§ 200.0
Acronyms.
Section 200.0 defines various acronyms related to federal regulations and funding, such as CAS (Cost Accounting Standards) and CFR (Code of Federal Regulations). This section affects entities involved in federal funding and compliance, including educational institutions and government agencies.
View
§ 200.0
Acronyms.
This section of the Code of Federal Regulations (CFR) lists important acronyms that are commonly used in federal regulations and funding processes. Each acronym represents a specific term or concept that is relevant to understanding federal rules and procedures. For example, "CAS" stands for Cost Accounting Standards, which are rules that help ensure consistent accounting practices for government contracts. Knowing these acronyms is essential for anyone involved in federal funding, audits, or compliance.
The regulation applies to a wide range of individuals and organizations, particularly those working with federal funds, such as institutions of higher education, non-profit organizations, and government agencies. It is relevant in situations where federal funding is involved, such as grant applications, audits, and financial reporting. Understanding these acronyms helps stakeholders navigate the complex landscape of federal regulations and ensures they are following the correct guidelines.
Practically, this regulation matters because it provides clarity and consistency in communication regarding federal funding and accounting practices. By familiarizing themselves with these acronyms, individuals and organizations can better understand their responsibilities, comply with regulations, and effectively manage federal funds. This ultimately helps ensure transparency and accountability in the use of taxpayer money.
Generated by gpt-4o-mini on 2025-10-16 10:43:52
(a) CAS Cost Accounting Standards
(b) CFR Code of Federal Regulations
(c) F&A Facilities and Administration
(d) FAC Federal Audit Clearinghouse
(e) FAIN Federal Award Identification Number
(f) FAR Federal Acquisition Regulation
(g) FASB Financial Accounting Standards Board
(h) FFATA Federal Funding Accountability and Transparency Act of 2006 or Transparency Act, Public Law 109-282, as amended (See 31 U.S.C. 6101, statutory note)
(i) FOIA Freedom of Information Act
(j) FR Federal Register
(k) GAAP Generally Accepted Accounting Principles
(l) GAGAS Generally Accepted Government Auditing Standards
(m) GASB Government Accounting Standards Board
(n) GAO Government Accountability Office
(o) GSA General Services Administration
(p) IBS Institutional Base Salary
(q) IHE Institutions of Higher Education
(r) IRC Internal Revenue Code
(s) ISDEAA Indian Self-Determination and Education and Assistance Act
(t) MTC Modified Total Cost
(u) MTDC Modified Total Direct Cost
(v) NFE Non-Federal Entity
(w) NOFO Notice of Funding Opportunity
(x) OMB Office of Management and Budget
(y) PII Personally Identifiable Information
(z) PMS Payment Management System
(aa) SAM System for Award Management (
SAM.gov
)
(bb) UEI Unique Entity Identifier
(cc) U.S.C. United States Code
(dd) VAT Value Added Tax
§ 200.1
Definitions.
The following is a list of definitions of key terms frequently used in 2 CFR part 200. Definitions found in Federal statutes or regulations that apply...
View
§ 200.1
Definitions.
9,291 findings
in our database
The following is a list of definitions of key terms frequently used in 2 CFR part 200. Definitions found in Federal statutes or regulations that apply to particular programs take precedence over the following definitions. However, where the following definitions implement specific statutory requirements that apply government-wide, such as the Single Audit Act, the following definitions take precedence over Federal regulations. For purposes of this part, the following definitions apply:
Acquisition cost
means the (total) cost of the asset including the cost to ready the asset for its intended use. For example, acquisition cost for equipment the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Acquisition costs for software include those development costs capitalized in accordance with generally accepted accounting principles (GAAP). Ancillary charges such as taxes, duty, protective in transit insurance, freight, and installation may be included in or excluded from the acquisition cost in accordance with the recipient's or subrecipient's regular accounting practices. Advance payment
means a payment that a Federal agency or pass-through entity makes by any appropriate payment mechanism and payment method before the recipient or subrecipient disburses the funds for program purposes.
Allocation
means the process of assigning a cost, or a group of costs, to one or more cost objective(s), in reasonable proportion to the benefit provided or other equitable relationship. The process may entail assigning a cost(s) directly to a final cost objective or through one or more intermediate cost objectives.
Assistance Listings
refer to the publicly available listing of Federal assistance programs managed and administered by the General Services Administration (GSA) at
SAM.gov
.
Assistance Listing number
means a unique number assigned to identify an Assistance Listing.
Assistance Listing program title
means the title that corresponds to the Assistance Listing number.
Audit finding
means deficiencies which the auditor is required to report in the schedule of findings and questioned costs. (See § 200.516(a))
Auditee
means any non-Federal entity that must be audited under this part. (See § 200.501)
Auditor
means an auditor who is a public accountant or a Federal, State, local government, or Indian Tribe audit organization that meets the general standards specified for external auditors in generally accepted government auditing standards (GAGAS). The term auditor does not include internal auditors of nonprofit organizations.
Budget
means the financial plan for the Federal award that the Federal agency or pass-through entity approves during the Federal award process or in subsequent amendments to the Federal award. It may include the Federal and non-Federal share or only the Federal share, as determined by the Federal agency or pass-through entity.
Budget period
means the time interval from the start date of a funded portion of an award to the end date of that funded portion, during which recipients and subrecipients are authorized to incur financial obligations of the funds awarded, including any funds carried forward or other revisions pursuant to § 200.308.
Capital assets
means:
(1) Tangible or intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with GAAP. Capital assets include:
(i) Land, buildings (facilities), equipment, and intellectual property (including software), whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for as financed purchase under Government Accounting Standards Board (GASB) standards or a finance lease under Financial Accounting Standards Board (FASB) standards; and
(ii) Additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life (not ordinary repairs and maintenance).
(2) For purpose of this part, capital assets do not include intangible right-to-use assets (per GASB) and right-to-use operating lease assets (per FASB). For example, assets capitalized that recognize a lessee's right to control the use of property or equipment for a period of time under a lease contract. See § 200.465.
Capital expenditures
means expenditures to acquire capital assets or expenditures to make additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life.
Central service cost allocation plan
means the documentation identifying, accumulating, and allocating or developing billing rates based on the allowable costs of services provided by a State, local government, or Indian Tribe to its departments and agencies on a centralized basis. The costs of these services may be allocated or billed to users.
Claim
means, depending on the context, either:
(1) A written demand or assertion by one of the parties to a Federal award seeking as a matter of right:
(i) The payment of money;
(ii) The adjustment or interpretation of the terms and conditions of the Federal award; or
(iii) Other relief arising under or relating to a Federal award.
(2) A request for payment not in dispute when submitted.
Class of Federal awards
means a group of Federal awards either awarded under a specific program or group of programs or to a specific type of recipient or group of recipients to which specific provisions or exceptions may apply.
Closeout
means the process by which the Federal agency or pass-through entity determines that all applicable administrative actions and all required work of the Federal award have been completed and takes actions as described in § 200.344.
Cluster of programs
means a grouping of closely related programs that share common compliance requirements. The types of clusters of programs are research and development (R&D), student financial aid (SFA), and other clusters. “Other clusters” are defined by OMB in the compliance supplement or designated by a State for Federal awards the State provides to its subrecipients that meet the definition of a cluster of programs. When designating “other clusters,” a State must identify the Federal awards included in the cluster and advise the subrecipients of compliance requirements applicable to the cluster, consistent with § 200.332. A cluster of programs must be considered one program when determining major programs as described in § 200.518, and with the exception of R&D as described in § 200.501(d), whether a program-specific audit may be elected.
Cognizant agency for audit
means the Federal agency designated to carry out the responsibilities described in § 200.513(a). The cognizant agency for audit is not necessarily the same as the cognizant agency for indirect costs. A list of Federal agency Single Audit contacts can be found on the Federal Audit Clearinghouse (FAC) website.
Cognizant agency for indirect costs
means the Federal agency responsible for reviewing, negotiating and approving cost allocation plans or indirect cost proposals on behalf of all Federal agencies. The cognizant agency for indirect cost is not necessarily the same as the cognizant agency for audit. For assignments of cognizant agencies, see the following:
(1) For Institutions of Higher Education (IHEs): Appendix III, paragraph C.11.
(2) For nonprofit organizations: Appendix IV, paragraph C.2.a.
(3) For State and local governments: Appendix V, paragraph F.1.
(4) For Indian Tribes: Appendix VII, paragraph D.1.
Compliance supplement
means an annually updated authoritative source of information for auditors that identifies existing important compliance requirements that the Federal Government expects to be considered as part of an audit. Auditors use it to understand the Federal program's objectives, procedures, and compliance requirements, as well as audit objectives and suggested audit procedures for determining compliance with the relevant Federal program.
Computing devices
means machines that acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information. See also the definitions of
supplies
and
information technology systems
in this section.
Contract
means, for the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient conducts procurement transactions under a Federal award. For additional information on subrecipient and contractor determinations, see § 200.331. See also the definition of
subaward
in this section.
Contractor
means an entity that receives a contract.
Continuation funding
means the second or subsequent budget period within an identified period of performance.
Cooperative agreement
means a legal instrument of financial assistance between a Federal agency and a recipient or between a pass-through entity and subrecipient, consistent with 31 U.S.C. 6302-6305:
(1) Is used to enter into a relationship the principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. 6101(3)); and not to acquire property or services for the Federal Government or pass-through entity's direct benefit or use;
(2) Is distinguished from a grant in that it provides for substantial involvement of the Federal agency or pass-through entity in carrying out the activity contemplated by the Federal award.
(3) The term does not include:
(i) A cooperative research and development agreement as defined in 15 U.S.C. 3710a; or
(ii) An agreement that provides only:
(A) Direct United States Government cash assistance to an individual;
(B) A subsidy;
(C) A loan;
(D) A loan guarantee; or
(E) Insurance.
Corrective action
means action taken by the auditee that:
(1) Corrects identified deficiencies;
(2) Produces recommended improvements; or
(3) Demonstrates that audit findings are either invalid or do not warrant auditee action.
Cost allocation plan
means a central service or public assistance cost allocation plan.
Cost objective
means a program, function, activity, award, organizational subdivision, contract, or work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, and capital projects. A cost objective may be a major function of the recipient or subrecipient, a particular service or project, a Federal award, or an indirect cost activity, as described in subpart E. See also the definitions of
final cost objective
and
intermediate cost objective
in this section.
Cost sharing
means the portion of project costs not paid by Federal funds or contributions (unless authorized by Federal statute). This term includes
matching,
which refers to required levels of cost share that must be provided. See § 200.306.
Disallowed cost
means charges to a Federal award that the Federal agency or pass-through entity determines to be unallowable in accordance with applicable Federal statutes, regulations, the provisions of this part, or the terms and conditions of the Federal award.
Discretionary award
means an award in which the Federal agency, in keeping with specific statutory authority that enables the agency to exercise judgment (“discretion”), selects the recipient or the amount of Federal funding awarded through a competitive process or based on merit of proposals. A discretionary award may be selected on a non-competitive basis, as appropriate.
Equipment
means tangible personal property (including information technology systems) having a useful life of more than one 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. See the definitions of
capital assets, computing devices, general purpose equipment, information technology systems, special purpose equipment,
and
supplies
in this section.
Expenditures
means charges made by a recipient or subrecipient to a project or program for which a Federal award is received.
(1) The charges may be reported on a cash or accrual basis as long as the methodology is disclosed and consistently applied.
(2) For reports prepared on a cash basis, expenditures are the sum of:
(i) Cash disbursements for direct charges for property and services;
(ii) The amount of indirect expense charged;
(iii) The value of third-party in-kind contributions applied; and
(iv) The amount of cash advance payments and payments made to subrecipients.
(3) For reports prepared on an accrual basis, expenditures are the sum of:
(i) Cash disbursements for direct charges for property and services;
(ii) The amount of indirect expense incurred;
(iii) The value of third-party in-kind contributions applied; and
(iv) The net increase or decrease in the amounts owed by the recipient or subrecipient for:
(A) Goods and other property received;
(B) Services performed by employees, contractors, subrecipients, and other payees; and
(C) Programs for which no current services or performance are required, such as annuities, insurance claims, or other benefit payments.
Federal agency
means an “agency” as defined at 5 U.S.C. 551(1) and further clarified by 5 U.S.C. 552(f). The term generally refers to the agency that provides a Federal award directly to a recipient unless the context indicates otherwise. See also definitions of Federal award and recipient.
Federal Audit Clearinghouse (FAC)
means the repository of record designated by OMB where non-Federal entities must transmit the information required by subpart F.
Federal award
has the meaning, depending on the context, in either paragraph (1) or (2) of this definition:
(1)(i) The Federal financial assistance that a recipient receives directly from a Federal agency or indirectly from a pass-through entity, as described in § 200.101; or
(ii) The cost-reimbursement contract under the Federal Acquisition Regulation that a non-Federal entity receives directly from a Federal agency or indirectly from a pass-through entity, as described in § 200.101.
(2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definition of
Federal financial assistance
in this section, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.
(3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate government-owned, contractor- operated (GOCO) facilities.
(4) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement.
Federal award date
means the date when the authorized official of the Federal agency signed (physically or digitally) the Federal award or when an alternative, consistent with the requirements of 31 U.S.C. 1501, is reached with the recipient.
Federal financial assistance
means:
(1) Assistance that recipients or subrecipients receive or administer in the form of:
(i) Grants;
(ii) Cooperative agreements;
(iii) Non-cash contributions or donations of property (including donated surplus property);
(iv) Direct appropriations;
(v) Food commodities; and
(vi) Other financial assistance (except assistance listed in paragraph (2) of this definition).
(2) For § 200.203 and subpart F of this part,
Federal financial assistance
also includes assistance that recipients or subrecipients receive or administer in the form of:
(i) Loans;
(ii) Loan Guarantees;
(iii) Interest subsidies; and
(iv) Insurance.
(3) For § 200.216, Federal financial assistance includes assistance that recipients or subrecipients receive or administer in the form of:
(i) Grants;
(ii) Cooperative agreements;
(iii) Loans; and
(iv) Loan Guarantees.
(4) Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals as described in § 200.502(h) and (i).
(5) For part 184 of this title, in addition to the forms of assistance listed in paragraph (1) of this definition,
Federal financial assistance
also includes assistance that recipients or subrecipients receive or administer in the form of:
(i) Loans; and
(ii) Loan Guarantees.
Federal interest
means, for purposes of § 200.330 or when used in connection with the acquisition or improvement of real property, equipment, or supplies under a Federal award, the dollar amount that is the product of the:
(1) The percentage of Federal participation in the total cost of the real property, equipment, or supplies; and
(2) Current fair market value of the property, improvements, or both, to the extent the costs of acquiring or improving the property were included as project costs.
Federal program
means:
(1) All Federal awards which are assigned a single Assistance Listings Number.
(2) When no Assistance Listings Number is assigned, all Federal awards from the same agency made for the same purpose must be combined and considered one program.
(3) Notwithstanding paragraphs (1) and (2) of this definition, a cluster of programs. The types of clusters of programs are:
(i) Research and development (R&D);
(ii) Student financial aid (SFA); and
(iii) “Other clusters,” as described in the definition of
cluster of programs
in this section.
Federal share
means the portion of the Federal award costs paid using Federal funds.
Final cost objective
means a cost objective that has allocated to it both direct and indirect costs and, in the recipient's or subrecipient's accumulation system, is one of the final accumulation points, such as a particular award, internal project, or other direct activity of a recipient or subrecipient. See also the definitions of
cost objective
and
intermediate cost objective
in this section.
Financial obligations
means orders placed for property and services, contracts and subawards made, and similar transactions that require payment by a recipient or subrecipient under a Federal award that will result in expenditures by a recipient or subrecipient under a Federal award.
Fixed amount award
means a type of grant or cooperative agreement pursuant to which the Federal agency or pass-through entity provides a specific amount of funding without regard to actual costs incurred under the Federal award. This type of Federal award reduces some of the administrative burden and record-keeping requirements for both the recipient or subrecipient and the Federal agency or pass-through entity. Accountability is based primarily on performance and results. See §§ 200.102(c), 200.101(b), 200.201(b), and 200.333.
For-profit organization
generally an organization or entity organized for the purpose of earning a profit. The term includes but is not limited to: (1) An “S corporation” incorporated under subchapter S of the Internal Revenue Code;
(2) A corporation incorporated under another authority;
(3) A partnership;
(4) A limited liability company or partnership; and
(5) A sole proprietorship.
Foreign organization
means an entity that is:
(1) A public or private organization located in a country other than the United States and its territories that is subject to the laws of the country in which it is located, irrespective of the citizenship of project staff or place of performance;
(2) A private nongovernmental organization located in a country other than the United States that solicits and receives cash contributions from the general public;
(3) A charitable organization located in a country other than the United States that is nonprofit and tax-exempt under the laws of the country where it is registered and is not a university, college, accredited degree-granting institution of education, private foundation, hospital, an organization engaged exclusively in research or scientific activities, church, synagogue, mosque or other similar entities organized primarily for religious purposes; or
(4) An organization located in a country other than the United States not recognized as a foreign public entity.
Foreign public entity
means:
(1) A foreign government or foreign governmental entity;
(2) A public international organization, which is an organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f);
(3) An entity owned (in whole or in part) or controlled by a foreign government; or
(4) Any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities.
General purpose equipment
means equipment that is not limited to research, medical, scientific, or other technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. See also the definitions of
equipment
and
special purpose equipment
in this section.
Generally accepted accounting principles (GAAP)
has the meaning specified in accounting standards issued by the Government Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB).
Generally accepted government auditing standards (GAGAS),
also known as the Yellow Book, generally accepted government auditing standards issued by the Comptroller General of the United States, which apply to financial audits. Grant agreement or grant
means a legal instrument of financial assistance between a Federal agency and a recipient or between a pass-through entity and a subrecipient, consistent with 31 U.S.C. 6302, 6304:
(1) Is used to enter into a relationship, the principal purpose of which is to transfer anything of value to carry out a public purpose authorized by a law of the United States (see 31 U.S.C. 6101(3)); and not to acquire property or services for the Federal agency or pass-through entity's direct benefit or use;
(2) Is distinguished from a cooperative agreement in that it does not provide for substantial involvement of the Federal agency in carrying out the activity contemplated by the Federal award.
(3) Does not include an agreement that provides only:
(i) Direct United States Government cash assistance to an individual;
(ii) A subsidy;
(iii) A loan;
(vi) A loan guarantee; or
(v) Insurance.
Highest-level owner
means the entity that owns or controls an immediate owner of an applicant or that owns or controls one or more entities that control an immediate owner of an applicant. No entity owns or exercises control of the highest-level owner as defined in the Federal Acquisition Regulations (FAR) (48 CFR 52.204-17).
Hospital
means a facility licensed as a hospital under the law of any State or a facility operated as a hospital by the United States, a State, or a subdivision of a State.
Improper payment
means a payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. The term improper payment includes: any payment to an ineligible recipient; any payment for an ineligible good or service; any duplicate payment; any payment for a good or service not received, except for those payments where authorized by law; any payment that is not authorized by law; and any payment that does not account for credit for applicable discounts. See OMB Circular A-123 Appendix C,
Requirements for Payment Integrity Improvement
for additional definitions and guidance on the requirements for payment integrity.
Indian Tribe
means any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. Chapter 33), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. See 25 U.S.C. 5304(e). This includes any Indian Tribe identified in the annually published Bureau of Indian Affairs list of “
Indian Entities Recognized and Eligible to Receive Services”
and other entities that qualify as an Alaska Native village or regional village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act.
Indirect cost
means those costs incurred for a common or joint purpose benefitting more than one cost objective and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. It may be necessary to establish multiple pools of indirect costs to facilitate equitable distribution of indirect expenses to the cost objectives served. Indirect cost pools must be distributed to benefitted cost objectives on basis that will produce an equitable result in consideration of relative benefits derived. For Institutions of Higher Education (IHE), the term facilities and administrative (F&A) cost is often used to refer to indirect costs.
Indirect cost rate proposal
means the documentation prepared by a recipient to substantiate its request to establish an indirect cost rate as described in appendices III through VII and appendix IX to this part.
