OMB has published a preview of the upcoming changes to 2 CFR 200 (Uniform Guidance)

OMB’s Proposed Changes to the Uniform Grants Guidance. Earlier today OMB posted a blog highlighting proposed updates to the Uniform Grants Guidance. OMB concurrently submitted the proposed updates to the Federal Register, which will be posted for public comment soon for a period of 60 days. We will provide an update when the notice is published for public comment.

1. FAA SUBAWARDS & SUBAWARDS – Fixed Amount Award (FAA) Subaward limit to be removed (2 CFR 200.201 and 2 CFR 200. 333) – So $250k will no longer apply.
   • In section 200.333, OMB proposes removing the current Simplified Acquisition Threshold limit for FAA subawards to provide agencies and recipients with increased flexibility in making programmatic and budgetary decisions, while still allowing recipients to establish their own award-specific thresholds with the prior written approval of the Federal agency. Under the proposed revision, a recipient’s use of fixed amount subawards remains subject to the prior written approval of the Federal agency.
2. DE MINIMIS – OMB proposes to raise the De minimis Indirect Cost Rate from 10% to 15 % of the Modified Direct costs (MTDC) Charged.
   OMB also proposes to clarify that the de minimis rate may not be applied to cost reimbursement contracts and recipients and subrecipients are not required to use the de minimis rate.
3. EQUIPMENT (Property Management) – Revised dollar thresholds for disposition of equipment and supplies.
   In section 200.313, relating to equipment, OMB proposes to increase the threshold value for equipment from $5,000 to $10,000.
4. Revision of the Modified Total Direct Costs (MTDC) exclusion for subawards raised to over $50,000.
5. Approval of subrecipients only for programmatic subrecipients not named in the application. Agencies can still add additional approval requirements
6. AUDIT – Single Audit raised to $1,000,000 (currently $750,000) so foreign sub-recipient audit will like rise to $1,000,000 too.
7. UEI requirement does not apply to second-tier subs
8. Additional flexibilities (class-deviation) for USAID to waive SAM and/or UEI requirements for foreign recipients and sub-recipients up to $250,000 (previously 25,000). This will also apply to GUCs.
   • OMB is also considering other ways of reducing the administrative burden associated with obtaining a UEI and registering in SAM.gov for foreign organizations or foreign public entity receiving Federal awards between $25,000 (the Transparency Act threshold for a ‘‘Federal award’’) and $250,000 (the simplified acquisition threshold).
     • If included in the final revisions to the guidance, OMB will also consider incorporating further limits or safeguards in this exception to mitigate risk, such as not allowing its application to awards that will include subawards above $30,000. If finalized, the exception would only be available on a case-by-case basis in situations in which the agency has conducted a risk-based analysis and deemed it impractical for the entity to comply with the requirements(s).
     • OMB is also considering expanding the exigent circumstances exception in section 25.110 to provide recipients with additional time (option to if exigent circumstances persist to obtain a UEI and complete SAM.gov registration if exigent circumstances persist beyond 30 days.)
9. OMB proposes to revise section 200.306 on cost sharing, as well as the definition of cost sharing itself, to clarify that ‘‘matching’’ is one category of cost sharing overall.
10. OMB proposes to revise section 200.307 on program income by providing clarifications in paragraph (a) regarding use and expenditure of program income, including allowing program income for certain closeout costs. OMB also proposes to revise and provide further clarifying guidance in paragraph (b) for each of the three methods for use of program income.
11. Proposed changes in Prior Approval Policies
    Proposed elimination of some prior approval (2 CFR 200.407)
    Clarification of subaward-related prior approval (2 CFR 200.308)
    Treatment of costs included in award budget
    Treatment of responses to prior approval requests
12. Closeout (incurrence and liquidation of closeout costs): Adds allowability for charging close-out costs to the award (!)
    • In section 200.344 on closeout, OMB proposes to revise closeout guidance to clarify that recipients must still submit a final financial report even when the recipient does not have a final indirect cost rate; and proposes to clarify that an additional final report must be submitted when the indirect cost rate is finalized.

Find it here: https://www.whitehouse.gov/wp-content/uploads/2023/09/Draft-FRN-Grants-Guidance-20230921.pdf