plan discussed in§ 200.511c. d submission to fac.the auditee must electronically submit the data collection',
3437:'form described in paragraph bof this section and the reporting package described inparagraph cof this section to the fac. e',
3438:'requests for management letters issued by the auditor.auditees must submit, when requested by a federal agency or passthrough entity, a',
3439:'copy of any management letters issued by the auditor. f report retention requirements.auditees must keep a copy of the data',
3440:'collection form described in paragraph bof this section and a copy of the reporting package described in paragraph c on',
3441:'file for three years from the date of submission to the fac. copies of audit records must be maintained in',
3442:'accordance with§ 200.336. g fac responsibilities.the fac must make available the reporting packages received in accordance with paragraph cof this',
3443:'section and§ 200.507cto the public, except for indian tribes exercising the option inparagraph b3of this section, and maintain a database',
3444:'of completed audits, provide appropriate information to federal agencies, and follow up with known auditees that have not submitted the',
3445:'required data collection forms and reporting packages. h electronic filing.nothing in this part must preclude electronic submissions to the fac',
3446:'in such a manner as may be approved by omb. federal agencies § 200.513 responsibilities. a cognizant agency for audit',
3447:'responsibilities. 2 cfr 200.513a enhanced display page 139 of 208 2 cfr part 200 up to date as of 1/08/2025',
3448:'2 cfr 200.513a1 uniform administrative requirements, cost principles, and audit 1 a nonfederal entity expending more than $50 million a',
3449:'year in federal awards must have a cognizant agency for audit. the cognizant agency for audit must be the federal',
3450:'agency that provides the largest amount of direct funding as listed on the nonfederal entitys schedule of expenditures of federal',
3451:'awards, see§ 200.510b unless omb designates a specific cognizant agency for audit. when the direct funding represents less than 25',
3452:'percent of the total expenditures as direct and subawards by the nonfederal entity, then the federal agency with the predominant',
3453:'amount of total funding is the designated cognizant agency for audit. 2 to provide for continuity of cognizance, the determination',
3454:'of the predominant amount of direct funding must be based upon direct federal awards expended in the nonfederal entitys fiscal',
3455:'years ending in 2019 and every fifth year after that. 3 notwithstanding how audit cognizance is determined, a federal agency',
3456:'may reassign cognizance to another federal agency that provides substantial funding to an auditee if it agrees to be the',
3457:'cognizant agency for audit. within 30 calendar days after any reassignment, both the old and the new cognizant agency for',
3458:'audit must notify the fac, the auditee, and the auditor if known of the change. 4 the cognizant agency for',
3459:'audit must: i provide technical audit advice and liaison assistance to auditees and auditors. ii obtain or conduct quality control',
3460:'reviews on selected audits made by nonfederal auditors and provide the results to other interested organizations. iii cooperate and support',
3461:'the federal agency designated by omb to lead a governmentwide analysis to assess the quality of single audits. the governmentwide',
3462:'analysis may rely on the current and ongoing quality control review work performed by federal agencies, state auditors, and professional',
3463:'audit associations. this governmentwide audit analysis must be performed at an interval determined by omb, and the results must be',
3464:'posted publicly. in providing support to the governmentwide analysis, a federal agency must provide the following: a an assessment of',
3465:'the extent to which single audits conform to the requirements, standards, and procedures of this part; and b recommendations to',
3466:'address audit quality issues, including recommendations for any changes to this parts requirements, standards, and procedures. iv promptly inform the',
3467:'appropriate federal law enforcement officials and impacted federal agencies of any direct reporting by the auditee or its auditor required',
3468:'by gagas, federal statute, or regulation. v advise the community of independent auditors of any noteworthy or important factual trends',
3469:'related to the quality of audits stemming from quality control reviews. significant problems or quality issues consistently identified through quality',
3470:'control reviews of audit reports must be referred to appropriate state licensing agencies and professional bodies. vi advise the auditor,',
3471:'federal awarding agencies, and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective',
3472:'action by the auditor. when advised of deficiencies, the auditee must work with the auditor to take corrective action. if',
3473:'corrective action is not taken, the cognizant agency for audit must notify the auditor, the auditee, and applicable federal awarding',
3474:'agencies and passthrough entities of the facts and 2 cfr 200.513a4vi enhanced display page 140 of 208 2 cfr part',
3475:'200 up to date as of 1/08/2025 2 cfr 200.513a4vii uniform administrative requirements, cost principles, and audit make recommendations for',
3476:'followup action. major inadequacies or repetitive substandard performance by auditors must be referred to appropriate state licensing agencies and professional',
3477:'bodies for disciplinary action. vii coordinate, to the extent practical, audits or reviews made by or for federal agencies that',
3478:'are in addition to the audits made pursuant to this part, so that the additional audits or reviews build upon,',
3479:'rather than duplicate, audits performed in accordance with this part. viii coordinate a management decision for crosscutting audit findings that',
3480:'affect the federal programs of more than one agency when requested by any federal agency whose awards are included in',
3481:'the audit finding of the auditee. crosscutting audit finding means an audit finding where the same underlying condition or issue',
3482:'affects all federal awards including federal awards of more than one federal agency or passthrough entity; for example, a crosscutting',
3483:'audit finding may include an issue related to the recipients accounting system. ix coordinate the audit work and reporting responsibilities',
3484:'among auditors to achieve the most costeffective audit. x provide advice to auditees as to how to handle changes in',
3485:'fiscal year. b oversight agency for audit responsibilities.an auditee who does not have a designated cognizant agency for audit will',
3486:'be under the general oversight of the federal agency determined in accordance with§ 200.1 oversight agency for audit.a federal agency',
3487:'with oversight for an auditee may reassign oversight to another federal agency that agrees to be the oversight agency for',
3488:'audit. within 30 calendar days after any reassignment, both the old and the new oversight agency for audit must provide',
3489:'notice of the change to the fac, the auditee, and, if known, the auditor. the oversight agency for audit: 1',
3490:'must provide technical advice and assistance to auditees and auditors. 2 may assume all or some of the responsibilities normally',
3491:'performed by a cognizant agency for audit. c awarding federal agency responsibilities.in addition to all other requirements of this part,',
3492:'the awarding federal agency must: 1 ensure that audits are completed, and reports are received in a timely manner in',
3493:'accordance with the requirements of this part. 2 provide technical advice and assistance to auditees and auditors. 3 followup on',
3494:'audit findings to ensure that nonfederal entities take appropriate and timely corrective action. followup includes: i issuing a management decision',
3495:'in accordance with§ 200.521; ii monitoring the nonfederal entitys progress implementing a corrective action; iii using a cooperative audit resolution',
3496:'approach to improve federal program outcomes through better audit resolution, followup, and corrective action, which means the use of audit',
3497:'followup techniques promoting prompt corrective action by improving communication, fostering collaboration, promoting trust, and developing an understanding between the federal',
3498:'agency and the nonfederal entity. this approach is based upon: a a strong commitment by federal agency and nonfederal entity',
3499:'leadership to federal program integrity; 2 cfr 200.513c3iiia enhanced display page 141 of 208 2 cfr part 200 up to',
3500:'date as of 1/08/2025 2 cfr 200.513c3iiib uniform administrative requirements, cost principles, and audit b federal agencies strengthening partnerships and',
3501:'working cooperatively with nonfederal entities and their auditors; nonfederal entities and their auditors working cooperatively with federal agencies; c a',
3502:'focus on current conditions and corrective action going forward; d federal agencies offering appropriate relief for past noncompliance when audits',
3503:'show prompt corrective action has occurred; and e federal agency leadership sending a clear message that continued failure to correct',
3504:'conditions identified by audits likely to cause improper payments, fraud, waste, or abuse is unacceptable and will result in sanctions.',
3505:'iv tracking the effectiveness of the federal agencys followup processes, the effectiveness of single audits in improving nonfederal entity accountability,',
3506:'and the use of single audits in making federal award decisions. the federal agency should develop a baseline, metrics, and',
3507:'targets to track, over time, the effectiveness of the federal agencys process to follow up on audit findings. 4 provide',
3508:'omb with annual updates to the compliance supplement. these updates include working with omb to ensure that the compliance supplement',
3509:'focuses the auditor on testing the compliance requirements most likely to cause improper payments, fraud, waste, abuse, or generate audit',
3510:'findings for which the federal agency will take action in accordance with§ 200.505. prior to submitting compliance supplement drafts to',
3511:'omb, federal agencies should engage with external audit stakeholders, the federal agencys office of inspector general, and the national single',
3512:'audit coordinator nsac. 5 provide omb with the name of a single audit accountable official from among the senior policy',
3513:'officials of the federal agency. the accountable official must be: i responsible for ensuring that the federal agency fulfills the',
3514:'requirements of this section and effectively uses the single audit process to reduce improper payments and improve federal program outcomes.',
3515:'ii accountable for improving the effectiveness of the federal agencys single audit processes in accordance with paragraph c3iv. iii responsible',
3516:'for designating the federal agencys key management single audit liaison. 6 provide omb with the name of a key management',
3517:'single audit liaison. the liaison must: i serve as the federal agencys point of contact for the single audit process',
3518:'within and outside the federal government. ii promote interagency coordination, consistency, and information sharing. this includes coordinating audit followup, identifying',
3519:'higher risk nonfederal entities, providing input on single audit and followup policy, enhancing the utility of the fac, and identifying',
3520:'ways to use single audit results to improve federal award accountability and best practices. iii oversee training for the federal',
3521:'agencys program management personnel related to the single audit process. iv promote the federal agencys use of a cooperative audit',
3522:'resolution approach as described in paragraph c3iiiof this section. 2 cfr 200.513c6iv enhanced display page 142 of 208 2 cfr',
3523:'part 200 up to date as of 1/08/2025 2 cfr 200.513c6v uniform administrative requirements, cost principles, and audit v coordinate',
3524:'the federal agencys audit followup processes and ensure nonfederal entities implement corrective actions for audit findings. vi ensure the federal',
3525:'agency fulfills its responsibility, as a cognizant agency for audit, to coordinate a management decision for crosscutting audit findings undera4viiiof',
3526:'this section. crosscutting audit findings means an audit finding where the same underlying condition or issue affects all federal awards',
3527:'including federal awards of more than one federal agency or passthrough entity. for example, this may include an issue related',
3528:'to the recipients accounting system. vii ensure the federal agency provides omb with annual updates to the compliance supplement consistent',
3529:'with the compliance supplement preparation guide. viii support the mission of the federal agencys single audit accountable official and coordinate',
3530:'with the federal agencys office of inspector general and national single audit coordinator nsac. auditors § 200.514 standards and scope',
3531:'of audit. a general.the audit must be conducted in accordance with gagas. the audit must also cover the entire operations',
3532:'of the auditee, or, at the option of the auditee, such audit must include a series of audits that cover',
3533:'departments, agencies, and other organizational units that expended or otherwise administered federal awards during the audit period. in these instances,',
3534:'the audit must include the financial statements and schedule of expenditures of federal awards for each such department, agency, and',
3535:'other organizational unit, which must be considered to be a nonfederal entity. the financial statements and schedule of expenditures of',
3536:'federal awards must be for the same audit period. b financial statements.the auditor must determine whether the auditees financial statements',
3537:'are presented fairly in all material respects in accordance with generally accepted accounting principles or a special purpose framework such',
3538:'as cash, modified cash, or regulatory as required by state law. the auditor must also determine whether the schedule of',
3539:'expenditures of federal awards is stated fairly in all material respects in relation to the auditees financial statements as a',
3540:'whole. c internal control. 1 the compliance supplement provides guidance on internal controls over federal programs based upon the guidance',
3541:'in standards for internal control in the federal government issued by the comptroller general of the united states and the',
3542:'internal controlintegrated framework, issued by the committee of sponsoring organizations of the treadway commission coso. 2 in addition to the',
3543:'requirements of gagas, the auditor must perform procedures to obtain an understanding of internal control over federal programs sufficient to',
3544:'plan the audit to support a low assessed level of control risk of noncompliance for major programs. 3 except as',
3545:'provided inparagraph c4of this section, the auditor must: i plan the testing of internal control over compliance for major programs',
3546:'to support a low assessed level of control risk for assertions relevant to the compliance requirements for each major program;',
3547:'and ii perform testing of internal control as planned inparagraph c3iof this section. 2 cfr 200.514c3ii enhanced display page 143',
3548:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.514c4 uniform administrative requirements, cost principles,',
3549:'and audit 4 when internal control over some or all of the compliance requirements for a major program are likely',
3550:'to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described inparagraph c3of this section are',
3551:'not required for those compliance requirements. however, the auditor must report a significant deficiency or material weakness in accordance with§',
3552:'200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective',
3553:'internal control. d compliance. 1 in addition to the requirements of gagas, the auditor must determine whether the auditee has',
3554:'complied with federal statutes, regulations, and the terms and conditions of federal awards that may have a direct and material',
3555:'effect on each of its major programs. 2 the principal compliance requirements applicable to most federal programs and the compliance',
3556:'requirements of the largest federal programs are included in the compliance supplement. 3 for the compliance requirements related to federal',
3557:'programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. where',
3558:'there have been changes to the compliance requirements, and the changes are not reflected in the compliance supplement, the auditor',
3559:'must determine the current compliance requirements and modify the audit procedures accordingly. for those federal programs not covered in the',
3560:'compliance supplement, the auditor must follow the compliance supplements guidance for programs not included. 4 the compliance testing must include',
3561:'tests of transactions or other auditing procedures necessary to provide the auditor with sufficient appropriate audit evidence to support an',
3562:'opinion on compliance. e audit followup.the auditor must follow up on prior audit findings regardless of whether a prior audit',
3563:'finding is related to a major program in the current year. audit followup includes performing procedures to assess the reasonableness',
3564:'of the summary schedule of prior audit findings prepared by the auditee in accordance with the requirements of§ 200.511. when',
3565:'the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding,',
3566:'the auditor must report this condition as a currentyear audit finding. f data collection form.as required in§ 200.512b4, the auditor',
3567:'must complete and sign specified sections of the data collection form. § 200.515 audit reporting. the auditors reports may be',
3568:'in the form of either combined or separate reports. it may be organized differently from the manner presented in this',
3569:'section. the auditors reports must state that the audit was conducted in accordance with this part and include the following:',
3570:'a an opinion or disclaimer of opinion on whether the financial statements of the auditee is presented fairly in all',
3571:'material respects in accordance with generally accepted accounting principles or a special purpose framework such as cash, modified cash, or',
3572:'regulatory as required by state law. the auditor must also decide whether the schedule of expenditures of federal awards is',
3573:'stated fairly in all material respects in relation to the auditees financial statements as a whole. 2 cfr 200.515a enhanced',
3574:'display page 144 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.515b uniform administrative',
3575:'requirements, cost principles, and audit b a report on internal control over financial reporting and compliance with provisions of laws,',
3576:'regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements. this report must',
3577:'describe the scope of internal control and compliance testing and the results of the tests. where applicable, the report must',
3578:'refer to the separate schedule of findings and questioned costs described inparagraph dof this section. c a report on compliance',
3579:'for each major program and a report on internal control over compliance. this report must describe the scope of testing',
3580:'of internal control over compliance and include an opinion or disclaimer of opinion as to whether the auditee complied with',
3581:'federal statutes, regulations, and the terms and conditions of federal awards that could have a direct and material effect on',
3582:'each major program and refer to the separate schedule of findings and questioned costs described inparagraph d of this section.',
3583:'d a schedule of findings and questioned costs which must include the following three components: 1 a summary of the',
3584:'auditors results, which must include: i the type of report the auditor issued unmodified opinion, qualified opinion, adverse opinion, or',
3585:'disclaimer of opinion on whether the audited financial statements were prepared in accordance with gaap; ii a statement about whether',
3586:'significant deficiencies or material weaknesses in internal control were disclosed by the audit of the financial statements; iii a statement',
3587:'as to whether the audit disclosed any noncompliance that is material to the financial statements of the auditee; iv a',
3588:'statement about whether significant deficiencies or material weaknesses in internal control over major programs were disclosed by the audit; v',
3589:'the type of report the auditor issued unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion on compliance for',
3590:'major programs; vi a statement as to whether the audit disclosed any audit findings that the auditor is required to',
3591:'report under§ 200.516a; vii an identification of major programs by listing each individual major program; however, in the case of',
3592:'a cluster of programs, only the cluster name as shown on the schedule of expenditures of federal awards is required;',
3593:'viii the dollar threshold used to distinguish between type a and type b programs, as described in § 200.518b1or3when a',
3594:'recalculation of the type a threshold is required for large loan or loan guarantees; and ix a statement as to',
3595:'whether the auditee qualified as a lowrisk auditee under§ 200.520. 2 findings relating to the financial statements required to be',
3596:'reported in accordance with gagas. 3 findings and questioned costs for federal awards which must include audit findings as defined',
3597:'in§ 200.516aand be reported in the following manner: i audit findings for example, internal control findings, compliance findings, questioned costs,',
3598:'or fraud that relate to the same issue must be presented as a single audit finding. where practical, audit findings',
3599:'should be organized by federal agency or passthrough entity. 2 cfr 200.515d3i enhanced display page 145 of 208 2 cfr',
3600:'part 200 up to date as of 1/08/2025 2 cfr 200.515d3ii uniform administrative requirements, cost principles, and audit ii audit',
3601:'findings that relate to both the financial statements paragraph d2of this section and federal awards thisparagraph d3 must be reported',
3602:'in both sections of the schedule. however, the reporting in one section of the schedule may be in summary form',
3603:'and reference a detailed reporting in the other section. e nothing in this part precludes combining the reporting required by',
3604:'this section with the reporting required by§ 200.512bwhen allowed by gagas andappendix x of this part. § 200.516 audit findings.',
3605:'a audit findings reported.the auditor must report the following as an audit finding in the schedule of findings and questioned',
3606:'costs: 1 significant deficiencies and material weaknesses in internal control over major programs. the auditors determination of whether a deficiency',
3607:'in internal control is a significant deficiency or a material weakness for the purpose of reporting an audit finding is',
3608:'in relation to a type of compliance requirement for a major program identified in the compliance supplement. 2 material noncompliance',
3609:'with the provisions of federal statutes, regulations, or the terms and conditions of federal awards related to a major program.',
3610:'the auditors determination of whether noncompliance with the provisions of federal statutes, regulations, or the terms and conditions of federal',
3611:'awards is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement',
3612:'for a major program identified in the compliance supplement. 3 known questioned costs when either known or likely questioned costs',
3613:'are greater than $25,000 for a type of compliance requirement for a major program. when reporting questioned costs, the auditor',
3614:'must include information to provide proper perspective for evaluating the prevalence and consequences of the questioned costs. 4 known questioned',
3615:'costs greater than $25,000 for a federal program that is not audited as a major program. except for audit followup,',
3616:'the auditor is not required to perform audit procedures for such a federal program; therefore, the auditor will normally not',
3617:'find questioned costs for a program that is not audited as a major program. however, if the auditor does become',
3618:'aware of questioned costs for a federal program that is not audited as a major program for example, as part',
3619:'of audit followup or other audit procedures and the known questioned costs are greater than $25,000, the auditor must report',
3620:'this as an audit finding. 5 the circumstances concerning why the auditors report on compliance for each major program is',
3621:'other than an unmodified opinion. this must be included unless the circumstances are otherwise reported as audit findings in the',
3622:'schedule of findings and questioned costs. 6 known or likely fraud affecting a federal award, unless the fraud is otherwise',
3623:'reported as an audit finding in the schedule of findings and questioned costs. this paragraph does not require the auditor',
3624:'to publicly report information that could compromise investigative or legal proceedings or to make an additional reporting when the auditor',
3625:'confirms that the fraud was reported outside the auditors reports under the direct reporting requirements of gagas. 7 instances where',
3626:'the results of audit followup procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in',
3627:'accordance with§ 200.511bmaterially misrepresents the status of any prior audit finding. 2 cfr 200.516a7 enhanced display page 146 of 208',
3628:'2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.516b uniform administrative requirements, cost principles, and audit',
3629:'b audit finding detail and clarity.audit findings must be presented with sufficient detail and clarity for the auditee to prepare',
3630:'a corrective action plan and take corrective action and for federal agencies or pass through entities to arrive at a',
3631:'management decision. as applicable, the following information must be included in audit findings: 1 the federal program and specific federal',
3632:'award identification, including the assistance listings title and number, federal award identification number and year, the name of the federal',
3633:'agency, and name of the applicable passthrough entity. when information, such as the assistance listings title and number or federal',
3634:'award identification number, is unavailable, the auditor must provide the best information available to describe the federal award. 2 the',
3635:'criteria or specific requirement for the audit finding for example, the specific federal statute, regulation, or term and condition of',
3636:'the federal award. the criteria or specific requirement provides a context for evaluating evidence and understanding findings. the criteria should',
3637:'generally identify the required or desired state or expectation with respect to the program or operation. 3 the condition found,',
3638:'including facts that support the deficiency identified in the audit finding. 4 a statement of cause that identifies the reason',
3639:'or explanation for the condition or the factors responsible for the difference between the situation that exists condition and the',
3640:'required or desired state criteria, which may also serve as a basis for recommendations for corrective action 5 the possible',
3641:'asserted effect to provide sufficient information to the auditee and federal agency or passthrough entity to permit them to determine',
3642:'the cause and effect to facilitate prompt and proper corrective action. a statement of the effect or potential effect should',
3643:'provide a clear, logical link to establish the impact or potential impact of the difference between the condition and the',
3644:'criteria. 6 the identification of known questioned costs, by applicable assistance listing numbers and federal award identification numbers, and how',