Information technology systems
means computing devices, ancillary equipment, software, firmware, and related procedures, services (including support services), and resources. See also the definitions of
computing devices
and
equipment
in this section.
Institution of Higher Education (IHE)
is defined at 20 U.S.C. 1001.
Intangible property
means property having no physical existence, such as trademarks, copyrights, data (including data licenses), websites, IP licenses, trade secrets, patents, patent applications, and property such as loans, notes and other debt instruments, lease agreements, stocks and other instruments of property ownership of either tangible or intangible property, such as intellectual property, software, or software subscriptions or licenses.
Intermediate cost objective
means a cost objective that is used to accumulate indirect costs or service center costs that are subsequently allocated to one or more indirect cost pools or final cost objectives. See this section's definitions of
cost objective
and
final cost objective.
Internal control
for recipients and subrecipients processes designed and implemented by recipients and subrecipients to provide reasonable assurance regarding the achievement of objectives in the following categories: (1) Effectiveness and efficiency of operations;
(2) Reliability of reporting for internal and external use; and
(3) Compliance with applicable laws and regulations.
Loan
means a Federal loan or loan guarantee received or administered by a recipient or subrecipient, except as used in this section's definition of
program income.
(1) The term “direct loan” a disbursement of funds by the Federal Government to a non-Federal borrower under a contract that requires the repayment of such funds with or without interest. The term includes the purchase of, or participation in, a loan made by another lender and financing arrangements that defer payment for more than 90 days, including the sale of a Federal Government asset on credit terms. The term does not include the acquisition of a federally guaranteed loan in satisfaction of default claims or the price support loans of the Commodity Credit Corporation.
(2) The term “direct loan obligation” a binding agreement by a Federal agency to make a direct loan when specified conditions are fulfilled by the borrower.
(3) The term “loan guarantee” any Federal Government guarantee, insurance, or other pledges for the payment of all or a part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal lender but does not include the insurance of deposits, shares, or other withdrawable accounts in financial institutions.
(4) The term “loan guarantee commitment” a binding agreement by a Federal agency to make a loan guarantee when specified conditions are fulfilled by the borrower, the lender, or any other party to the guarantee agreement. Local government
means any unit of government within a State, including a:
(1) County;
(2) Borough;
(3) Municipality;
(4) City;
(5) Town;
(6) Township;
(7) Parish;
(8) Local public authority, including any public housing agency under the United States Housing Act of 1937;
(9) Special district;
(10) School district;
(11) Intrastate district;
(12) Council of governments, whether or not incorporated as a nonprofit corporation under State law; and
(13) Any other agency or instrumentality of a multi-, regional, or intra-State or local government.
Major program
means a Federal program determined by the auditor to be a major program in accordance with § 200.518 or a program identified as a major program by a Federal agency or pass-through entity in accordance with § 200.503(e).
Management decision
means the Federal agency's or pass-through entity's written determination, provided to the auditee, of the adequacy of the auditee's proposed corrective actions to address the findings based on its evaluation of the audit findings and proposed corrective actions.
Micro-purchase
means an individual procurement transaction for supplies or services, the aggregate amount of which does not exceed the micro-purchase threshold. Micro-purchases comprise a subset of a recipient's or subrecipient's small purchases using informal procurement methods as set forth in § 200.320.
Micro-purchase threshold
means the dollar amount at or below which a recipient or subrecipient may purchase property, or services using micro-purchase procedures (see § 200.320). Generally, except as provided in § 200.320, the micro-purchase threshold for procurement activities administered under Federal awards is not to exceed the amount set by the FAR at 48 CFR part 2, subpart 2.1, unless a higher threshold is requested by the recipient or subrecipient and approved by the cognizant agency for indirect costs.
Modified Total Direct Cost (MTDC)
means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $50,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $50,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs and with the approval of the cognizant agency for indirect costs.
Non-discretionary award
means an award made by the Federal agency to specific recipients in accordance with statutory, eligibility, and compliance requirements, such that in keeping with specific statutory authority, the Federal agency cannot exercise judgment (“discretion”). A non-discretionary award amount could be specifically determined or by formula.
Non-Federal entity (NFE)
means a State, local government, Indian Tribe, Institution of Higher Education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient.
Nonprofit organization
means any organization that:
(1) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;
(2) Is not organized primarily for profit;
(3) Uses net proceeds to maintain, improve, or expand the organization's operations; and
(4) Is not an IHE.
Notice of funding opportunity
means a formal announcement of the availability of Federal funding through a financial assistance program from a Federal agency. The notice of funding opportunity provides information on the award, such as who is eligible to apply, the evaluation criteria for selecting a recipient or subrecipient, the required components of an application, and how to submit the application. The notice of funding opportunity is any paper or electronic issuance that an agency uses to announce a funding opportunity, whether it is called a “program announcement,” “notice of funding availability,” “broad agency announcement,” “research announcement,” “solicitation,” or some other term.
Office of Management and Budget (OMB)
means the Executive Office of the President, Office of Management and Budget.
Oversight agency for audit
means the Federal agency that provides the predominant amount of funding directly (direct funding) (as listed on the schedule of expenditures of Federal awards, see § 200.510(b)) to a recipient or subrecipient unless OMB designates a specific cognizant agency for audit. When the direct funding represents less than 25 percent of the total Federal expenditures (as direct and sub-awards) by the recipient or subrecipient, then the Federal agency with the predominant amount of total funding is the designated oversight agency for audit. When there is no direct funding, the Federal agency that is the predominant source of pass-through funding must assume the oversight responsibilities. The duties of the oversight agency for audit and the process for any reassignments are described in § 200.513(b).
Participant
generally an individual participating in or attending program activities under a Federal award, such as trainings or conferences, but who is not responsible for implementation of the Federal award. Individuals committing effort to the development or delivery of program activities under a Federal award (such as consultants, project personnel, or staff members of a recipient or subrecipient) are not participants. Examples of participants may include community members participating in a community outreach program, members of the public whose perspectives or input are sought as part of a program, students, or conference attendees. Participant support costs
means direct costs that support participants (see definition for
Participant
in § 200.1) and their involvement in a Federal award, such as stipends, subsistence allowances, travel allowances, registration fees, temporary dependent care, and per diem paid directly to or on behalf of participants.
Pass-through entity
means a recipient or subrecipient that provides a subaward to a subrecipient (including lower tier subrecipients) to carry out part of a Federal program. The authority of the pass-through entity under this part flows through the subaward agreement between the pass-through entity and subrecipient.
Performance goal
means a measurable target level of performance expressed as a tangible, measurable objective, against which actual achievement can be compared, including a goal expressed as a quantitative standard, value, or rate. In some instances (for example, discretionary research awards), this may be limited to the requirement to submit technical performance reports (to be evaluated in accordance with agency policy).
Period of performance
means the time interval between the start and end date of a Federal award, which may include one or more budget periods. Identification of the period of performance in the Federal award consistent with § 200.211(b)(5) does not commit the Federal agency to fund the award beyond the currently approved budget period.
Personal property
means property other than real property. It may be tangible or intangible.
Personally Identifiable Information (PII)
means information that can be used to distinguish or trace an individual's identity, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual. Some PII is available in public sources such as telephone books, websites, and university listings. The definition of PII is not attached to any single category of information or technology. Instead, it requires a case-by-case assessment of the specific risk that an individual can be identified. Non-PII can become PII whenever additional information is made publicly available, in any medium and from any source, that could be used to identify an individual when combined with other available information.
Prior approval
means the written approval obtained in advance by an authorized official of a Federal agency or pass-through entity of certain costs or programmatic decisions.
Program income
means gross income earned by the recipient or subrecipient that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance except as provided in § 200.307(c). Program income includes but is not limited to income from fees for services performed, the use or rental of real or personal property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license fees, and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided in Federal statutes, regulations, or the terms and conditions of the Federal award, program income does not include rebates, credits, discounts, and interest earned on any of them. See § 200.407. See also 35 U.S.C. 200-212 “Disposition of Rights in Educational Awards,” which applies to inventions made under Federal awards.
Project cost
means total allowable costs incurred under a Federal award and all cost sharing, including third-party contributions.
Property
means real property or personal property. See this section's definitions of
real property
and
personal property.
Protected Personally Identifiable Information (Protected PII)
means PII (see definition in this section), except for PII that must be disclosed by law. Examples of PII include, but are not limited to, social security number; passport number; credit card numbers; clearances, bank numbers; biometrics; date and place of birth; mother's maiden name; criminal, medical and financial records; and educational transcripts.
Questioned cost
has the meaning given in paragraphs (1) through (3).
(1)
Questioned cost
means an amount, expended or received from a Federal award, that in the auditor's judgment:
(i) Is noncompliant or suspected noncompliant with Federal statutes, regulations, or the terms and conditions of the Federal award;
(ii) At the time of the audit, lacked adequate documentation to support compliance; or
(iii) Appeared unreasonable and did not reflect the actions a prudent person would take in the circumstances.
(2) The questioned cost amount under (1)(ii) is calculated as if the portion of a transaction that lacked adequate documentation were confirmed noncompliant.
(3) There is no questioned cost solely because of:
(i) Deficiencies in internal control; or
(ii) Noncompliance with the reporting type of compliance requirement (described in the compliance supplement) if this noncompliance does not affect the amount expended or received from the Federal award.
(4)
Known questioned cost
means a questioned cost specifically identified by the auditor. Known questioned costs are a subset of likely questioned costs.
(5)
Likely questioned cost
means the auditor's best estimate of total questioned costs, not just the known questioned costs. Likely questioned costs are developed by extrapolating from audit evidence obtained, for example, by projecting known questioned costs identified in an audit sample to the entire population from which the sample was drawn. In evaluating the effect of questioned costs on the opinion on compliance, the auditor considers the likely questioned costs, not just the known questioned costs.
(6) Questioned costs are not improper payments until reviewed and confirmed to be improper payments as defined in OMB Circular A-123 Appendix C.
Real property
means land, including land improvements, structures, and appurtenances thereto, and legal interests in land, including fee interest, licenses, rights of way, and easements. Real property excludes moveable machinery and equipment.
Recipient
means an entity that receives a Federal award directly from a Federal agency to carry out an activity under a Federal program. The term recipient does not include subrecipients or individuals that are participants or beneficiaries of the award.
Renewal award
means a Federal award for which the start date is contiguous with, or closely follows, the end of the expiring Federal award. The start date of a renewal award begins a new and distinct period of performance.
Research and Development (R&D)
means all basic and applied research activities and all development activities performed by a recipient or subrecipient. The term research also includes activities involving the training of individuals in research techniques where such activities use the same facilities as other research and development activities and where such activities are not included in the instruction function. “Research” is the systematic study directed toward fuller scientific knowledge or understanding of the subject studied. “Development” is the systematic use of knowledge and understanding gained from research to produce useful materials, devices, systems, or methods, including designing and developing prototypes and processes.
Simplified acquisition threshold
means the dollar amount below which a recipient or subrecipient may purchase property or services using small purchase methods (see § 200.320). Recipients and subrecipients adopt small purchase procedures to expedite the purchase of items at or below the simplified acquisition threshold. The simplified acquisition threshold set in the FAR at 48 CFR part 2, subpart 2.1 is used in this part as the simplified acquisition threshold for secondary procurement activities administered under Federal awards. The recipient or subrecipient is responsible for determining an appropriate simplified acquisition threshold, which is less than or equal to the dollar value established in the FAR, based on internal controls, an evaluation of risk, and its documented procurement procedures. Recipients and subrecipients should also determine if local government purchasing laws apply. This threshold must never exceed the dollar value established in the FAR.
Special purpose equipment
means equipment that is used only for research, medical, scientific, or other similar technical activities. Examples of special purpose equipment include microscopes, x-ray machines, surgical instruments, spectrometers, and associated software. See also the definitions of
equipment
and
general purpose equipment
in this section.
State
means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any agency or instrumentality thereof exclusive of local governments.
Student Financial Aid (SFA)
means Federal awards under those programs of general student assistance, such as those authorized by Title IV of the Higher Education Act of 1965, as amended (20 U.S.C. 1070-1099d), which the U.S. Department of Education administers, and similar programs provided by other Federal agencies. It does not include Federal awards under programs that provide fellowships or similar Federal awards to students on a competitive basis or for specified studies or research.
Subaward
means an award provided by a pass-through entity to a subrecipient for the subrecipient to contribute to the goals and objectives of the project by carrying out part of a Federal award received by the pass-through entity. It does not include payments to a contractor, beneficiary, or participant. A subaward may be provided through any form of legal agreement consistent with criteria in with § 200.331, including an agreement the pass-through entity considers a contract.
Subrecipient
means an entity that receives a subaward from a pass-through entity to carry out part of a Federal award. The term subrecipient does not include a beneficiary or participant. A subrecipient may also be a recipient of other Federal awards directly from a Federal agency.
Subsidiary
means an entity in which more than 50 percent of the entity is owned or controlled directly by a parent corporation or through another subsidiary of a parent corporation.
Supply
means all tangible personal property other than those described in the
equipment
definition. A computing device is a supply if the acquisition cost is below the lesser of the capitalization level established by the recipient or subrecipient for financial statement purposes or $10,000, regardless of the length of its useful life. See this section's definitions of
computing devices
and
equipment.
Telecommunications cost
means the cost of using communication technologies such as mobile phones, landlines, and the internet.
Termination
means the action a Federal agency or pass-through entity takes to discontinue a Federal award, in whole or in part, at any time before the planned end date of the period of performance. Termination does not include discontinuing a Federal award due to a lack of available funds.
Third-party in-kind contributions
means the value of non-cash contributions (
meaning,
property or services) that:
(1) Benefit a project or program funded by a Federal award; and
(2) Are contributed by non-Federal third parties, without charge, to a recipient or subrecipient under a Federal award.
Unliquidated financial obligation
means financial obligations incurred by the recipient or subrecipient but not paid (liquidated) for financial reports prepared on a cash basis. For reports prepared on an accrual basis, these are financial obligations incurred by the recipient or subrecipient but for which expenditures have not been recorded.
Unobligated balance
means the amount of funds under a Federal award that the recipient or subrecipient has not obligated. The amount is computed by subtracting the cumulative amount of the recipient's or subrecipient's unliquidated financial obligations and expenditures under the Federal award from the cumulative amount of funds the Federal agency or pass-through entity authorized the recipient or subrecipient to obligate.
Voluntary committed cost sharing
means cost sharing specifically pledged voluntarily in the proposal's budget on the part of the recipient or subrecipient, which becomes a binding requirement of the Federal award. See § 200.306.
§ 200.100
Purpose.
Section 200.100 outlines the purpose of establishing uniform rules for managing Federal awards, including administrative requirements, cost principles, and audit standards. It affects Federal agencies and recipients of Federal financial assistance by ensuring consistent practices and transparency in the management and reporting of these funds.
View
§ 200.100
Purpose.
41 findings
in our database
This regulation, Section 200.100, outlines the basic rules for how federal awards—money or resources given by the federal government—should be managed. It sets uniform standards for the administrative processes, cost management, and audit requirements that federal agencies must follow. Essentially, it ensures that all federal agencies treat similar awards in the same way, which helps maintain fairness and transparency. Agencies cannot add extra rules unless they are specifically allowed by other regulations or laws.
The regulation applies to federal agencies and the organizations that receive federal funding, known as recipients and subrecipients. It covers the entire lifecycle of a federal award, from the initial management before the money is given out to the ongoing requirements that recipients must follow. It also includes guidelines on how to determine what costs are allowable under these awards and sets standards for audits, which are checks to ensure that the money is being used properly. This is important because it helps prevent misuse of funds and ensures accountability in how taxpayer money is spent.
Generated by gpt-4o-mini on 2025-10-16 10:44:27
(a)
Purpose.
(1) This part establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards. Federal agencies must not impose additional requirements except as allowed in §§ 200.102, 200.211, or unless specifically required by Federal statute, regulation, or Executive order.
(2) This part provides Federal agencies with the policy for collecting and submitting information on all Federal financial assistance programs to the Office of Management and Budget (OMB) and communicating this information to the public. It also establishes Federal policies related to the delivery of this information to the public, including through the use of electronic media. It also sets forth how the General Services Administration (GSA), OMB, and Federal agencies implement the Federal Program Information Act (31 U.S.C. 6101-6106).
(b)
Administrative requirements.
Subparts B through D set forth the uniform administrative requirements for Federal financial assistance. This includes establishing requirements for Federal agencies management of Federal financial assistance programs before a Federal award is made, and requirements that Federal agencies may impose on recipients and subrecipients throughout the lifecycle of a Federal award.
(c)
Cost principles.
Subpart E establishes principles for determining allowable costs incurred by recipients and subrecipients under Federal awards. These principles are for the purpose of cost determination. They do not address the circumstances nor dictate the extent of Federal Government funding of a particular program or project.
(d)
Single Audit Requirements and Audit Follow-up.
Subpart F is issued pursuant to the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). Subpart F sets forth the standards for achieving consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards. Subpart F also provides the policies and procedures for Federal agencies or pass-through entities when using the results of these audits.
§ 200.101
Applicability.
Section 200.101 outlines that Federal agencies must apply specific regulations (subparts A through F) to non-Federal entities receiving Federal awards, and may also apply them to other entities unless stated otherwise. It emphasizes consistent application of these requirements and clarifies that terms like "must," "should," and "may" indicate varying levels of obligation.
View
§ 200.101
Applicability.
16 findings
in our database
This regulation outlines who must follow certain federal guidelines when federal agencies provide funding to organizations that are not part of the federal government. Specifically, it states that federal agencies need to apply these guidelines to non-federal entities, like state governments or nonprofit organizations, unless there are specific rules that say otherwise. The guidelines cover various aspects of federal awards, including how funds should be managed and reported. The use of terms like "must" indicates a strict requirement, while "should" or "may" suggests a recommendation that allows for some flexibility.
The regulation applies to federal agencies giving out financial assistance, which can include grants, loans, and contracts. It clarifies that the requirements may vary depending on the type of funding and the recipient. For example, certain sections of the guidelines apply to grants and cooperative agreements, while others may apply to loans or contracts. This means that organizations receiving federal funds need to understand which rules apply to them based on the type of assistance they are receiving.
Understanding this regulation is important because it helps ensure that federal funds are used properly and consistently across different organizations. It sets standards for accountability and transparency, which can help prevent misuse of funds. For organizations receiving federal assistance, knowing these requirements can aid in compliance, ensuring they meet the necessary conditions to receive and manage federal money effectively.
Generated by gpt-4o-mini on 2025-10-16 10:44:38
(a)
General applicability to Federal agencies.
(1) Subparts A through F apply to Federal agencies that make Federal awards to non-Federal entities. As provided in paragraph (a)(2), subparts A through E may also apply to Federal agencies that make Federal awards to other entities.
(2) Federal agencies must apply subparts A though F of this part to non-Federal entities unless a particular section of this part or Federal statute provides otherwise. Federal agencies may apply subparts A through E of this part to Federal agencies, for-profit organizations, foreign public entities, or foreign organizations as permitted in agency regulations or program statutes, except when a Federal agency determines that the application of these subparts would be inconsistent with the international responsibilities of the United States or the laws of a foreign government. Subpart F only applies to non-Federal entities as defined in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507). Federal agencies should apply the requirements to all recipients in a consistent and equitable manner to the extent permitted within applicable statutes, regulations, and policies.
(3) Throughout subparts A through F, the word “must” indicates a requirement. The words “should” or “may” indicate a recommended approach and permit discretion.
(4) Throughout subparts A through E, when the word “or” is used between the terms “recipient” and “subrecipient,” any requirements or recommendations in the relevant provisions of this part apply to the recipient, the subrecipient, or both, as applicable. The use of “or” between recipient and subrecipient does not mean that applicable requirements or recommendations only apply to one of these entities unless the context clearly indicates otherwise.
(b)
Applicability to Federal financial assistance.
(1) Paragraphs (b)(2) through (b)(5) of this section describe what portions of this part apply to specific types of Federal financial assistance. Paragraphs (d) and (e) of this section explain additional exceptions related to governing provisions and Federal program applicability. The terms and conditions of Federal awards (including this part) flow down to subawards to subrecipients unless a particular section of this part or the terms and conditions of the Federal award specifically indicate otherwise. Pass-through entities must comply with the requirements described in subpart D, §§ 200.331 through 200.333, and any other sections of this part addressing pass-through entities.
