IF YOU DON’T LIKE THE REQUIREMENTS, DON’T TAKE THE MONEY!
These revisions pertain solely to assistance awards (cooperative agreements, grants) and is not applicable to acquisition awards (contracts).
How did we get there?
December 26, 2013 – The Office of Management and Budget (OMB) issued final guidance titled “Uniform Guidance”
April 22, 2024 OMB Issued the latest revisions of the Uniform Guidance
Effective Date
The effective date for the final guidance is October 1, 2024.
Starting June 21, agencies may begin notifying recipients of impending changes.
Overview of Revisions
Elimination of several prior approval requirements,
Increase in multiple thresholds that trigger additional obligations,
Clarification of requirements for agencies and recipients.
- Positive Revisions for Recipients
Subpart A – Definitions revised for “Equipment” and “Modified Total Direct cost”
Subpart D – Fixed amount awards ceiling increase
Subpart D – Removal of prohibition on geographic Preference
Subpart E – De Minimis Indirect Rate Increase
Subpart E – Prior approval requirements removed for certain costs, including entertainment, memberships, subscriptions, professional activity costs; and participants support costs
Subpart E – Removal of D2-2 Requirements for IHES
Subpart F – Single audit threshold increased
Others
2 CFR 200.1 Equipment
From $5,000 to $10,000 – Equipment means tangible personal property (including information technology systems) having a useful of more than 1 year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the recipient or subrecipient for financial statement purposes, or $10,000.
2 CFR 200.1 Supply
Supply means all tangible personal property other than that described in the equipment definition. A computing device is a supply if the acquisition cost is below….
2 CFR 200.1. Modified Total Direct Cost (MTDC)
MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel and up to the first $5,000. Cap on modify total cost at 8%
2 CFR 200.414(f) De minimis rate
From 10 to 15% – Transition not discussed. Recipients and subrecipients that do not have a current federally negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 15% of modified total direct costs (MTDC).
2 CFR 200.333 Fixed amount subawards
With prior written approval from the federal agency, the recipient may provide awards based on fixed amounts up to $500,000. Fixed amount subawards must meet the requirements of $$200.201. Parallel requirements for US organisations and non us organisations (USAID).
2 CFR 200.501 Audit requirements
From $750,000 to $1,000,000. Higher threshold related to Single Audit to $1 million, Trigger by the expenditure of funds under that award. Fiscal year that ends after Oct 2024.
FFATA –
UEI – Only party required: prime and 1st tier recipients. Contractors are not required to have UEI numbers.
Honorable Mention:
200.307 Program Income (no obligation after POP)
200.318 Strategic sourcing, shared services agreements in procurement
200.403 (h) Administrative closeout (allowable after PoP but before final financial report)
200.414 Indirect Rate Publishing Removed
III. Additional Risks for Recipients
200.113 Mandatory disclosures
An applicant, recipient, or subrecipient of a Federal award must promptly disclose whenever, in connection with the federal award (including any activities or subawards thereunder), it has credible evidence of the commission of a violation of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States of Code or a violation of the civil False Claim Act (31 U.S.C. 3729-3733).
200.217 whistleblower Protections (Explicitly Stated)
200.303 Internal Controls (“Cyber Security” Mentioned)
200.306 Cost Share
200.313 Equipment – Records (The recipient and subrecipient are responsible for maintaining and updating property records when there is a change)
200.318 Conflict of Interest (“Board Member” named). Conflict of interest policy now apply to board members
200.344 Closeout – Final Indirect Rates
2 CFR 200.344 Closeout
When the recipient does not have a final indirect rate covering the PoP, a final financial report must still be submitted to fulfill the requirements of this section. The recipient must submit a revised financial financial report when all applicable indirect cost rates have been finalized.