3645:'these questioned costs were computed. 7 when there are known questioned costs but the dollar amount is undetermined or not',
3646:'reported, a description of why the dollar amount was undetermined or otherwise could not be reported. 8 information to provide',
3647:'proper perspective for evaluating the prevalence and consequences of the audit finding. for example, whether the audit finding represents an',
3648:'isolated instance or a systemic problem. where appropriate, instances identified must be related to the universe and the number of',
3649:'cases examined and be quantified in terms of dollar value. in addition, the audit finding should indicate whether the sampling',
3650:'was a statistically valid sample. 9 the identification of whether the audit finding is a repeat of a finding in',
3651:'the immediately prior audit. the audit finding must identify the applicable prior year audit finding reference numbers in these instances.',
3652:'10 recommendations to prevent future occurrences of the deficiency identified in the audit finding. 11 views of responsible officials of',
3653:'the auditee. c reference numbers.each audit finding in the schedule of findings and questioned costs must include a reference number',
3654:'in the format meeting the requirements of the data collection form submission see§ 200.512b. 2 cfr 200.516c enhanced display page',
3655:'147 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.517 uniform administrative requirements, cost',
3656:'principles, and audit § 200.517 audit documentation. a retention of audit documentation.the auditor must retain audit documentation and reports for',
3657:'a minimum of three years after the date of issuance of the auditors reports to the auditee. the cognizant agency',
3658:'for audit, oversight agency for audit, cognizant agency for indirect costs, or passthrough entity may extend the retention period by',
3659:'providing written notification to the auditor. when the auditor is aware that the federal agency, passthrough entity, or auditee is',
3660:'contesting an audit finding, the auditor must contact the parties contesting the audit finding for guidance prior to the destruction',
3661:'of the audit documentation and reports. b access to audit documentation.audit documentation must be made available upon request to the',
3662:'cognizant or oversight agency for audit or its designee, cognizant agency for indirect cost, a federal agency, or gao at',
3663:'the completion of the audit, as part of a quality review, to resolve audit findings, or to carry out oversight',
3664:'responsibilities consistent with the purposes of this part. access to audit documentation includes the right of federal agencies to obtain',
3665:'copies of audit documentation as is reasonable and necessary. § 200.518 major program determination. a general.the auditor must use a',
3666:'riskbased approach to determine which federal programs are major programs. this riskbased approach must consider current and prior audit experience,',
3667:'oversight by federal agencies and passthrough entities, and the inherent risk of the federal program. the process described inparagraphs bthroughhof',
3668:'this section must be followed. b step one. 1 the auditor must identify and label the larger federal programs as',
3669:'type a programs. type a programs are defined as federal programs with federal awards expended during the audit period exceeding',
3670:'the levels outlined in table 1: table 1 to paragraph b1 total federal awards expended equal to or exceed $1,000,000',
3671:'but less than or equal to $34 million exceed $34 million but less than or equal to $100 million exceed',
3672:'$100 million but less than or equal to $1 billion exceed $1 billion but less than or equal to $10',
3673:'billion exceed $10 billion but less than or equal to $20 billion exceed $20 billion type a threshold $1,000,000. total',
3674:'federal awards expended times .03. $3 million. total federal awards expended times .003. $30 million. total federal awards expended times',
3675:'.0015. 2 federal programs not labeled type a underparagraph b1of this section must be labeled type b programs. 2 cfr',
3676:'200.518b2 enhanced display page 148 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr 200.518b3',
3677:'uniform administrative requirements, cost principles, and audit 3 including large loans and loan guarantees loans must not result in the',
3678:'exclusion of other programs as type a programs. a federal program providing loans is considered a large loan program when',
3679:'it exceeds four times the largest nonloan program. the auditor must identify each large loan program as a type a',
3680:'program and exclude its values in determining other type a programs. this recalculation of the type a program is performed',
3681:'after removing the total of all large loan programs. for this paragraph, a program is only considered a federal program',
3682:'providing loans if the value of federal awards expended for loans within the program comprises 50 percent or more of',
3683:'the total federal awards expended for the program. a cluster of programs is treated as one program, and the value',
3684:'of federal awards expended under a loan program is determined as described in§ 200.502. 4 for biennial audits see§ 200.504,',
3685:'the determination of type a and type b programs must be based on the federal awards expended during the twoyear',
3686:'audit period. c step two. 1 the auditor must identify type a programs that are lowrisk. in making this determination,',
3687:'the auditor must consider whether the requirements in§ 200.519c, the results of audit followup, or any changes in personnel or',
3688:'systems affecting the program indicate significantly increased risk and preclude the program from being lowrisk. for a type a program',
3689:'to be considered lowrisk, it must have been audited as a major program in at least one of the two',
3690:'most recent audit periods in the most recent audit period in the case of a biennial audit, and, in the',
3691:'most recent audit period, the program must not have had: i internal control deficiencies that were identified as material weaknesses',
3692:'in the auditors report on internal control for major programs as required under§ 200.515c; ii a modified opinion on the',
3693:'program in the auditors report on major programs as required under § 200.515c; or iii known or likely questioned costs',
3694:'that exceed five percent of the total federal awards expended for the program. 2 notwithstandingparagraph c1of this section, omb may',
3695:'approve a federal agency request that a type a program not be considered lowrisk for a specific recipient. for example,',
3696:'it may be necessary for a large type a program to be audited as a major program each year for',
3697:'a particular recipient for the federal agency to comply with31 u.s.c. 3515. the federal agency must notify the auditee and,',
3698:'if known, the auditor of ombs approval at least 180 calendar days prior to the end of the fiscal year',
3699:'to be audited. d step three. 1 the auditor must identify highrisk type b programs using professional judgment and the',
3700:'criteria in§ 200.519. however, the auditor is not required to identify more highrisk type b programs than at least onefourth',
3701:'of the number of lowrisk type a programs identified as lowrisk under step two. except for known material weakness in',
3702:'internal control or compliance problems as discussed in§ 200.519b1,2, andc1, a single criterion in risk would rarely cause a type',
3703:'b program to be considered highrisk. when identifying which type b programs to assess for risk, the auditor is encouraged',
3704:'to use an approach that provides an opportunity for different highrisk type b programs to be audited as major programs',
3705:'over a period of time. 2 cfr 200.518d1 enhanced display page 149 of 208 2 cfr part 200 up to',
3706:'date as of 1/08/2025 2 cfr 200.518d2 uniform administrative requirements, cost principles, and audit 2 the auditor is not expected',
3707:'to perform risk assessments on relatively small federal programs. therefore, the auditor is only required to perform risk assessments on',
3708:'type b programs that exceed 25 percent 0.25 of the type a threshold determined in step one. e step four.at',
3709:'a minimum, the auditor must audit all of the following as major programs: 1 all type a programs not identified',
3710:'as lowrisk under step two. 2 all type b programs identified as highrisk under step three. 3 additional programs as',
3711:'necessary to comply with the percentage of coverage rule described in paragraph f. this rule may require the auditor to',
3712:'audit more programs as major programs than the number of type a programs. f percentage of coverage rule.when the auditee',
3713:'meets the criteria in§ 200.520, the auditor only needs to audit the major programs identified inparagraphs e1and2of this section and',
3714:'such additional federal programs with federal awards expended that, in the aggregate, all major programs encompass at least 20 percent',
3715:'0.20 of total federal awards expended. otherwise, the auditor must audit the major programs identified inparagraphs e1and2of this section and',
3716:'such additional federal programs with federal awards expended that, in the aggregate, all major programs encompass at least 40 percent',
3717:'0.40 of total federal awards expended. g documentation of risk.the auditor must include in the audit documentation the risk analysis',
3718:'used for determining major programs. h auditor s judgment.the auditors judgment in applying the riskbased approach to determine major programs',
3719:'must be presumed correct when the determination was performed and documented in accordance with this part. challenges by a federal',
3720:'agency or passthrough entity must only be for clearly improper use of the requirements in this part. however, a federal',
3721:'agency or passthrough entity may provide auditors guidance about the risk of a particular federal program. the auditor must consider',
3722:'this guidance in determining major programs in audits not yet completed. § 200.519 criteria for federal program risk. a general.the',
3723:'auditors determination should be based on an overall evaluation of the risk of noncompliance occurring that could be material to',
3724:'the federal program. the auditor must consider criteria, such as those described inparagraphs b,c, anddof this section, to identify risk',
3725:'in federal programs. also, as part of the risk analysis, the auditor may wish to discuss a particular federal program',
3726:'with auditee management and the federal agency or passthrough entity. b current and prior audit experience. 1 weaknesses in internal',
3727:'control over federal programs would indicate higher risk. therefore, consideration should be given to the control environment over federal programs.',
3728:'this includes considering factors such as the expectation of managements adherence to federal statutes, regulations, and the terms and conditions',
3729:'of federal awards, and the competence and experience of personnel who administer the federal programs. i a federal program administered',
3730:'under multiple internal control structures may have higher risk. when assessing risk in a large single audit, the auditor must',
3731:'consider whether weaknesses are isolated in a single operating unit for example, one college campus or pervasive throughout the entity.',
3732:'2 cfr 200.519b1i enhanced display page 150 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
3733:'cfr 200.519b1ii uniform administrative requirements, cost principles, and audit ii a weak system for monitoring subrecipients would indicate higher risk',
3734:'when significant parts of a federal program are passed to subrecipients through subawards. 2 prior audit findings would indicate higher',
3735:'risk, especially when the situations identified in the audit findings could significantly impact a federal program or have not been',
3736:'corrected. 3 federal programs not recently audited as major programs may be of higher risk than those recently audited as',
3737:'major programs without audit findings. c oversight exercised by federal agencies and passthrough entities. 1 the oversight exercised by federal',
3738:'agencies or passthrough entities may be used to assess risk. for example, recent monitoring or other reviews performed by an',
3739:'oversight entity that disclosed no significant problems would indicate lower risk, whereas monitoring that disclosed significant problems would indicate higher',
3740:'risk. 2 with the concurrence of omb, a federal agency may identify federal programs that are higher risk. omb will',
3741:'identify these federal programs in the compliance supplement. d inherent risk of the federal program. 1 the nature of a',
3742:'federal program may indicate risk. consideration should be given to the complexity of the program and the extent to which',
3743:'the federal program contracts for goods and services. for example, federal programs that disburse funds through thirdparty contracts or have',
3744:'eligibility criteria may be higher risk. federal programs primarily involving staff payroll costs may be at high risk for noncompliance',
3745:'with the requirements of§ 200.430but otherwise be at low risk. 2 the phase of a federal program in its lifecycle',
3746:'at the federal agency may indicate risk. for example, a new federal program with new or interim regulations may have',
3747:'higher risk than an established program with timetested regulations. also, significant changes in federal programs, statutes, regulations, or the terms',
3748:'and conditions of federal awards may increase risk. 3 the phase of a federal program in its lifecycle at the',
3749:'auditee may indicate risk. for example, during the first and last years that an auditee participates in a federal program,',
3750:'the risk may be higher due to the startup or closeout of program activities and staff. 4 type b programs',
3751:'with larger federal awards expended would be of higher risk than programs with substantially smaller federal awards expended. § 200.520',
3752:'criteria for a lowrisk auditee. an auditee that meets all of the following conditions for each of the preceding two',
3753:'audit periods must qualify as a lowrisk auditee and be eligible for reduced audit coverage in accordance with§ 200.518. a',
3754:'single audits were performed on an annual basis in accordance with the provisions of this subpart, including submitting the data',
3755:'collection form and the reporting package to the fac within the timeframe specified in§ 200.512. a nonfederal entity that has',
3756:'biennial audits does not qualify as a lowrisk auditee. b the auditor s opinion on whether the financial statements were',
3757:'prepared in accordance with generally accepted accounting principles or a special purpose framework such as cash, modified cash, or regulatory',
3758:'as required by state law, and the auditors inrelationto opinion on the schedule of expenditures of federal awards were unmodified.',
3759:'2 cfr 200.520b enhanced display page 151 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
3760:'cfr 200.520c uniform administrative requirements, cost principles, and audit c no internal control deficiencies were identified as material weaknesses under',
3761:'the requirements of gagas. d the auditor did not report a substantial doubt about the auditees ability to continue as',
3762:'a going concern. e none of the federal programs had audit findings from any of the following in either of',
3763:'the preceding two audit periods in which they were classified as type a programs: 1 internal control deficiencies that were',
3764:'identified as material weaknesses in the auditors report on internal control for major programs as required under§ 200.515c; 2 a',
3765:'modified opinion on a major program in the auditors report on major programs as required under§ 200.515c; or 3 known',
3766:'or likely questioned costs that exceeded five percent .05 of the total federal awards expended for a type a program',
3767:'during the audit period. management decisions § 200.521 management decisions. a general.the management decision must clearly state whether or not',
3768:'the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make',
3769:'financial adjustments or take other action. if the auditee has not completed corrective action, a timetable for followup should be',
3770:'given. prior to issuing the management decision, the federal agency or passthrough entity may request additional information or documentation from',
3771:'the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. the',
3772:'management decision should describe any appeal process available to the auditee. while not required, the federal agency or passthrough entity',
3773:'may also issue a management decision on findings relating to the financial statements, which are required to be reported in',
3774:'accordance with gagas. b federal agency.the cognizant agency for audit is responsible for coordinating a management decision for audit findings',
3775:'that affect the programs of more than one federal agency see§ 200.513a4viii. the awarding federal agency is responsible for issuing',
3776:'a management decision for audit findings that affect the federal awards it makes to a nonfederal entity see§ 200.513c3i. c',
3777:'passthrough entity.the passthrough entity is responsible for issuing a management decision for audit findings that affect subawards it issues to',
3778:'subrecipients under a federal award see§ 200.332e. d time requirements.the federal agency or passthrough entity responsible for issuing a management',
3779:'decision must do so within six months of the facs acceptance of the audit report. the auditee must initiate and',
3780:'proceed with corrective action as rapidly as possible and corrective action should begin no later than upon receipt of the',
3781:'audit report. e reference numbers.management decisions must include the reference numbers the auditor assigned to each audit finding in accordance',
3782:'with§ 200.516c. appendix i to part 200—full text of notice of funding opportunity a general requirements. 1 requirements for developing',
3783:'nofos.in developing a notice of funding opportunity nofo, federal agencies must: 2 cfr appendixitopart200a1 enhanced display page 152 of 208',
3784:'2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200a1i uniform administrative requirements, cost principles, and audit',
3785:'i be concise and use plain language per the guidance atplainlanguage.govwherever possible. ii for electronic nofos and other information about',
3786:'them, comply with section 508 of the rehabilitation act of 1973 29 u.s.c. 794d. 2 considerations for developing nofos.federal agencies',
3787:'may: i link to standard content to include required information rather than including the full language in the nofo. the',
3788:'nofo should make clear if linked information is critical—for example, standard terms and conditions, administrative and national policy requirements, and',
3789:'standard templates. ii include links to relevant regulations and other sources. iii use crossreferences between the sections, including hyperlinks in',
3790:'electronic versions. 3 required consistency.potential applicants must be able to find similar information across all federal nofos. to that end,',
3791:'federal agencies must include the same or similar section headings and a table of contents with at least these sections:',
3792:'i basic information ii eligibility iii program description iv application contents and format v submission requirements and deadlines vi application',
3793:'review information vii award notices viii postaward requirements and administration b required sections and information. as required below, the federal',
3794:'agency must include the following sections and information in the text of a nofo and a table of contents. 1',
3795:'basic information. this section provides sufficient information to help an applicant make an informed decision about whether to submit a',
3796:'proposal. i this section must include the following: a federal agency name. b funding opportunity title. c i announcement type',
3797:'whether the funding opportunity is the initial announcement or a modification of a previously announced opportunity. d funding opportunity number',
3798:'required, if the federal agency has assigned a number to the funding opportunity announcement. e assistance listing numbers. 2 cfr',
3799:'appendixitopart200b1ie enhanced display page 153 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200b1if',
3800:'uniform administrative requirements, cost principles, and audit f funding details. the total amount of funding that the federal agency expects',
3801:'to award, the anticipated number of awards, and the expected dollar values of individual awards, which may be a range.',
3802:'g key dates. key dates include due dates for submitting applications orexecutive order 12372submissions, as well as for any letters',
3803:'of intent or preapplications. for any announcement issued before a programs application materials are available, key dates also include the',
3804:'date on which those materials will be released; and any other additional information, as deemed applicable by the federal agency.',
3805:'if possible, the federal agency should provide an anticipated award date. if the nofo is evaluated on a “rolling” basis,',
3806:'the federal agency should provide an estimate of the time needed to process an application and notify the applicant of',
3807:'the federal agencys decision. h executive summary. a brief description that is written in plain language and summarizes the goals',
3808:'and objectives of the program, the target audience, and eligible recipients. the text of the executive summary should not exceed',
3809:'500 words i agency contact information. ii this section could include the following: a the amount of funding per federal',
3810:'award, on average, experienced in previous years. b whether this is a new program or a onetime initiative. 2 eligibility.',
3811:'this section addresses the factors that determine applicant or application eligibility. i eligible applicants.this subsection must identify the following: a',
3812:'a complete and specific list of entity types eligible to apply. b any additional restrictions on eligibility beyond the type',
3813:'of entity. c eligibility factors for the principal investigator or project director, if any. d criteria that would make any',
3814:'particular projects ineligible. e a reference to any funding restriction elsewhere in the nofo that could affect an applicants or',
3815:'projects eligibility. f a reference or link to any other factors that would disqualify an applicant or application, such as',
3816:'the responsiveness criteria in 6a. g any limit on the number of applications an applicant may submit under the announcement.',
3817:'make clear whether the limitation is on the submitting organization, individual investigator or program director, or both. ii cost sharing.this',
3818:'subsection must state: a whether there is required cost sharing. this statement must be clear that not committing to the',
3819:'required cost sharing will make the application ineligible. if cost sharing is not required, the announcement must say so. 2',
3820:'cfr appendixitopart200b2iia enhanced display page 154 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
3821:'appendixitopart200b2iib uniform administrative requirements, cost principles, and audit b an explanation of the calculation for the required cost sharing. required',
3822:'cost sharing may be a certain percentage or amount or in the form of contributions of specified items or activities',
3823:'for example,provision of equipment. c any restrictions on the types of cost, such as inkind contributions, acceptable as cost sharing.',
3824:'d any requirement to commit to cost sharing. this section should refer to the appropriate portions of section b4 stating',
3825:'any preaward requirements for the submission of letters or other documentation to verify commitments to meet costsharing requirements if a',
3826:'federal award is made. 3 program description.this section contains the full program description of the funding opportunity. i this section',
3827:'must include the following: a the general purpose of the funding and what it is expected to achieve for the',
3828:'public good. b the federal agencys funding priorities or focus areas, if any. c program goals and objectives. d a',
3829:'description of how the award will contribute to achieving the programs goals and objectives. e the expected performance goals, indicators,',
3830:'targets, baseline data, data collection, and other outcomes the federal agency expects recipients to achieve. f for cooperative agreements, the',
3831:'“substantial involvement” that the federal agency expects to have or should reference where the potential applicant can find that information.',
3832:'g information on program specific unallowable costs so that the applicant can develop an application and budget consistent with program',
3833:'requirements and any limits on indirect costs. h any eligibility criteria for beneficiaries or program participants other than federal award',
3834:'recipients. i citations for authorizing statutes and regulations for the funding opportunity. ii this section could also include the following:',
3835:'a any program history, such as whether it is a new program or a new or changed area of program',
3836:'emphasis. b examples of successful projects funded in the past. c for infrastructure projects subject to build america, buy america',
3837:'requirements, information on key items anticipated to be purchased under the program, and any related domestic sourcing concerns based on',
3838:'market research. d other information the federal agency finds necessary. 2 cfr appendixitopart200b3iid enhanced display page 155 of 208 2',
3839:'cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200b4 uniform administrative requirements, cost principles, and audit 4',
3840:'application contents and format.this section must identify the required content of an application and the forms or formats an applicant',
3841:'must use. if any requirements are stated elsewhere, this section should refer to where those requirements may be found. this',
3842:'section also should include required forms or formats as part of the announcement or state where the applicant may obtain',
3843:'them. i this section must specifically address content and form or format requirements for: a whether preapplications, letters of intent,',
3844:'or white papers are required or encouraged. b the application as a whole. c component pieces of the application. d',
3845:'information that successful applicants must submit after notification of intent to make a federal award but prior to a federal',
3846:'award. for example, this could include evidence of compliance with requirements relating to human subjects or information needed to comply',
3847:'with the national environmental policy act nepa 42 u.s.c. 4321et seq.. ii within each of the categories above, this subsection',
3848:'must include, where relevant: a limitations on page numbers. b formatting requirements, including font and font size, margins, paper size,',
3849:'and color limitations. c any requirements for file naming, file size limitations, or file format such as pdf. d the',
3850:'number of copies required if paper submissions are allowed. e the sequence required for application sections or components. f signature',
3851:'requirements, including those for electronic submissions. g any requirements for thirdparty information such as references, letters of support, or letters',
3852:'of commitment to the project or to contribute to cost sharing. h a reference to any requirements to provide documentation',
3853:'to support an eligibility determination, such as proof of 501c3 status or an authorizing tribal resolution. i instructions needed to',
3854:'develop the narrative portions of the application. include any requirements for its order, format, or required headings. j if applicable,',
3855:'the need to identify proprietary information. include how to do so and how the federal agency will handle it. 5',
3856:'submission requirements and deadlines. i address to request application package.this section must include the following: a how to get application',