(2) Subpart A (Acronyms and Definitions) and subpart B (General Provisions) apply to all Federal financial assistance, except that §§ 200.111 (English language), 200.112 (Conflict of interest), and 200.113 (Mandatory disclosures) do not apply to agreements for loans, loan guarantees, interest subsidies, and insurance.
(3) Subpart C (Pre-Federal Award Requirements and Contents of Federal Awards) and subpart D (Post Federal Award Requirements) only apply to grants and cooperative agreements with the following exceptions:
(i) Section 200.203 (Requirement to provide public notice of Federal financial assistance programs) also applies to agreements for loans, loan guarantees, interest subsidies, and insurance;
(ii) Section 200.216 (Prohibition on certain telecommunications and video surveillance equipment or services) applies to loans and grants (see Pub. L. 115-232, Div. A, Title VIII, § 889, as amended); and
(iii) Sections 200.303 (Internal controls) and 200.331 through 200.333 (Subrecipient monitoring and management) also apply to all types of Federal financial assistance.
(4) Subpart E (Cost Principles) applies to grants and cooperative agreements, but does not apply to the following:
(i) Food commodities provided through grants and cooperative agreements;
(ii) Fixed amount awards, except for §§ 200.400(g), 200.402 through 200.405, and 200.407(d), which do apply;
(iii) Agreements for loans, loan guarantees, interest subsidies, and insurance; and
(iv) Federal awards to hospitals (see Appendix IX—Hospital Cost Principles).
(5) Subpart F (Audit Requirements) only applies to the following items when awarded to a non-Federal entity:
(i) Grants and cooperative agreements (including fixed amount awards);
(ii) Contracts and subcontracts awarded under the FAR (except for fixed price contracts and subcontracts);
(iii) Agreements for loans, loan guarantees, interest subsidies, and insurance; and
(iv) Any other form of Federal financial assistance as defined by the Single Audit Act Amendment of 1996 (codified at 31 U.S.C. 7501-7507).
(c)
Applicability to different types of contracts and subcontracts awarded by a Federal agency to a non-Federal entity under the Federal Acquisition Regulations (FAR).
(1) Paragraphs (c)(2) and (c)(3) of this section describe what portions of this part apply to specific types of contracts and subcontracts awarded by a Federal agency to a non-Federal entity. See also paragraph (b)(5)(ii) on audit requirements. For both paragraphs (c)(2) and (c)(3):
(i) In cases of conflict between the requirements of applicable portions of this part and the terms and conditions of the contract, the terms and conditions of the contract and the FAR prevail.
(ii) When the Cost Accounting Standards (CAS) are applicable to the contract or subcontract, they also take precedence over this part.
(iii) In addition, costs that are identified as unallowable under 41 U.S.C. 4304(a) and as stated in the FAR (48 CFR part 31, subpart 31.2, and 48 CFR 31.603) are always unallowable.
(2)
Cost-reimbursement contract under the FAR awarded to a non-Federal entity.
When a non-Federal entity is awarded a cost-reimbursement contract under the FAR, only subpart D, §§ 200.331 through 200.333, and subparts E and F are applicable.
(3)
Fixed-price contract or subcontract under the FAR awarded to a non-Federal entity.
When a non-Federal entity is awarded a fixed-price contract or subcontract under the FAR, only subpart A, subpart B (except for §§ 200.111, 200.112, and 200.113), subpart D (only at § 200.303 and §§ 200.331 through 200.333), and subpart E are applicable to the contract, except that subpart E is not applicable to fixed-price contracts and subcontracts that are not negotiated.
(d)
Governing provisions.
With the exception of subpart F, which is required by the Single Audit Act, Federal statutes or regulations govern in any circumstances where they conflict with the provisions of this part. For agreements with Indian Tribes, this includes the provisions of the Indian Self-Determination and Education and Assistance Act (ISDEAA), as amended (see 25 U.S.C. 5301-5423).
(e)
Program applicability.
Except for §§ 200.203, 200.216, and 200.331 through 200.333, the requirements in subparts C, D, and E do not apply to the following programs:
(1) The block grant awards authorized by the Omnibus Budget Reconciliation Act of 1981 (including Community Services), except to the extent that subpart E apply to subrecipients of Community Services Block Grant funds pursuant to 42 U.S.C. 9916(a)(1)(B);
(2) Federal awards to local education agencies under 20 U.S.C. 7702-7703b, (portions of the Impact Aid program);
(3) Payments under the Department of Veterans Affairs' State Home Per Diem Program (38 U.S.C. 1741); and
(4) Federal awards authorized under the Child Care and Development Block Grant Act of 1990, as amended:
(i) Child Care and Development Block Grant (42 U.S.C. 9858).
(ii) Child Care Mandatory and Matching Funds of the Child Care and Development Fund (42 U.S.C. 9858).
(f)
Additional program applicability.
Except for §§ 200.203 and 200.216, the guidance in subpart C does not apply to the following programs:
(1) Entitlement Federal awards to carry out the following programs of the Social Security Act:
(i) Temporary Assistance for Needy Families (Title IV-A of the Social Security Act, 42 U.S.C. 601-619);
(ii) Child Support Enforcement and Establishment of Paternity (Title IV-D of the Social Security Act, 42 U.S.C. 651-669b);
(iii) Federal Payments for Foster Care, Prevention, and Permanency (Title IV-E of the Act, 42 U.S.C. 670-679c);
(iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and XVI-AABD of the Act, as amended);
(v) Medical Assistance (Medicaid) (Title XIX of the Act, 42 U.S.C. 1396-1396w-5) not including the State Medicaid Fraud Control program authorized by Section 1903(a)(6)(B) of the Social Security Act (42 U.S.C. 1396b(a)(6)(B)); and
(vi) Children's Health Insurance Program (Title XXI of the Act, 42 U.S.C. 1397aa-1397mm).
(2) A Federal award for an experimental, pilot, or demonstration project that is also supported by a Federal award listed in paragraph (f)(1) of this section.
(3) Federal awards under subsection 412(e) of the Immigration and Nationality Act and subsection 501(a) of the Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 1809), for cash assistance, medical assistance, and supplemental security income benefits to refugees and entrants and the administrative costs of providing the assistance and benefits (8 U.S.C. 1522(e)).
(4) Entitlement awards under the following programs of The National School Lunch Act:
(i) 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. 1755);
(iii) Special Meal Assistance (Section 11 of the Act, 42 U.S.C. 1759a);
(iv) Summer Food Service Program for Children (Section 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. 1766).
(5) Entitlement awards under the following programs of The Child Nutrition Act of 1966:
(i) Special Milk Program (Section 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 Administrative Expenses (Section 7 of the Act, 42 U.S.C. 1776).
(6) Entitlement awards for State Administrative Expenses under The Food and Nutrition Act of 2008 (Section 16 of the Act, 7 U.S.C. 2025).
(7) Non-discretionary Federal awards under the following non-entitlement programs:
(i) Special Supplemental Nutrition Program for Women, Infants and Children (Section 17 of the Child Nutrition Act of 1966) 42 U.S.C. 1786;
(ii) The Emergency Food Assistance Programs (Emergency Food Assistance Act of 1983) 7 U.S.C. 7501 note; and
(iii) Commodity Supplemental Food Program (Section 5 of the Agriculture and Consumer Protection Act of 1973) 7 U.S.C. 612c note.
§ 200.102
Exceptions.
Section 200.102 allows the Office of Management and Budget (OMB) and Federal agencies to grant exceptions to certain requirements for classes of Federal awards, recipients, or subrecipients, particularly in innovative or emergency situations. These exceptions can be made without OMB approval if mandated by Federal statutes, and agencies can also provide case-by-case exceptions, especially regarding cost allocation plans.
View
§ 200.102
Exceptions.
46 findings
in our database
Section 200.102 of the Code of Federal Regulations outlines the conditions under which exceptions can be made to certain federal requirements. Essentially, it allows federal agencies to bypass specific rules for groups of federal awards, recipients, or subrecipients if these exceptions are not against the law. For instance, if a federal agency wants to support a new and innovative program that uses data to manage risks, they can request an exception to reduce some compliance burdens, as long as they still ensure good performance. Additionally, in emergencies, agencies can also seek exceptions.
This regulation applies to federal agencies and the various entities they fund, like organizations or individuals receiving federal awards. It allows these agencies to adjust requirements either broadly for groups of awards or specifically for individual cases, depending on the situation. However, they cannot make exceptions if the law prohibits it, and some specific rules must always be followed. This flexibility is important because it helps federal agencies respond effectively to unique situations or innovative projects without getting bogged down by rigid regulations.
Generated by gpt-4o-mini on 2025-10-16 10:44:43
(a)
OMB class exceptions.
Except for subpart F, OMB may allow exceptions from requirements of this part for classes of Federal awards, recipients, or subrecipients when the exceptions are not prohibited by statute. For example, Federal agencies may request exceptions in support of innovative program designs that apply a risk-based, data-driven framework to alleviate select compliance requirements and hold recipients accountable for good performance. See also § 200.206. Federal agencies may also request exceptions in emergency situations. When OMB allows an exception to requirements of this part, the Federal agency remains responsible for ensuring the exception is applied to Federal awards in a manner consistent with Federal statutes and regulations.
(b)
Statutory and regulatory exceptions.
A Federal agency may adjust requirements to a class of Federal awards, recipients, or subrecipients when required by Federal statutes or regulations, except for the requirements in subpart F. Except for provisions in subpart F, when a Federal statute requires exceptions to requirements of this part for a class of Federal awards, recipients, or subrecipients, a Federal agency does not need OMB approval to allow those exceptions. See also § 200.106.
(c)
Federal agency exceptions.
Federal agencies may allow exceptions to requirements of this part on a case-by-case basis for individual Federal awards, recipients, or subrecipients, except when the exceptions are prohibited by law or other approval is expressly required by this part. Only the cognizant agency for indirect costs may authorize exceptions related to cost allocation plans or indirect cost rate proposals. A Federal agency may also apply less restrictive requirements when issuing fixed amount awards (see § 200.1), except for those requirements imposed by statute or in subpart F.
§ 200.103
Authorities.
Section 200.103 outlines the legal authorities that enable various parts of the regulations, specifically citing multiple federal laws related to financial management, grants, and audits. It affects federal agencies and organizations involved in federal funding and financial oversight.
View
§ 200.103
Authorities.
2 findings
in our database
This section outlines the legal foundations for various parts of federal regulations related to financial management and oversight. It specifies that certain subparts (B through D, E, and F) are authorized by specific laws and acts. These laws govern how federal funds are managed, how grants are handled, and the responsibilities of federal agencies in financial matters. Essentially, it establishes the legal authority for the rules that follow in these subparts.
The regulation applies to federal agencies and organizations that receive federal funding or grants. It is relevant in situations where these entities must comply with financial reporting, auditing, and management practices. For example, if a nonprofit organization receives a federal grant, it must adhere to the guidelines set out in these subparts to ensure proper use of the funds.
Understanding this regulation is important because it helps ensure transparency and accountability in how federal money is spent. By following these rules, agencies and organizations can avoid misuse of funds and ensure that taxpayers' money is managed responsibly. This oversight also protects the integrity of federal programs and helps maintain public trust in government operations.
Generated by gpt-4o-mini on 2025-10-16 10:44:50
This part is issued under the following authorities.
(a) Subparts B through D are authorized under 31 U.S.C. 503 (the Chief Financial Officers Act, Functions of the Deputy Director for Management); the Federal Program Information Act (Pub, L. 95-220 and Pub. L. 98-169, as amended, codified at 31 U.S.C. 6101-6106); the Federal Grant and Cooperative Agreement Act of 1977 (Pub. L. 95-224, as amended, codified at 31 U.S.C. 6301-6309); 41 U.S.C. 1101-1131 (the Office of Federal Procurement Policy Act); Reorganization Plan No. 2 of 1970 and Executive Order 11541 (“Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President”); and the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507).
(b) Subpart E is authorized under the Budget and Accounting Act of 1921, as amended; the Budget and Accounting Procedures Act of 1950, as amended (31 U.S.C. 1101-1126); the Chief Financial Officers Act of 1990 (31 U.S.C. 503-504); Reorganization Plan No. 2 of 1970; and Executive Order 11541, “Prescribing the Duties of the Office of Management and Budget and the Domestic Policy Council in the Executive Office of the President.” OMB also relies on authority under 31 U.S.C. 503 and 31 U.S.C. 6307.
(c) Subpart F is authorized under the Single Audit Act Amendments of 1996 (codified at 31 U.S.C. 7501-7507). OMB also relies on authority under 31 U.S.C. 503 and 31 U.S.C. 6307.
§ 200.104
Supersession.
Section 200.104 states that this part replaces earlier OMB guidance and certain circulars about uniform rules for managing federal awards, including administrative requirements, cost principles, and audit standards. It affects organizations and entities that receive federal funding.
View
§ 200.104
Supersession.
Section 200.104 states that this regulation replaces earlier guidance from the Office of Management and Budget (OMB) related to how federal awards should be managed. This includes rules about administrative tasks, cost principles (which are guidelines on how to handle expenses), and audit requirements (which are checks to ensure funds are used correctly). Essentially, it means that any previous rules or circulars from OMB on these topics are no longer in effect and have been updated or changed by this new regulation.
This regulation applies to organizations and entities that receive federal funding, such as state and local governments, nonprofits, and educational institutions. It is relevant in situations where these organizations are managing federal grants or awards. The practical implication of this is that these entities need to follow the new guidelines set out in this section, ensuring they understand the updated requirements for handling federal funds. This matters because it helps ensure that taxpayer money is used effectively and appropriately, promoting transparency and accountability in how federal funds are managed.
Generated by gpt-4o-mini on 2025-10-16 10:44:56
This part superseded previous OMB guidance issued under Title 2, subtitle A, chapter II of the Code of Federal Regulations and certain OMB circulars related to uniform administrative requirements, cost principles, and audit requirements for Federal awards.
§ 200.105
Effect on other issuances.
Section 200.105 states that for Federal awards, this part takes priority over any conflicting administrative materials unless required by law. It also specifies that agencies can only impose binding requirements on recipients through public notice or by including them in the award terms.
View
§ 200.105
Effect on other issuances.
Section 200.105 outlines how certain federal rules apply when federal agencies give out awards, like grants or contracts. It states that if there are any rules or guidelines from the agency that conflict with this section, the rules in this section take priority. This means that any conflicting administrative requirements or manuals cannot be enforced unless they are specifically required by law.
This regulation applies to federal agencies and the recipients of their awards, such as organizations or individuals receiving funding. It ensures that any new requirements imposed on these recipients must follow a clear process, either through public notice and comment or by being included in the award's terms and conditions. This is important because it protects recipients from unexpected or unfair demands and ensures that any changes are made transparently and legally.
Generated by gpt-4o-mini on 2025-10-16 10:45:01
(a)
Superseding inconsistent requirements.
For Federal awards made subject to this part by a Federal agency, this part takes precedence over any administrative requirements, program manuals, handbooks, and other non-regulatory materials that are inconsistent with the requirements of this part upon implementation by the Federal agency, except to the extent that they are required by statute or authorized in accordance with § 200.102.
(b)
Imposition of requirements on recipients.
Agencies may only impose legally binding requirements on recipients and subrecipients through:
(1) Notice and public comment procedures through an approved agency process, including as authorized by this part, other statutes, or regulations; or
(2) Incorporating requirements into the terms and conditions of a Federal award as permitted by Federal statute, regulation, or this part.
§ 200.106
Agency implementation.
Section 200.106 outlines that Federal agencies must follow specific rules when awarding funds to non-Federal entities, ensuring compliance with certain regulations unless exceptions are allowed by law or approved by the Office of Management and Budget (OMB). This affects Federal agencies, non-Federal entities, and their recipients and subrecipients.
View
§ 200.106
Agency implementation.
Section 200.106 outlines what federal agencies and other organizations must do when they receive federal funding. It specifies that federal agencies are responsible for following certain rules and guidelines when they give money to non-federal entities, which can include state and local governments, nonprofits, and other organizations. These rules are detailed in specific sections of the regulation, and agencies must implement them unless there are different requirements set by law or approved by the Office of Management and Budget (OMB).
This regulation applies to federal agencies and the organizations that receive funding from them. It ensures that everyone involved understands their responsibilities and follows the same guidelines when managing federal funds. This is important because it helps maintain consistency and accountability in how federal money is used, ensuring that it is spent properly and effectively. By having clear rules, it also helps prevent misuse of funds and promotes transparency in government spending.
Generated by gpt-4o-mini on 2025-10-16 10:45:09
The specific requirements and responsibilities of Federal agencies, non-Federal entities, recipients, and subrecipients are set forth in this part. Federal agencies making Federal awards to non-Federal entities must implement the language in subparts C through F of this part in codified regulations unless different provisions are required by Federal statute or are approved by OMB.
§ 200.107
OMB responsibilities.
OMB is responsible for reviewing federal agency regulations and ensuring they are implemented effectively and consistently. Any exceptions to these regulations must be approved by OMB with proper justification from the agency.
View
§ 200.107
OMB responsibilities.
Section 200.107 outlines the responsibilities of the Office of Management and Budget (OMB) regarding federal agency regulations. Essentially, OMB is in charge of reviewing the rules and practices that federal agencies put in place to make sure they follow the guidelines set out in this section. OMB also helps clarify what these guidelines mean and offers support to agencies to ensure they are applying them effectively and consistently.
This regulation applies to all federal agencies that create or implement rules related to the policies covered in this section. If an agency wants to make an exception to the established rules, they must get approval from OMB and provide a solid reason for why the exception is necessary. This process ensures that any changes are carefully considered and justified, maintaining a level of oversight and accountability in how federal regulations are applied.
The practical implications of this regulation are significant. By having OMB review and assist with the implementation of federal regulations, it helps ensure that agencies operate smoothly and in line with federal standards. This oversight can lead to more efficient government operations and better services for the public. It also means that agencies must be transparent about their actions and decisions, which helps build trust in government processes.
Generated by gpt-4o-mini on 2025-10-16 10:45:18
OMB will review Federal agency regulations and implementation of this part. OMB will provide interpretations of policy requirements and assistance to ensure effective, efficient, and consistent implementation. Any exceptions will be subject to approval by OMB and only with adequate justification from the Federal agency.
§ 200.108
Inquiries.
Section 200.108 states that federal agencies should direct inquiries about this part to the Office of Management and Budget (OMB), while recipients or subrecipients should contact the relevant federal agency or pass-through entity for their questions. This affects federal agencies and those receiving federal funds.
View
§ 200.108
Inquiries.
This regulation outlines how questions or requests for information should be handled regarding specific federal guidelines. If federal agencies have inquiries about this regulation, they should reach out to the Office of Management and Budget (OMB). On the other hand, if organizations or individuals receiving federal funds (called recipients or subrecipients) have questions, they need to contact the relevant federal agency directly. This could be the agency that provided the funding, the agency responsible for overseeing indirect costs, the agency in charge of audits, or the organization that passed the funds to them.
This regulation applies to anyone involved in federal funding, including government agencies and organizations that receive federal money. It’s important because it clarifies where to go for help or information, ensuring that questions are directed to the right place. This helps maintain clear communication and accountability, making it easier for organizations to comply with federal requirements and manage their funding effectively.
Generated by gpt-4o-mini on 2025-10-16 10:45:24
Inquiries from Federal agencies concerning this part may be directed to OMB. Inquiries from recipients or subrecipients should be addressed to the Federal agency, the cognizant agency for indirect costs, the cognizant agency for audit, or the pass-through entity as appropriate.
§ 200.109
Review date.
Section 200.109 states that the Office of Management and Budget (OMB) will periodically review this regulation. This affects organizations and agencies that must comply with these federal guidelines.
View
§ 200.109
Review date.
Section 200.109 states that the Office of Management and Budget (OMB) will regularly check and evaluate this regulation. This means that the OMB will look at the rules and guidelines outlined in this section to ensure they are still relevant and effective.
This regulation applies to federal agencies and organizations that receive federal funding. The OMB's review helps ensure that the rules are up-to-date and meet the needs of those involved, including both the agencies and the public.
The practical implication of this regulation is that it promotes accountability and improvement. By regularly reviewing the rules, the OMB can identify any necessary changes or updates, ensuring that the regulations remain effective and beneficial. This process helps maintain transparency and efficiency in how federal funds are managed and used.
Generated by gpt-4o-mini on 2025-10-16 10:45:29
OMB will review this part periodically.
§ 200.110
Effective date.
Section 200.110 states that the standards for managing Federal awards take effect when Federal agencies implement them or when amendments are finalized. Existing indirect cost rates will stay valid until they expire, and any changes to these rates will take effect based on the timing of new negotiations for the recipient's fiscal year.
View
§ 200.110
Effective date.
10 findings
in our database
This regulation outlines when certain standards related to federal awards take effect. Essentially, it states that the rules will be in effect as soon as federal agencies start using them or when any updates to these rules are finalized. This means that once the agencies decide to implement these standards, they must follow them right away.
The regulation specifically applies to federal agencies and the organizations that receive federal funding, known as recipients or subrecipients. It addresses how indirect cost rates—essentially, the overhead costs that organizations can claim—are managed. Existing rates will stay in effect until they expire, and any changes to these rates will only take effect when a new rate is negotiated for the organization's fiscal year. This is important because it helps organizations understand when they can expect changes to their funding and how to plan their budgets accordingly.
Generated by gpt-4o-mini on 2025-10-16 10:45:34
(a) The standards set forth in this part affecting the administration of Federal awards by Federal agencies become effective once implemented by Federal agencies or when any future amendment to this part becomes final.
(b) Existing negotiated indirect cost rates will remain in place until they expire. The effective date of changes to indirect cost rates must be based upon the date a newly re-negotiated rate goes into effect for the recipient's or subrecipient's fiscal year. Therefore, for indirect cost rates and cost allocation plans, the revisions to this part (as of the publication date for revisions to this guidance) become effective in generating proposals and negotiating a new rate (when the rate is re-negotiated).
§ 200.111
English language.
Section 200.111 requires that all Federal financial assistance documents be in English and in U.S. dollars, but allows for translations to other languages to broaden applicant participation. If there are inconsistencies between English and another language, the English version prevails, and awards may be provided in both English and a more familiar language if many employees are not fluent in English.
View
§ 200.111
English language.
This regulation requires that all announcements, applications, and information related to federal financial assistance be provided in English and in U.S. dollars. However, federal agencies and recipients can translate these documents into other languages if it helps reach more applicants or specific communities, especially in places where English isn't the main language. It's important that there is always an official English version of these documents that clearly outlines the terms and conditions.
The regulation applies to federal agencies, recipients of federal funds, and subrecipients, particularly in situations where they are managing federal awards. If a funding opportunity allows it, applications and reports can be submitted in languages other than English. However, if there are any differences between the English version and a translated version, the English version will take precedence. Additionally, if many employees involved in managing a federal award are not fluent in English, the award should be available in both English and their preferred language to ensure clear understanding and compliance.
Generated by gpt-4o-mini on 2025-10-16 10:45:41
(a) All Federal financial assistance announcements, applications, and Federal award information should be in the English language and must be in terms of U.S. dollars. However, Federal agencies, recipients, and subrecipients may issue or translate a Federal award or other documents into another language. A Federal agency may translate formal or informal announcements of the availability of Federal funding through a financial assistance program, such as a notice of funding opportunity, when translations may serve to increase the pool of applicants or the participation of a specific community (for example, programs administered in foreign countries where the primary language is not English). Federal agencies must maintain an official controlling English version of the Federal financial assistance announcement and the Federal award, including the terms and conditions.(b) Applications, reports, and official correspondence may be submitted in languages other than English if specified in the notice of funding opportunity or the terms and conditions of the Federal award.
(c) In the event of inconsistency between English and another language, the English language meaning will control. When a significant portion of the recipient's or subrecipient's employees administering a Federal award are not fluent in English, the Federal award should be provided in English and the language(s) with which employees are more familiar.
§ 200.112
Conflict of interest.
Federal agencies are required to create conflict of interest policies for federal awards. Recipients or subrecipients must disclose any potential conflicts in writing to the relevant federal agency or pass-through entity.
View
§ 200.112
Conflict of interest.
44 findings
in our database
Section 200.112 focuses on conflicts of interest in federal awards, which are funds or resources provided by the federal government to support specific projects or activities. This regulation requires federal agencies to create clear policies that outline what constitutes a conflict of interest and how it should be handled. Essentially, if a person or organization receiving these federal funds (called a recipient) or any smaller organization they work with (called a subrecipient) sees a potential conflict of interest—like a personal relationship or financial interest that could affect their work—they must inform the federal agency or the organization that provided the funds. This disclosure needs to be in writing and follow the specific rules set by the federal agency.
This regulation applies to anyone involved in federal awards, including individuals, businesses, and nonprofit organizations. It is particularly relevant when these entities are making decisions about how to use the federal funds. The practical implication of this rule is that it helps ensure transparency and fairness in the use of taxpayer money. By requiring disclosures of potential conflicts, it aims to prevent situations where personal interests might improperly influence decisions, thereby protecting the integrity of federal programs and maintaining public trust.
Generated by gpt-4o-mini on 2025-10-16 10:45:47
Federal agencies must establish conflict of interest policies for Federal awards. A recipient or subrecipient must disclose in writing any potential conflict of interest to the Federal agency or pass-through entity in accordance with the established Federal agency policies.
§ 200.113
Mandatory disclosures.
Section 200.113 requires applicants, recipients, and subrecipients of Federal awards to promptly report any credible evidence of violations related to fraud, conflict of interest, or bribery to the relevant Federal agency and other parties. Failure to disclose such information may lead to penalties or remedies as outlined in the regulations.
View
§ 200.113
Mandatory disclosures.
7 findings
in our database
This regulation requires anyone who receives federal funding—like grants or contracts—to quickly report any credible evidence they have of serious wrongdoing related to that funding. This includes issues like fraud, conflicts of interest, bribery, or violations of certain laws that protect against false claims. If someone suspects such violations, they must inform the federal agency that provided the funding, the agency's Office of Inspector General, and any other relevant organizations involved in the funding process.
The regulation applies to applicants, recipients, and subrecipients of federal awards, meaning anyone involved in receiving or managing federal funds. It’s important because failing to report these issues can lead to serious consequences, including penalties or loss of funding. This requirement helps ensure transparency and accountability in how federal money is used, ultimately protecting taxpayer interests and maintaining trust in federal programs.
Generated by gpt-4o-mini on 2025-10-16 10:45:53
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 Code or a violation of the civil False Claims Act (31 U.S.C. 3729-3733). The disclosure must be made in writing to the Federal agency, the agency's Office of Inspector General, and pass-through entity (if applicable). Recipients and subrecipients are also required to report matters related to recipient integrity and performance in accordance with Appendix XII of this part. Failure to make required disclosures can result in any of the remedies described in § 200.339. (See also 2 CFR part 180, 31 U.S.C. 3321, and 41 U.S.C. 2313.)
§ 200.200
Purpose.
Section 200.200 outlines that the following sections (200.201 to 200.217) provide guidelines for Federal agencies on how to plan, announce, apply for, and award programs. This affects Federal agencies involved in these processes.
View
§ 200.200
Purpose.
18 findings
in our database
Section 200.200 outlines the purpose of specific regulations that guide how federal agencies should handle the early stages of funding programs. This includes everything from planning the program and announcing it to accepting applications and making awards. Essentially, it sets the framework for how federal money is distributed to ensure that the process is clear and organized.
This regulation applies to federal agencies that are involved in providing grants or funding to various organizations or individuals. It is relevant whenever these agencies are preparing to launch a new program or initiative that requires applicants to submit proposals for funding. By following these guidelines, agencies can ensure that they are fair and transparent in their decision-making.
The practical implications of this regulation are significant. It helps to create a consistent approach across different federal agencies, making it easier for applicants to understand what is required of them. This consistency can lead to better planning and execution of programs, ultimately benefiting the communities and individuals who rely on federal support.
Generated by gpt-4o-mini on 2025-10-16 10:45:58
Sections 200.201 through 200.217 prescribe instructions and other pre-award matters to be used by Federal agencies in the program planning, announcement, application, and award processes.
§ 200.201
Use of grants, cooperative agreements, fixed amount awards, and contracts.
Section 200.201 outlines how federal agencies or pass-through entities must choose the appropriate type of agreement for federal awards, such as grants or contracts. It specifies that fixed amount awards can be used when projects have clear goals and measurable outcomes, with payments based on performance rather than actual costs, while still requiring record retention and audit compliance from recipients.
View
§ 200.201
Use of grants, cooperative agreements, fixed amount awards, and contracts.
9 findings
in our database
Section 200.201 outlines how federal agencies and organizations receiving federal funds should choose the type of agreement for funding, such as grants or contracts. It emphasizes that these agreements must be selected based on specific guidelines to ensure they meet the needs of the project. For example, a "fixed amount award" is a type of funding where the total amount is agreed upon in advance, based on estimated costs and project goals. This means that once the budget is set, the recipient does not need to report on actual expenses, but they must show that they achieved the project's objectives.
This regulation applies to federal agencies and any organizations or individuals that receive federal funds, including nonprofits and local governments. It is particularly relevant when a project has clear goals and measurable outcomes. The practical implications of this regulation are significant: it allows for flexibility in how funds are managed, as recipients can focus on meeting project goals rather than tracking every expense. However, they still need to keep records and may have to return funds if they don’t complete the agreed-upon activities. This helps ensure accountability while also streamlining the funding process.
Generated by gpt-4o-mini on 2025-10-16 10:46:04
(a)
Federal awards.
The Federal agency or pass-through entity must decide on the appropriate type of agreement for a Federal award (for example, a grant, cooperative agreement, subaward, or contract) in accordance with this guidance. See the Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301-6309).
(b)
Fixed amount awards.
The Federal agency or pass-through entity (see § 200.333) may use fixed amount awards (see the definition of
fixed amount awards
in § 200.1) for which the following conditions apply:
(1) The Federal award amount is negotiated using the cost principles (or other pricing information) as a guide. See § 200.101(b)(4)(ii) for further information on which provisions in subpart E (cost principles) apply to fixed amount awards. The Federal agency or pass-through entity may use fixed amount awards if the project scope has measurable goals and objectives and if accurate cost, historical, or unit pricing data is available to establish a fixed budget based on a reasonable estimate of actual costs. Budgets for fixed amount awards are negotiated with the recipient or subrecipient and the total amount of Federal funding is determined in accordance with the recipient's or subrecipient's proposal, available pricing data, and subpart E. Accountability must be based on performance and results, which can be communicated in performance reports or through routine monitoring. There is no expected routine monitoring of the actual costs incurred by the recipient or subrecipient under the Federal award. Therefore, no financial reporting is required. This does not absolve the recipient or subrecipient from the record retention requirements contained in §§ 200.334 through 200.338; nor does it absolve the recipient or subrecipient of the responsibilities of making records available for review during an audit. See § 200.101(b)(5)(i). Payments must be based on meeting specific requirements of the Federal award. Some of the ways in which the Federal award may be paid include, but are not limited to:
(i) In several partial payments. The amount of each payment as well as the “milestone” or event triggering the payment, should be agreed to in advance and included in the Federal award;
(ii) On a unit price basis. The defined unit(s) or price(s) should be agreed to in advance and included in the Federal award; or
(iii) In one payment at the completion of the Federal award.
(2) A fixed amount award must not be used in programs that require cost sharing.
(3) A fixed amount award may generate and use program income in accordance with the terms and conditions of the Federal award; however, the requirements of § 200.307 do not apply.
(4) At the end of a fixed amount award, the recipient or subrecipient must certify in writing to the Federal agency or pass-through entity that the project was completed as agreed to in the Federal award, or identify those activities that were not completed, and that all expenditures were incurred in accordance with § 200.403. When the required activities were not carried out, including fixed amount awards paid on a unit price basis under 200.201(b)(1)(ii), the amount of the Federal award must be reduced by the amount that reflects the activities that were not completed in accordance with the Federal award. When the required activities were completed in accordance with the terms and conditions of the Federal award, the recipient or subrecipient is entitled to any unexpended funds.
(5) Periodic reports may be established for fixed amount awards.
(6) Prior approval requirements that apply to fixed amount awards are § 200.308(f) (paragraphs 1 through 3, 6 through 8, and 10) and § 200.333.
§ 200.202
Program planning and design.
Section 200.202 requires Federal agencies to design programs with clear goals and measurable performance before announcing funding opportunities. It emphasizes community engagement in the design process and encourages collaboration with other agencies to ensure programs align with broader strategic objectives and extend eligibility to potential applicants.
View
§ 200.202
Program planning and design.
25 findings
in our database
This regulation requires federal agencies to carefully plan and design programs before announcing funding opportunities. Specifically, they must set clear goals and objectives that will lead to meaningful outcomes and ensure that these align with the laws that authorize the program. Agencies also need to establish ways to measure how well the program is performing based on these goals. This means they should have specific criteria to evaluate success, which can vary depending on the type of program.
The regulation applies to all federal agencies involved in creating programs that provide funding or assistance. It emphasizes the importance of involving the communities that will benefit from or be affected by these programs during the design phase. Agencies are encouraged to use data and lessons learned from past programs to inform their planning and to work together with other agencies when their goals overlap. This collaborative approach helps ensure that programs are effective and accessible to as many potential applicants as possible, ultimately leading to better outcomes for the communities served.
Generated by gpt-4o-mini on 2025-10-16 10:46:10
(a) The Federal agency must design a program and create an Assistance Listing before announcing the Notice of Funding Opportunity. A program must be designed:
(1) With clear goals and objectives that provide meaningful results and be consistent with the Federal authorizing legislation of the program;
(2) To measure performance based on the goals and objectives developed during program planning and design. Performance measures may differ depending on the type of program. See § 200.301 for more information on performance measurement;
(3) To align with the strategic goals and objectives within the Federal agency's performance plan and support the Federal agency's performance measurement, management, customer service initiatives, and reporting as required by Part 6 of OMB Circular A-11 (Preparation, Submission, and Execution of the Budget);
(4) To align with the Program Management Improvement Accountability Act (Pub. L. 114-264) as well as the Foundations for Evidence-Based Policymaking Act (Pub. L. 115-435), as applicable; and
(5) To encourage applicants to engage, when practicable, during the design phase, members of the community that will benefit from or be impacted by a program.
(b) Federal agencies should develop programs in consultation with communities benefiting from or impacted by the program. In addition, Federal agencies should consider available data, evidence, and evaluation results from past programs and make every effort to extend eligibility requirements to all potential applicants. Federal agencies are encouraged to coordinate with other agencies during program planning and design, particularly when the goals and objectives of a program or project align with those of other agencies.
§ 200.203
Requirement to provide public notice of Federal financial assistance programs.
Section 200.203 requires federal agencies to maintain an accurate list of federal financial assistance programs in the Assistance Listings at SAM.gov. This affects agencies by ensuring they provide clear, consistent, and accessible information about their programs to the public, including details on program goals, funding amounts, and whether awards are discretionary or non-discretionary.
View
§ 200.203
Requirement to provide public notice of Federal financial assistance programs.
4 findings
in our database
Section 200.203 outlines what federal agencies must do to inform the public about federal financial assistance programs. This regulation requires agencies to keep an accurate list of these programs, which is maintained by the General Services Administration (GSA) at a website called SAM.gov. Before awarding any federal funds, agencies must assign the correct program listing unless there are urgent circumstances that prevent them from doing so. This ensures that information about financial assistance is organized and accessible.
The regulation applies to all federal agencies that offer financial assistance programs. They must create and update entries in the Assistance Listings based on the laws that authorize these programs. The information provided should be clear and easy to understand, covering key details like the program's goals, the total funds available, who can apply, and any eligibility requirements. This helps potential applicants know what to expect and ensures that the information is consistent and reliable.
The practical implications of this regulation are significant. By requiring federal agencies to provide clear and accurate information, it helps individuals and organizations understand what financial assistance is available and how to apply for it. This transparency can lead to better access to funds, ultimately supporting various projects and initiatives that benefit the public.
Generated by gpt-4o-mini on 2025-10-16 10:46:19
(a) The Federal agency must maintain an accurate list of Federal programs in the Assistance Listings maintained by the General Services Administration (GSA) at
SAM.gov.
(1) The Assistance Listings is the comprehensive government-wide source of Federal financial assistance program information produced by the executive branch of the Federal Government.
(2) The information that the Federal agency must submit to GSA for approval by OMB is listed in paragraph (b). GSA must prescribe the format for the submission in coordination with OMB.
(3) The Federal agency must assign the appropriate Assistance Listing before making the Federal award unless exigent circumstances require otherwise (for example, timing requirements imposed by a Federal statute).
(b) To the extent practicable, the Federal agency must create, update, and manage Assistance Listing entries based on the authorizing statute for the program and comply with additional guidance provided by GSA (in consultation with OMB) to ensure consistent and accurate information is available to prospective applicants. Assistance Listings should be communicated to the public in plain language. Accordingly, Federal agencies must submit the following information to GSA when creating an Assistance Listing:
(1)
Program Description, Purpose, Goals, and Measurement.
A brief summary of the statutory or regulatory requirements of the program and its intended outcome. Where appropriate, the program description, purpose, goals, and performance measurement should align with the strategic goals and objectives within the Federal agency's performance plan and should support the Federal agency's performance measurement, management, customer experience initiatives, and reporting as required by Part 6 of OMB Circular A-11;
(2)
Identification.
Identification of whether the program will issue Federal awards on a discretionary or non-discretionary basis;
(3)
Projected total amount of funds available for the program.
Estimates based on previous year funding are acceptable if current appropriations are not available at the time of the submission;
(4)
Anticipated source of available funds.
The statutory authority for funding the program and the agency, sub-agency, or specific program unit that will issue the Federal awards (to the extent possible) and associated funding identifier (for example, Treasury Account Symbol(s));
(5)
General eligibility requirements.
The statutory, regulatory, or other eligibility factors or considerations that determine the applicant's qualification for Federal awards under the program (for example, type of recipient); and
(6)
Applicability of Single Audit Requirements.
Applicability of Single Audit Requirements as required by subpart F.
§ 200.204
Notices of funding opportunities.
Federal agencies must publicly announce funding opportunities that are open to all eligible applicants, not just specific individuals or groups. These announcements should be clear and concise, accessible to diverse communities, and include essential details like the agency name, funding title, and amount available, while also offering support resources for potential applicants.
View
§ 200.204
Notices of funding opportunities.
14 findings
in our database
This regulation requires federal agencies to clearly announce funding opportunities for financial assistance that are open to all eligible applicants, rather than targeting specific individuals or organizations. The announcements should be written in simple language to ensure they are understandable and accessible to a wide range of potential applicants, especially those from underserved communities. Agencies are encouraged to keep these announcements concise and only include essential information. They can also offer help to applicants by providing answers to questions and additional resources, making sure that this support is available to everyone interested.
The regulation applies to all federal agencies that provide financial assistance and outlines what they need to include in their announcements. Key details must be displayed prominently, such as the agency name, funding opportunity title, funding amounts, important dates, and a brief summary of the program's goals. Funding opportunities must be available for at least 60 days, although this period can be adjusted based on the needs of applicants. Overall, this regulation aims to make the funding process more transparent and accessible, helping a broader range of organizations to apply for federal support.
Generated by gpt-4o-mini on 2025-10-16 10:46:30
The Federal agency must announce specific funding opportunities for Federal financial assistance that will be openly competed. The term openly competed opportunities that are not directed to one or more specifically identified applicants. To the extent possible, the Federal agency should communicate opportunities to the public in plain language to ensure the announcement is accessible to diverse communities of eligible applicants, including underserved communities. The Federal agency should also make efforts to limit the length and complexity of the announcement and only include the information that is necessary for the effective communication of the program objectives. Federal agencies may offer pre-application technical assistance or provide clarifying information for funding opportunities. However, Federal agencies must ensure these resources are made accessible and widely available to all potential applicants (for example, by posting answers to questions and requests on Grants.gov
). The Federal agency should make every effort to identify in the NOFO all eligible applicants (for example, different types of nonprofit organizations such as labor unions and tribal organizations). The following information must be provided in a public notice:
(a)
Summary information in notices of funding opportunities.