3857:'forms, kits, or other materials needed to apply. if the announcement contains everything needed, this section needs only say so.',
3858:'if not, the guidance must include: 1 an internet address where the materials can be accessed. 2 an email address.',
3859:'2 cfr appendixitopart200b5ia2 enhanced display page 156 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
3860:'cfr appendixitopart200b5ia3 uniform administrative requirements, cost principles, and audit 3 a u.s. postal service mailing address. 4 telephone number. 5',
3861:'telephone device for the deaf tdd, text telephone tty number, or other appropriate telecommunication relay service. ii unique entity identifier',
3862:'and system for award management sam.gov.this section must state the requirements for unique entity identifiers and registration insam.gov. it must',
3863:'include the following: a each applicant must: 1 be registered insam.govbefore submitting its application; 2 provide a valid unique entity',
3864:'identifier in its application; and 3 continue to maintain an active registration insam.govwith current information at all times during which',
3865:'it has an active federal award or an application or plan under consideration by a federal agency. b if individuals',
3866:'are eligible to apply, they are exempt from this requirement under2 cfr 25.110b. c if the federal agency exempts any',
3867:'applicants from this requirement under2 cfr 25.110c ord, a statement to that effect. iii submission instructions.this section addresses how the',
3868:'applicant will submit the application. it must include the following: a actions needed prior to applying: 1 instructions on any',
3869:'registrations required to access electronic submission systems or links to them. where possible, provide the expected time frames needed to',
3870:'complete the registration process. b the methods for submitting the application: 1 whether the applicant must submit in electronic or',
3871:'paper form or whether the applicant has an option. applicants should not be required to submit in more than one',
3872:'format. 2 instructions on how to submit electronically or links to them. must include the url to the electronic submission',
3873:'system and information on or links to information about the system or software requirements needed by the system. 3 if',
3874:'the federal agency allows paper submissions, the process used to approve this option if it is not automatically allowed. 4',
3875:'if the federal agency allows paper submissions, the method for submitting the application. this information must include a postal address',
3876:'and “care of” information needed to route the application to the appropriate person, office, or email address, if the federal',
3877:'agency allows such submissions. 2 cfr appendixitopart200b5iiib4 enhanced display page 157 of 208 2 cfr part 200 up to date',
3878:'as of 1/08/2025 2 cfr appendixitopart200b5iiic uniform administrative requirements, cost principles, and audit c if applicable, this section also must',
3879:'say how applicants must submit preapplications, letters of intent, thirdparty information, or other information required before the award. it must',
3880:'include the following: 1 instructions on how to submit electronically or links to them. 2 whether the applicant must submit',
3881:'in electronic or paper form or whether the applicant has an option. 3 if the federal agency allows paper submissions,',
3882:'the method for submitting the required information. this information must include a postal address and “care of” information needed to',
3883:'route the application to the appropriate person, office, or email address. d this section must also include what to do',
3884:'in the event of system problems and a point of contact who will be available if the applicant experiences technical',
3885:'difficulties. iv submission dates and times.this section must include due dates and times for all submissions. if they are different',
3886:'for electronic and paper submissions, be clear about the differences. this includes the following: a full applications. b any preliminary',
3887:'submissions, such as letters of intent, white papers, or preapplications. c any other submissions required before federal award separate from',
3888:'the full application. d if the funding opportunity is a general announcement that is open for a period of time',
3889:'with no specific due dates for applications, this section should say so. v intergovernmental review.this section must include the following:',
3890:'a whether or not the funding opportunity is subject toexecutive order 12372, “intergovernmental review of federal programs”. b if it',
3891:'is applicable, include the following: 1 a short description of this requirement. 2 where applicants can find their states single',
3892:'point of contact, learn whether their state has an intergovernmental review process, and if so, get information on their states',
3893:'process. the list of spocs is on the office of management and budgets website. 6 application review information. i responsiveness',
3894:'review.this section includes information on the criteria that make an application or project ineligible. these are sometimes referred to as',
3895:'“responsiveness” criteria, “gonogo” criteria, or “threshold” criteria. federal agencies may change the title of this section as appropriate. this section',
3896:'must include the following: a a brief understanding of the federal agency responsiveness review process. b a list and enough',
3897:'detail to understand the criteria or disqualifying factors to be reviewed. 2 cfr appendixitopart200b6ib enhanced display page 158 of 208',
3898:'2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200b6ic uniform administrative requirements, cost principles, and audit',
3899:'c a reference to the regulation or requirement that describes the restriction, if applicable. for example, if entities that have',
3900:'been found to be in violation of a particular federal statute are ineligible, say so. ii review criteria.this section must',
3901:'address the review criteria that the federal agency will use to evaluate applications for merit. this information includes the merit',
3902:'and other review criteria evaluators will use to judge applications, including any statutory, regulatory, or other preferences that will be',
3903:'applied in the review process. these criteria are distinct from eligibility criteria that are addressed before an application is accepted',
3904:'for review and any program policy or other factors that are applied during the selection process, after the review process',
3905:'is completed. the intent is to make the application process transparent so applicants can make informed decisions when preparing their',
3906:'applications to maximize the fairness of the process. a this section must include the following: 1 a clear description of',
3907:'each criterion and subcriterion used. 2 if criteria vary in importance, the relative percentages, weights, or other means used to',
3908:'distinguish between them. 3 for statutory, regulatory, or other preferences, an explanation of those preferences with an explicit indication of',
3909:'their effect, for example, if they result in additional points being assigned. 4 how an applicants proposed cost sharing will',
3910:'be considered in the review process if it is not an eligibility criterion in section 2b. for example, to assign',
3911:'a certain number of additional points to applicants who offer cost sharing or to break ties among applications with equivalent',
3912:'scores after evaluation against all other factors. if cost sharing will not be considered in the evaluation, the announcement should',
3913:'say so. do not include statements that cost sharing is encouraged without providing clarity about what that means. 5 the',
3914:'relevant information if the federal agency permits applicants to nominate reviewers of their applications or suggest those they feel may',
3915:'be inappropriate due to a conflict of interest. b this section could include the following: 1 the types of people',
3916:'responsible for evaluation against the merit criteria. for example, peers external to the federal agency or federal agency personnel. 2',
3917:'the number of people on an evaluation panel and how it operates, how reviewers are selected, reviewer qualifications, and how',
3918:'conflicts of interest are avoided. iii review and selection process.this section may vary in the level of detail provided. a',
3919:'it must include the following: 1 any program policy, factors, or elements that the selecting official may use in selecting',
3920:'applications for the award. for example, geographical dispersion, program balance, or diversity. 2 cfr appendixitopart200b6iiia1 enhanced display page 159 of',
3921:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200b6iiia2 uniform administrative requirements, cost principles, and',
3922:'audit 2 a brief description of the merit review process, including how the federal agency uses merit review outcomes in',
3923:'final decisionmaking. for example, whether they are advisory only. b it could also include the following: 1 who makes the',
3924:'final selections for awards. 2 any multiphase review methods. for example, an external panel that advises on, makes, or approves',
3925:'final recommendations to the deciding official. iv risk review. a this section must include the following: 1 a brief description',
3926:'of the factors used for the federal agencys risk review as required by§ 200.206. 2 if the federal agency expects',
3927:'that any award under the nofo will be more than the simplified acquisition threshold during its period of performance, include',
3928:'the following information: i that before making a federal award with a total amount of federal share greater than the',
3929:'simplified acquisition threshold, the federal agency must review and consider any information about the applicant that is in the responsibility/qualification',
3930:'records available insam.govsee41 u.s.c. 2313. ii that an applicant can review and comment on any information in the responsibility/qualification records',
3931:'available insam.gov. iii that before making decisions in the risk review required by§ 200.206the federal agency will consider any comments',
3932:'by the applicant, along with information available in the responsibility/qualification records insam.gov. 7 award notices.this section must address what a',
3933:'successful applicant can expect to receive following selection. i it must include the following: a if the federal agencys practice',
3934:'is to provide a separate notice stating that an application has been selected before it makes the federal award, indicate',
3935:'that the letter is not an authorization to begin performance and that the federal award is the authorizing document. b',
3936:'if preaward costs are allowed, beginning performance is at the applicants own risk. c this section should indicate that the',
3937:'notice of federal award signed by the grants officer, or equivalent, is the official document that obligates funds, and whether',
3938:'it is provided through postal mail or by electronic means and to whom. d the timing, form, and content of',
3939:'notifications to unsuccessful applicants. see also§ 200.211. 8 postaward requirements and administration. 2 cfr appendixitopart200b8 enhanced display page 160 of',
3940:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixitopart200b8 “i administrative and uniform administrative requirements,',
3941:'cost principles, and audit national policy requirements” i administrative and national policy requirements.providing information on administrative and policy requirements lets',
3942:'a potential applicant identify any requirements with which it would have difficulty complying. this section must include the following: a',
3943:'a statement related to the “general” terms and conditions of the award, including requirements that the federal agency normally includes.',
3944:'b any relevant specific terms and conditions. c any special requirements that could apply to specific awards after the review',
3945:'of applications and other information based on the particular circumstances of the effort to be supported. for example, if human',
3946:'subjects were to be involved or if some situations may justify specific terms on intellectual property, data sharing, or security',
3947:'requirements. d as in other sections, the announcement need not include all terms and conditions of the award but may',
3948:'refer to documents with details on terms and conditions. ii reporting.this section includes information needed to understand the postaward reporting',
3949:'requirements. highlight any special reporting requirements for federal awards under this funding opportunity that differ from what the federal agencys',
3950:'federal awards usually require. for example, differences in report type, frequency, form, format, or circumstances for use. this section must',
3951:'include the following: a the type of reporting required, such as financial or performance. b the reporting frequency. c the',
3952:'means of submission, such as paper or electronic. d references to all relevant requirements, such as those at2 cfr 180.335and',
3953:'180.350. e if the federal share of any federal award may include more than $500,000 over the period of performance,',
3954:'this section must inform potential applicants about the postaward reporting requirements reflected in appendix xii to this part. 9 other',
3955:'information—optional.this section may include any additional information to help potential applicants. for example, the section could include the following: i',
3956:'related programs or other upcoming or ongoing federal agency funding opportunities for similar activities. ii current internet addresses for federal',
3957:'agency websites that may be useful to an applicant in understanding the program. iii routine notices to applicants. for example,',
3958:'the federal government is not obligated to make any federal award as a result of the announcement, or only grants',
3959:'officers can bind the federal government to the expenditure of funds. [89 fr 30204, apr. 22, 2024] 2 cfr appendixitopart200b9iii',
3960:'enhanced display page 161 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiitopart200a uniform',
3961:'administrative requirements, cost principles, and audit appendix ii to part 200—contract provisions for nonfederal entity contracts under federal awards in',
3962:'addition to other provisions required by the federal agency or nonfederal entity, all contracts made by the non federal entity',
3963:'under the federal award must contain provisions covering the following, as applicable. a contracts for more than the simplified acquisition',
3964:'threshold, which is the inflation adjusted amount determined by the civilian agency acquisition council and the defense acquisition regulations council',
3965:'councils as authorized by41 u.s.c. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach',
3966:'contract terms, and provide for such sanctions and penalties as appropriate. b all contracts in excess of $10,000 must address',
3967:'termination for cause and for convenience by the non federal entity including the manner by which it will be effected',
3968:'and the basis for settlement. c equal employment opportunity. except as otherwise provided under41 cfr part 60, all contracts that',
3969:'meet the definition of “federally assisted construction contract” in41 cfr part 601.3must include the equal opportunity clause provided under41 cfr',
3970:'601.4b, in accordance withexecutive order 11246, “equal employment opportunity” 30 fr 12319,12935,3 cfr part, 19641965comp., p. 339, as amended byexecutive',
3971:'order 11375, “amendingexecutive order 11246relating to equal employment opportunity,” and implementing regulations at41 cfr part 60, “office of federal contract',
3972:'compliance programs, equal employment opportunity, department of labor.” d davisbacon act, as amended 40 u.s.c. 31413148. when required by federal',
3973:'program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance',
3974:'with the davisbacon act 40 u.s.c. 31413144, and31463148 as supplemented by department of labor regulations 29 cfr part 5, “labor',
3975:'standards provisions applicable to contracts covering federally financed and assisted construction”. in accordance with the statute, contractors must be required',
3976:'to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage',
3977:'determination made by the secretary of labor. in addition, contractors must be required to pay wages not less than once',
3978:'a week. the nonfederal entity must place a copy of the current prevailing wage determination issued by the department of',
3979:'labor in each solicitation. the decision to award a contract or subcontract must be conditioned upon the acceptance of the',
3980:'wage determination. the nonfederal entity must report all suspected or reported violations to the federal awarding agency. the contracts must',
3981:'also include a provision for compliance with the copeland “antikickback” act 40 u.s.c. 3145, as supplemented by department of labor',
3982:'regulations 29 cfr part 3, “contractors and subcontractors on public building or public work financed in whole or in part',
3983:'by loans or grants from the united states”. the act provides that each contractor or subrecipient must be prohibited from',
3984:'inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any',
3985:'part of the compensation to which he or she is otherwise entitled. the non federal entity must report all suspected',
3986:'or reported violations to the federal awarding agency. e contract work hours and safety standards act 40 u.s.c. 37013708. where',
3987:'applicable, all contracts awarded by the nonfederal entity in excess of $100,000 that involve the employment of mechanics or laborers',
3988:'must include a provision for compliance with40 u.s.c. 3702and3704, as supplemented by department of labor regulations 29 cfr part 5.',
3989:'under40 u.s.c. 3702of the act, each contractor must be required to compute the wages of every mechanic and laborer on',
3990:'the basis of a standard work week of 40 hours. work in excess of the standard work week is permissible',
3991:'provided that the worker is compensated at a rate of not less than one and a half times the basic',
3992:'rate of pay for all hours worked in excess of 40 hours in the work week. the requirements of40 u.s.c.',
3993:'3704are applicable to construction 2 cfr appendixiitopart200e enhanced display page 162 of 208 2 cfr part 200 up to date',
3994:'as of 1/08/2025 2 cfr appendixiitopart200f uniform administrative requirements, cost principles, and audit work and provide that no laborer or',
3995:'mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. these requirements',
3996:'do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts',
3997:'for transportation or transmission of intelligence. f rights to inventions made under a contract or agreement. if the federal award',
3998:'meets the definition of “funding agreement” under37 cfr § 401.2 aand the recipient or subrecipient wishes to enter into a',
3999:'contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental,',
4000:'or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of37 cfr part 401,',
4001:'“rights to inventions made by nonprofit organizations and small business firms under government grants, contracts and cooperative agreements,” and any',
4002:'implementing regulations issued by the awarding agency. g clean air act 42 u.s.c. 74017671q. and the federal water pollution control',
4003:'act 33 u.s.c. 12511387, as amended—contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires',
4004:'the nonfederal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the clean air',
4005:'act 42 u.s.c. 74017671q and the federal water pollution control act as amended 33 u.s.c. 12511387. violations must be reported',
4006:'to the federal awarding agency and the regional office of the environmental protection agency epa. h debarment and suspension executive',
4007:'orders 12549 and 12689—a contract award see2 cfr 180.220 must not be made to parties listed on the governmentwide exclusions',
4008:'in the system for award management sam, in accordance with the omb guidelines at2 cfr 180that implement executive orders 12549',
4009:'3 cfr part 1986 comp., p. 189 and 12689 3 cfr part 1989 comp., p. 235, “debarment and suspension.” sam',
4010:'exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under',
4011:'statutory or regulatory authority other thanexecutive order 12549. i byrd antilobbying amendment 31 u.s.c. 1352—contractors that apply or bid for',
4012:'an award exceeding $100,000 must file the required certification. each tier certifies to the tier above that it will not',
4013:'and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an',
4014:'officer or employee of any agency, a member of congress, officer or employee of congress, or an employee of a',
4015:'member of congress in connection with obtaining any federal contract, grant or any other award covered by31 u.s.c. 1352. each',
4016:'tier must also disclose any lobbying with nonfederal funds that takes place in connection with obtaining any federal award. such',
4017:'disclosures are forwarded from tier to tier up to the nonfederal award. j see§ 200.323. k see§ 200.216. l see§',
4018:'200.322. [78 fr 78608, dec. 26, 2013, as amended at79 fr 75888, dec. 19, 2014;85 fr 49577, aug. 13, 2020]',
4019:'appendix iii to part 200—indirect f&a costs identification and assignment, and rate determination for institutions of higher education ihes a.',
4020:'general 2 cfr appendixiitopart200l enhanced display page 163 of 208 2 cfr part 200 up to date as of 1/08/2025',
4021:'2 cfr appendixiiitopart200 a.1.a. uniform administrative requirements, cost principles, and audit this appendix provides criteria for identifying and computing indirect',
4022:'or indirect f&a rates at ihes institutions. indirect f&a costs are those that are incurred for common or joint objectives',
4023:'and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional',
4024:'activity. see subsection b.1 for a discussion of the components of indirect f&a costs. 1. major functions/activities of an ihe',
4025:'refers to instruction, organized research, other sponsored activities and other institutional activities as defined in this section: a. instructionmeans the',
4026:'teaching and training activities of an institution. except for research training as provided in subsection b, this term includes all',
4027:'teaching and training activities, whether they are offered for credits toward a degree or certificate or on a noncredit basis,',
4028:'and whether they are offered through regular academic departments or separate divisions, such as a summer school division or an',
4029:'extension division. also considered part of this major function are departmental research, and, where agreed to, university research. 1 sponsored',
4030:'instruction and trainingmeans specific instructional or training activity established by grant, contract, or cooperative agreement. for purposes of the cost',
4031:'principles, this activity may be considered a major function even though an institutions accounting treatment may include it in the',
4032:'instruction function. 2 departmental researchmeans research, development and scholarly activities that are not organized research and, consequently, are not separately',
4033:'budgeted and accounted for. departmental research, for purposes of this document, is not considered as a major function, but as',
4034:'a part of the instruction function of the institution. 3 only mandatory cost sharing or cost sharing specifically committed in',
4035:'the project budget must be included in the organized research base for computing the indirect f&a cost rate or reflected',
4036:'in any allocation of indirect costs. salary costs above statutory limits are not considered cost sharing. b. organized researchmeans all',
4037:'research and development activities of an institution that are separately budgeted and accounted for. it includes: 1 sponsored researchmeans all',
4038:'research and development activities that are sponsored by federal and nonfederal agencies and organizations. this term includes activities involving the',
4039:'training of individuals in research techniques commonly called research training where such activities utilize the same facilities as other research',
4040:'and development activities and where such activities are not included in the instruction function. 2 university researchmeans all research and',
4041:'development activities that are separately budgeted and accounted for by the institution under an internal application of institutional funds. university',
4042:'research, for purposes of this document, must be combined with sponsored research under the function of organized research. 2 cfr',
4043:'appendixiiitopart200 a.1.b.2 enhanced display page 164 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr',
4044:'appendixiiitopart200 a.1.c. uniform administrative requirements, cost principles, and audit c. d. other sponsored activitiesmeans programs and projects financed by federal',
4045:'and nonfederal agencies and organizations which involve the performance of work other than instruction and organized research. examples of such',
4046:'programs and projects are health service projects and community service programs. however, when any of these activities are undertaken by',
4047:'the institution without outside support, they may be classified as other institutional activities. other institutional activitiesmeans all activities of an',
4048:'institution except for instruction, departmental research, organized research, and other sponsored activities, as defined in this section; indirect f&a cost',
4049:'activities identified in this appendix paragraph b, identification and assignment of indirect f&a costs; and specialized services facilities described in§',
4050:'200.468 of this part. 2. criteria for distribution a. base period.a base period for distribution of indirect f&a costs is',
4051:'the period during which the costs are incurred. the base period normally should coincide with the fiscal year established by',
4052:'the institution, but in any event the base period should be so selected as to avoid inequities in the distribution',
4053:'of costs. b. need for cost groupings.the overall objective of the indirect f&a cost allocation process is to distribute the',
4054:'indirect f&a costs described in section b, identification and assignment of indirect f&a costs, to the major functions of the',
4055:'institution in proportions reasonably consistent with the nature and extent of their use of the institutions resources. in order to',
4056:'achieve this objective, it may be necessary to provide for selective distribution by establishing separate groupings of cost within one',
4057:'or more of the indirect f&a cost categories referred to in subsection b.1. in general, the cost groupings established within',
4058:'a category should constitute, in each case, a pool of those items of expense that are considered to be of',
4059:'like nature in terms of their relative contribution to or degree of remoteness from the particular cost objectives to which',
4060:'distribution is appropriate. cost groupings should be established considering the general guides provided in subsection c of this section. each',
4061:'such pool or cost grouping should then be distributed individually to the related cost objectives, using the distribution base or',
4062:'method most appropriate in light of the guidelines set forth in subsection d of this section. c. general considerations on',
4063:'cost groupings.the extent to which separate cost groupings and selective distribution would be appropriate at an institution is a matter',
4064:'of judgment to be determined on a casebycase basis. typical situations which may warrant the establishment of two or more',
4065:'separate cost groupings based on account classification or analysis within an indirect f&a cost category include but are not limited',
4066:'to the following: 1 if certain items or categories of expense relate solely to one of the major functions of',