The Federal agency must display the following information on
Grants.gov,
in a location preceding the full text of the announcement:
(1) Federal Agency Name;
(2) Funding Opportunity Title;
(3) Announcement Type (whether the funding opportunity is the initial announcement or a modification of a previously announced opportunity);
(4) Funding Opportunity Number (required, if the Federal agency has assigned a number to the funding opportunity announcement);
(5) Assistance Listing Number(s);
(6) Funding Details. To the extent appropriate, the total amount of funding that the Federal agency expects to award, the anticipated number of awards, and the expected dollar values of individual awards, which may be a range or average;
(7) Key Dates. Key dates include due dates for submitting applications or Executive Order 12372 submissions, as well as for any letters of intent or preapplications. For any announcement issued before a program's application materials are available, key dates also include the date on which those materials will be released; and any other additional information, as deemed applicable by the Federal agency. If possible, the Federal agency should provide an anticipated award date. If the NOFO states that applications will be evaluated on a “rolling” basis (that is, at different points during a specified period of time), the Federal agency should provide an estimate of the time needed to process an application and notify the applicant of the Federal agency's decision;
(8) Executive Summary. A brief description that is written in plain language and summarizes the goals and objectives of the program, the target audience, and eligible applicants. The text of the executive summary should not exceed 500 words; and
(9) Agency contact information.
(b)
Availability period.
The Federal agency should make all funding opportunities available for application for at least 60 calendar days. However, the Federal agency may modify the availability period of an opportunity as needed. For example, extending the period may be necessary to provide technical assistance to an applicant pool that was not anticipated when the announcement was made or has less experience with applying for Federal financial assistance. The Federal agency may also determine that an availability period of less than 60 days is sufficient for a particular funding opportunity. However, no funding opportunity should be available for less than 30 calendar days unless the Federal agency determines that exigent circumstances justify this.
(c)
Full text of funding opportunities.
(1) The Federal agency must include the information in Appendix I for every funding opportunity.
(2) Federal agencies should ensure that funding opportunities are written using plain language. To the extent possible Federal agencies must streamline opportunities to make them accessible, particularly for funding opportunities that are new, targeted to underserved communities, or intended to reach inexperienced applicants.
(3) To reduce application burden, Federal agencies should consider whether programmatic or administrative requirements specific to the agency, program, or funding opportunity must be met at the time of application or as a requirement of receiving a Federal award.
§ 200.205
Federal agency review of merit of proposals.
Federal agencies must create a merit review process for evaluating applications for discretionary Federal awards, aiming to select recipients likely to succeed based on program goals. This process should include diverse participants and be detailed in the funding opportunity announcements, with agencies required to review their processes periodically.
View
§ 200.205
Federal agency review of merit of proposals.
6 findings
in our database
This regulation requires federal agencies to create a fair and clear process for reviewing applications for certain federal funding, known as discretionary awards. The main goal is to choose applicants who are most likely to succeed in achieving the program's goals. The review process must follow specific written guidelines set by the agency, which should outline how many people will be involved in the review and ensure that a diverse group, including representatives from underserved communities, participates.
This regulation applies to federal agencies when they are considering applications for funding. It is important because it helps ensure that the selection process is not only fair but also inclusive, giving a chance to a wide range of applicants. By regularly reviewing their merit review processes, agencies can improve how they evaluate proposals, ultimately leading to better outcomes for the programs they fund.
Generated by gpt-4o-mini on 2025-10-16 10:46:37
Unless prohibited by Federal statute, the Federal agency must design and execute a merit review process of applications for discretionary Federal awards. The objective of a merit review process is to select recipients most likely to be successful in delivering results based on the program objectives as outlined in section § 200.202. A merit review is an objective process of evaluating Federal award applications in accordance with the written standards of the Federal agency. These standards should identify the number of people the agency requires to participate in the merit review process and provide opportunities for a diverse group of participants, including those representing underserved communities. The merit review process explained in this section must be described or incorporated by reference in the applicable funding opportunity. See appendix I to this part. See also § 200.204. The Federal agency must also periodically review its merit review process.
§ 200.206
Federal agency review of risk posed by applicants.
Section 200.206 requires federal agencies to review applicants' eligibility and financial integrity using designated government databases before awarding federal funds. This affects organizations seeking federal awards, as agencies must assess their qualifications and risks to ensure responsible use of taxpayer money.
View
§ 200.206
Federal agency review of risk posed by applicants.
6 findings
in our database
Section 200.206 outlines the requirements for federal agencies when they are considering applicants for federal awards, which are funds or resources given to support projects. Before awarding these funds, agencies must check specific databases to ensure that applicants are eligible and have a good financial history. This includes looking at information about the applicant and their owners or related organizations to see if they have successfully managed federal funds in the past and maintained ethical business practices. If an applicant doesn’t fully meet these standards, the agency can still proceed with the award if they believe the issues are not relevant or can be managed with specific conditions.
The regulation applies to federal agencies and the applicants seeking federal funding, particularly when the funding amount exceeds a certain threshold. Agencies must conduct a risk assessment to evaluate potential risks associated with each applicant, considering factors like financial stability, management quality, past performance with federal funds, and any audit findings. This assessment helps agencies decide how much oversight a project may need and whether to impose any special conditions on the funding to mitigate identified risks. Additionally, agencies must follow rules regarding suspending or excluding applicants who have been barred from receiving federal funds due to past misconduct. This regulation is important because it helps ensure that taxpayer money is awarded responsibly and that projects are likely to succeed.
Generated by gpt-4o-mini on 2025-10-16 10:46:44
(a)
Review of OMB-designated repositories of government-wide data.
(1) Prior to making a Federal award, the Federal agency is required to review eligibility information for applicants and financial integrity information for applicants available in OMB-designated databases per the Payment Integrity Information Act of 2019 (Pub. L. 116-117), the “Do Not Pay Initiative” (31 U.S.C. 3354), and 41 U.S.C. 2313.
(2) The Federal agency is required to review the responsibility and qualification records available in the non-public segment of the System for Award Management (
SAM.gov
) prior to making a Federal award where the Federal share is expected to exceed the simplified acquisition threshold, defined at 41 U.S.C. 134, over the period of performance. See 41 U.S.C. 2313. The Federal agency must consider all of the information available in
SAM.gov
with regard to the applicant and any immediate highest-level owner, predecessor (meaning, an organization that is replaced by a successor), or subsidiary, identified for that applicant in
SAM.gov
. See Public Law 112-239, National Defense Authorization Act for Fiscal Year 2013; 41 U.S.C. 2313(d). The information in the system for a prior recipient of a Federal award must demonstrate a satisfactory record of administering programs or activities under Federal financial assistance or procurement awards, and integrity and business ethics. The Federal agency may make a Federal award to a recipient that does not fully meet these standards if it is determined that the information is not relevant to the Federal award under consideration or there are specific conditions that can appropriately mitigate the risk associated with the recipient in accordance with § 200.208.
(b)
Risk Assessment.
(1) The Federal agency must establish and maintain policies and procedures for conducting a risk assessment to evaluate the risks posed by applicants before issuing Federal awards. This assessment helps identify risks that may affect the advancement toward or the achievement of a project's goals and objectives. Risk assessments assist Federal managers in determining appropriate resources and time to devote to project oversight and monitor recipient progress. This assessment may incorporate elements such as the quality of the application, award amount, risk associated with the program, cybersecurity risks, fraud risks, and impacts on local jobs and the community. If the Federal agency determines that the Federal award will be made, specific conditions that address the assessed risk may be implemented in the Federal award. The risk criteria to be evaluated must be described in the announcement of the funding opportunity described in § 200.204.
(2) In evaluating risks posed by applicants, the Federal agency should consider the following items:
(i)
Financial stability.
The applicant's record of effectively managing financial risks, assets, and resources;
(ii)
Management systems and standards.
Quality of management systems and ability to meet the management standards prescribed in this part;
(iii)
History of performance.
The applicant's record of managing previous and current Federal awards, including compliance with reporting requirements and conformance to the terms and conditions of Federal awards, if applicable;
(iv)
Audit reports and findings.
Reports and findings from audits performed under subpart F or the reports and findings of any other available audits, if applicable; and
(v)
Ability to effectively implement requirements.
The applicant's ability to effectively implement statutory, regulatory, or other requirements imposed on recipients of Federal awards.
(c)
Adjustments to the Risk Assessment.
The Federal agency may modify the risk assessment at any time during the period of performance, which may justify changes to the terms and conditions of the Federal award. See § 200.208.
(d)
Suspension and debarment compliance.
The Federal agency must comply with the government-wide suspension and debarment guidance in 2 CFR part 180 and individual Federal agency suspension and debarment requirements in title 2 of the Code of Federal Regulations. Federal agencies must also require recipients to comply with these requirements. These requirements restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving Federal awards or participating in Federal awards.
§ 200.207
Standard application requirements.
Section 200.207 outlines that federal agencies must use application information collections approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act. This affects applicants for federal awards, as they must provide specific forms and may be informed that some information is already collected elsewhere.
View
§ 200.207
Standard application requirements.
134 findings
in our database
Section 200.207 outlines the requirements for federal agencies when they collect information from applicants for grants or other funding. It states that any information collection must be approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act. This means that agencies can only use specific forms and data that have been authorized by OMB, ensuring that the process is standardized and not overly burdensome for applicants. For example, forms like the Standard Form 424 (SF-424) are approved for use in these applications.
This regulation applies to federal agencies that are seeking information from individuals or organizations applying for funding. It ensures that applicants do not have to provide information that is already being collected through other channels, which helps to streamline the application process. The practical implication of this regulation is that it aims to reduce unnecessary paperwork and make it easier for applicants to submit their information, ultimately facilitating access to federal funding. This matters because it helps ensure that the application process is fair and efficient, allowing more people to apply for and receive federal support.
Generated by gpt-4o-mini on 2025-10-16 10:46:51
(a)
Paperwork clearances.
The Federal agency may only use application information collections approved by OMB under the Paperwork Reduction Act of 1995 and OMB's implementing regulations in 5 CFR part 1320 and in alignment with OMB-approved, government-wide data elements available from the OMB-designated standards lead. Examples of application information collections approved by OMB include the Standard Forms 424 (SF-424), which is available on
Grants.gov
, and the Biographical Sketch Common Form (OMB Control Number 3145-0279), which Federal agencies should use to collect biographical sketches and other disclosure information from award applicants. OMB will authorize additional information collections only on a limited basis and consistent with these requirements.
(b)
Information collection.
The Federal agency may inform applicants that they do not need to provide certain information already being collected through other means.
§ 200.208
Specific conditions.
Section 200.208 outlines that federal agencies must ensure that specific conditions for federal awards align with program goals and can adjust these conditions based on factors like compliance history and financial capability. It affects recipients and subrecipients by detailing potential requirements, such as reimbursement payments and additional reporting, and mandates that agencies inform them about any imposed conditions and how to address them.
View
§ 200.208
Specific conditions.
980 findings
in our database
Section 200.208 outlines rules for federal agencies regarding the conditions attached to federal awards, which are funds or resources given to organizations for specific projects. This regulation requires that the conditions and expectations tied to these awards align with the overall goals of the program. Federal agencies must carefully consider factors like past compliance, the recipient’s ability to meet performance goals, and their financial stability when deciding on these conditions.
This regulation applies to federal agencies and any organizations receiving federal funds, known as recipients or subrecipients. It allows agencies to impose specific conditions, such as requiring reimbursement for expenses instead of giving money upfront, or demanding more detailed financial reports. Before placing these conditions, agencies must inform the recipients about what the conditions are, why they are being imposed, what needs to be done to lift them, and how long the recipient has to comply.
The practical implications of this regulation are significant. By ensuring that conditions are tailored based on the recipient's history and capabilities, it helps protect federal funds and encourages responsible management of resources. It also provides a clear process for recipients to understand and address any conditions placed on their awards, fostering transparency and accountability in the use of federal money.
Generated by gpt-4o-mini on 2025-10-16 10:46:58
(a) Federal agencies are responsible for ensuring that specific Federal award conditions and performance expectations are consistent with the program design (See § 200.202 and § 200.301).
(b) The Federal agency or pass-through entity may adjust specific conditions in the Federal award based on an analysis of the following factors:
(1) Review of OMB-designated repositories of government-wide data (for example,
SAM.gov
) or review of its risk assessment (See § 200.206);
(2) The recipient's or subrecipient's history of compliance with the terms and conditions of Federal awards;
(3) The recipient's or subrecipient's ability to meet expected performance goals as described in § 200.211; or
(4) A determination of whether a recipient or subrecipient has inadequate financial capability to perform the Federal award.
(c) Specific conditions may include the following:
(1) Requiring payments as reimbursements rather than advance payments;
(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance;
(3) Requiring additional or more detailed financial reports;
(4) Requiring additional project monitoring;
(5) Requiring the recipient or subrecipient to obtain technical or management assistance; or
(6) Establishing additional prior approvals.
(d) Prior to imposing specific conditions, the Federal agency or pass-through entity must notify the recipient or subrecipient as to:
(1) The nature of the specific condition(s);
(2) The reason why the specific condition(s) is being imposed;
(3) The nature of the action needed to remove the specific condition(s);
(4) The time allowed for completing the actions; and
(5) The method for requesting the Federal agency or pass-through entity to reconsider imposing a specific condition.
(e) Any specific conditions must be promptly removed once the conditions that prompted them have been satisfied.
§ 200.209
Certifications and representations.
Federal agencies can require recipients of federal awards to submit annual certifications and representations, and more often if they don't meet requirements. If a recipient gets an exception, they must submit a specific assurance form.
View
§ 200.209
Certifications and representations.
This regulation, Section 200.209, allows federal agencies or organizations that pass on federal funds to require recipients—like state or local governments, nonprofits, or businesses—to provide annual statements confirming their compliance with certain rules. These statements, known as certifications and representations, serve as a way for the federal government to ensure that the recipients are following the necessary guidelines and using the funds appropriately. If a recipient fails to meet any requirements tied to the federal funding, they may need to submit these statements more often.
This regulation applies to any organization or individual receiving federal funds, especially in situations where they have been granted exceptions to certain requirements. For example, if a recipient is exempt from a specific rule, they must still submit a form to confirm their compliance with other necessary assurances. The practical implication of this regulation is that it helps maintain accountability and transparency in how federal funds are used, ensuring that recipients are adhering to the rules and standards set by the government. This is important because it helps protect taxpayer money and ensures that federal programs function effectively.
Generated by gpt-4o-mini on 2025-10-16 10:47:05
Unless prohibited by the U.S. Constitution, Federal statutes, or regulations, a Federal agency or pass-through entity is authorized to require a recipient to submit annual certifications and representations. Submission may be required more frequently if a recipient or subrecipient fails to meet a requirement of a Federal award. When a recipient is provided an exception to the requirements of 2 CFR 25.110, the recipient must submit the appropriate assurance form (for example, SF-424B).
§ 200.210
Pre-award costs.
Section 200.210 states that applicants can find rules about costs incurred before the official start date of a Federal award in § 200.458. This affects organizations applying for Federal funding.
View
§ 200.210
Pre-award costs.
30 findings
in our database
Section 200.210 deals with costs that an applicant might incur before officially starting a federal grant or award. Essentially, it sets the stage for understanding what expenses can be covered if they happen before the grant period begins. To find out more about what specific costs are allowed, you would need to look at another section, § 200.458.
This regulation applies to anyone applying for federal funding, such as nonprofits, universities, or businesses. It’s important because it clarifies that some expenses incurred before the grant starts may be eligible for reimbursement. Understanding this can help organizations plan their budgets better and ensure they don’t miss out on funding for necessary preliminary costs, like research or planning activities, that support their projects.
Generated by gpt-4o-mini on 2025-10-16 10:47:12
For requirements on costs incurred by the applicant prior to the start date of the period of performance of the Federal award, see § 200.458.
§ 200.211
Information contained in a Federal award.
Section 200.211 requires Federal awards to include specific performance goals and general information such as the recipient's name, unique identifiers, funding amounts, and performance dates. This section affects recipients of Federal funding by ensuring they have clear guidelines and expectations for their awards.
View
§ 200.211
Information contained in a Federal award.
72 findings
in our database
Section 200.211 outlines what information must be included in a Federal award, which is essentially a grant or funding provided by the government. This section requires that the award includes specific performance goals and how these will be measured. For example, it should detail what the recipient is expected to achieve, any targets they need to hit, and the timeline for these goals. Additionally, the award must contain general information like the recipient's name, unique identifiers, the amount of funding, and the start and end dates for the funding period.
This regulation applies to any organization or individual receiving Federal funding. It ensures that both the recipient and the Federal agency have a clear understanding of the expectations and requirements associated with the funding. The practical implications are significant: by clearly defining goals and conditions, it helps to hold recipients accountable for their performance and ensures that taxpayer money is used effectively. Moreover, it provides transparency and consistency in how Federal funds are managed, which is important for public trust and oversight.
Generated by gpt-4o-mini on 2025-10-16 10:47:20
The Federal award must include the following information:
(a)
Federal award performance goals.
Where applicable, performance goals, indicators, targets, and baseline data must be included in the Federal award. The Federal agency must also specify in the terms and conditions of the Federal award how performance will be assessed, including the timing and scope of expected performance. See §§ 200.202 and 200.301 for more information on Federal award performance goals.
(b)
General Federal award information.
The Federal agency must include the following information in each Federal award:
(1) Recipient Name (which must match the name associated with its unique entity identifier as defined at 2 CFR 25.400);
(2) Recipient's Unique Entity Identifier;
(3) Unique Federal Award Identification Number (FAIN);
(4) Federal Award Date (see Federal award date in § 200.1);
(5) Period of Performance Start and End Date;
(6) Budget Period Start and End Date;
(7) Amount of Federal Funds Obligated by this Action;
(8) Total Amount of Federal Funds Obligated;
(9) Total Approved Cost Sharing, where applicable;
(10) Total Amount of the Federal Award including approved Cost Sharing;
(11) Budget Approved by the Federal Agency;
(12) Federal Award Description (to comply with statutory requirements (for example, FFATA));
(13) Name of the Federal agency (including contact information for the awarding official);
(14) Assistance Listings Number and Title;
(15) Identification of whether the Award is R&D; and
(16) Indirect Cost Rate for the Federal award (including if the de minimis rate is charged per § 200.414).
(c)
General terms and conditions.
(1) Federal agencies must incorporate the following general terms and conditions either in the Federal award or by reference, as applicable:
(i)
Administrative requirements.
Administrative requirements implemented by the Federal agency as specified in this part.
(ii)
National policy requirements.
These include statutory, executive order, other Presidential directive, or regulatory requirements that apply by specific reference and are not program-specific. See § 200.300 Statutory and national policy requirements.
(iii)
Recipient integrity and performance matters.
When the total Federal share of the Federal award may include more than $500,000 over the period of performance, the Federal agency must include the terms and conditions available in Appendix XII. See also § 200.113.
(iv)
Future budget periods.
When it is anticipated that the period of performance will include multiple budget periods, the Federal agency must indicate that subsequent budget periods are subject to the availability of funds, program authority, satisfactory performance, and compliance with the terms and conditions of the Federal award.
(v)
Termination provisions.
Federal agencies must inform recipients of the termination provisions in § 200.340, including the applicable termination provisions in the Federal agency's regulations or terms and conditions of the Federal award.
(2) The Federal award must incorporate, by reference, all general terms and conditions of the Federal award, which must be maintained on the Federal agency's website.
(3) The Federal agency must provide a copy of the full text of the general terms and conditions if a recipient requests it.
(4) The Federal agency must maintain an archive of previous versions of the general terms and conditions, with effective dates, for use by a recipient, auditors, or others. The archive should be located on the Federal agency's website in the same place where current terms and conditions are available.
(d)
Federal award specific terms and conditions.
The Federal agency must include in each Federal award any specific terms and conditions that are in addition to the general terms and conditions. See also § 200.208. For loan and loan guarantee programs, the Federal agency must specify whether or not the Federal award has continuing compliance requirements. Whenever practicable, these specific terms and conditions should also be available on the Federal agency's website and in notices of funding opportunities (as outlined in § 200.204).
(e)
Federal agency requirements.
Any other information required by the Federal agency.
§ 200.212
Public access to Federal award information.
Federal agencies must publish information about federal awards on USAspending.gov, following specific guidelines. Most records on SAM.gov will be publicly available after 14 days, with some exceptions, and this section does not require publishing information exempt from the Freedom of Information Act.
View
§ 200.212
Public access to Federal award information.
298 findings
in our database
This regulation requires federal agencies to publish information about federal awards—like grants and contracts—on a public website called USAspending.gov. This helps ensure transparency so that the public can see how government funds are being spent. The information must follow specific guidelines set by the Office of Management and Budget (OMB) and the U.S. Department of the Treasury.
The regulation applies to federal agencies and the information they provide about their awards. It also mentions that records related to qualifications and responsibilities of contractors must be available on another site, SAM.gov, after a waiting period of 14 days. However, certain types of information, like past performance reviews or data entered before April 15, 2011, are not included in this requirement. Additionally, if any information is withdrawn by a federal agency during that waiting period, it won’t be published.
This regulation is important because it promotes accountability in government spending. By making this information accessible, it allows the public, including taxpayers and watchdog organizations, to track how federal money is being used. This transparency can help prevent misuse of funds and encourage responsible management of taxpayer dollars.
Generated by gpt-4o-mini on 2025-10-16 10:47:26
(a) Except as noted in paragraph (c) of this section, the Federal agency must publish the required Federal award information on
USAspending.gov
in accordance with the guidance provided by OMB and the U.S. Department of the Treasury's Government-wide Spending Data Model (GSDM).
(b) All responsibility and qualification records posted in
SAM.gov
will be publicly available after a waiting period of 14 calendar days, except for:
(1) Past performance reviews required by Federal Government contractors (See Federal Acquisition Regulation (FAR) 48 CFR part 42, subpart 42.15);
(2) Information that was entered prior to April 15, 2011; or
(3) Information that is withdrawn during the 14-calendar day waiting period by a Federal agency.
(c) Nothing in this section may be construed as requiring the publication of information otherwise exempt under the Freedom of Information Act (5 U.S.C. 552), or controlled unclassified information pursuant to Executive Order 13556.
§ 200.213
Reporting a determination that an applicant is not qualified for a Federal award.
Federal agencies must report in SAM.gov if they deny a Federal award to an applicant due to insufficient qualifications based solely on past performance or integrity issues, provided the award's total Federal share exceeds a certain threshold. The agency must also notify the applicant of this determination, which will be recorded for five years and considered by other agencies in future award decisions.
View
§ 200.213
Reporting a determination that an applicant is not qualified for a Federal award.
743 findings
in our database
This regulation requires federal agencies to report when they decide not to give a federal award to an applicant because the applicant doesn’t meet certain minimum qualifications. Specifically, this applies when the decision is based solely on the applicant's past performance with federal awards or their integrity and business ethics. This reporting is necessary only if the expected federal funding exceeds a specific amount, known as the simplified acquisition threshold.
The regulation also outlines what happens after such a determination is made. The federal agency must inform the applicant about the decision and provide a brief explanation. This information will be stored in a system called SAM.gov for five years, and any federal agency considering future awards to that applicant will take this information into account. The applicant has the right to review and comment on the information in SAM.gov, and federal agencies must consider these comments when evaluating the applicant for future awards.
Additionally, if a federal agency discovers that any reported information is incorrect, it must fix it quickly. The regulation also ensures that sensitive information protected by the Freedom of Information Act is not publicly shared. If an applicant believes that some information should not be disclosed, they can request its removal, and the agency must comply within a week. This process helps maintain fairness and transparency in how federal awards are granted.
Generated by gpt-4o-mini on 2025-10-16 10:47:34
(a) The Federal agency must report in
SAM.gov
if it does not make a Federal award to an applicant because it determines that the applicant does not meet the minimum qualification standards as described in § 200.206(a)(2). The Federal agency must report that determination only if all of the following apply:
(1) The only basis for the determination is the applicant's prior record of performance on administering Federal awards or its record of integrity and business ethics, as described in § 200.206(a)(2) (meaning, the applicant was determined to be qualified based on all factors other than those two standards); and
(2) The total Federal share of the Federal award was expected to exceed the simplified acquisition threshold over the period of performance.
(b) The Federal agency is not required to report a determination that an applicant is not qualified for a Federal award if they issue the Federal award in accordance with the requirements of § 200.208.
(c) If the Federal agency reports a determination that an applicant is not qualified for a Federal award, the Federal agency also must notify the applicant that:
(1) The determination was made and reported in
SAM.gov
. The notification from the Federal agency to the applicant should also provide a brief explanation for the determination;
(2) The information will be kept in the system for a period of five years from the date of the determination and then archived (See section 872 of Public Law 110-417, as amended, codified at 41 U.S.C. 2313);
(3) Each Federal agency that considers making a Federal award to the applicant during that five-year period will consider that information in determining the applicant's qualification to receive a Federal award when the total Federal share of a Federal award is expected to exceed the simplified acquisition threshold over the period of performance;
(4) The applicant may review the responsibility and qualification records accessible in
SAM.gov
and comment on any information the system contains about the applicant; and
(5) Federal agencies must consider the applicant's comments in determining whether the applicant is qualified for a future Federal award.
(d) If the Federal agency enters information into
SAM.gov
about a determination that an applicant is not qualified for a Federal award and subsequently:
(1) Learns that any of that information is erroneous, the Federal agency must correct the information in the system within three business days; and
(2) Obtains an update to that information that could be helpful to other Federal agencies, the Federal agency should amend the information in the system within 30 days.
(e) Federal agencies must not post any information that will be made publicly available in the non-public segment of the responsibility and qualification records that is covered by a disclosure exemption under the Freedom of Information Act. If a recipient asserts within seven calendar days to a Federal agency that some or all of the publicly available information is covered by a disclosure exemption under the Freedom of Information Act, the Federal agency that posted the information must remove the posting within seven calendar days of receiving the assertion. Prior to reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's Freedom of Information Act procedures.
§ 200.214
Suspension and debarment.
Section 200.214 states that recipients and subrecipients must follow rules that prevent certain individuals or entities from receiving federal funds if they are debarred or suspended. This affects anyone involved in federal awards, ensuring that only eligible parties can participate.
View
§ 200.214
Suspension and debarment.
1,849 findings
in our database
Section 200.214 outlines rules about who can receive federal funding and contracts. It states that certain individuals or organizations, known as recipients and subrecipients, cannot receive federal money if they have been debarred or suspended. This means if someone has been banned from participating in federal programs due to past misconduct or violations, they cannot get new federal awards or contracts.
This regulation applies to anyone who is involved in federal funding, including organizations that receive money directly from the government and those that get funds from those organizations. It is important in situations where federal money is involved, like grants or contracts for projects. The goal is to ensure that only trustworthy parties can access federal resources, which helps protect taxpayer money and maintain the integrity of federal programs.
Generated by gpt-4o-mini on 2025-10-16 10:47:42
Recipients and subrecipients are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180 restrict making Federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in Federal awards.
§ 200.215
Never contract with the enemy.
Section 200.215 prohibits federal agencies, recipients, and subrecipients from contracting with entities considered enemies during specific operations. This rule applies to contracts, grants, and agreements over $50,000 that are performed outside the U.S. in support of military operations where U.S. forces are involved in hostilities.
View
§ 200.215
Never contract with the enemy.
Section 200.215, titled "Never Contract with the Enemy," requires federal agencies and organizations that receive federal funds to avoid doing business with any group or individual that is considered an enemy of the United States. This regulation specifically applies to contracts, grants, and cooperative agreements that are expected to be worth more than $50,000, take place outside the U.S. and its territories, and are related to military operations where U.S. Armed Forces are involved in active combat.
This regulation is important because it helps ensure that taxpayer money is not used to support or fund groups that could harm U.S. interests or military personnel. It applies to various entities, including government agencies and private organizations that receive federal funding for projects overseas. By following this regulation, these entities help maintain national security and uphold ethical standards in government contracting.
Generated by gpt-4o-mini on 2025-10-16 10:47:48
Federal agencies, recipients, and subrecipients are subject to the guidance implementing Never Contract with the Enemy in 2 CFR part 183. The guidance in 2 CFR part 183 affects covered contracts, grants, and cooperative agreements that are expected to exceed $50,000 during the period of performance, are performed outside the United States and its territories, and are in support of a contingency operation in which members of the Armed Forces are actively engaged in hostilities.
§ 200.216
Prohibition on certain telecommunications and video surveillance equipment or services.
Section 200.216 prohibits recipients of federal loan or grant funds from purchasing or renewing contracts for certain telecommunications and video surveillance equipment or services from specific companies, including Huawei, ZTE, and others linked to national security concerns. This affects organizations that receive federal funding, ensuring they do not use these funds for equipment deemed a security risk.
View
§ 200.216
Prohibition on certain telecommunications and video surveillance equipment or services.
6 findings
in our database
This regulation, Section 200.216, prohibits organizations that receive federal loans or grants from using those funds to buy or contract for certain telecommunications and video surveillance equipment or services. Specifically, it bans the purchase of equipment from companies like Huawei and ZTE, as well as video surveillance equipment from companies like Hikvision and Dahua, which are considered threats to national security. This means that if an organization wants to use federal money, they cannot spend it on these specific types of technology.
The rule applies to any organization that receives federal funding, including businesses, schools, and local governments. It is particularly important in situations where public safety and security are involved, such as in government buildings or critical infrastructure. The regulation also requires that if these organizations need to transition away from using banned equipment, federal agencies should help them find alternatives and ensure that their communication services remain uninterrupted.
Overall, this regulation is significant because it aims to protect national security by limiting the use of equipment that could be vulnerable to foreign interference or espionage. By enforcing these restrictions, the government is trying to ensure that taxpayer money is not spent on technologies that could pose risks to safety and security.
Generated by gpt-4o-mini on 2025-10-16 10:47:55
(a) Recipients and subrecipients are prohibited from obligating or expending loan or grant funds to:
(1) Procure or obtain covered telecommunications equipment or services;
(2) Extend or renew a contract to procure or obtain covered telecommunications equipment or services; or
(3) Enter into a contract (or extend or renew a contract) to procure or obtain covered telecommunications equipment or services.
(b) As described in section 889 of Public Law 115-232, “covered telecommunications equipment or services” any of the following: (1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities);
(2) For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
(3) Telecommunications or video surveillance services provided by such entities or using such equipment;
(4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country;
(c) For the purposes of this section, “covered telecommunications equipment or services” also include systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.
(d) In implementing the prohibition under section 889 of Public Law 115-232, heads of executive agencies administering loan, grant, or subsidy programs must prioritize available funding and technical support to assist affected businesses, institutions, and organizations as is reasonably necessary for those affected entities to transition from covered telecommunications equipment or services, to procure replacement equipment or services, and to ensure that communications service to users and customers is sustained.
(e) When the recipient or subrecipient accepts a loan or grant, it is certifying that it will comply with the prohibition on covered telecommunications equipment and services in this section. The recipient or subrecipient is not required to certify that funds will not be expended on covered telecommunications equipment or services beyond the certification provided upon accepting the loan or grant and those provided upon submitting payment requests and financial reports.
(f) For additional information, see section 889 of Public Law 115-232 and § 200.471.
§ 200.217
Whistleblower protections.
Employees of organizations receiving federal contracts or grants are protected from being fired, demoted, or discriminated against for reporting suspected misconduct, waste, or violations related to those contracts or grants. These organizations must inform their employees in writing about their whistleblower rights and protections.
View
§ 200.217
Whistleblower protections.
This regulation ensures that employees working for organizations receiving federal contracts or grants are protected if they report wrongdoing. Specifically, it prohibits these organizations from firing, demoting, or treating employees unfairly if they share information they believe shows serious issues, like misuse of federal funds, abuse of power, or threats to public safety. In simpler terms, if an employee sees something wrong and speaks up, they should not face negative consequences for doing so.
The regulation applies to employees of both the main organization (the recipient) and any smaller organizations they work with (subrecipients) that receive federal funding. It is important for these organizations to inform their employees about their rights to report concerns without fear of retaliation. This means that workers should be aware that they can safely raise issues without risking their jobs or facing other forms of discrimination.
Practically, this regulation matters because it encourages transparency and accountability in how federal funds are used. By protecting whistleblowers, it helps to uncover and address problems that could lead to waste or harm. This not only safeguards public resources but also promotes a culture where employees feel empowered to speak up about unethical behavior, ultimately benefiting everyone involved.
Generated by gpt-4o-mini on 2025-10-16 10:48:02
An employee of a recipient or subrecipient must not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to a person or body described in paragraph (a)(2) of 41 U.S.C. 4712 information that the employee reasonably believes is evidence of gross mismanagement of a Federal contract or grant, a gross waste of Federal funds, an abuse of authority relating to a Federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including the competition for or negotiation of a contract) or grant. The recipient and subrecipient must inform their employees in writing of employee whistleblower rights and protections under 41 U.S.C. 4712. See statutory requirements for whistleblower protections at 10 U.S.C. 4701, 41 U.S.C. 4712, 41 U.S.C. 4304, and 10 U.S.C. 4310.
§ 200.300
Statutory and national policy requirements.
Section 200.300 requires Federal agencies and pass-through entities to manage Federal awards in compliance with U.S. laws, ensuring programs respect constitutional rights and do not discriminate based on sex, sexual orientation, or gender identity. This section affects recipients and subrecipients of Federal funding by mandating adherence to these legal and ethical standards.
View
§ 200.300
Statutory and national policy requirements.
260 findings
in our database
This regulation outlines how federal agencies and organizations that receive federal funding must manage that money and the programs it supports. They are required to ensure that all spending and program activities comply with the U.S. Constitution and federal laws. This includes respecting rights related to free speech, religious freedom, public welfare, and the environment, as well as following anti-discrimination laws. Agencies must clearly communicate these requirements to anyone receiving funds, making sure they understand what is expected of them.
The regulation specifically addresses how federal awards must be handled to avoid discrimination based on sex, which now includes sexual orientation and gender identity due to a recent Supreme Court ruling. This means that any organization receiving federal funds cannot treat people unfairly based on these characteristics. Additionally, when federal agencies make decisions that affect different groups of people, they must be careful to follow constitutional guidelines that protect against unequal treatment. This is important because it helps ensure that federal funding is used fairly and responsibly, promoting equality and protecting individual rights.
Generated by gpt-4o-mini on 2025-10-16 10:48:09
(a) The Federal agency or pass-through entity must manage and administer the Federal award in a manner so as to ensure that Federal funding is expended and associated programs are implemented in full accordance with the U.S. Constitution, applicable Federal statutes and regulations—including provisions protecting free speech, religious liberty, public welfare, and the environment, and those prohibiting discrimination—and the requirements of this part. The Federal agency or pass-through entity must communicate to a recipient or subrecipient all relevant requirements, including those contained in general appropriations provisions, and incorporate them directly or by reference in the terms and conditions of the Federal award.
(b) In administering Federal awards that are subject to a Federal statute prohibiting discrimination based on sex, the Federal agency or pass-through entity must ensure that the award is administered in a way that does not unlawfully discriminate based on sexual orientation or gender identity if the statute's prohibition on sex discrimination encompasses discrimination based on sexual orientation and gender identity consistent with the Supreme Court's reasoning in
Bostock
v.
Clayton County,
140 S. Ct. 1731 (2020).
(c) In administering awards in accordance with the U.S. Constitution, the Federal agency must take account of the heightened constitutional scrutiny that may apply under the Constitution's Equal Protection guarantee for government action that provides differential treatment based on protected characteristics.
§ 200.301
Performance measurement.
Section 200.301 requires federal agencies to measure the performance of recipients to ensure they meet program goals and objectives, communicate expectations clearly, and report on outcomes. This affects organizations receiving federal funding, as they must track and report their progress according to established metrics and participate in evaluations as specified in their awards.
View
§ 200.301
Performance measurement.
124 findings
in our database
This regulation requires federal agencies to track how well recipients of federal funds are doing in meeting the goals of their programs. Essentially, the agency must set clear goals and objectives at the start and communicate these to the recipients. This includes explaining how they will measure success, what the expected timeline is, and what kind of reports the recipients need to provide. The aim is to ensure that everyone understands what is expected and how progress will be evaluated.
This regulation applies to any organization or individual receiving federal funding for a program. It outlines the situations in which the federal agency must monitor performance, ensuring that the funding is being used effectively. The regulation also emphasizes that the information collected should be relevant and not overly burdensome, focusing only on what is necessary to assess progress and identify successful practices.
The practical implications of this regulation are significant. By measuring performance, federal agencies can learn what works and what doesn’t, leading to better outcomes for programs. It helps ensure that taxpayer money is spent wisely and that programs are continuously improved. Additionally, by participating in evaluations, recipients can gain insights that may enhance their future efforts, ultimately benefiting the communities they serve.
Generated by gpt-4o-mini on 2025-10-16 10:48:16
(a) The Federal agency must measure the recipient's performance to show achievement of program goals and objectives, share lessons learned, improve program outcomes, and foster the adoption of promising practices. The Federal agency should establish program goals and objectives during program planning and design (see § 200.202). The Federal agency should clearly communicate the specific program goals and objectives in the Federal award, including how the Federal agency will measure the achievement of the goals and objectives, the expected timeline, and information on how the recipient must report the achievement of program goals and objectives. The Federal agency should also clearly communicate in the Federal award any expected outcomes (such as outputs, service performance, or public impacts of any of these), indicators, targets, baseline data, or data collections that the recipient is responsible for measuring and reporting. The Federal agency must ensure all requirements for measuring performance align with the Federal agency's strategic goals, strategic objectives, or performance goals relevant to a program (see OMB Circular A-11, Preparation, Submission, and Execution of the Budget Part 6).
(b) When establishing performance reporting frequency and content, the Federal agency should consider what information will be necessary to measure the recipient's progress, to identify promising practices of recipients, and build the evidence upon which the Federal agency makes program and performance decisions. The Federal agency should not require additional information that is not necessary for measuring program performance and evaluation. See § 200.329 for more information on reporting program performance.
(c) The Federal agency should also specify in the Federal award any requirements of the recipients' participation in federally funded evaluations.
§ 200.302
Financial management.
Section 200.302 requires states to manage and account for federal awards according to their laws, ensuring financial systems track expenditures and comply with federal regulations. This affects state recipients and subrecipients by mandating accurate reporting and record-keeping for all federal funds received and spent.
View
§ 200.302
Financial management.
17,036 findings
in our database
This section of the regulations outlines how states must manage and report on federal funds they receive. Essentially, it requires states to follow their own laws when spending and tracking these funds, ensuring they can show that the money is used properly according to federal rules. States, along with any organizations they pass funds to (called subrecipients), need to have financial systems in place that can accurately track how federal money is spent and report on it as required.
The regulation applies to all states and their subrecipients that receive federal awards. It covers various aspects of financial management, such as identifying all federal funds received, maintaining accurate records of expenditures, and ensuring that funds are used only for their intended purposes. This means states must keep detailed records that show where the money came from, how it was spent, and ensure that they can compare actual spending against budgeted amounts.
The practical implications of this regulation are significant. By requiring clear tracking and reporting of federal funds, it helps ensure accountability and transparency in how taxpayer money is used. This is important because it helps prevent misuse of funds and ensures that federal resources are directed toward their intended goals, ultimately benefiting the communities that rely on these programs.
Generated by gpt-4o-mini on 2025-10-16 10:48:22
(a) Each State must expend and account for the Federal award in accordance with State laws and procedures for expending and accounting for the State's funds. All recipient and subrecipient financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award. See § 200.450.
(b) The recipient's and subrecipient's financial management system must provide for the following (see §§ 200.334, 200.335, 200.336, and 200.337):
(1) Identification of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number, year the Federal award was issued, and name of the Federal agency or pass-through entity.