4067:'the institution or to less than all functions, such expenses should be set aside as a separate cost grouping for',
4068:'direct assignment or selective allocation in accordance with the guides provided in subsections b and d. 2 if any types',
4069:'of expense ordinarily treated as general administration or departmental administration are charged to federal awards as direct costs, expenses applicable',
4070:'to other activities of the institution when incurred for the same purposes in like 2 cfr appendixiiitopart200 a.2.c.2 enhanced display',
4071:'page 165 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 a.2.c.3 uniform administrative',
4072:'requirements, cost principles, and audit circumstances must, through separate cost groupings, be excluded from the indirect f&a costs allocable to',
4073:'those federal awards and included in the direct cost of other activities for cost allocation purposes. 3 if it is',
4074:'determined that certain expenses are for the support of a service unit or facility whose output is susceptible of measurement',
4075:'on a workload or other quantitative basis, such expenses should be set aside as a separate cost grouping for distribution',
4076:'on such basis to organized research, instructional, and other activities at the institution or within the department. 4 if activities',
4077:'provide their own purchasing, personnel administration, building maintenance or similar service, the distribution of general administration and general expenses, or',
4078:'operation and maintenance expenses to such activities should be accomplished through cost groupings which include only that portion of central',
4079:'indirect f&a costs such as for overall management which are properly allocable to such activities. 5 if the institution elects',
4080:'to treat fringe benefits as indirect f&a charges, such costs should be set aside as a separate cost grouping for',
4081:'selective distribution to related cost objectives. 6 the number of separate cost groupings within a category should be held within',
4082:'practical limits, after taking into consideration the materiality of the amounts involved and the degree of precision attainable through less',
4083:'selective methods of distribution. selection of distribution method. d. 1 actual conditions must be taken into account in selecting the',
4084:'method or base to be used in distributing individual cost groupings. the essential consideration in selecting a base is that',
4085:'it be the one best suited for assigning the pool of costs to cost objectives in accordance with benefits derived;',
4086:'with a traceable causeandeffect relationship; or with logic and reason, where neither benefit nor a causeandeffect relationship is determinable. 2',
4087:'if a cost grouping can be identified directly with the cost objective benefitted, it should be assigned to that cost',
4088:'objective. 3 if the expenses in a cost grouping are more general in nature, the distribution may be based on',
4089:'a cost analysis study which results in an equitable distribution of the costs. such cost analysis studies may take into',
4090:'consideration weighting factors, population, or space occupied if appropriate. cost analysis studies, however, must a be appropriately documented in sufficient',
4091:'detail for subsequent review by the cognizant agency for indirect costs, b distribute the costs to the related cost objectives',
4092:'in accordance with the relative benefits derived, c be statistically sound, d be performed specifically at the institution at which',
4093:'the results are to be used, and 2 cfr appendixiiitopart200 a.2.d.3d enhanced display page 166 of 208 2 cfr part',
4094:'200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 a.2.d.3e uniform administrative requirements, cost principles, and audit e be',
4095:'reviewed periodically, but not less frequently than rate negotiations, updated if necessary, and used consistently. any assumptions made in the',
4096:'study must be stated and explained. the use of cost analysis studies and periodic changes in the method of cost',
4097:'distribution must be fully justified. 4 if a cost analysis study is not performed, or if the study does not',
4098:'result in an equitable distribution of the costs, the distribution must be made in accordance with the appropriate base cited',
4099:'in section b, unless one of the following conditions is met: a it can be demonstrated that the use of',
4100:'a different base would result in a more equitable allocation of the costs, or that a more readily available base',
4101:'would not increase the costs charged to federal awards, or b the institution qualifies for, and elects to use, the',
4102:'simplified method for computing indirect f&a cost rates described in section d. 5 notwithstanding subsection 3, effective july 1, 1998,',
4103:'a cost analysis or base other than that in section b must not be used to distribute utility or student',
4104:'services costs. instead, subsection b.4.c, may be used in the recovery of utility costs. e. order of distribution. 1 indirect',
4105:'f&a costs are the broad categories of costs discussed in section b.1. 2 depreciation, interest expenses, operation and maintenance expenses,',
4106:'and general administrative and general expenses should be allocated in that order to the remaining indirect f&a cost categories as',
4107:'well as to the major functions and specialized service facilities of the institution. other cost categories may be allocated in',
4108:'the order determined to be most appropriate by the institutions. when cross allocation of costs is made as provided in',
4109:'subsection 3, this order of allocation does not apply. 3 normally an indirect f&a cost category will be considered closed',
4110:'once it has been allocated to other cost objectives, and costs may not be subsequently allocated to it. however, a',
4111:'cross allocation of costs between two or more indirect f&a cost categories may be used if such allocation will result',
4112:'in a more equitable allocation of costs. if a cross allocation is used, an appropriate modification to the composition of',
4113:'the indirect f&a cost categories described in section b is required. b. identification and assignment of indirect f&a costs 1.',
4114:'definition of facilities and administration see§ 200.414which provides the basis for these indirect cost requirements. 2. depreciation a. the expenses',
4115:'under this heading are the portion of the costs of the institutions buildings, capital improvements to land and buildings, and',
4116:'equipment which are computed in accordance with§ 200.436. 2 cfr appendixiiitopart200 2.a. enhanced display page 167 of 208 2 cfr',
4117:'part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.b. uniform administrative requirements, cost principles, and audit b.',
4118:'in the absence of the alternatives provided for in section a.2.d, the expenses included in this category must be allocated',
4119:'in the following manner: a. 1 depreciation on buildings used exclusively in the conduct of a single function, and on',
4120:'capital improvements and equipment used in such buildings, must be assigned to that function. 2 depreciation on buildings used for',
4121:'more than one function, and on capital improvements and equipment used in such buildings, must be allocated to the individual',
4122:'functions performed in each building on the basis of usable square feet of space, excluding common areas such as hallways,',
4123:'stairwells, and rest rooms. 3 depreciation on buildings, capital improvements and equipment related to space e.g., individual rooms, laboratories used',
4124:'jointly by more than one function as determined by the users of the space must be treated as follows. the',
4125:'cost of each jointly used unit of space must be allocated to benefitting functions on the basis of: a the',
4126:'employee fulltime equivalents ftes or salaries and wages of those individual functions benefitting from the use of that space; or',
4127:'b institutionwide employee ftes or salaries and wages applicable to the benefitting major functions see section a.1 of the institution.',
4128:'4 depreciation on certain capital improvements to land, such as paved parking areas, fences, sidewalks, and the like, not included',
4129:'in the cost of buildings, must be allocated to user categories of students and employees on a fulltime equivalent basis.',
4130:'the amount allocated to the student category must be assigned to the instruction function of the institution. the amount allocated',
4131:'to the employee category must be further allocated to the major functions of the institution in proportion to the salaries',
4132:'and wages of all employees applicable to those functions. 3. interest interest on debt associated with certain buildings, equipment and',
4133:'capital improvements, as defined in§ 200.449, must be classified as an expenditure under the category facilities. these costs must be',
4134:'allocated in the same manner as the depreciation on the buildings, equipment and capital improvements to which the interest relates.',
4135:'4. operation and maintenance expenses the expenses under this heading are those that have been incurred for the administration, supervision,',
4136:'operation, maintenance, preservation, and protection of the institutions physical plant. they include expenses normally incurred for such items as janitorial',
4137:'and utility services; repairs and ordinary or normal alterations of buildings, furniture and equipment; care of grounds; maintenance and operation',
4138:'of buildings and other plant facilities; security; earthquake and disaster preparedness; environmental safety; hazardous waste disposal; property, liability and all',
4139:'other insurance relating to property; space and capital leasing; facility planning and management; and central receiving. the operation and maintenance',
4140:'expense category should also include its allocable share of fringe benefit costs, depreciation, and interest costs. b. in the absence',
4141:'of the alternatives provided for in section a.2.d, the expenses included in this category must be allocated in the same',
4142:'manner as described in subsection 2.b for depreciation. 2 cfr appendixiiitopart200 4.b. enhanced display page 168 of 208 2 cfr',
4143:'part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 4.c. uniform administrative requirements, cost principles, and audit c.',
4144:'a utility cost adjustment of up to 1.3 percentage points may be included in the negotiated indirect cost rate of',
4145:'the ihe for organized research, per the computation alternatives inparagraphs c1and 2of this section: 1 where space is devoted to',
4146:'a single function and metering allows unambiguous measurement of usage related to that space, costs must be assigned to the',
4147:'function located in that space. 2 where space is allocated to different functions and metering does not allow unambiguous measurement',
4148:'of usage by function, costs must be allocated as follows: i utilities costs should be apportioned to functions in the',
4149:'same manner as depreciation, based on the calculated difference between the site or building actual square footage for monitored research',
4150:'laboratory space site, building, floor, or room, and a separate calculation prepared by the ihe using the “effective square footage”',
4151:'described in subsection c2ii of this section. ii “effective square footage”allocated to research laboratory space must be calculated as the',
4152:'actual square footage times the relative energy utilization index reui posted on the omb web site at the time of',
4153:'a rate determination. a. b. this index is the ratio of a laboratory energy use index lab eui to the',
4154:'corresponding index for overall average college or university space college eui. in july 2012, values for these two indices taken',
4155:'respectively from the lawrence berkeley laboratory “labs for the 21st century” benchmarking tool and the us department of energy “buildings',
4156:'energy databook” and were 310 kbtu/sq ftyr. and 155 kbtu/sq ftyr., so that the adjustment ratio is 2.0 by this',
4157:'methodology. to retain currency, omb will adjust the eui numbers from time to time no more often than annually nor',
4158:'less often than every 5 years, using reliable and publicly disclosed data. current values of both the euis and the',
4159:'reui will be posted on the omb website. 5. general administration and general expenses a. the expenses under this heading',
4160:'are those that have been incurred for the general executive and administrative offices of educational institutions and other expenses of',
4161:'a general character which do not relate solely to any major function of the institution;i.e.,solely to 1 instruction, 2 organized',
4162:'research, 3 other sponsored activities, or 4 other institutional activities. the general administration and general expense category should also include',
4163:'its allocable share of fringe benefit costs, operation and maintenance expense, depreciation, and interest costs. examples of general administration and',
4164:'general expenses include: those expenses incurred by administrative offices that serve the entire university system of which the institution is',
4165:'a part; central offices of the institution such as the presidents or chancellors office, the offices for institutionwide financial management,',
4166:'business services, budget and planning, personnel management, and safety and risk management; the office of the general counsel; and the',
4167:'operations of the central administrative management information 2 cfr appendixiiitopart200 5.a.4 enhanced display page 169 of 208 2 academic departments:',
4168:'2 academic departments: 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 5.b. uniform administrative requirements,',
4169:'cost principles, and audit systems. general administration and general expenses must not include expenses incurred within nonuniversitywide deans offices, academic',
4170:'departments, organized research units, or similar organizational units. see subsection 6. b. in the absence of the alternatives provided for',
4171:'in section a.2.d, the expenses included in this category must be grouped first according to common major functions of the',
4172:'institution to which they render services or provide benefits. the aggregate expenses of each group must then be allocated to',
4173:'serviced or benefitted functions on the modified total cost basis. modified total costs consist of the same elements as those',
4174:'in section c.2. when an activity included in this indirect f&a cost category provides a service or product to another',
4175:'institution or organization, an appropriate adjustment must be made to either the expenses or the basis of allocation or both,',
4176:'to assure a proper allocation of costs. 6. departmental administration expenses a. the expenses under this heading are those that',
4177:'have been incurred for administrative and supporting services that benefit common or joint departmental activities or objectives in academic deans',
4178:'offices, academic departments and divisions, and organized research units. organized research units include such units as institutes, study centers, and',
4179:'research centers. departmental administration expenses are subject to the following limitations. 1 academic deans offices. salaries and operating expenses are',
4180:'limited to those attributable to administrative functions. a salaries and fringe benefits attributable to the administrative work including bid and',
4181:'proposal preparation of faculty including department heads and other professional personnel conducting research and/or instruction, must be allowed at a',
4182:'rate of 3.6 percent of modified total direct costs. this category does not include professional business or professional administrative officers.',
4183:'this allowance must be added to the computation of the indirect f&a cost rate for major functions in section c;',
4184:'the expenses covered by the allowance must be excluded from the departmental administration cost pool. no documentation is required to',
4185:'support this allowance. b other administrative and supporting expenses incurred within academic departments are allowable provided they are treated consistently',
4186:'in like circumstances. this would include expenses such as the salaries of secretarial and clerical staffs, the salaries of administrative',
4187:'officers and assistants, travel, office supplies, stockrooms, and the like. 3 other fringe benefit costs applicable to the salaries and',
4188:'wages included in subsections 1 and 2 are allowable, as well as an appropriate share of general administration and general',
4189:'expenses, operation and maintenance expenses, and depreciation. 4 federal agencies may authorize reimbursement of additional costs for department heads and',
4190:'faculty only in exceptional cases where an institution can demonstrate undue hardship or detriment to project performance. b. the following',
4191:'guidelines apply to the determination of departmental administrative costs as direct or indirect f&a costs. 2 cfr appendixiiitopart200 6.b. enhanced',
4192:'display page 170 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 6.b.1 uniform',
4193:'administrative requirements, cost principles, and audit 1 in developing the departmental administration cost pool, special care should be exercised to',
4194:'ensure that costs incurred for the same purpose in like circumstances are treated consistently as either direct or indirect f&a',
4195:'costs. for example, salaries of technical staff, laboratory supplies e.g.,chemicals, telephone toll charges, animals, animal care costs, computer costs, travel',
4196:'costs, and specialized shop costs must be treated as direct costs wherever identifiable to a particular cost objective. direct charging',
4197:'of these costs may be accomplished through specific identification of individual costs to benefitting cost objectives, or through recharge centers',
4198:'or specialized service facilities, as appropriate under the circumstances. see§§ 200.413cand200.468. 2 items such as office supplies, postage, local telephone',
4199:'costs, and memberships must normally be treated as indirect f&a costs. c. in the absence of the alternatives provided for',
4200:'in section a.2.d, the expenses included in this category must be allocated as follows: 1 the administrative expenses of the',
4201:'deans office of each college and school must be allocated to the academic departments within that college or school on',
4202:'the modified total cost basis. 2 the administrative expenses of each academic department, and the departments share of the expenses',
4203:'allocated in subsection 1 must be allocated to the appropriate functions of the department on the modified total cost basis.',
4204:'7. sponsored projects administration a. the expenses under this heading are limited to those incurred by a separate organizations established',
4205:'primarily to administer sponsored projects, including such functions as grant and contract administration federal and nonfederal, special security, purchasing, personnel,',
4206:'administration, and editing and publishing of research and other reports. they include the salaries and expenses of the head of',
4207:'such organization, assistants, and immediate staff, together with the salaries and expenses of personnel engaged in supporting activities maintained by',
4208:'the organization, such as stock rooms, print shops, and the like. this category also includes an allocable share of fringe',
4209:'benefit costs, general administration and general expenses, operation and maintenance expenses, and depreciation. appropriate adjustments will be made for services',
4210:'provided to other functions or organizations. b. c. in the absence of the alternatives provided for in section a.2.d, the',
4211:'expenses included in this category must be allocated to the major functions of the institution under which the sponsored projects',
4212:'are conducted on the basis of the modified total cost of sponsored projects. an appropriate adjustment must be made to',
4213:'eliminate any duplicate charges to federal awards when this category includes similar or identical activities as those included in the',
4214:'general administration and general expense category or other indirect f&a cost items, such as accounting, procurement, or personnel administration. 8.',
4215:'library expenses a. the expenses under this heading are those that have been incurred for the operation of the library,',
4216:'including the cost of books and library materials purchased for the library, less any items of library income that qualify',
4217:'as applicable credits under§ 200.406. the library expense category should also include the fringe benefits applicable to the salaries and',
4218:'wages included therein, an appropriate 2 cfr appendixiiitopart200 8.a. enhanced display page 171 of 208 2 cfr part 200 up',
4219:'to date as of 1/08/2025 2 cfr appendixiiitopart200 8.b. uniform administrative requirements, cost principles, and audit share of general administration',
4220:'and general expense, operation and maintenance expense, and depreciation. costs incurred in the purchases of rare books museumtype books with',
4221:'no value to federal awards should not be allocated to them. b. in the absence of the alternatives provided for',
4222:'in section a.2.d, the expenses included in this category must be allocated first on the basis of primary categories of',
4223:'users, including students, professional employees, and other users. c. 1 the student category must consist of fulltime equivalent students enrolled',
4224:'at the institution, regardless of whether they earn credits toward a degree or certificate. 2 the professional employee category must',
4225:'consist of all faculty members and other professional employees of the institution, on a fulltime equivalent basis. this category may',
4226:'also include postdoctorate fellows and graduate students. 3 the other users category must consist of a reasonable factor as determined',
4227:'by institutional records to account for all other users of library facilities. amount allocated in paragraph b of this section',
4228:'must be assigned further as follows: 1 the amount in the student category must be assigned to the instruction function',
4229:'of the institution. 2 the amount in the professional employee category must be assigned to the major functions of the',
4230:'institution in proportion to the salaries and wages of all faculty members and other professional employees applicable to those functions.',
4231:'3 the amount in the other users category must be assigned to the other institutional activities function of the institution.',
4232:'9. student administration and services a. the expenses under this heading are those that have been incurred for the administration',
4233:'of student affairs and for services to students, including expenses of such activities as deans of students, admissions, registrar, counseling',
4234:'and placement services, student advisers, student health and infirmary services, catalogs, and commencements and convocations. the salaries of members of',
4235:'the academic staff whose responsibilities to the institution require administrative work that benefits sponsored projects may also be included to',
4236:'the extent that the portion charged to student administration is determined in accordance withsubpart e of this part. this expense',
4237:'category also includes the fringe benefit costs applicable to the salaries and wages included therein, an appropriate share of general',
4238:'administration and general expenses, operation and maintenance, interest expense, and depreciation. b. in the absence of the alternatives provided for',
4239:'in section a.2.d, the expenses in this category must be allocated to the instruction function, and subsequently to federal awards',
4240:'in that function. 10. offset for indirect f&a expenses otherwise provided for by the federal government a. the items to',
4241:'be accumulated under this heading are the reimbursements and other payments from the federal government which are made to the',
4242:'institution to support solely, specifically, and directly, in whole or in part, any of the administrative or service activities described',
4243:'in subsections 2 through 9. 2 cfr appendixiiitopart200 10.a. enhanced display page 172 of 208 2 cfr part 200 up',
4244:'to date as of 1/08/2025 2 cfr appendixiiitopart200 10.b. uniform administrative requirements, cost principles, and audit b. the items in',
4245:'this group must be treated as a credit to the affected individual indirect f&a cost category before that category is',
4246:'allocated to benefitting functions. c. determination and application of indirect f&a cost rate or rates 1. indirect f&a cost pools',
4247:'a. 1 subject to subsection b, the separate categories of indirect f&a costs allocated to each major function of the',
4248:'institution as prescribed in section b, must be aggregated and treated as a common pool for that function. the amount',
4249:'in each pool must be divided by the distribution base described in subsection 2 to arrive at a single indirect',
4250:'f&a cost rate for each function. 2 the rate for each function is used to distribute indirect f&a costs to',
4251:'individual federal awards of that function. since a common pool is established for each major function of the institution, a',
4252:'separate indirect f&a cost rate would be established for each of the major functions described in section a.1 under which',
4253:'federal awards are carried out. 3 each institutions indirect f&a cost rate process must be appropriately designed to ensure that',
4254:'federal sponsors do not in any way subsidize the indirect f&a costs of other sponsors, specifically activities sponsored by industry',
4255:'and foreign governments. accordingly, each allocation method used to identify and allocate the indirect f&a cost pools, as described in',
4256:'sections a.2 and b.2 through b.9, must contain the full amount of the institutions modified total costs or other appropriate',
4257:'units of measurement used to make the computations. in addition, the final rate distribution base as defined in subsection 2',
4258:'for each major function organized research, instruction, etc., as described in section a.1 functions of an institution must contain all',
4259:'the programs or activities which utilize the indirect f&a costs allocated to that major function. at the time an indirect',
4260:'f&a cost proposal is submitted to a cognizant agency for indirect costs, each institution must describe the process it uses',
4261:'to ensure that federal funds are not used to subsidize industry and foreign government funded programs. 2. the distribution basis',
4262:'indirect f&a costs must be distributed to applicable federal awards and other benefitting activities within each major function see section',
4263:'a.1 on the basis of modified total direct costs mtdc, consisting of all salaries and wages, fringe benefits, materials and',
4264:'supplies, services, travel, and up to the first $50,000 of each subaward regardless of the period covered by the subaward.',
4265:'mtdc is defined in§ 200.1. for this purpose, an indirect f&a cost rate should be determined for each of the',
4266:'separate indirect f&a cost pools developed pursuant to subsection 1. the rate in each case should be stated as the',
4267:'percentage which the amount of the particular indirect f&a cost pool is of the modified total direct costs identified with',
4268:'such pool. 3. negotiated lump sum for indirect f&a costs a negotiated fixed amount in lieu of indirect f&a costs',
4269:'may be appropriate for selfcontained, off campus, or primarily subcontracted activities where the benefits derived from an institutions indirect f&a',
4270:'services cannot be readily determined. such negotiated indirect f&a costs will be treated as an 2 cfr appendixiiitopart200 1.a.3 enhanced',
4271:'display page 173 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 1.a.3 uniform',
4272:'administrative requirements, cost principles, and audit offset before allocation to instruction, organized research, other sponsored activities, and other institutional activities.',
4273:'the base on which such remaining expenses are allocated should be appropriately adjusted. 4. predetermined rates for indirect f&a costs',
4274:'public law 87638 76 stat. 437 as amended 41 u.s.c. 4708 authorizes the use of predetermined rates in determining the',
4275:'“indirect costs” indirect f&a costs applicable under research agreements with educational institutions. the stated objectives of the law are to',
4276:'simplify the administration of costtype research and development contracts including grants with educational institutions, to facilitate the preparation of their',
4277:'budgets, and to permit more expeditious closeout of such contracts when the work is completed. in view of the potential',
4278:'advantages offered by this procedure, negotiation of predetermined rates for indirect f&a costs for a period of two to four',
4279:'years should be the norm in those situations where the cost experience and other pertinent facts available are deemed sufficient',
4280:'to enable the parties involved to reach an informed judgment as to the probable level of indirect f&a costs during',
4281:'the ensuing accounting periods. 5. negotiated fixed rates and carryforward provisions when a fixed rate is negotiated in advance for',
4282:'a fiscal year or other time period, the over or under recovery for that year may be included as an',
4283:'adjustment to the indirect f&a cost for the next rate negotiation. when the rate is negotiated before the carryforward adjustment',
4284:'is determined, the carry forward amount may be applied to the next subsequent rate negotiation. when such adjustments are to',
4285:'be made, each fixed rate negotiated in advance for a given period will be computed by applying the expected indirect',
4286:'f&a costs allocable to federal awards for the forecast period plus or minus the carry forward adjustment over or underrecovery',
4287:'from the prior period, to the forecast distribution base. unrecovered amounts under lumpsum agreements or costsharing provisions of prior years',
4288:'must not be carried forward for consideration in the new rate negotiation. there must, however, be an advance understanding in',
4289:'each case between the institution and the cognizant agency for indirect costs as to whether these differences will be considered',
4290:'in the rate negotiation rather than making the determination after the differences are known. further, institutions electing to use this',
4291:'carryforward provision may not subsequently change without prior approval of the cognizant agency for indirect costs. in the event that',
4292:'an institution returns to a postdetermined rate, any over or underrecovery during the period in which negotiated fixed rates and',
4293:'carryforward provisions were followed will be included in the subsequent post determined rates. where multiple rates are used, the same',
4294:'procedure will be applicable for determining each rate. 6. provisional and final rates for indirect f&a costs where the cognizant',
4295:'agency for indirect costs determines that cost experience and other pertinent facts do not justify the use of predetermined rates,',
4296:'or a fixed rate with a carryforward, or if the parties cannot agree on an equitable rate, a provisional rate',
4297:'must be established. to prevent substantial overpayment or underpayment, the provisional rate may be adjusted by the cognizant agency for',
4298:'indirect costs during the institutions fiscal year. predetermined or fixed rates may replace provisional rates at any time prior to',
4299:'the 2 cfr appendixiiitopart200 1.a.3 enhanced display page 174 of 208 2 cfr part 200 up to date as of',
4300:'1/08/2025 2 cfr appendixiiitopart200 7.a. uniform administrative requirements, cost principles, and audit close of the institutions fiscal year. if a',
4301:'provisional rate is not replaced by a predetermined or fixed rate prior to the end of the institutions fiscal year,',
4302:'a final rate will be established and upward or downward adjustments will be made based on the actual allowable costs',
4303:'incurred for the period involved. 7. fixed rates for the life of the sponsored agreement a. except as provided inparagraph',
4304:'c1 of § 200.414, federal agencies must use the negotiated rates in effect at the time of the initial award',
4305:'throughout the life of the federal award. award levels for federal awards may not be adjusted in future years as',
4306:'a result of changes in negotiated rates. “negotiated rates” per the rate agreement include final, fixed, and predetermined rates and',
4307:'exclude provisional rates. “life” for the purpose of this subsection means each competitive segment of a project. a competitive segment',
4308:'is a period of years approved by the federal awarding agency at the time of the federal award. if negotiated',
4309:'rate agreements do not extend through the life of the federal award at the time of the initial award, then',
4310:'the negotiated rate for the last year of the federal award must be extended through the end of the life',
4311:'of the federal award. b. except as provided in§ 200.414, when an educational institution does not have a negotiated rate',
4312:'with the federal government at the time of an award because the educational institution is a new recipient or the',
4313:'parties cannot reach agreement on a rate, the provisional rate used at the time of the award must be adjusted',
4314:'once a rate is negotiated and approved by the cognizant agency for indirect costs. 8. limitation on reimbursement of administrative',
4315:'costs a. notwithstanding the provisions of subsection c.1.a, the administrative costs charged to federal awards awarded or amended including continuation',
4316:'and renewal awards with effective dates beginning on or after the start of the institutions first fiscal year which begins',
4317:'on or after october 1, 1991, must be limited to 26% of modified total direct costs as defined in subsection',
4318:'2 for the total of general administration and general expenses, departmental administration, sponsored projects administration, and student administration and services',
4319:'including their allocable share of depreciation, interest costs, operation and maintenance expenses, and fringe benefits costs, as provided by section',
4320:'b, and all other types of expenditures not listed specifically under one of the subcategories of facilities in section b.',
4321:'b. institutions should not change their accounting or cost allocation methods if the effect is to change the charging of',
4322:'a particular type of cost from f&a to direct, or to reclassify costs, or increase allocations from the administrative pools',
4323:'identified in paragraph b.1 of this appendix to the other f&a cost pools or fringe benefits. cognizant agencies for indirect',
4324:'cost are authorized to allow changes where an institutions charging practices are at variance with acceptable practices followed by a',
4325:'substantial majority of other institutions. 9. alternative method for administrative costs a. notwithstanding the provisions of subsection c.1.a, an institution',
4326:'may elect to claim a fixed allowance for the “administration” portion of indirect f&a costs. the allowance could be either',
4327:'24% of modified total direct costs or a percentage equal to 95% of the most recently negotiated fixed or predetermined',
4328:'rate for the cost pools included under “administration” as defined in section b.1, whichever is less. under this alternative, no',
4329:'cost proposal need be prepared for the “administration” 2 cfr appendixiiitopart200 9.a. enhanced display page 175 of 208 2 cfr',
4330:'part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 9.b. uniform administrative requirements, cost principles, and audit portion',
4331:'of the indirect f&a cost rate nor is further identification or documentation of these costs required see subsection c. where',
4332:'a negotiated indirect f&a cost agreement includes this alternative, an institution must make no further charges for the expenditure categories',
4333:'described in section b.5, section b.6, section b.7, and section b.9. b. c. in negotiations of rates for subsequent periods,',
4334:'an institution that has elected the option of subsection a may continue to exercise it at the same rate without',
4335:'further identification or documentation of costs. if an institution elects to accept a threshold rate as defined in subsection a',
4336:'of this section, it is not required to perform a detailed analysis of its administrative costs. however, in order to',
4337:'compute the facilities components of its indirect f&a cost rate, the institution must reconcile its indirect f&a cost proposal to',
4338:'its financial statements and make appropriate adjustments and reclassifications to identify the costs of each major function as defined in',
4339:'section a.1, as well as to identify and allocate the facilities components. administrative costs that are not identified as such',
4340:'by the institutions accounting system such as those incurred in academic departments will be classified as instructional costs for purposes',
4341:'of reconciling indirect f&a cost proposals to financial statements and allocating facilities costs. 10. individual rate components in order to',
4342:'provide mutually agreedupon information for management purposes, each indirect f&a cost rate negotiation or determination must include development of a',
4343:'rate for each indirect f&a cost pool as well as the overall indirect f&a cost rate. 11. negotiation and approval',
4344:'of indirect f&a rate a. cognizant agency for indirect costs is defined in subpart a. 1 cost negotiation cognizance is',
4345:'assigned to the department of health and human services hhs or the department of defenses office of naval research dod,',
4346:'normally depending on which of the two agencies hhs or dod provides more funds directly to the educational institution for',
4347:'the most recent three years. information on funding must be derived from relevant data gathered by the national science foundation.',
4348:'in cases where neither hhs nor dod provides federal funding directly to an educational institution, the cognizant agency for indirect',
4349:'costs assignment must default to hhs. notwithstanding the method for cognizance determination described in this section, other arrangements for cognizance',
4350:'of a particular educational institution may also be based in part on the types of research performed at the educational',
4351:'institution and must be decided based on mutual agreement between hhs and dod. where a nonfederal entity only receives funds',
4352:'as a subrecipient, see § 200.332. 2 after cognizance is established, it must continue for a fiveyear period. b. c.',
4353:'acceptance of rates. see§ 200.414. correcting deficiencies. the cognizant agency for indirect costs must negotiate changes needed to correct systems',
4354:'deficiencies relating to accountability for federal awards. cognizant agencies for indirect costs must address the concerns of other affected agencies,',
4355:'as appropriate, and must negotiate special rates for federal agencies that are required to limit recovery of indirect costs by',
4356:'statute. 2 cfr appendixiiitopart200 11.c. enhanced display page 176 of 208 2 cfr part 200 up to date as of',
4357:'1/08/2025 2 cfr appendixiiitopart200 11.d. uniform administrative requirements, cost principles, and audit d. e. f. resolving questioned costs. the cognizant',
4358:'agency for indirect costs must conduct any necessary negotiations with an educational institution regarding amounts questioned by audit that are',
4359:'due the federal government related to costs covered by a negotiated agreement. reimbursement. reimbursement to cognizant agencies for indirect costs',
4360:'for work performed under this part may be made by reimbursement billing under the economy act,31 u.s.c. 1535. procedure for',
4361:'establishing facilities and administrative rates must be established by one of the following methods: 1 formal negotiation. the cognizant agency',
4362:'for indirect costs is responsible for negotiating and approving rates for an educational institution on behalf of all federal agencies.',
4363:'federal awarding agencies that do not have cognizance for indirect costs must notify the cognizant agency for indirect costs of',
4364:'specific concerns i.e., a need to establish special cost rates which could affect the negotiation process. the cognizant agency for',
4365:'indirect costs must address the concerns of all interested agencies, as appropriate. a prenegotiation conference may be scheduled among all',
4366:'interested agencies, if necessary. the cognizant agency for indirect costs must then arrange a negotiation conference with the educational institution.',
4367:'2 other than formal negotiation. the cognizant agency for indirect costs and educational institution may reach an agreement on rates',
4368:'without a formal negotiation conference; for example, through correspondence or use of the simplified method described in this section d',
4369:'of this appendix. g. formalizing determinations and agreements. the cognizant agency for indirect costs must formalize all determinations or agreements',
4370:'reached with an educational institution and provide copies to other agencies having an interest. determinations should include a description of',
4371:'any adjustments, the actual amount, both dollar and percentage adjusted, and the reason for making adjustments. h. disputes and disagreements.',
4372:'where the cognizant agency for indirect costs is unable to reach agreement with an educational institution with regard to rates',
4373:'or audit resolution, the appeal system of the cognizant agency for indirect costs must be followed for resolution of the',
4374:'disagreement. 12. standard format for submission for facilities and administrative indirect f&a rate proposals, educational institutions must use the standard',
4375:'format, shown in section e of this appendix, to submit their indirect f&a rate proposal to the cognizant agency for',
4376:'indirect costs. the cognizant agency for indirect costs may, on an institutionbyinstitution basis, grant exceptions from all or portions of',
4377:'part ii of the standard format requirement. this requirement does not apply to educational institutions that use the simplified method',
4378:'for calculating indirect f&a rates, as described in section d of this appendix. as provided in section c.10 of this',
4379:'appendix, each f&a cost rate negotiation or determination must include development of a rate for each f&a cost pool as',
4380:'well as the overall f&a rate. d. simplified method for small institutions 1. general 2 cfr appendixiiitopart200 11.h. enhanced display',
4381:'page 177 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 1.a. uniform administrative',
4382:'requirements, cost principles, and audit a. where the total direct cost of work covered by this part at an institution',
4383:'does not exceed $10 million in a fiscal year, the simplified procedure described in subsections 2 or 3 may be',
4384:'used in determining allowable indirect f&a costs. under this simplified procedure, the institutions most recent annual financial report and immediately',
4385:'available supporting information must be utilized as a basis for determining the indirect f&a cost rate applicable to all federal',
4386:'awards. the institution may use either the salaries and wages see subsection 2 or modified total direct costs see subsection',
4387:'3 as the distribution basis. b. the simplified procedure should not be used where it produces results which appear inequitable',
4388:'to the federal government or the institution. in any such case, indirect f&a costs should be determined through use of',
4389:'the regular procedure. 2. simplified procedure—salaries and wages base a. establish the total amount of salaries and wages paid to',
4390:'all employees of the institution. b. establish an indirect f&a cost pool consisting of the expenditures exclusive of capital items',
4391:'and other costs specifically identified as unallowable which customarily are classified under the following titles or their equivalents: 1 general',
4392:'administration and general expenses exclusive of costs of student administration and services, student activities, student aid, and scholarships. 2 operation',
4393:'and maintenance of physical plant and depreciation after appropriate adjustment for costs applicable to other institutional activities. 3 library. 4',
4394:'department administration expenses, which will be computed as 20 percent of the salaries and expenses of deans and heads of',
4395:'departments. in those cases where expenditures classified under subsection 1 have previously been allocated to other institutional activities, they may',
4396:'be included in the indirect f&a cost pool. the total amount of salaries and wages included in the indirect f&a',
4397:'cost pool must be separately identified. c. establish a salary and wage distribution base, determined by deducting from the total',
4398:'of salaries and wages as established in subsection a from the amount of salaries and wages included under subsection b.',
4399:'d. establish the indirect f&a cost rate, determined by dividing the amount in the indirect f&a cost pool, subsection b,',
4400:'by the amount of the distribution base, subsection c. e. apply the indirect f&a cost rate to direct salaries and',
4401:'wages for individual agreements to determine the amount of indirect f&a costs allocable to such agreements. 3. simplified procedure—modified total',
4402:'direct cost base a. establish the total costs incurred by the institution for the base period. b. establish an indirect',
4403:'f&a cost pool consisting of the expenditures exclusive of capital items and other costs specifically identified as unallowable which customarily',
4404:'are classified under the following titles or their equivalents: 2 cfr appendixiiitopart200 3.b. enhanced display page 178 of 208 2',
4405:'cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 3.b.1 uniform administrative requirements, cost principles, and audit',
4406:'1 general administration and general expenses exclusive of costs of student administration and services, student activities, student aid, and scholarships.',
4407:'2 operation and maintenance of physical plant and depreciation after appropriate adjustment for costs applicable to other institutional activities. 3',
4408:'library. 4 department administration expenses, which will be computed as 20 percent of the salaries and expenses of deans and',
4409:'heads of departments. in those cases where expenditures classified under subsection 1 have previously been allocated to other institutional activities,',
4410:'they may be included in the indirect f&a cost pool. the modified total direct costs amount included in the indirect',
4411:'f&a cost pool must be separately identified. c. establish a modified total direct cost distribution base, as defined in section',
4412:'c.2, the distribution basis, that consists of all institutions direct functions. d. establish the indirect f&a cost rate, determined by',
4413:'dividing the amount in the indirect f&a cost pool, subsection b, by the amount of the distribution base, subsection c.',
4414:'e. apply the indirect f&a cost rate to the modified total direct costs for individual agreements to determine the amount',
4415:'of indirect f&a costs allocable to such agreements. e. documentation requirements the standard format for documentation requirements for indirect indirect',
4416:'f&a rate proposals for claiming costs under the regular method is available on the omb website. f. certification 1. certification',
4417:'of charges to assure that expenditures for federal awards are proper and in accordance with the agreement documents and approved',
4418:'project budgets, the annual and/or final fiscal reports or vouchers requesting payment under the agreements will include a certification, signed',
4419:'by an authorized official of the university, which reads “by signing this report, i certify to the best of my',
4420:'knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for',
4421:'the purposes and intent set forth in the award documents. i am aware that any false, fictitious, or fraudulent information,',
4422:'or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements,',
4423:'false claims or otherwise. u.s. code, title 18, section 1001 and title 31, sections 37293733 and 38013812”. 2. certification of',
4424:'indirect f&a costs policy.cognizant agencies must not accept a proposed indirect cost rate unless such costs have been certified by',
4425:'the educational institution using the certificate of indirect f&a costs set forth in subsection f.2.c the certificate must be signed',
4426:'on behalf of the institution by the chief financial officer or an a. b. individual designated by an individual at',
4427:'a level no lower than vice president or chief financial officer. 2 cfr appendixiiitopart200 2.b. enhanced display page 179 of',
4428:'208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.c. uniform administrative requirements, cost principles,',
4429:'and audit an indirect f&a cost rate is not binding upon the federal government if the most recent required proposal',
4430:'from the institution has not been certified. where it is necessary to establish indirect f&a cost rates, and the institution',
4431:'has not submitted a certified proposal for establishing such rates in accordance with the requirements of this section, the federal',
4432:'government must unilaterally establish such rates. such rates may be based upon audited historical data or such other data that',
4433:'have been furnished to the cognizant agency for indirect costs and for which it can be demonstrated that all unallowable',
4434:'costs have been excluded. when indirect f&a cost rates are unilaterally established by the federal government because of failure of',
4435:'the institution to submit a certified proposal for establishing such rates in accordance with this section, the rates established will',
4436:'be set at a level low enough to ensure that potentially unallowable costs will not be reimbursed. c. certificate.the certificate',
4437:'required by this section must be in the following form: certificate of indirect f&a costs this is to certify that',
4438:'to the best of my knowledge and belief: 1 i have reviewed the indirect f&a cost proposal submitted herewith; 2',
4439:'all costs included in this proposal [identify date] to establish billing or final indirect f&a costs rate for [identify period',
4440:'covered by rate] are allowable in accordance with the requirements of the federal agreements to which they apply and with',
4441:'the cost principles applicable to those agreements. 3 this proposal does not include any costs which are unallowable undersubpart e',
4442:'of this part such as without limitation: public relations costs, contributions and donations, entertainment costs, fines and penalties, lobbying costs,',
4443:'and defense of fraud proceedings; and 4 all costs included in this proposal are properly allocable to federal agreements on',
4444:'the basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated',
4445:'in accordance with applicable requirements. i declare that the foregoing is true and correct. institution of higher education: signature: name',
4446:'of official: title: date of execution: [78 fr 78608, dec. 26, 2013, as amended at79 fr 75888, dec. 19, 2014;80',
4447:'fr 54409, sept. 10, 2015;85 fr 49577, aug. 13, 2020; 89 fr 30206, apr. 22, 2024] 2 cfr appendixiiitopart200 2.c.4',
4448:'enhanced display page 180 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.c.4',
4449:'uniform administrative requirements, cost principles, and audit appendix iv to part 200—indirect f&a costs identification and assignment, and rate determination',
4450:'for nonprofit organizations a. general 1. indirect costs are those that have been incurred for common or joint objectives and',
4451:'cannot be readily identified with a particular final cost objective. direct cost of minor amounts may be treated as indirect',
4452:'costs under the conditions described in§ 200.413d. after direct costs have been determined and assigned directly to awards or other',
4453:'work as appropriate, indirect costs are those remaining to be allocated to benefitting cost objectives. a cost may not be',
4454:'allocated to a federal award as an indirect cost if any other cost incurred for the same purpose, in like',
4455:'circumstances, has been assigned to a federal award as a direct cost. 2. “major nonprofit organizations”are defined inparagraph a of',
4456:'§ 200.414. see indirect cost rate reporting requirements in sections b.2.e and b.3.g of this appendix. a. b. allocation of',
4457:'indirect costs and determination of indirect cost rates 1. general if a nonprofit organization has only one major function, or',
4458:'where all its major functions benefit from its indirect costs to approximately the same degree, the allocation of indirect costs',
4459:'and the computation of an indirect cost rate may be accomplished through simplified allocation procedures, as described in section b.2',
4460:'of this appendix. b. if an organization has several major functions which benefit from its indirect costs in varying degrees,',
4461:'allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually',
4462:'to benefitting functions by means of a base which best measures the relative degree of benefit. the indirect costs allocated',
4463:'to each function are then distributed to individual federal awards and other activities included in that function by means of',
4464:'an indirect cost rates. c. the determination of what constitutes an organizations major functions will depend on its purpose in',
4465:'being; the types of services it renders to the public, its clients, and its members; and the amount of effort',
4466:'it devotes to such activities as fundraising, public information and membership activities. d. specific methods for allocating indirect costs and',
4467:'computing indirect cost rates along with the conditions under which each method should be used are described in section b.2',
4468:'through b.5 of this appendix. e. the base period for the allocation of indirect costs is the period in which',
4469:'such costs are incurred and accumulated for allocation to work performed in that period. the base period normally should coincide',
4470:'with the organizations fiscal year but, in any event, must be so selected as to avoid inequities in the allocation',
4471:'of the costs. 2 cfr appendixiiitopart200 2.c.4 enhanced display page 181 of 208 2 cfr part 200 up to date',
4472:'as of 1/08/2025 2 cfr appendixiiitopart200 2.c.4 uniform administrative requirements, cost principles, and audit 2. simplified allocation method where an',
4473:'organizations major functions benefit from its indirect costs to approximately the same degree, the allocation of indirect costs may be',
4474:'accomplished by i separating the organizations total costs for the base period as either direct or indirect, and ii dividing',
4475:'the total allowable indirect costs net of applicable credits by an equitable distribution base. the result of this process is',
4476:'an indirect cost rate which is used to distribute indirect costs to individual federal awards. the rate should be expressed',
4477:'as the percentage which the total amount of allowable indirect costs bears to the base selected. this method should also',
4478:'be used where an organization has only one major function encompassing a number of individual projects or activities, and may',
4479:'be used where the level of federal awards to an organization is relatively small. b. both the direct costs and',
4480:'the indirect costs must exclude capital expenditures and unallowable costs. however, unallowable costs which represent activities must be included in',
4481:'the direct costs under the conditions described in§ 200.413e. c. the distribution base may be total direct costs excluding capital',
4482:'expenditures and other distorting items, such as subawards for $50,000 or more, direct salaries and wages, or other base which',
4483:'results in an equitable distribution. the distribution base must exclude participant support costs as defined in§ 200.1. d. except where',