(2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. When a Federal agency or pass-through entity requires reporting on an accrual basis from a recipient or subrecipient that maintains its records other than on an accrual basis, the recipient or subrecipient must not be required to establish an accrual accounting system. This recipient or subrecipient may develop accrual data for its reports based on an analysis of the documentation on hand.
(3) Maintaining records that sufficiently identify the amount, source, and expenditure of Federal funds for Federal awards. These records must contain information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income, and interest. All records must be supported by source documentation.
(4) Effective control over and accountability for all funds, property, and assets. The recipient or subrecipient must safeguard all assets and ensure they are used solely for authorized purposes. See § 200.303.
(5) Comparison of expenditures with budget amounts for each Federal award.
(6) Written procedures to implement the requirements of § 200.305.
(7) Written procedures for determining the allowability of costs in accordance with subpart E and the terms and conditions of the Federal award.
§ 200.303
Internal controls.
Section 200.303 requires recipients and subrecipients of Federal awards to establish and maintain effective internal controls to ensure compliance with Federal laws and award conditions. This section affects organizations receiving Federal funding, mandating them to monitor compliance, address noncompliance promptly, and protect sensitive information.
View
§ 200.303
Internal controls.
97,665 findings
in our database
This regulation requires organizations that receive federal funding, known as "recipients" and "subrecipients," to set up and maintain strong internal controls. Internal controls are processes and procedures that help ensure the organization is using the federal funds properly and following all relevant laws and rules. These controls should be documented and should follow established guidelines to ensure they are effective.
The regulation applies to any organization that receives federal awards, which can include grants or contracts. It requires these organizations to regularly check and monitor their compliance with the laws and the specific terms of the funding they receive. If they find any issues or violations, they must act quickly to address them. Additionally, they must take steps to protect sensitive information, such as personal data, in accordance with privacy laws.
Overall, this regulation is important because it helps ensure that federal funds are used responsibly and transparently. By requiring organizations to have strong internal controls and to monitor their compliance, it aims to prevent misuse of taxpayer money and protect sensitive information, ultimately fostering trust in how federal funds are managed.
Generated by gpt-4o-mini on 2025-10-16 10:48:28
The recipient and subrecipient must:
(a) Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
(b) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal award.
(c) Evaluate and monitor the recipient's or subrecipient's compliance with statutes, regulations, and the terms and conditions of Federal awards.
(d) Take prompt action when instances of noncompliance are identified.
(e) Take reasonable cybersecurity and other measures to safeguard information including protected personally identifiable information (PII) and other types of information. This also includes information the Federal agency or pass-through entity designates as sensitive or other information the recipient or subrecipient considers sensitive and is consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality.
§ 200.304
Bonds.
Section 200.304 states that if the Federal Government guarantees loans for a recipient, the agency can require additional bonding and insurance to protect its interests. This applies to recipients lacking adequate coverage, and any required bonds or insurance must come from companies authorized by the U.S. Department of Treasury.
View
§ 200.304
Bonds.
This regulation, Section 200.304, outlines requirements for bonds and insurance when the Federal Government is involved in financing. If a recipient—like a business or organization—borrows money that the Federal Government guarantees or insures, the government agency can ask for additional bonding and insurance. This is to ensure that there’s enough protection for the government’s interests, especially if the recipient's existing coverage isn’t sufficient.
The regulation applies to any recipient of federal funds who is borrowing money with government backing. In situations where the recipient does not have adequate insurance or bonding, the federal agency can require them to obtain fidelity bonds. Fidelity bonds protect against losses caused by dishonest acts, like theft or fraud. Additionally, any bonds or insurance that are required must come from companies approved by the U.S. Department of Treasury, ensuring that they meet certain standards and are reliable.
These requirements are important because they help safeguard taxpayer money and ensure that federal funds are used responsibly. By requiring adequate bonding and insurance, the government reduces the risk of financial loss due to potential mismanagement or fraud by the recipient. This regulation ultimately helps maintain accountability and trust in how federal funds are handled.
Generated by gpt-4o-mini on 2025-10-16 10:48:34
(a) Where the Federal Government guarantees or insures the repayment of money borrowed by the recipient, the Federal agency may require adequate bonding and insurance if the bonding and insurance requirements of the recipient are not deemed adequate to protect the interest of the Federal Government.
(b) The Federal agency may require adequate fidelity bond coverage where the recipient lacks coverage to protect the interest of the Federal Government.
(c) Where bonds, insurance, or both are required in the situations described above, the bonds and insurance must be obtained from companies holding certificates of authority issued by the U.S. Department of Treasury (see 31 CFR part 223).
§ 200.305
Federal payment.
Section 200.305 outlines the rules for federal payments to states and other recipients. It requires that payments minimize delays between fund transfers and disbursements, mandates advance payments for recipients who demonstrate proper financial management, and emphasizes timely payments to contractors.
View
§ 200.305
Federal payment.
7,237 findings
in our database
This regulation outlines how federal payments should be managed, particularly focusing on payments to states and other recipients like organizations or individuals. For states, payments are governed by specific agreements and rules set by the U.S. Treasury. For other recipients, the regulation emphasizes that payments should be made quickly to reduce the time between when the federal funds are transferred and when the recipient uses them. Recipients must demonstrate they have proper procedures and financial systems in place to manage these funds effectively. They can receive advance payments, but only for the minimum amount needed for immediate expenses, and they must pay their contractors on time.
The regulation applies to various entities receiving federal funds, including states, local governments, and non-profit organizations. It sets clear guidelines for how these entities can request and receive payments, whether through advance payments or reimbursements. If a recipient cannot meet the requirements for advance payments, they may receive funds based on their actual spending needs. The regulation also specifies that recipients must account for all federal funds they receive and use, ensuring transparency and accountability in how taxpayer money is spent.
Overall, this regulation is important because it ensures that federal funds are distributed and used efficiently, minimizing delays and promoting responsible financial management. By requiring timely payments and proper accounting, it helps ensure that projects funded by federal money can proceed smoothly and effectively, ultimately benefiting the communities and programs they are meant to support.
Generated by gpt-4o-mini on 2025-10-16 10:48:42
(a)
Payments for States.
Payments for States are governed by Treasury-State Cash Management Improvement Act (CMIA) agreements and default procedures codified at 31 CFR part 205 and Treasury Financial Manual (TFM) 4A-2000, “Overall Disbursing Rules for All Federal Agencies.”
(b)
Payments for recipients and subrecipients other than States.
For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. See § 200.302(b)(6). Except as noted in this part, the Federal agency must require recipients to use only OMB-approved, government-wide information collections to request payment.
(1) The recipient or subrecipient must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the recipient or subrecipient, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. The recipient or subrecipient must make timely payments to contractors in accordance with the contract provisions.
(2) Whenever possible, advance payment requests by the recipient or subrecipient must be consolidated to cover anticipated cash needs for all Federal awards received by the recipient from the awarding Federal agency or pass-through entity.
(i) Advance payment mechanisms must comply with 31 CFR part 208 and include, but are not limited to, Treasury checks and electronic funds transfers.
(ii) Recipients and subrecipients must be authorized to submit payment requests as often as necessary when electronic fund transfers are used or at least monthly when electronic transfers are not used. See Electronic Fund Transfer Act (15 U.S.C. 1693-1693r).
(3) Reimbursement is preferred when the requirements in paragraph (b) cannot be met, when the Federal agency or pass-through entity sets a specific condition per § 200.208, when requested by the recipient or subrecipient, when a Federal award is for construction, or when a significant portion of the construction project is accomplished through private market financing or Federal loans and the Federal award constitutes a minor portion of the project. When the reimbursement method is used, the Federal agency or pass-through entity must make payment within 30 calendar days after receipt of the payment request unless the Federal agency or pass-through entity reasonably believes the request to be improper.
(4) If the recipient or subrecipient cannot meet the criteria for advance payments and the Federal agency or pass-through entity has determined that reimbursement is not feasible because the recipient or subrecipient lacks sufficient working capital, the Federal agency or pass-through entity may provide cash on a working capital advance basis. Under this procedure, the Federal agency or pass-through entity must advance cash payments to the recipient or subrecipient to cover its estimated disbursement needs for an initial period generally aligned to the recipient's or subrecipient's disbursing cycle. After that, the Federal agency or pass-through entity must reimburse the recipient or subrecipient for its actual cash disbursements. Use of the working capital advance payment method requires that the pass-through entity provide timely advance payments to any subrecipients to meet the subrecipient's actual cash disbursements. The pass-through entity must not use the working capital advance method of payment if the reason for using this method is the unwillingness or inability of the pass-through entity to provide timely advance payments to the subrecipient to meet the subrecipient's actual cash disbursements.
(5) If available, the recipient or subrecipient must disburse funds available from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on Federal funds before requesting additional cash payments.
(6) Payments for allowable costs must not be withheld at any time during the period of performance unless required by Federal statute, regulations, or in one of the following instances:
(i) The recipient or subrecipient has failed to comply with the terms and conditions of the Federal award; or
(ii) The recipient or subrecipient is delinquent in a debt to the United States as defined in OMB Circular A-129, “Policies for Federal Credit Programs and Non-Tax Receivables.” Under such conditions, the Federal agency or pass-through entity may, after providing reasonable notice, withhold payments to the recipient or subrecipient for financial obligations incurred after a specified date until the conditions are corrected or the debt is repaid to the Federal Government.
(7) A payment withheld for failure to comply with the terms and conditions of the Federal award must be released to the recipient or subrecipient upon subsequent compliance. When a Federal award is suspended, payment adjustments must be made in accordance with § 200.343.
(8) A payment must not be made to a recipient or subrecipient for amounts that the recipient or subrecipient withholds from contractors to assure satisfactory completion of work. Payment must be made when the recipient or subrecipient disburses the withheld funds to the contractors or to escrow accounts established to ensure satisfactory completion of work.
(9) The Federal agency or pass-through entity must not require separate depository accounts for funds provided to the recipient or subrecipient or establish any eligibility requirements for depositories. However, the recipient or subrecipient must be able to account for all Federal funds received, obligated, and expended.
(10) Advance payments of Federal funds must be deposited and maintained in insured accounts whenever possible.
(11) The recipient or subrecipient must maintain advance payments of Federal funds in interest-bearing accounts unless one of the following applies:
(i) The recipient or subrecipient receives less than $250,000 in Federal funding per year;
(ii) The best available interest-bearing account would not reasonably be expected to earn interest in excess of $500 per year on Federal cash balances;
(iii) The depository would require an average or minimum balance so high that it would not be feasible with the expected Federal and non-Federal cash resources;
(iv) A foreign government or banking system prohibits or precludes interest-bearing accounts; or
(v) An interest-bearing account is not readily accessible (for example, due to public or political unrest in a foreign country).
(12) The recipient or subrecipient may retain up to $500 per year of interest earned on Federal funds to use for administrative expenses of the recipient or subrecipient. Any additional interest earned on Federal funds must be returned annually to the Department of Health and Human Services Payment Management System (PMS) through either the Automated Clearing House (ACH) network or a Fedwire Funds Service payment. All interest in excess of $500 per year must be returned to PMS regardless of whether the recipient or subrecipient was paid through PMS. Instructions for returning interest can be found at
https://pms.psc.gov/grant-recipients/returning-funds-interest.html.
(13) All other Federal funds must be returned to the payment system of the Federal agency. Returns should follow the instructions provided by the Federal agency. All returns to PMS should follow the instructions provided at
https://pms.psc.gov/grant-recipients/returning-funds-interest.html.
§ 200.306
Cost sharing.
Section 200.306 states that voluntary cost sharing is not required for Federal research grants and should not influence merit reviews unless specified. It affects recipients of Federal awards, outlining that cost sharing funds must be verifiable, not used for other awards, necessary for the project, and included in the approved budget, among other criteria.
View
§ 200.306
Cost sharing.
355 findings
in our database
Section 200.306 of the Code of Federal Regulations outlines rules about cost sharing for federal research grants. Essentially, it states that while organizations applying for these grants can voluntarily offer to contribute additional funds or resources (called "voluntary committed cost sharing"), federal agencies are not required to consider these contributions when evaluating grant applications, unless specifically stated in the grant announcement. This means that if an organization wants to show they are committed to a project by offering extra resources, they can do so, but it won't help their chances of getting the grant unless the rules say otherwise.
This regulation applies to all federal awards and affects various organizations, including universities and research institutions. It specifies that any contributions made by the organization or third parties must be documented and meet certain criteria, such as being necessary for the project and not being counted towards other federal awards. Additionally, it allows for the inclusion of indirect costs (overhead expenses) as part of the cost sharing if approved by the federal agency. This matters because it ensures that organizations can leverage their own resources effectively while maintaining transparency and accountability in how federal funds are used. It also helps to clarify what can be counted as contributions, which is crucial for organizations to plan their budgets and resources accurately.
Generated by gpt-4o-mini on 2025-10-16 10:48:51
(a) Voluntary committed cost sharing is not expected under Federal research grants. The Federal agency may not use voluntary committed cost sharing as a factor during the merit review of applications or proposals for Federal research grants unless authorized by Federal statutes or agency regulations and specified in the notice of funding opportunity. Federal agencies are also discouraged from using voluntary committed cost sharing as a factor during the merit review of applications for other Federal financial assistance programs. If voluntary committed cost sharing is used for this purpose for other programs, the notice of funding opportunity must specify how an applicant's proposed cost sharing will be considered. See §§ 200.414, 200.204, and Appendix I.
(b) For all Federal awards, the Federal agency or pass-through entity must accept any cost sharing funds (including cash and third-party in-kind contributions, and also including funds committed by the recipient, subrecipient, or third parties) as part of the recipient's or subrecipient's contributions to a program when the funds:
(1) Are verifiable in the recipient's or subrecipient's records;
(2) Are not included as contributions for any other Federal award;
(3) Are necessary and reasonable for achieving the objectives of the Federal award;
(4) Are allowable under subpart E;
(5) Are not paid by the Federal Government under another Federal award, except where the program's Federal authorizing statute specifically provides that Federal funds made available for the program can be applied to cost sharing requirements of other Federal programs;
(6) Are provided for in the approved budget when required by the Federal agency; and
(7) Conform to other applicable provisions of this part.
(c) Unrecovered indirect costs, including indirect costs on cost sharing, may be included as part of cost sharing with the prior approval of the Federal agency or pass-through entity. Unrecovered indirect cost means the difference between the amount charged to the Federal award and the amount which could have been charged to the Federal award under the recipient's or subrecipient's approved indirect cost rate.
(d) Values for recipient or subrecipient contributions of services and property must be established in accordance with the cost principles in subpart E. When a Federal agency or pass-through entity authorizes the recipient or subrecipient to donate buildings or land for construction/facilities acquisition projects or long-term use, the value of the donated property for cost sharing must be the lesser of paragraph (d)(1) or (2) below.
(1) The value of the remaining life of the property recorded in the recipient's or subrecipient's accounting records at the time of donation.
(2) The current fair market value. However, when there is sufficient justification, the Federal agency or pass-through may approve using the current fair market value of the donated property, even if it exceeds the value described in paragraph (d)(1) at the time of donation.
(e) Volunteer services furnished by third-party professional and technical personnel, consultants, and other labor may be counted as cost sharing if the service is necessary for the program. Rates for third-party volunteer services must be consistent with those paid for similar work by the recipient or subrecipient. When the required skills are not found in the recipient's or subrecipient's workforce, rates must be consistent with those paid for similar work in the labor market where the recipient or subrecipient competes for the services involved. In either case, fringe benefits that are allowable, allocable, and reasonable may be included in the valuation.
(f) When a third-party organization furnishes the services of an employee, these services must be valued at the employee's regular rate of pay plus an amount of fringe benefits that is reasonable, necessary, allocable, and otherwise allowable, and indirect costs at either the third-party organization's approved federally-negotiated indirect cost rate or, a rate in accordance with § 200.414(d) provided these services employ the same skill(s) for which the employee is normally paid. Where donated services are treated as indirect costs, indirect cost rates will separate the value of the donated services so that reimbursement for the donated services will not be made.
(g) Donated property from third parties may include items such as equipment, office supplies, laboratory supplies, or workshop and classroom supplies. The assessed value of donated property included as cost sharing must not exceed the property's fair market value at the time of the donation.
(h) The method used for determining the value of donated equipment, buildings, and land for which title passes to the recipient or subrecipient may differ according to the following:
(1) If the purpose of the Federal award is to assist the recipient or subrecipient in acquiring equipment, buildings, or land, the aggregate value of the donated property may be claimed as cost sharing.
(2) If the purpose of the Federal award is to support activities that require the use of equipment, buildings, or land, only depreciation charges for equipment and buildings may be made. However, the fair market value of equipment or other capital assets and fair rental charges for land may be allowed if provided in the terms and conditions of the Federal award. See § 200.420.
(i) The value of donated property must be determined in accordance with the accounting policies of the recipient or subrecipient with the following qualifications:
(1) The value of donated land and buildings must not exceed its fair market value at the time of donation to the recipient or subrecipient as established by an independent appraiser (for example, certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient or subrecipient as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601-4655) except as provided in the implementing regulations at 49 CFR part 24, “Uniform Relocation Assistance And Real Property Acquisition For Federal And Federally-Assisted Programs.”
(2) The value of donated equipment must not exceed the fair market value at the time of donation.
(3) The value of donated space must not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned building in the same locality.
(4) The value of loaned equipment must not exceed its fair rental value.
(j) The fair market value of third-party in-kind contributions must be documented and, to the extent feasible, supported by the same methods used internally by the recipient or subrecipient.
(k) For institutions of higher education (IHE), voluntary uncommitted cost sharing should be treated differently from mandatory or voluntary committed cost sharing. Voluntary uncommitted cost sharing should not be included in the organized research base for computing the indirect cost rate or reflected in any allocation of indirect costs. Voluntary uncommitted cost sharing includes faculty-donated additional time above that agreed to as part of the award. See OMB memorandum M-01-06, dated January 5, 2001, Clarification of OMB A-21 Treatment of Voluntary Uncommitted Cost Sharing and Tuition Remission Costs.
§ 200.307
Program income.
Section 200.307 encourages recipients of federal awards to earn program income to help cover costs, which must be used for the award's original purpose. The income can be applied in three ways—deduction, addition, or cost-sharing—depending on the federal agency's guidelines, and it must be spent before requesting more federal funds.
View
§ 200.307
Program income.
135 findings
in our database
Section 200.307 of the Code of Federal Regulations deals with "program income," which is money earned from activities funded by a federal grant. This regulation encourages organizations that receive federal funds (called "recipients" or "subrecipients") to generate income that can help cover the costs of their programs. However, any income earned must be used for the same purpose as the original federal funding and should be spent before asking for more federal money. If the income exceeds a certain amount, it can either be added to or deducted from the total costs allowed under the federal award, depending on the specific rules set by the federal agency.
The regulation outlines three ways to handle program income: deduction, addition, and cost-sharing. If the federal agency doesn’t specify how to use the income, the default method is deduction, which reduces the total amount of federal funding. The addition method increases the total allowable costs, while cost-sharing means using the income to meet the funding requirements of the federal award. Additionally, any income earned after the federal funding period ends can be used as agreed upon between the recipient and the federal agency, but there are no strict rules unless specified in the award terms.
Finally, not all income counts as program income. For example, taxes, property sales, and certain fees are not considered program income unless specifically stated in the federal regulations or award terms. Understanding these rules is crucial for organizations to manage their finances properly and ensure compliance with federal funding requirements, which can affect their ability to secure future funding.
Generated by gpt-4o-mini on 2025-10-16 10:48:58
(a)
General.
The recipient or subrecipient is encouraged to earn income to defray program costs when appropriate. Program income must be used for the original purpose of the Federal award. Program income earned during the period of performance may only be used for costs incurred during the period of performance or allowable closeout costs. See § 200.472(b). Program income must be expended prior to requesting additional Federal funds. Program income exceeding amounts specified in the Federal award may be added to or deducted from the total allowable costs in accordance with the terms and conditions of the Federal award.
(b)
Use of program income.