4484:'a special rates is required in accordance with section b.5 of this appendix, the indirect cost rate developed under the',
4485:'above principles is applicable to all federal awards of the organization. if a special rates is required, appropriate modifications must',
4486:'be made in order to develop the special rates. e. for an organization that receives more than $10 million in',
4487:'direct federal funding in a fiscal year, a breakout of the indirect cost component into two broad categories, facilities and',
4488:'administration as defined inparagraph a of § 200.414, is required. the rate in each case must be stated as the',
4489:'percentage which the amount of the particular indirect cost category i.e., facilities or administration is of the distribution base identified',
4490:'with that category. a. 3. multiple allocation base method a. general. where an organizations indirect costs benefit its major functions',
4491:'in varying degrees, indirect costs must be accumulated into separate cost groupings, as described in subparagraph b. each grouping must',
4492:'then be allocated individually to benefitting functions by means of a base which best measures the relative benefits. the default',
4493:'allocation bases by cost pool are described in section b.3.c of this appendix. b. identification of indirect costs. cost groupings',
4494:'must be established so as to permit the allocation of each grouping on the basis of benefits provided to the',
4495:'major functions. each grouping must constitute a pool of expenses that are of like character in terms of functions they',
4496:'benefit and in terms of the allocation base which best measures the relative benefits provided to each function. the groupings',
4497:'are classified within the two broad categories: “facilities” and “administration,” as described in section a.3 of this appendix. the indirect',
4498:'cost pools are defined as follows: 2 cfr appendixiiitopart200 2.c.4 enhanced display page 182 of 208 2 cfr part 200',
4499:'up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.c.4 uniform administrative requirements, cost principles, and audit 1 depreciation. the',
4500:'expenses under this heading are the portion of the costs of the organizations buildings, capital improvements to land and buildings,',
4501:'and equipment which are computed in accordance with§ 200.436. 2 interest. interest on debt associated with certain buildings, equipment and',
4502:'capital improvements are computed in accordance with§ 200.449. 3 operation and maintenance expenses. the expenses under this heading are those',
4503:'that have been incurred for the administration, operation, maintenance, preservation, and protection of the organizations physical plant. they include expenses',
4504:'normally incurred for such items as: janitorial and utility services; repairs and ordinary or normal alterations of buildings, furniture and',
4505:'equipment; care of grounds; maintenance and operation of buildings and other plant facilities; security; earthquake and disaster preparedness; environmental safety;',
4506:'hazardous waste disposal; property, liability and other insurance relating to property; space and capital leasing; facility planning and management; and',
4507:'central receiving. the operation and maintenance expenses category must also include its allocable share of fringe benefit costs, depreciation, and',
4508:'interest costs. 4 general administration and general expenses. the expenses under this heading are those c. that have been incurred',
4509:'for the overall general executive and administrative offices of the organization and other expenses of a general nature which do',
4510:'not relate solely to any major function of the organization. this category must also include its allocable share of fringe',
4511:'benefit costs, operation and maintenance expense, depreciation, and interest costs. examples of this category include central offices, such as the',
4512:'directors office, the office of finance, business services, budget and planning, personnel, safety and risk management, general counsel, management information',
4513:'systems, and library costs. in developing this cost pool, special care should be exercised to ensure that costs incurred for',
4514:'the same purpose in like circumstances are treated consistently as either direct or indirect costs. for example, salaries of technical',
4515:'staff, project supplies, project publication, telephone toll charges, computer costs, travel costs, and specialized services costs must be treated as',
4516:'direct costs wherever identifiable to a particular program. the salaries and wages of administrative and pooled clerical staff should normally',
4517:'be treated as indirect costs. direct charging of these costs may be appropriate as described in§ 200.413. items such as',
4518:'office supplies, postage, local telephone costs, periodicals and memberships should normally be treated as indirect costs. allocation bases. actual conditions',
4519:'must be taken into account in selecting the base to be used in allocating the expenses in each grouping to',
4520:'benefitting functions. the essential consideration in selecting a method or a base is that it is the one best suited',
4521:'for assigning the pool of costs to cost objectives in accordance with benefits derived; a traceable cause and effect relationship;',
4522:'or logic and reason, where neither the cause nor the effect of the relationship is determinable. when an allocation can',
4523:'be made by assignment of a cost grouping directly to the function benefitted, the allocation must be made in that',
4524:'manner. when the expenses in a cost grouping are more general in nature, the allocation must be made through the',
4525:'use of a selected base which produces results that are equitable to both the federal government and the organization. the',
4526:'distribution must be made in accordance with the bases described herein unless it can be demonstrated that the use of',
4527:'a different base would result in a more equitable allocation of the costs, or that a more readily available base',
4528:'2 cfr appendixiiitopart200 2.c.4 enhanced display page 183 of 208 2 cfr part 200 up to date as of 1/08/2025',
4529:'2 cfr appendixiiitopart200 2.c.4 uniform administrative requirements, cost principles, and audit would not increase the costs charged to federal awards.',
4530:'the results of special cost studies such as an engineering utility study must not be used to determine and allocate',
4531:'the indirect costs to federal awards. 1 depreciation. depreciation expenses must be allocated in the following manner: a depreciation on',
4532:'buildings used exclusively in the conduct of a single function, and on capital improvements and equipment used in such buildings,',
4533:'must be assigned to that function. b depreciation on buildings used for more than one function, and on capital improvements',
4534:'and equipment used in such buildings, must be allocated to the individual functions performed in each building on the basis',
4535:'of usable square feet of space, excluding common areas, such as hallways, stairwells, and restrooms. c depreciation on buildings, capital',
4536:'improvements and equipment related space e.g., individual rooms, and laboratories used jointly by more than one function as determined by',
4537:'the users of the space must be treated as follows. the cost of each jointly used unit of space must',
4538:'be allocated to the benefitting functions on the basis of: i the employees and other users on a fulltime equivalent',
4539:'fte basis or salaries and wages of those individual functions benefitting from the use of that space; or ii organizationwide',
4540:'employee ftes or salaries and wages applicable to the benefitting functions of the organization. d depreciation on certain capital improvements',
4541:'to land, such as paved parking areas, fences, sidewalks, and the like, not included in the cost of buildings, must',
4542:'be allocated to user categories on a fte basis and distributed to major functions in proportion to the salaries and',
4543:'wages of all employees applicable to the functions. 2 interest. interest costs must be allocated in the same manner as',
4544:'the depreciation on the buildings, equipment and capital equipment to which the interest relates. 3 operation and maintenance expenses. operation',
4545:'and maintenance expenses must be allocated in the same manner as the depreciation. 4 general administration and general expenses. general',
4546:'administration and general expenses must be allocated to benefitting functions based on modified total costs mtc. the mtc is the',
4547:'modified total direct costs mtdc, as described in§ 200.1, plus the allocated indirect cost proportion. the expenses included in this',
4548:'category could be grouped first according to major functions of the organization to which they render services or provide benefits.',
4549:'the aggregate expenses of each group must then be allocated to benefitting functions based on mtc. order of distribution. d.',
4550:'1 indirect cost categories consisting of depreciation, interest, operation and maintenance, and general administration and general expenses must be allocated',
4551:'in that order to the remaining indirect cost categories as well as to the major functions of the organization. 2',
4552:'cfr appendixiiitopart200 2.c.4 enhanced display page 184 of 208 2 cfr part 200 up to date as of 1/08/2025 2',
4553:'cfr appendixiiitopart200 2.c.4 uniform administrative requirements, cost principles, and audit other cost categories should be allocated in the order determined',
4554:'to be most appropriate by the organization. this order of allocation does not apply if cross allocation of costs is',
4555:'made as provided in section b.3.d.2 of this appendix. 2 normally, an indirect cost category will be considered closed once',
4556:'it has been allocated to other cost objectives, and costs must not be subsequently allocated to it. however, a cross',
4557:'allocation of costs between two or more indirect costs categories could be used if such allocation will result in a',
4558:'more equitable allocation of costs. if a cross allocation is used, an appropriate modification to the composition of the indirect',
4559:'cost categories is required. e. application of indirect cost rate or rates. except where a special indirect cost rates is',
4560:'required in accordance with section b.5 of this appendix, the separate groupings of indirect costs allocated to each major function',
4561:'must be aggregated and treated as a common pool for that function. the costs in the common pool must then',
4562:'be distributed to individual federal awards included in that function by use of a single indirect cost rate. f. g.',
4563:'distribution basis. indirect costs must be distributed to applicable federal awards and other benefitting activities within each major function on',
4564:'the basis of mtdc see definition in§ 200.1. individual rate components. an indirect cost rate must be determined for each',
4565:'separate indirect cost pool developed. the rate in each case must be stated as the percentage which the amount of',
4566:'the particular indirect cost pool is of the distribution base identified with that pool. each indirect cost rate negotiation or',
4567:'determination agreement must include development of the rate for each indirect cost pool as well as the overall indirect cost',
4568:'rate. the indirect cost pools must be classified within two broad categories: “facilities” and “administration,” as described in§ 200.414a. 4.',
4569:'direct allocation method a. some nonprofit organizations treat all costs as direct costs except general administration and general expenses. these',
4570:'organizations generally separate their costs into three basic categories: i general administration and general expenses, ii fundraising, and iii other',
4571:'direct functions including projects performed under federal awards. joint costs, such as depreciation, rental costs, operation and maintenance of facilities,',
4572:'telephone expenses, information technology, and the like are prorated individually as direct costs to each category and to each federal',
4573:'award or other activity using a base most appropriate to the particular cost being prorated. b. this method is acceptable,',
4574:'provided each joint cost is prorated using a base which accurately measures the benefits provided to each federal award or',
4575:'other activity. the bases must be established in accordance with reasonable criteria and be supported by current data. this method',
4576:'is compatible with the standards of accounting and financial reporting for voluntary 2 cfr appendixiiitopart200 2.c.4 enhanced display page 185',
4577:'of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.c.4 uniform administrative requirements, cost',
4578:'principles, and audit health and welfare organizations issued jointly by the national health council, inc., the national assembly of voluntary',
4579:'health and social welfare organizations, and the united way of america. c. under this method, indirect costs consist exclusively of',
4580:'general administration and general expenses. in all other respects, the organizations indirect cost rates must be computed in the same',
4581:'manner as that described in section b.2 of this appendix. 5. special indirect cost rates in some instances, a single',
4582:'indirect cost rate for all activities of an organization or for each major function of the organization may not be',
4583:'appropriate, since it would not take into account those different factors which may substantially affect the indirect costs applicable to',
4584:'a particular segment of work. for this purpose, a particular segment of work may be that performed under a single',
4585:'federal award or it may consist of work under a group of federal awards performed in a common environment. these',
4586:'factors may include the physical location of the work, the level of administrative support required, the nature of the facilities',
4587:'or other resources employed, the scientific disciplines or technical skills involved, the organizational arrangements used, or any combination thereof. when',
4588:'a particular segment of work is performed in an environment which appears to generate a significantly different level of indirect',
4589:'costs, provisions should be made for a separate indirect cost pool applicable to such work. the separate indirect cost pool',
4590:'should be developed during the course of the regular allocation process, and the separate indirect cost rate resulting therefrom should',
4591:'be used, provided it is determined that i the rate differs significantly from that which would have been obtained under',
4592:'sections b.2, b.3, and b.4 of this appendix, and ii the volume of work to which the rate would apply',
4593:'is material. c. negotiation and approval of indirect cost rates 1.definitions as used in this section, the following terms have',
4594:'the meanings set forth in this section: a. b. c. cognizant agency for indirect costsmeans the federal agency responsible for',
4595:'negotiating and approving indirect cost rates for a nonprofit organization on behalf of all federal agencies. predetermined ratemeans an indirect',
4596:'cost rate, applicable to a specified current or future period, usually the organizations fiscal year. the rate is based on',
4597:'an estimate of the costs to be incurred during the period. a predetermined rate is not subject to adjustment. fixed',
4598:'ratemeans an indirect cost rate which has the same characteristics as a predetermined rate, except that the difference between the',
4599:'estimated costs and the actual costs of the period covered by the rate is carried forward as an adjustment to',
4600:'the rate computation of a subsequent period. d. final ratemeans an indirect cost rate applicable to a specified past period',
4601:'which is based on the actual costs of the period. a final rate is not subject to adjustment. 2 cfr',
4602:'appendixiiitopart200 2.c.4 enhanced display page 186 of 208 provisional rate or billing ratemeans a temporary indirect cost rate applicable to',
4603:'a specified period which is used for funding, interim reimbursement, and reporting indirect costs on federal awards pending the establishment',
4604:'of a final rate for the period. indirect cost proposalmeans the documentation prepared by an organization to substantiate its claim',
4605:'for the reimbursement of indirect costs. this proposal provides the basis for the review and negotiation leading to the establishment',
4606:'of an organizations indirect cost rate. cost objectivemeans a function, organizational subdivision, contract, federal award, or other work unit for',
4607:'which cost data are desired and for which provision is made to accumulate and measure the cost of processes, projects,',
4608:'jobs and capitalized projects. 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200 2.c.4 uniform administrative',
4609:'requirements, cost principles, and audit e. f. g. 2. negotiation and approval of rates a. unless different arrangements are agreed',
4610:'to by the federal agencies concerned, the federal agency with the largest dollar value of federal awards directly funded to',
4611:'an organization will be designated as the cognizant agency for indirect costs for the negotiation and approval of the indirect',
4612:'cost rates and, where necessary, other rates such as fringe benefit and computer chargeout rates. once an agency is assigned',
4613:'cognizance for a particular nonprofit organization, the assignment will not be changed unless there is a shift in the dollar',
4614:'volume of the federal awards directly funded to the organization for at least three years. all concerned federal agencies must',
4615:'be given the opportunity to participate in the negotiation process but, after a rate has been agreed upon, it will',
4616:'be accepted by all federal agencies. when a federal agency has reason to believe that special operating factors affecting its',
4617:'federal awards necessitate special indirect cost rates in accordance with section b.5 of this appendix, it will, prior to the',
4618:'time the rates are negotiated, notify the cognizant agency for indirect costs. see also§ 200.414. if the nonprofit does not',
4619:'receive any funding from any federal agency, the passthrough entity is responsible for the negotiation of the indirect cost rates',
4620:'in accordance with§ 200.332a4. b. except as otherwise provided in§ 200.414f, a nonprofit organization which has not previously established an',
4621:'indirect cost rate with a federal agency must submit its initial indirect cost proposal immediately after the organization is advised',
4622:'that a federal award will be made and, in no event, later than three months after the effective date of',
4623:'the federal award. c. unless approved by the cognizant agency for indirect costs in accordance with§ 200.414g, organizations that have',
4624:'previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within',
4625:'six months after the close of each fiscal year. d. a predetermined rate may be negotiated for use on federal',
4626:'awards where there is reasonable assurance, based on past experience and reliable projection of the organizations costs, that the rate',
4627:'is not likely to exceed a rate based on the organizations actual costs. e. fixed rates may be negotiated where',
4628:'predetermined rates are not considered appropriate. a fixed rate, however, must not be negotiated if i all or a substantial',
4629:'portion of the organizations federal awards are expected to expire before the carryforward adjustment can be made; 2 cfr appendixiiitopart200',
4630:'2.c.4 enhanced display page 187 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixiiitopart200',
4631:'2.c.4 uniform administrative requirements, cost principles, and audit ii the mix of federal and nonfederal work at the organization is',
4632:'too erratic to permit an equitable carryforward adjustment; or iii the organizations operations fluctuate significantly from year to year. f.',
4633:'provisional and final rates must be negotiated where neither predetermined nor fixed rates are appropriate. predetermined or fixed rates may',
4634:'replace provisional rates at any time prior to the close of the organizations fiscal year. if that event does not',
4635:'occur, a final rate will be established and upward or downward adjustments will be made based on the actual allowable',
4636:'costs incurred for the period involved. g. h. i. the results of each negotiation must be formalized in a written',
4637:'agreement between the cognizant agency for indirect costs and the nonprofit organization. the cognizant agency for indirect costs must make',
4638:'available copies of the agreement to all concerned federal agencies. if a dispute arises in a negotiation of an indirect',
4639:'cost rate between the cognizant agency for indirect costs and the nonprofit organization, the dispute must be resolved in accordance',
4640:'with the appeals procedures of the cognizant agency for indirect costs. to the extent that problems are encountered among the',
4641:'federal agencies in connection with the negotiation and approval process, omb will lend assistance as required to resolve such problems',
4642:'in a timely manner. d. certification of indirect f&a costs 1 required certification. no proposal to establish indirect f&a cost',
4643:'rates must be acceptable unless such costs have been certified by the nonprofit organization using the certificate of indirect f&a',
4644:'costs set forth in section j. of this appendix. the certificate must be signed on behalf of the organization by',
4645:'an individual at a level no lower than vice president or chief financial officer for the organization. 2 each indirect',
4646:'cost rate proposal must be accompanied by a certification in the following form: certificate of indirect f&a costs this is',
4647:'to certify that to the best of my knowledge and belief: 1 i have reviewed the indirect f&a cost proposal',
4648:'submitted herewith; 2 all costs included in this proposal [identify date] to establish billing or final indirect f&a costs rate',
4649:'for [identify period covered by rate] are allowable in accordance with the requirements of the federal awards to which they',
4650:'apply and withsubpart e of this part. 3 this proposal does not include any costs which are unallowable undersubpart e',
4651:'of this partsuch as without limitation: public relations costs, contributions and donations, entertainment costs, fines and penalties, lobbying costs, and',
4652:'defense of fraud proceedings; and 4 all costs included in this proposal are properly allocable to federal awards on the',
4653:'basis of a beneficial or causal relationship between the expenses incurred and the federal awards to which they are allocated',
4654:'in accordance with applicable requirements. 2 cfr appendixiiitopart200 2.c.4 enhanced display page 188 of 208 2 cfr part 200 up',
4655:'to date as of 1/08/2025 2 cfr appendixvtopart200 a.1. uniform administrative requirements, cost principles, and audit i declare that the',
4656:'foregoing is true and correct. nonprofit organization: signature: name of official: title: date of execution: [78 fr 78608, dec. 26,',
4657:'2013, as amended at80 fr 54410, sept. 10, 2015;85 fr 49579, aug. 13, 2020;89 fr 30206, apr. 22, 2024] appendix',
4658:'v to part 200—state/local governmentwide central service cost allocation plans a. general 1. most governmental units provide certain services, such',
4659:'as motor pools, computer centers, purchasing, accounting, etc., to operating agencies on a centralized basis. since federallysupported awards are performed',
4660:'within the individual operating agencies, there needs to be a process whereby these central service costs can be identified and',
4661:'assigned to benefitted activities on a reasonable and consistent basis. the central service cost allocation plan provides that process. all',
4662:'costs and other data used to distribute the costs included in the plan should be supported by formal accounting and',
4663:'other records that will support the propriety of the costs assigned to federal awards. 2. guidelines and illustrations of central',
4664:'service cost allocation plans are provided in a brochure published by the department of health and human services entitled “a',
4665:'guide for state, local and indian tribal governments: cost principles and procedures for developing cost allocation plans and indirect cost',
4666:'rates for agreements with the federal government.”a copy of this brochure may be obtained from the hhs cost allocation services',
4667:'or at their website. b.definitions 1. 2. agency or operating agencymeans an organizational unit or subdivision within a governmental unit',
4668:'that is responsible for the performance or administration of federal awards or activities of the governmental unit. allocated central servicesmeans',
4669:'central services that benefit operating agencies but are not billed to the agencies on a feeforservice or similar basis. these',
4670:'costs are allocated to benefitted agencies on some reasonable basis. examples of such services might include general accounting, personnel administration,',
4671:'purchasing, etc. 3. 4. billed central servicesmeans central services that are billed to benefitted agencies or programs on an individual',
4672:'feeforservice or similar basis. typical examples of billed central services include computer services, transportation services, insurance, and fringe benefits. cognizant',
4673:'agency for indirect costsis defined in§ 200.1. the determination of cognizant agency for indirect costs for states and local governments',
4674:'is described in section f.1. 2 cfr appendixvtopart200 b.4. enhanced display page 189 of 208 2 cfr part 200 up',
4675:'to date as of 1/08/2025 2 cfr appendixvtopart200 b.5. uniform administrative requirements, cost principles, and audit 5. major local governmentmeans',
4676:'local government that receives more than $100 million in direct federal awards subject to this part. c. scope of the',
4677:'central service cost allocation plans the central service cost allocation plan will include all central service costs that will be',
4678:'claimed either as a billed or an allocated cost under federal awards and will be documented as described in section',
4679:'e. omitted from the plan will not be reimbursed. d. submission requirements 1. each state will submit a plan to',
4680:'the department of health and human services for each year in which it claims central service costs under federal awards.',
4681:'the plan should include a a projection of the next years allocated central service cost based either on actual costs',
4682:'for the most recently completed year or the budget projection for the coming year, and b a reconciliation of actual',
4683:'allocated central service costs to the estimated costs used for either the most recently completed year or the year immediately',
4684:'preceding the most recently completed year. 2. 3. each major local government is also required to submit a plan to',
4685:'its cognizant agency for indirect costs annually. all other local governments claiming central service costs must develop a plan in',
4686:'accordance with the requirements described in this part and maintain the plan and related supporting documentation for audit. these local',
4687:'governments are not required to submit their plans for federal approval unless they are specifically requested to do so by',
4688:'the cognizant agency for indirect costs. where a local government only receives funds as a subrecipient, the passthrough entity will',
4689:'be responsible for monitoring the subrecipients plan. 4. all central service cost allocation plans will be prepared and, when required,',
4690:'submitted within six months prior to the beginning of each of the governmental units fiscal years in which it proposes',
4691:'to claim central service costs. extensions may be granted by the cognizant agency for indirect costs on a casebycase basis.',
4692:'e. documentation requirements for submitted plans the documentation requirements described in this section may be modified, expanded, or reduced by',
4693:'the cognizant agency for indirect costs on a casebycase basis. for example, the requirements may be reduced for those central',
4694:'services which have little or no impact on federal awards. conversely, if a review of a plan indicates that certain',
4695:'additional information is needed, and will likely be needed in future years, it may be routinely requested in future plan',
4696:'submissions. items marked with an asterisk should be submitted only once; subsequent plans should merely indicate any changes since the',
4697:'last plan. 1. general 2 cfr appendixvtopart200 d.4. enhanced display page 190 of 208 2 cfr part 200 up to',
4698:'date as of 1/08/2025 2 cfr appendixvtopart200 e.3.a. uniform administrative requirements, cost principles, and audit all proposed plans must be',
4699:'accompanied by the following: an organization chart sufficiently detailed to show operations including the central service activities of the state/local',
4700:'government whether or not they are shown as benefitting from central service functions; a copy of the comprehensive annual financial',
4701:'report or a copy of the executive budget if budgeted costs are being proposed to support the allowable costs of',
4702:'each central service activity included in the plan; and, a certification see subsection 4. that the plan was prepared in',
4703:'accordance with this part, contains only allowable costs, and was prepared in a manner that treated similar costs consistently among',
4704:'the various federal awards and between federal and nonfederal awards/activities. 2. allocated central services for each allocated central service, the',
4705:'plan must also include the following: a brief description of the service, an identification of the unit rendering the service',
4706:'and the operating agencies receiving the service, the items of expense included in the cost of the service, the method',
4707:'used to distribute the cost of the service to benefitted agencies, and a summary schedule showing the allocation of each',
4708:'service to the specific benefitted agencies. if any selfinsurance funds or fringe benefits costs are treated as allocated rather than',
4709:'billed central services, documentation discussed in subsections 3.b. and c. must also be included. 3. billed services a. general.the information',
4710:'described in this section must be provided for all billed central services, including internal service funds, selfinsurance funds, and fringe',
4711:'benefit funds. b. internal service funds. 1 for each internal service fund or similar activity with an operating budget of',
4712:'$5 million or more, the plan must include: a brief description of each service; a balance sheet for each fund',
4713:'based on individual accounts contained in the governmental units accounting system; a revenue/expenses statement, with revenues broken out by source,e.g.,regular',
4714:'billings, interest earned, etc. ; a listing of all nonoperating transfers as defined by gaap into and out of the',
4715:'fund; a description of the procedures methodology used to charge the costs of each service to users, including how billing',
4716:'rates are determined; a schedule of current rates; and, a schedule comparing total revenues including imputed revenues generated by the',
4717:'service to the allowable costs of the service, as determined under this part, with an explanation of how variances will',
4718:'be handled. 2 revenues must consist of all revenues generated by the service, including unbilled and uncollected revenues. if some',
4719:'users were not billed for the services or were not billed at the full rate for that class of users,',
4720:'a schedule showing the full imputed revenues associated with these users must be provided. expenses must be broken out by',
4721:'object cost categories e.g., salaries, supplies, etc.. c. selfinsurance funds.for each selfinsurance fund, the plan must include: the fund balance',
4722:'sheet; a statement of revenue and expenses including a summary of billings and claims paid by agency; a listing of',
4723:'all nonoperating transfers into and out of the fund; the types of risks covered by the fund e.g., automobile liability,',
4724:'workers compensation, etc. ; an explanation of how the level of fund contributions are determined, including a copy of the',
4725:'current actuarial 2 cfr appendixvtopart200 e.3.c. enhanced display page 191 of 208 2 cfr part 200 up to date as',
4726:'of 1/08/2025 2 cfr appendixvtopart200 e.3.c.1 uniform administrative requirements, cost principles, and audit report with the actuarial assumptions used if',
4727:'the contributions are determined on an actuarial basis; and, a description of the procedures used to charge or allocate fund',
4728:'contributions to benefitted activities. reserve levels in excess of claims 1 submitted and adjudicated but not paid, 2 submitted but',
4729:'not adjudicated, and 3 incurred but not submitted must be identified and explained. d. fringe benefits.for fringe benefit costs, the',
4730:'plan must include: a listing of fringe benefits provided to covered employees, and the overall annual cost of each type',
4731:'of benefit; current fringe benefit policies; and procedures used to charge or allocate the costs of the benefits to benefitted',
4732:'activities. in addition, for pension and postretirement health insurance plans, the following information must be provided: the governmental units funding',
4733:'policies, e.g., legislative bills, trust agreements, or statemandated contribution rules, if different from actuarially determined rates; the pension plans costs',
4734:'accrued for the year; the amount funded, and dates of funding; a copy of the current actuarial report including the',
4735:'actuarial assumptions; the plan trustees report; and, a schedule from the activity showing the value of the interest cost associated',
4736:'with late funding. 4. required certification each central service cost allocation plan will be accompanied by a certification in the',
4737:'following form: certificate of cost allocation plan this is to certify that i have reviewed the cost allocation plan submitted',
4738:'herewith and to the best of my knowledge and belief: 1 all costs included in this proposal [identify date] to',
4739:'establish cost allocations or billings for [identify period covered by plan] are allowable in accordance with the requirements of this',
4740:'part and the federal awards to which they apply. unallowable costs have been adjusted for in allocating costs as indicated',
4741:'in the cost allocation plan. 2 all costs included in this proposal are properly allocable to federal awards on the',
4742:'basis of a beneficial or causal relationship between the expenses incurred and the federal awards to which they are allocated',
4743:'in accordance with applicable requirements. further, the same costs that have been treated as indirect costs have not been claimed',
4744:'as direct costs. similar types of costs have been accounted for consistently. i declare that the foregoing is true and',
4745:'correct. governmental unit: signature: name of official: 2 cfr appendixvtopart200 e.4.2 enhanced display page 192 of 208 2 cfr part',
4746:'200 up to date as of 1/08/2025 2 cfr appendixvtopart200 f.1. “department of health uniform administrative requirements, cost principles, and',
4747:'audit and human services” title: date of execution: f. negotiation and approval of central service plans 1. federal cognizant agency',
4748:'for indirect costs assignments for cost negotiation in general, unless different arrangements are agreed to by the concerned federal agencies,',
4749:'for central service cost allocation plans, the cognizant agency responsible for review and approval is the federal agency with the',
4750:'largest dollar value of total federal awards with a governmental unit. for indirect cost rates and departmental indirect cost allocation',
4751:'plans, the cognizant agency is the federal agency with the largest dollar value of direct federal awards with a governmental',
4752:'unit or component, as appropriate. once designated as the cognizant agency for indirect costs, the federal agency must remain so',
4753:'for a period of five years. in addition, the following federal agencies continue to be responsible for the indicated governmental',
4754:'entities: department of health and human services —public assistance and statewide cost allocation plans for all states including the district',
4755:'of columbia and puerto rico, state and local hospitals, libraries and health districts. department of the interior —indian tribal governments,',
4756:'territorial governments, and state and local park and recreational districts. department of labor —state and local labor departments. department of',
4757:'education —school districts and state and local education agencies. department of agriculture —state and local agriculture departments. department of transportation',
4758:'—state and local airport and port authorities and transit districts. department of commerce —state and local economic development districts. department',
4759:'of housing and urban development —state and local housing and development districts. environmental protection agency —state and local water and',
4760:'sewer districts. 2. review all proposed central service cost allocation plans that are required to be submitted will be reviewed,',
4761:'negotiated, and approved by the cognizant agency for indirect costs on a timely basis. the cognizant agency for indirect costs',
4762:'will review the proposal within six months of receipt of the proposal and either negotiate/approve the proposal or advise the',
4763:'governmental unit of the additional documentation needed to support/evaluate the proposed plan or the changes required to make the proposal',
4764:'acceptable. once an agreement with the governmental unit has been reached, the agreement will be accepted and used by all',
4765:'federal agencies, unless prohibited or limited by statute. where a federal awarding agency has reason to believe that special operating',
4766:'factors affecting its federal awards necessitate special consideration, the funding agency will, prior to the time the plans are negotiated,',
4767:'notify the cognizant agency for indirect costs. 2 cfr appendixvtopart200 f.1. “environmental protection agency” enhanced display page 193 of 208',
4768:'2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixvtopart200 f.1. “environmental uniform administrative requirements, cost principles,',
4769:'and audit protection agency” 3. agreement the results of each negotiation must be formalized in a written agreement between the',
4770:'cognizant agency for indirect costs and the governmental unit. this agreement will be subject to reopening if the agreement is',
4771:'subsequently found to violate a statute or the information upon which the plan was negotiated is later found to be',
4772:'materially incomplete or inaccurate. the results of the negotiation must be made available to all federal agencies for their use.',
4773:'4.adjustments negotiated cost allocation plans based on a proposal later found to have included costs that: a are unallowable i',
4774:'as specified by law or regulation, ii as identified in subpart f, general provisions for selected items of cost of',
4775:'this part, or iii by the terms and conditions of federal awards, or b are unallowable because they are clearly',
4776:'not allocable to federal awards, must be adjusted, or a refund must be made at the option of the cognizant',
4777:'agency for indirect costs, including earned or imputed interest from the date of transfer and debt interest, if applicable, chargeable',
4778:'in accordance with applicable federal cognizant agency for indirect costs regulations. adjustments or cash refunds may include, at the option',
4779:'of the cognizant agency for indirect costs, earned or imputed interest from the date of expenditure and delinquent debt interest,',
4780:'if applicable, chargeable in accordance with applicable cognizant agency claims collection regulations. these adjustments or refunds are designed to correct',
4781:'the plans and do not constitute a reopening of the negotiation. g. other policies 1. billed central service activities each',
4782:'billed central service activity must separately account for all revenues including imputed revenues generated by the service, expenses incurred to',
4783:'furnish the service, and profit/loss. 2. working capital reserves internal service funds are dependent upon a reasonable level of working',
4784:'capital reserve to operate from one billing cycle to the next. charges by an internal service activity to provide for',
4785:'the establishment and maintenance of a reasonable level of working capital reserve, in addition to the full recovery of costs,',
4786:'are allowable. a working capital reserve as part of retained earnings of up to 60 calendar days cash expenses for',
4787:'normal operating purposes is considered reasonable. a working capital reserve exceeding 60 calendar days may be approved by the cognizant',
4788:'agency for indirect costs in exceptional cases. 3. carryforward adjustments of allocated central service costs allocated central service costs are',
4789:'usually negotiated and approved for a future fiscal year on a “fixed with carryforward” basis. under this procedure, the fixed',
4790:'amounts for the future year covered by agreement are not subject to adjustment for that year. however, when the actual',
4791:'costs of the year involved become known, the differences between the fixed amounts previously approved and the 2 cfr appendixvtopart200',
4792:'f.1. “environmental protection agency” enhanced display page 194 of 208 2 cfr part 200 up to date as of 1/08/2025',
4793:'2 cfr appendixvtopart200 f.1. “environmental uniform administrative requirements, cost principles, and audit protection agency” actual costs will be carried forward',
4794:'and used as an adjustment to the fixed amounts established for a later year. this “carryforward” procedure applies to all',
4795:'central services whose costs were fixed in the approved plan. however, a carryforward adjustment is not permitted, for a central',
4796:'service activity that was not included in the approved plan, or for unallowable costs that must be reimbursed immediately. 4.',
4797:'adjustments of billed central services billing rates used to charge federal awards must be based on the estimated costs of',
4798:'providing the services, including an estimate of the allocable central service costs. a comparison of the revenue generated by each',
4799:'billed service including total revenues whether or not billed or collected to the actual allowable costs of the service will',
4800:'be made at least annually, and an adjustment will be made for the difference between the revenue and the allowable',
4801:'costs. these adjustments will be made through one of the following adjustment methods: a a cash refund including earned or',
4802:'imputed interest from the date of transfer and debt interest, if applicable, chargeable in accordance with applicable federal cognizant agency',
4803:'for indirect costs regulations to the federal government for the federal share of the adjustment, b credits to the amounts',
4804:'charged to the individual programs, c adjustments to future billing rates, or d adjustments to allocated central service costs. adjustments',
4805:'to allocated central services will not be permitted where the total amount of the adjustment for a particular service federal',
4806:'share and nonfederal share exceeds $500,000. adjustment methods may include, at the option of the cognizant agency, earned or imputed',
4807:'interest from the date of expenditure and delinquent debt interest, if applicable, chargeable in accordance with applicable cognizant agency claims',
4808:'collection regulations. 5. records retention all central service cost allocation plans and related documentation used as a basis for claiming',
4809:'costs under federal awards must be retained for audit in accordance with the records retention requirements contained insubpart d of',
4810:'this part. 6. appeals if a dispute arises in the negotiation of a plan between the cognizant agency for indirect',
4811:'costs and the governmental unit, the dispute must be resolved in accordance with the appeals procedures of the cognizant agency',
4812:'for indirect costs. 7.omb assistance to the extent that problems are encountered among the federal agencies or governmental units in',
4813:'connection with the negotiation and approval process, omb will lend assistance, as required, to resolve such problems in a timely',
4814:'manner. [78 fr 78608, dec. 26, 2013, as amended at80 fr 54410, sept. 10, 2015;85 fr 49581, aug. 13, 2020]',
4815:'2 cfr appendixvtopart200 f.1. “environmental protection agency” enhanced display page 195 of 208 2 cfr part 200 up to date',
4816:'as of 1/08/2025 2 cfr appendixvitopart200 b.1. uniform administrative requirements, cost principles, and audit appendix vi to part 200—public assistance',
4817:'cost allocation plans a. general federallyfinanced programs administered by state public assistance agencies are funded predominately by the department of',
4818:'health and human services hhs. in support of its stewardship requirements, hhs has published requirements for the development, documentation, submission,',
4819:'negotiation, and approval of public assistance cost allocation plans in subpart e of45 cfr part 95. all administrative costs direct',
4820:'and indirect are normally charged to federal awards by implementing the public assistance cost allocation plan. this appendix extends these',
4821:'requirements to all federal awarding agencies whose programs are administered by a state public assistance agency. major federallyfinanced programs typically',
4822:'administered by state public assistance agencies include: temporary aid to needy families tanf, medicaid, food stamps, child support enforcement, adoption',
4823:'assistance and foster care, and social services block grant. b.definitions 1. state public assistance agencymeans a state agency administering or',
4824:'supervising the administration of one or more public assistance programs operated by the state as identified in subpart e of45',
4825:'cfr part 95. for the purpose of this appendix, these programs include all programs administered by the state public assistance',
4826:'agency. 2. state public assistance agency costsmeans all costs incurred by, or allocable to, the state public assistance agency, except',
4827:'expenditures for financial assistance, medical contractor payments, food stamps, and payments for services and goods provided directly to program recipients.',
4828:'c. policy state public assistance agencies will develop, document and implement, and the federal government will review, negotiate, and approve,',
4829:'public assistance cost allocation plans in accordance with subpart e of45 cfr part 95. the plan will include all programs',
4830:'administered by the state public assistance agency. where a letter of approval or disapproval is transmitted to a state public',
4831:'assistance agency in accordance with subpart e, the letter will apply to all federal agencies and programs. the remaining sections',
4832:'of this appendix except for the requirement for certification summarize the provisions of subpart e of45 cfr part 95. d.',
4833:'submission, documentation, and approval of public assistance cost allocation plans 1. 2. state public assistance agencies are required to promptly',
4834:'submit amendments to the cost allocation plan to hhs for review and approval. under the coordination process outlined in section',
4835:'e, affected federal agencies will review all new plans and plan amendments and provide comments, as appropriate, to hhs. the',
4836:'effective date of the plan or plan amendment will be the first day of the calendar quarter following the event',
4837:'that required the amendment, unless another date is specifically approved by hhs. hhs, as the cognizant agency for indirect costs',
4838:'acting on behalf of all affected federal agencies, will, as necessary, conduct negotiations with the state public assistance agency and',
4839:'will inform the state agency of the action taken on the plan or plan amendment. 2 cfr appendixvitopart200 d.2. enhanced',
4840:'display page 196 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixvitopart200 e.1. uniform',
4841:'administrative requirements, cost principles, and audit e. review of implementation of approved plans 1. since public assistance cost allocation plans',
4842:'are of a narrative nature, the review during the plan approval process consists of evaluating the appropriateness of the proposed',
4843:'groupings of costs cost centers and the related allocation bases. as such, the federal government needs some assurance that the',
4844:'cost allocation plan has been implemented as approved. this is accomplished by reviews by the federal awarding agencies, single audits,',
4845:'or audits conducted by the cognizant agency for indirect costs. 2. 3. where inappropriate charges affecting more than one federal',
4846:'awarding agency are identified, the cognizant hhs cost negotiation office will be advised and will take the lead in resolving',
4847:'the issues as provided for in subpart e of45 cfr part 95. if a dispute arises in the negotiation of',
4848:'a plan or from a disallowance involving two or more federal awarding agencies, the dispute must be resolved in accordance',
4849:'with the appeals procedures set out in45 cfr part 16. disputes involving only one federal awarding agency will be resolved',
4850:'in accordance with the federal awarding agencys appeal process. 4. to the extent that problems are encountered among the federal',
4851:'awarding agencies or governmental units in connection with the negotiation and approval process, the office of management and budget will',
4852:'lend assistance, as required, to resolve such problems in a timely manner. f.unallowable costs claims developed under approved cost allocation',
4853:'plans will be based on allowable costs as identified in this part. where unallowable costs have been claimed and reimbursed,',
4854:'they will be refunded to the program that reimbursed the unallowable cost using one of the following methods: a a',
4855:'cash refund, b offset to a subsequent claim, or c credits to the amounts charged to individual federal awards. cash',
4856:'refunds, offsets, and credits may include at the option of the cognizant agency for indirect cost, earned or imputed interest',
4857:'from the date of expenditure and delinquent debt interest, if applicable, chargeable in accordance with applicable cognizant agency for indirect',
4858:'cost claims collection regulations. [78 fr 78608, dec. 26, 2013, as amended at85 fr 49581, aug. 13, 2020] appendix vii',
4859:'to part 200—states and local government and indian tribe indirect cost proposals link to an amendment published at89 fr 30207,',
4860:'apr. 22, 2024. a. general 1. indirect costs are those that have been incurred for common or joint purposes. these',
4861:'costs benefit more than one cost objective and cannot be readily identified with a particular final cost objective without effort',
4862:'disproportionate to the results achieved. after direct costs have been determined and assigned directly to federal awards and other activities',
4863:'as appropriate, indirect costs are those remaining to be allocated to benefitted cost objectives. a cost may not be allocated',
4864:'to a federal award as an indirect cost if any other cost incurred for the same purpose, in like circumstances,',
4865:'has been assigned to a federal award as a direct cost. 2 cfr appendixviitopart200 a.1. enhanced display page 197 of',
4866:'208 2. 2. 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixviitopart200 a.2. uniform administrative requirements,',
4867:'cost principles, and audit indirect costs include a the indirect costs originating in each department or agency of the governmental',
4868:'unit carrying out federal awards and b the costs of central governmental services distributed through the central service cost allocation',
4869:'plan as described in appendix v to this part and not otherwise treated as direct costs. 3. indirect costs are',
4870:'normally charged to federal awards by the use of an indirect cost rate. a separate indirect cost rates is usually',
4871:'necessary for each department or agency of the governmental unit claiming indirect costs under federal awards. guidelines and illustrations of',
4872:'indirect cost proposals are provided in a brochure published by the department of health and human services entitled “a guide',
4873:'for states and local government agencies: cost principles and procedures for establishing cost allocation plans and indirect cost rates for',
4874:'grants and contracts with the federal government.”a copy of this brochure may be obtained from hhs cost allocation services or',
4875:'at their website. 4. because of the diverse characteristics and accounting practices of governmental units, the types of costs which',
4876:'may be classified as indirect costs cannot be specified in all situations. however, typical examples of indirect costs may include',
4877:'certain state/localwide central service costs, general administration of the nonfederal entity accounting and personnel services performed within the nonfederal entity,',
4878:'depreciation on buildings and equipment, the costs of operating and maintaining facilities. 5. this appendix does not apply to state',
4879:'public assistance agencies. these agencies should refer instead to appendix vi to this part. b.definitions 1. basemeans the accumulated direct',
4880:'costs normally either total direct salaries and wages or total direct costs exclusive of any extraordinary or distorting expenditures used',
4881:'to distribute indirect costs to individual federal awards. the direct cost base selected should result in each federal award bearing',
4882:'a fair share of the indirect costs in reasonable relation to the benefits received from the costs. 2. base periodfor',
4883:'the allocation of indirect costs is the period in which such costs are incurred and accumulated for allocation to activities',
4884:'performed in that period. the base period normally should coincide with the governmental units fiscal year, but in any event,',
4885:'must be so selected as to avoid inequities in the allocation of costs. 3. 4. 5. cognizant agency for indirect',
4886:'costsmeans the federal agency responsible for reviewing and approving the governmental units indirect cost rates on the behalf of the',
4887:'federal government. the cognizant agency for indirect costs assignment is described in appendix v, section f. final ratemeans an indirect',
4888:'cost rate applicable to a specified past period which is based on the actual allowable costs of the period. a',
4889:'final audited rate is not subject to adjustment. fixed ratemeans an indirect cost rate which has the same characteristics as',
4890:'a predetermined rate, except that the difference between the estimated costs and the actual, allowable costs of the period covered',
4891:'by the rate is carried forward as an adjustment to the rate computation of a subsequent period. 2 cfr appendixviitopart200',
4892:'b.5. enhanced display page 198 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixviitopart200',
4893:'b.6. uniform administrative requirements, cost principles, and audit 6. indirect cost poolis the accumulated costs that jointly benefit two or',
4894:'more programs or other cost objectives. 7. indirect cost rateis a device for determining in a reasonable manner the proportion',
4895:'of indirect costs each program should bear. it is the ratio expressed as a percentage of the indirect costs to',
4896:'a direct cost base. 8. indirect cost rate proposalmeans the documentation prepared by a governmental unit or subdivision thereof to',
4897:'substantiate its request for the establishment of an indirect cost rate. 9. predetermined ratemeans an indirect cost rate, applicable to',
4898:'a specified current or future period, usually the governmental units fiscal year. this rate is based on an estimate of',
4899:'the costs to be incurred during the period. except under very unusual circumstances, a predetermined rate is not subject to',
4900:'adjustment. because of legal constraints, predetermined rates are not permitted for federal contracts; they may, however, be used for grants',
4901:'or cooperative agreements. predetermined rates may not be used by governmental units that have not submitted and negotiated the rate',
4902:'with the cognizant agency for indirect costs. in view of the potential advantages offered by this procedure, negotiation of predetermined',
4903:'rates for indirect costs for a period of two to four years should be the norm in those situations where',
4904:'the cost experience and other pertinent facts available are deemed sufficient to enable the parties involved to reach an informed',
4905:'judgment as to the probable level of indirect costs during the ensuing accounting periods. 10. provisional ratemeans a temporary indirect',
4906:'cost rate applicable to a specified period which is used for funding, interim reimbursement, and reporting indirect costs on federal',
4907:'awards pending the establishment of a “final” rate for that period. c. allocation of indirect costs and determination of indirect',
4908:'cost rates 1. general a. where a governmental units department or agency has only one major function, or where all',
4909:'its major functions benefit from the indirect costs to approximately the same degree, the allocation of indirect costs and the',
4910:'computation of an indirect cost rate may be accomplished through simplified allocation procedures as described in subsection 2. b. where',
4911:'a governmental units department or agency has several major functions which benefit from its indirect costs in varying degrees, the',
4912:'allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually',
4913:'to benefitted functions by means of a base which best measures the relative degree of benefit. the indirect costs allocated',
4914:'to each function are then distributed to individual federal awards and other activities included in that function by means of',
4915:'an indirect cost rates. c. specific methods for allocating indirect costs and computing indirect cost rates along with the conditions',
4916:'under which each method should be used are described in subsections 2, 3 and 4. 2.simplified method a. where a',
4917:'nonfederal entitys major functions benefit from its indirect costs to approximately the same degree, the allocation of indirect costs may',
4918:'be accomplished by 2 cfr appendixviitopart200 c.2.a. enhanced display page 199 of 208 2 cfr part 200 up to date',
4919:'as of 1/08/2025 2 cfr appendixviitopart200 c.2.a.1 uniform administrative requirements, cost principles, and audit 1 classifying the nonfederal entitys total',
4920:'costs for the base period as either direct or indirect, and 2 dividing the total allowable indirect costs net of',
4921:'applicable credits by an equitable distribution base. the result of this process is an indirect cost rate which is used',
4922:'to distribute indirect costs to individual federal awards. the rate should be expressed as the percentage which the total amount',
4923:'of allowable indirect costs bears to the base selected. this method should also be used where a governmental units department',
4924:'or agency has only one major function encompassing a number of individual projects or activities, and may be used where',
4925:'the level of federal awards to that department or agency is relatively small. b. c. both the direct costs and',
4926:'the indirect costs must exclude capital expenditures and unallowable costs. however, unallowable costs must be included in the direct costs',
4927:'if they represent activities to which indirect costs are properly allocable. the distribution base may be 1 total direct costs',
4928:'excluding capital expenditures and other distorting items, such as pass through funds, subcontracts in excess of $50,000, and participant support',
4929:'costs, 2 direct salaries and wages, or 3 another base which results in an equitable distribution. 3. multiple allocation base',
4930:'method a. where a nonfederal entitys indirect costs benefit its major functions in varying degrees, such costs must be accumulated',
4931:'into separate cost groupings. each grouping must then be allocated individually to benefitted functions by means of a base which',
4932:'best measures the relative benefits. b. the cost groupings should be established so as to permit the allocation of each',
4933:'grouping on the basis of benefits provided to the major functions. each grouping should constitute a pool of expenses that',
4934:'are of like character in terms of the functions they benefit and in terms of the allocation base which best',
4935:'measures the relative benefits provided to each function. the number of separate groupings should be held within practical limits, taking',
4936:'into consideration the materiality of the amounts involved and the degree of precision needed. c. actual conditions must be taken',
4937:'into account in selecting the base to be used in allocating the expenses in each grouping to benefitted functions. when',
4938:'an allocation can be made by assignment of a cost grouping directly to the function benefitted, the allocation must be',
4939:'made in that manner. when the expenses in a grouping are more general in nature, the allocation should be made',
4940:'through the use of a selected base which produces results that are equitable to both the federal government and the',
4941:'governmental unit. in general, any cost element or related factor associated with the governmental units activities is potentially adaptable for',
4942:'use as an allocation base provided that: 1 it can readily be expressed in terms of dollars or other quantitative',
4943:'measures total direct costs, direct salaries and wages, staff hours applied, square feet used, hours of usage, number of documents',
4944:'processed, population served, and the like, and 2 it is common to the benefitted functions during the base period. 2',
4945:'cfr appendixviitopart200 c.3.c.2 enhanced display page 200 of 208 e. e. b. 2 cfr part 200 up to date as',
4946:'of 1/08/2025 2 cfr appendixviitopart200 c.3.d. uniform administrative requirements, cost principles, and audit d. except where a special indirect cost',
4947:'rates is required in accordance with paragraph c4 of this appendix, the separate groupings of indirect costs allocated to each',
4948:'major function must be aggregated and treated as a common pool for that function. the costs in the common pool',
4949:'must then be distributed to individual federal awards included in that function by use of a single indirect cost rate.',
4950:'the distribution base used in computing the indirect cost rate for each function may be 1 total direct costs excluding',
4951:'capital expenditures and other distorting items such as pass through funds, subawards in excess of $50,000, and participant support costs,',
4952:'2 direct salaries and wages, or 3 another base which results in an equitable distribution. an indirect cost rate should',
4953:'be developed for each separate indirect cost pool developed. the rate in each case should be stated as the percentage',
4954:'relationship between the particular indirect cost pool and the distribution base identified with that pool. 4. special indirect cost rates',
4955:'a. in some instances, a single indirect cost rate for all activities of a nonfederal entity or for each major',
4956:'function of the agency may not be appropriate. it may not take into account those different factors which may substantially',
4957:'affect the indirect costs applicable to a particular program or group of programs. the factors may include the physical location',
4958:'of the work, the level of administrative support required, the nature of the facilities or other resources employed, the organizational',
4959:'arrangements used, or any combination thereof. when a particular federal award is carried out in an environment which appears to',
4960:'generate a significantly different level of indirect costs, provisions should be made for a separate indirect cost pool applicable to',
4961:'that federal award. the separate indirect cost pool should be developed during the course of the regular allocation process, and',
4962:'the separate indirect cost rate resulting therefrom should be used, provided that: 1 the rate differs significantly from the rate',
4963:'which would have been developed under paragraphs c2 and c3 of this appendix, and 2 the federal award to which',
4964:'the rate would apply is material in amount. where federal statutes restrict the reimbursement of certain indirect costs, it may',
4965:'be necessary to develop a special rate for the affected federal award. where a “restricted rate” is required, the same',
4966:'procedure for developing a nonrestricted rate will be used except for the additional step of the elimination from the indirect',
4967:'cost pool those costs for which the law prohibits reimbursement. d. submission and documentation of proposals 1. submission of indirect',
4968:'cost rate proposals a. all departments or agencies of the governmental unit desiring to claim indirect costs under federal awards',
4969:'must prepare an indirect cost rate proposal and related documentation to support those costs. the proposal and related documentation must',
4970:'be retained for audit in accordance with the records retention requirements contained in§ 200.334. 2 cfr appendixviitopart200 d.1.a. enhanced display',
4971:'page 201 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixviitopart200 d.1.b. uniform administrative',
4972:'requirements, cost principles, and audit a governmental department or agency such as a state or local department of health, department',
4973:'of transportation, or department of housing that receives more than $35 million in direct federal funding during its fiscal year',
4974:'must submit its indirect cost rate proposal to its cognizant agency for indirect costs. c. if a governmental department or',
4975:'agency such as a state or local department of health, department of transportation, or department of housing receives $35 million',
4976:'or less in direct federal funding during its fiscal year, it must develop an indirect cost proposal in accordance with',
4977:'the requirements of this part and maintain the proposal and related supporting documentation for audit. this established rate must be',
4978:'accepted by any federal agency to which the governmental department or agency applies for funding. federal agencies must not compel',
4979:'the governmental department or agency to accept the de minimis rate or some other rate established by the federal agency.',
4980:'these governmental departments or agencies are not required to submit their proposals unless they are specifically requested to do so',
4981:'by an awarding federal agency. the federal agencys review should be limited to ensuring the proposal is consistent with the',
4982:'principles of this part. where a nonfederal entity only receives funds as a subrecipient, the passthrough entity will be responsible',
4983:'for negotiating and/or monitoring the subrecipients indirect costs. c. each indian tribal government desiring reimbursement of indirect costs must submit',
4984:'its indirect cost proposal to the department of the interior its cognizant agency for indirect costs. d. indirect cost proposals',
4985:'must be developed and, when required, submitted within six months after the close of the governmental units fiscal year, unless',
4986:'an exception is approved by the cognizant agency for indirect costs. if the proposed central service cost allocation plan for',
4987:'the same period has not been approved by that time, the indirect cost proposal may be prepared including an amount',
4988:'for central services that is based on the latest federally approved central service cost allocation plan. the difference between these',
4989:'central service amounts and the amounts ultimately approved will be compensated for by an adjustment in a subsequent period. b.',
4990:'2. documentation of proposals the following must be included with each indirect cost proposal: a. the rates proposed, including subsidiary',
4991:'work sheets and other relevant data, cross referenced and reconciled to the financial data noted in subsection b. allocated central',
4992:'service costs will be supported by the summary table included in the approved central service cost allocation plan. this summary',
4993:'table is not required to be submitted with the indirect cost proposal if the central service cost allocation plan for',
4994:'the same fiscal year has been approved by the cognizant agency for indirect costs and is available to the funding',
4995:'agency. b. a copy of the financial data financial statements, comprehensive annual financial report, executive budgets, accounting reports, etc. upon',
4996:'which the rate is based. adjustments resulting from the use of unaudited data will be recognized, where appropriate, by the',
4997:'federal cognizant agency for indirect costs in a subsequent proposal. c. the approximate amount of direct base costs incurred under',
4998:'federal awards. these costs should be broken out between salaries and wages and other direct costs. 2 cfr appendixviitopart200 d.2.c.',
4999:'enhanced display page 202 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixviitopart200 d.2.d.',
5000:'uniform administrative requirements, cost principles, and audit d. a chart showing the organizational structure of the agency during the period',
5001:'for which the proposal applies, along with a functional statements noting the duties and/or responsibilities of all units that comprise',
5002:'the agency. once this is submitted, only revisions need be submitted with subsequent proposals. 3. required certification. each indirect cost',
5003:'rate proposal must be accompanied by a certification in the following form: certificate of indirect costs this is to certify',
5004:'that i have reviewed the indirect cost rate proposal submitted herewith and to the best of my knowledge and belief:',
5005:'1 all costs included in this proposal [identify date] to establish billing or final indirect costs rates for [identify period',
5006:'covered by rate] are allowable in accordance with the requirements of the federal awards to which they apply and the',
5007:'provisions of this part. unallowable costs have been adjusted for in allocating costs as indicated in the indirect cost proposal',
5008:'2 all costs included in this proposal are properly allocable to federal awards on the basis of a beneficial or',
5009:'causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. further,',
5010:'the same costs that have been treated as indirect costs have not been claimed as direct costs. similar types of',
5011:'costs have been accounted for consistently and the federal government will be notified of any accounting changes that would affect',
5012:'the predetermined rate. i declare that the foregoing is true and correct. governmental unit: signature: name of official: title: date',
5013:'of execution: e. negotiation and approval of rates 1. indirect cost rates will be reviewed, negotiated, and approved by the',
5014:'cognizant agency on a timely basis. once a rate has been agreed upon, it will be accepted and used by',
5015:'all federal agencies unless prohibited or limited by statute. where a federal awarding agency has reason to believe that special',
5016:'operating factors affecting its federal awards necessitate special indirect cost rates, the funding agency will, prior to the time the',
5017:'rates are negotiated, notify the cognizant agency for indirect costs. 2 cfr appendixviitopart200 1. enhanced display page 203 of 208',
5018:'2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixviitopart200 2. uniform administrative requirements, cost principles, and',
5019:'audit 2. 3. the use of predetermined rates, if allowed, is encouraged where the cognizant agency for indirect costs has',
5020:'reasonable assurance based on past experience and reliable projection of the nonfederal entitys costs, that the rate is not likely',
5021:'to exceed a rate based on actual costs. longterm agreements utilizing predetermined rates extending over two or more years are',
5022:'encouraged, where appropriate. the results of each negotiation must be formalized in a written agreement between the cognizant agency for',
5023:'indirect costs and the governmental unit. this agreement will be subject to reopening if the agreement is subsequently found to',
5024:'violate a statute, or the information upon which the plan was negotiated is later found to be materially incomplete or',
5025:'inaccurate. the agreed upon rates must be made available to all federal agencies for their use. 4. refunds must be',
5026:'made if proposals are later found to have included costs that a are unallowable i as specified by law or',
5027:'regulation, ii as identified in§ 200.420, or iii by the terms and conditions of federal awards, or b are unallowable',
5028:'because they are clearly not allocable to federal awards. these adjustments or refunds will be made regardless of the type',
5029:'of rate negotiated predetermined, final, fixed, or provisional. f. other policies 1. fringe benefit rates if overall fringe benefit rates',
5030:'are not approved for the governmental unit as part of the central service cost allocation plan, these rates will be',
5031:'reviewed, negotiated and approved for individual recipient agencies during the indirect cost negotiation process. in these cases, a proposed fringe',
5032:'benefit rate computation should accompany the indirect cost proposal. if fringe benefit rates are not used at the recipient agency',
5033:'level i.e., the agency specifically identifies fringe benefit costs to individual employees, the governmental unit should so advise the cognizant',
5034:'agency for indirect costs. 2. billed services provided by the recipient agency in some cases, governmental departments or agencies components',
5035:'of the governmental unit provide and bill for services similar to those covered by central service cost allocation plans e.g.,',
5036:'computer centers. where this occurs, the governmental departments or agencies components of the governmental unitshould be guided by the requirements',
5037:'in appendix v relating to the development of billing rates and documentation requirements, and should advise the cognizant agency for',
5038:'indirect costs of any billed services. reviews of these types of services including reviews of costing/billing methodology, profits or losses,',
5039:'etc. will be made on a casebycase basis as warranted by the circumstances involved. 3. indirect cost allocations not using',
5040:'rates 2 cfr appendixviitopart200 4.b enhanced display page 204 of 208 2 cfr part 200 up to date as of',
5041:'1/08/2025 2 cfr appendixviiitopart200 1. uniform administrative requirements, cost principles, and audit in certain situations, governmental departments or agencies components',
5042:'of the governmental unit, because of the nature of their federal awards, may be required to develop a cost allocation',
5043:'plan that distributes indirect and, in some cases, direct costs to the specific funding sources. in these cases, a narrative',
5044:'cost allocation methodology should be developed, documented, maintained for audit, or submitted, as appropriate, to the cognizant agency for indirect',
5045:'costs for review, negotiation, and approval. 4. appeals if a dispute arises in a negotiation of an indirect cost rate',
5046:'or other rate between the cognizant agency for indirect costs and the governmental unit, the dispute must be resolved in',
5047:'accordance with the appeals procedures of the cognizant agency for indirect costs. 5. collection of unallowable costs and erroneous payments',
5048:'costs specifically identified as unallowable and charged to federal awards either directly or indirectly will be refunded including interest chargeable',
5049:'in accordance with applicable federal cognizant agency for indirect costs regulations. 6.omb assistance to the extent that problems are encountered',
5050:'among the federal agencies or governmental units in connection with the negotiation and approval process, omb will lend assistance, as',
5051:'required, to resolve such problems in a timely manner. [78 fr 78608, dec. 26, 2013, as amended at79 fr 75889,',
5052:'dec. 19, 2014;85 fr 49581, aug. 13, 2020;89 fr 30207, apr. 22, 2024] appendix viii to part 200—nonprofit organizations exempted',
5053:'from subpart e of part 200 advance technology institute ati, charleston, south carolina aerospace corporation, el segundo, california american institutes',
5054:'of research air, washington, dc argonne national laboratory, chicago, illinois atomic casualty commission, washington, dc battelle memorial institute, headquartered in',
5055:'columbus, ohio brookhaven national laboratory, upton, new york charles stark draper laboratory, incorporated, cambridge, massachusetts cna corporation cnac, alexandria, virginia',
5056:'1.2.3.4.5.6.7.8.9.10. environmental institute of michigan, ann arbor, michigan 11. georgia institute of technology/georgia tech applied research corporation/georgia tech research institute,',
5057:'atlanta, georgia 12. hanford environmental health foundation, richland, washington 13. iit research institute, chicago, illinois 14. institute of gas technology,',
5058:'chicago, illinois 2 cfr appendixviiitopart200 14. enhanced display page 205 of 208 2 cfr part 200 up to date as',
5059:'of 1/08/2025 2 cfr appendixviiitopart200 15. uniform administrative requirements, cost principles, and audit 15. institute for defense analysis, alexandria, virginia',
5060:'16. lmi, mclean, virginia 17. mitre corporation, bedford, massachusetts 18. noblis, inc., falls church, virginia 19. national radiological astronomy observatory,',
5061:'green bank, west virginia 20. national renewable energy laboratory, golden, colorado 21. oak ridge associated universities, oak ridge, tennessee 22.',
5062:'rand corporation, santa monica, california 23. research triangle institute, research triangle park, north carolina 24. riverside research institute, new york,',
5063:'new york 25. south carolina research authority scra, charleston, south carolina 26. southern research institute, birmingham, alabama 27. southwest research',
5064:'institute, san antonio, texas 28. sri international, menlo park, california 29. syracuse research corporation, syracuse, new york 30. universities research',
5065:'association, incorporated national acceleration lab, argonne, illinois 31. urban institute, washington dc 32. nonprofit insurance companies, such as blue cross',
5066:'and blue shield organizations 33. other nonprofit organizations as negotiated with federal awarding agencies [78 fr 78608, dec. 26, 2013,',
5067:'as amended at85 fr 49582, aug. 13, 2020] appendix ix to part 200—hospital cost principles until such time as revised',
5068:'guidance is proposed and implemented for hospitals, the existing principles located at45 cfr part 75 appendix ix, entitled “principles for',
5069:'determining cost applicable to research and development under grants and contracts with hospitals,” remain in effect. [86 fr 10440, feb.',
5070:'22, 2021] appendix x to part 200—data collection form the data collection form is available as a series of workbooks',
5071:'on the federal audit clearinghouse fac.gov. the form and submission instructions can be found athttps://www.fac.gov/. [89 fr 30207, apr. 22,',
5072:'2024] appendix xi to part 200—compliance supplement the compliance supplement is available on the omb website. [85 fr 49582, aug.',
5073:'13, 2020] 2 cfr appendixviiitopart200 33. enhanced display page 206 of 208 2 cfr part 200 up to date as',
5074:'of 1/08/2025 2 cfr appendixxiitopart200 i.a1 uniform administrative requirements, cost principles, and audit appendix xii to part 200—award term and',
5075:'condition for recipient integrity and performance matters i. reporting of matters related to recipient integrity and performance ageneral reporting requirement.',
5076:'1 if the total value of your active grants, cooperative agreements, and procurement contracts from all federal agencies exceeds $10,000,000',
5077:'for any period of time during the period of performance of this federal award, then you as the recipient must',
5078:'ensure the information available in the responsibility/qualification records through the system for award management sam.gov, about civil, criminal, or administrative',
5079:'proceedings described in paragraph b of this award term is current and complete. this is a statutory requirement under section',
5080:'872 ofpublic law 110417, as amended 41 u.s.c. 2313. as required by section 3010 ofpublic law 111212, all information posted',
5081:'in responsibility/qualification records insam.govon or after april 15, 2011 except past performance reviews required for federal procurement contracts will be',
5082:'publicly available. b proceedings about which you must report. 1 you must submit the required information about each proceeding that—',
5083:'i is in connection with the award or performance of a grant, cooperative agreement, or procurement contract from the federal',
5084:'government; ii reached its final disposition during the most recent fiveyear period; and iii is one of the following— a',
5085:'a criminal proceeding that resulted in a conviction; b a civil proceeding that resulted in a finding of fault and',
5086:'liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more; c an administrative proceeding',
5087:'that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of',
5088:'$5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or d any other criminal, civil, or administrative',
5089:'proceeding if— 1 it could have led to an outcome described in paragraph b1iiia through c; 2 it had a',
5090:'different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and 3 the requirement',
5091:'in this award term to disclose information about the proceeding does not conflict with applicable laws and regulations. c reporting',
5092:'procedures.enter the required information insam.govfor each proceeding described in paragraph b of this award term. you do not need to',
5093:'submit the information a second time under grants and cooperative agreements that you received if you already provided the information',
5094:'in sam.govbecause you were required to do so under federal procurement contracts that you were awarded. 2 cfr appendixxiitopart200 i.c',
5095:'enhanced display page 207 of 208 2 cfr part 200 up to date as of 1/08/2025 2 cfr appendixxiitopart200 i.d',
5096:'uniform administrative requirements, cost principles, and audit d reporting frequency.during any period of time when you are subject to the',
5097:'requirement in paragraph a of this award term, you must report proceedings information insam.govfor the most recent five year period,',
5098:'either to report new information about a proceeding that you have not reported previously or affirm that there is no',
5099:'new information to report. if you have federal contract, grant, and cooperative agreement awards with a cumulative total value greater',
5100:'than $10,000,000, you must disclose semiannually any information about the criminal, civil, and administrative proceedings. e definitions.for purposes of this',
5101:'award term— administrative proceeding means a nonjudicial process that is adjudicatory in nature to make a determination of fault or',
5102:'liability for example, securities and exchange commission administrative proceedings, civilian board of contract appeals proceedings, and armed services board of',
5103:'contract appeals proceedings. this includes proceedings at the federal and state level but only in connection with the performance of',
5104:'a federal contract or grant. it does not include audits, site visits, corrective plans, or inspection of deliverables. conviction means',
5105:'a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or',
5106:'a plea, and includes a conviction entered upon a plea of nolo contendere. total value of currently active grants, cooperative',
5107:'agreements, and procurement contracts includes the value of the federal share already received plus any anticipated federal share under those',
5108:'awards such as continuation funding. ii. [reserved] [89 fr 30207, apr. 22, 2024] 2 cfr appendixxiitopart200 i.e “conviction” enhanced display',
5109:'page 208 of 208',