There are three methods of applying program income: deduction; addition; and cost-sharing. The Federal agency should specify what program income method(s) will be used in the terms and conditions of the Federal award. The deduction method will be used if the Federal agency does not specify a method for applying program income. When no program income method is specified in the Federal award, prior approval is required to use the addition or cost sharing methods. However, the addition method will be used when no method is specified for awards made to institutions of higher education (IHE) and nonprofit research institutions. In specifying alternatives to the deduction and addition methods, the Federal agency may distinguish between income earned by the recipient and income earned by subrecipients as well as between the sources, kinds, or amounts of income.
(1)
Deduction.
Program income is deducted from the total allowable costs, reducing the overall total amount of the Federal award.
(2)
Addition.
Program income is added to the total allowable costs, increasing the overall total amount of the Federal award.
(3)
Cost sharing.
Program income is used to meet the Federal award's cost sharing requirement.
(c)
Income after the period of performance.
There are no requirements governing the disposition of program income earned after the end of the period of performance of the Federal award unless stipulated in the Federal agency regulations or the terms and conditions of the Federal award. The Federal agency may negotiate agreements with recipients regarding appropriate uses of income earned after the end of the period of performance as part of the closeout process. See § 200.344.
(d)
Cost of generating program income.
If authorized by Federal regulations or the Federal award, costs incidental to generating program income may be deducted from gross income to determine program income, provided these costs have not been charged to the Federal award.
(e)
Not considered program income.
The following are not considered program income unless specified in Federal statutes, regulations, or the terms and conditions of the Federal award:
(1)
Governmental revenues.
Taxes, special assessments, levies, fines, and similar revenues the recipient or subrecipient raised.
(2)
Property.
Proceeds from the sale of real property, equipment, or supplies. The proceeds must be handled in accordance with the requirements of the Property Standards of §§ 200.311, 200.313, 200.314, or as explicitly identified in Federal statutes, regulations, or the terms and conditions of the Federal award.
(3)
License fees and royalties.
License fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions made under the Federal award subject to 37 CFR part 401.
§ 200.308
Revision of budget and program plans.
Section 200.308 outlines the process for revising approved budgets and program plans for federal awards. Recipients or subrecipients must report any deviations from the approved budget and seek prior approval for revisions, which federal agencies must review and respond to within 30 days.
View
§ 200.308
Revision of budget and program plans.
4,687 findings
in our database
Section 200.308 of the Code of Federal Regulations outlines the rules for changing budgets and program plans for projects funded by federal awards. When an organization receives federal funding, it must stick to the approved budget, which details how the money will be spent. If there are any changes to the budget or the project's goals, the organization must report these changes and get approval from the federal agency that provided the funding. This includes changes like shifting funds between different budget categories or altering key personnel involved in the project.
This regulation applies to any organization or individual receiving federal funds, including those who may pass the funds on to others (called subrecipients). It is essential for maintaining accountability and ensuring that federal money is used as intended. For example, if a project director leaves or if more funds are needed to complete the project, the organization must formally request approval for these changes. The federal agency is required to respond to these requests within 30 days, helping to ensure that projects stay on track and within budget. Overall, this regulation helps manage federal funds responsibly and ensures that any significant changes are carefully considered and documented.
Generated by gpt-4o-mini on 2025-10-16 10:49:04
(a)
Approved budget in general.
The approved budget for the Federal award summarizes the financial aspects of the project or program as approved during the Federal award process. It may include the Federal share and non-Federal share or only the Federal share, as determined by the Federal agency or pass-through entity.
(b)
Deviations from approved budget.
The recipient or subrecipient must report deviations from the approved budget, project or program scope, or objective(s) in accordance with § 200.329. The recipient or subrecipient must request prior approvals from the Federal agency or pass-through entity for budget and program plan revisions in accordance with this section.
(c)
Requesting approval for budget revisions.
When requesting approval for budget revisions, the recipient or subrecipient must use the same format for budget information that was used in their application, except if the Federal agency has approved an alternative format. Alternative formats may include the use of electronic systems, email, or other agency-approved mechanisms that document the request.
(d)
Federal agency or pass-through entity review.
The Federal agency or pass-through entity must review the request for budget or program plan revision and should notify the recipient or subrecipient whether the revisions have been approved within 30 days of receipt of the request. The Federal agency or pass-through entity must inform the recipient or subrecipient in writing when a decision can be expected if more than 30 days is required for a review.
(e)
Limitation on other prior approval requirements.
Unless specified in this guidance, the Federal agency must not impose additional prior approval requirements without OMB approval. See also §§ 200.102 and 200.407.
(f)
Revisions Requiring Prior Approval.
A recipient or subrecipient must request prior written approval from the Federal agency or pass-through entity for the following program and budget-related reasons:
(1) Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval).
(2) Change in key personnel (including employees and contractors) that are identified by name or position in the Federal award.
(3) The disengagement from a project for more than three months, or a 25 percent reduction in time and effort devoted to the Federal award over the course of the period of performance, by the approved project director or principal investigator.
(4) The inclusion, unless waived by the Federal agency, of costs that require prior approval in accordance with subpart E as applicable.
(5) The transfer of funds budgeted for participant support costs to other budget categories.
(6) Subaward activities not proposed in the application and approved in the Federal award. A change of subrecipient only requires prior approval if the Federal agency or pass-through entity includes the requirement in the terms and conditions of the Federal award. In general, a Federal agency or pass-through entity should not require prior approval of a change of subrecipient unless the inclusion was a determining factor in the merit review or eligibility process. This requirement does not apply to procurement transactions for goods and services.
(7) Changes in the total approved cost-sharing amount.
(8) The need arises for additional Federal funds to complete the project. Before providing approval, the Federal agency must ensure that adequate funds are available to avoid a violation of the Antideficiency Act.
(9) Transferring funds between the construction and non-construction work under a Federal award.
(10) A no-cost extension (meaning, an extension of time that does not require the obligation of additional Federal funds) of the period of performance, other than any one-time extension authorized by the Federal agency in accordance with paragraph (g)(2). All requests for no-cost extensions should be submitted at least 10 calendar days before the conclusion of the period of performance. The Federal agency may approve multiple no-cost extensions under a Federal award if not prohibited by Federal statute or regulation.
(g)
Waiver of certain prior approvals.
Except for the requirements listed in paragraphs (f)(1) through (10), the Federal agency is authorized to waive other cost-related and administrative prior written approval requirements contained in subparts D and E. Such waivers may include authorizing recipients to do one or more of the following:
(1)
Pre-award costs.
Incur project costs 90 calendar days before the Federal award date. Expenses incurred more than 90 calendar days before the Federal award date require prior approval of the Federal agency. All costs incurred before the Federal award date are at the recipient's own risk (
for example,
the Federal agency is not required to reimburse such costs if the recipient does not receive the Federal award or if the Federal award is less than anticipated and inadequate to cover such costs). Pre-award costs must be charged to the initial budget period of the Federal award unless otherwise specified by the Federal agency. See also § 200.458.
(2)
One-time extensions.
Initiate a one-time extension of the period of performance by up to 12 months unless one or more of the conditions outlined in paragraphs (g)(2)(i) through (iii) of this section apply. Prior approval is not required if a recipient is authorized in the terms and conditions of the Federal award to initiate a one-time extension. However, the recipient must notify the Federal agency in writing with the supporting justification and a revised period of performance at least 10 calendar days before the conclusion of the period of performance. A one-time extension may not be exercised for the sole purpose of using unobligated balances. This paragraph does not preclude the Federal agency from approving further no-cost extensions to the Federal award. One-time extensions require prior approval from the Federal agency when:
(i) The terms and conditions of the Federal award prohibit the extension;
(ii) The extension requires additional Federal funds; or
(iii) The extension involves any change in the approved scope of the project.
(3)
Unobligated Balances.
Carry forward unobligated balances to subsequent budget periods.
(h)
Prior approvals for research awards.
The prior approval requirements for the actions described in paragraph (g) of this section are automatically waived for Federal awards that support research unless stipulated in the Federal agency's regulations or terms and conditions of the Federal award. However, one-time extensions require the Federal agency's prior approval when one of the conditions in paragraph (g)(2) of this section applies.
(i)
Transfer of funds.
The Federal agency must not permit a transfer of funds that would cause any Federal appropriation to be used for purposes other than those consistent with the appropriation. The Federal agency may also, at its option, restrict the transfer of funds among direct cost categories (for example, personnel, travel, and supplies) or programs, functions, and activities when:
(1) The Federal share of the Federal award exceeds the simplified acquisition threshold; and
(2) The cumulative amount of a transfer exceeds or is expected to exceed 10 percent of the total budget, including cost share, as last approved by the Federal agency.
§ 200.309
Modifications to Period of Performance.
Section 200.309 states that if a federal agency approves an extension of a federal award, the performance period will be adjusted to reflect the new end date. If the award is terminated, the performance period will end on the termination date, and a new award starts a new performance period. This affects recipients of federal awards and their timelines for project completion.
View
§ 200.309
Modifications to Period of Performance.
916 findings
in our database
This regulation outlines how the time frame for a federal award can be changed. If a federal agency or an organization that receives federal funds (called a pass-through entity) agrees to extend the time for a project, the end date of that project will be updated to reflect this new extension. Similarly, if a recipient decides to extend their project under specific conditions mentioned in another part of the regulations, the end date will also be adjusted. If the project is terminated, the end date will change to the date when the termination takes effect.
This regulation applies to organizations or individuals who receive federal funding for projects. It ensures that everyone involved understands when a project is supposed to start and finish, especially if there are changes. This is important because it helps keep projects on track and ensures that funding is used effectively. By clearly defining the time frames, it helps prevent confusion and ensures accountability in how federal funds are managed.
Generated by gpt-4o-mini on 2025-10-16 10:49:11
When the Federal agency or pass-through entity approves an extension to a Federal award, or if a recipient extends under § 200.308(g)(2), the period of performance will be amended to end at the completion of the extension. If termination occurs, the period of performance will be amended to end upon the effective date of termination. The start date of a renewal award begins a new and distinct period of performance.
§ 200.310
Insurance coverage.
Section 200.310 requires that organizations receiving federal funds must insure real property and equipment purchased or improved with those funds at least to the same level as their own property. Federally owned property does not need insurance unless specified in the federal award terms.
View
§ 200.310
Insurance coverage.
3 findings
in our database
Section 200.310 requires that organizations receiving federal funds (called recipients or subrecipients) must have insurance coverage for any real estate or equipment they buy or improve using those funds. This insurance must be at least as good as the coverage they have for their own property and equipment. Essentially, if they invest federal money into something, they need to protect that investment with insurance, just like they would for their own assets.
This regulation applies to any organization that receives federal funding for projects involving real property (like buildings or land) or equipment. However, it does not apply to property that is owned by the federal government itself unless the specific federal funding agreement says otherwise.
The practical implication of this regulation is that it ensures that federal investments are safeguarded against risks like damage or loss. This matters because it helps protect taxpayer money and ensures that projects funded by the government can continue to operate effectively, even if something unexpected happens. Having adequate insurance coverage means that organizations can recover from losses and continue serving their communities.
Generated by gpt-4o-mini on 2025-10-16 10:49:17
The recipient or subrecipient must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property and equipment owned by the recipient or subrecipient. Insurance is not required for Federally owned property unless required by the terms and conditions of the Federal award.
§ 200.311
Real property.
Section 200.311 states that real property acquired with federal funds belongs to the recipient or subrecipient and must be used for its intended purpose as long as needed. When the property is no longer needed, the recipient must follow federal instructions for its disposition, which may include compensating the federal agency if they retain ownership.
View
§ 200.311
Real property.
199 findings
in our database
This regulation outlines how real property (like land or buildings) that is acquired or improved using federal funds should be handled. When a recipient (like a state or local government) or a subrecipient (an organization that receives funds from the recipient) acquires this property, they automatically gain ownership. However, they must use the property for the purpose it was originally intended for as long as it is needed. They cannot sell or put any legal claims on the property without permission from the federal agency, although they can set up utility services that benefit the property.
When the property is no longer needed, the recipient or subrecipient must follow specific instructions from the federal agency on what to do next. They have a few options: they can keep the property but must pay the federal agency a portion of its current value based on how much federal money was used to buy it; they can sell the property and also pay a share of the sale proceeds to the federal agency; or they can transfer ownership to the federal agency or another approved party, again receiving a payment based on their contribution to the property's purchase. This regulation is important because it ensures that federal funds are used responsibly and that the government gets a fair return on its investment if the property is sold or disposed of.
Generated by gpt-4o-mini on 2025-10-16 10:49:25
(a)
Title.
Subject to the requirements and conditions set forth in this section, title to real property acquired or improved under the Federal award will vest upon acquisition in the recipient or subrecipient.
(b)
Use.
Except as otherwise provided by Federal statutes or the Federal agency, real property must be used for the originally authorized purpose as long as it is needed for that purpose. While the property is being used for the originally authorized purpose, the recipient or subrecipient must not dispose of or encumber its title or other interests except as provided by the Federal agency. Easements for utility, cable, and similar services that benefit the real property and are consistent with the authorized use are not considered an encumbrance.
(c)
Appraisals.
When an appraisal of real property is required and obtained by the recipient or subrecipient, it must be conducted by an independent appraiser (for example, certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient or subrecipient as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601-4655) except as provided in the implementing regulations at 49 CFR part 24, “Uniform Relocation Assistance And Real Property Acquisition For Federal And Federally-Assisted Programs.”
(d)
Disposition.
When real property is no longer needed for the originally authorized purpose, the recipient or subrecipient must obtain disposition instructions from the Federal agency or pass-through entity. The instructions must specify one of the following disposition methods:
(1)
Retain title after compensating the Federal agency.
When the recipient or subrecipient retains title to the property, it must pay the Federal agency an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase (and costs of any improvements) by the current fair market value of the property. However, in situations where the recipient or subrecipient is disposing of real property acquired or improved with the Federal award and acquiring replacement real property under the same Federal award, the net proceeds from the disposition may be used as an offset to the cost of the replacement property.
(2)
Sell the property and compensate the Federal agency.
When a recipient or subrecipient sells the property, it must pay the Federal agency an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase (and cost of any improvements) by the proceeds of the sale after deducting any actual and reasonable expenses paid to sell or fix up the property for sale. When the Federal award has not been closed out, the net proceeds from the sale may be offset against the original cost of the property. When directed to sell the property, the recipient or subrecipient must sell the property utilizing procedures that provide for competition to the extent practicable and that result in the highest possible return.
(3)
Transfer title to the Federal agency or a third party designated/approved by the Federal agency.
When a recipient or subrecipient transfers title to the property to a Federal agency or third party designated or approved by the Federal agency, the recipient or subrecipient is entitled to be paid an amount calculated by multiplying the percentage of the recipient's or subrecipient's contribution towards the original purchase of the real property (and cost of any improvements) by the current fair market value of the property.
§ 200.312
Federally owned and exempt property.
Section 200.312 states that federally owned property remains under the Federal Government's title, requiring recipients to submit an annual inventory and request disposal instructions when the property is no longer needed. Exempt property can be transferred to recipients without further Federal responsibility only if allowed by law and specified in the award terms; otherwise, the title stays with the Federal Government.
View
§ 200.312
Federally owned and exempt property.
6 findings
in our database
This regulation outlines the rules for handling property that is owned by the Federal Government and how it should be managed by organizations that receive federal funding. First, it states that any property owned by the federal government stays under its ownership, even if it's in the hands of another organization (called a recipient or subrecipient). These organizations must keep an updated list of this property and share it with the federal agency every year. When the federal funding project is finished or if the property is no longer needed, the organization must ask the federal agency what to do with it.
If the federal agency decides it no longer needs the property, it must officially declare it as "excess" and report it for disposal. This means the agency will take steps to get rid of the property properly. However, if the agency has special legal authority, it might be able to dispose of the property in different ways. On the other hand, "exempt property" refers to items that the federal agency allows the recipient or subrecipient to own outright, meaning they don't have to return it to the government. This can only happen if the federal law allows it and if it's clearly stated in the funding agreement. If these conditions aren't met, the property still belongs to the federal government.
Understanding these rules is important because it helps ensure that federal property is managed properly and accounted for, preventing misuse or loss of government assets. Organizations that receive federal funding need to follow these guidelines to stay compliant and avoid any legal issues.
Generated by gpt-4o-mini on 2025-10-16 10:49:32
(a) Title to Federally owned property remains vested in the Federal Government. The recipient or subrecipient must submit an inventory listing of Federally owned property in its custody to the Federal agency or pass-through entity on an annual basis. The recipient or subrecipient must request disposition instructions from the Federal agency or pass-through entity upon completion of the Federal award or when the property is no longer needed.
(b) If the Federal agency has no further need for the property, it must declare the property excess and report it for disposal to the appropriate Federal disposal authority unless the Federal agency has statutory authority to dispose of the property by alternative methods (
for example,
the authority provided by the Federal Technology Transfer Act (15 U.S.C. 3710(i)). The Federal agency or pass-through entity must issue appropriate instructions to the recipient or subrecipient.
(c) Exempt property property acquired under the Federal award where the Federal agency has chosen to vest title to the property to the recipient or subrecipient without further responsibility to the Federal Government. The Federal agency may only exercise this option when permitted by Federal statute and set forth in the terms and conditions of the Federal award. Absent statutory authority and specific terms and conditions of the Federal award, the title to exempt property acquired under the Federal award remains with the Federal Government.
§ 200.313
Equipment.
Section 200.313 states that equipment acquired with federal funds belongs to the recipient or subrecipient but comes with conditions, including using it for the project's intended purpose and obtaining approval before disposing of it. This section affects recipients like states and Indian Tribes, requiring them to manage and dispose of the equipment according to their laws or the specified federal guidelines.
View
§ 200.313
Equipment.
40,600 findings
in our database
This regulation outlines how equipment purchased with federal funds should be handled. When an organization receives federal money to acquire equipment, they technically own it, but this ownership comes with conditions. The equipment must be used for the project it was bought for, and the organization cannot sell or change ownership of the equipment without getting permission from the federal agency that provided the funds. If the equipment is no longer needed for the original project, it can be used for other federally funded projects first, and then potentially for non-federal projects, as long as it doesn’t interfere with its original purpose.
The regulation applies to various entities, including states, Indian tribes, and other organizations that receive federal awards. Each must manage the equipment according to their own laws or follow the federal guidelines if no local laws exist. Recipients must keep detailed records of the equipment, conduct regular inventories, and ensure it is maintained properly. When the equipment is no longer needed, the organization must follow specific steps to dispose of it, which may include selling it or transferring ownership, and they may need to share some of the proceeds with the federal agency based on how much federal money was used to purchase it. This regulation is important because it ensures that federal funds are used responsibly and that taxpayers’ investments are protected.
Generated by gpt-4o-mini on 2025-10-16 10:49:40
See also § 200.439.
(a)
Title.
Title to equipment acquired under the Federal award will vest upon acquisition in the recipient or subrecipient subject to the conditions of this section. This title must be a conditional title unless a Federal statute specifically authorizes the Federal agency to vest title in the recipient or subrecipient without further responsibility to the Federal Government (and the Federal agency elects to do so). A conditional title a clear title is withheld by the Federal agency until conditions and requirements specified in the terms and conditions of a Federal award have been fulfilled. Title for equipment vested in a recipient or subrecipient is subject to the following conditions: (1) Use the equipment for the authorized purposes of the project during the period of performance or until the property is no longer needed for the purposes of the project.
(2) While the equipment is being used for the originally-authorized purpose, the recipient or subrecipient must not dispose of or encumber its title or other interests without the approval of the Federal agency or pass-through entity.
(3) Use and dispose of the property in accordance with paragraphs (b), (c), and (e) of this section.
(b)
General.
A State must use, manage and dispose of equipment acquired under a Federal award in accordance with State laws and procedures. Indian Tribes must use, manage, and dispose of equipment acquired under a Federal award in accordance with tribal laws and procedures. If such laws and procedures do not exist, Indian Tribes must follow the guidance in this section. Other recipients and subrecipients, including subrecipients of a State or Indian Tribe, must follow paragraphs (c) through (e) of this section.
(c)
Use.
(1) The recipient or subrecipient must use equipment for the project or program for which it was acquired and for as long as needed, whether or not the project or program continues to be supported by the Federal award. The recipient or subrecipient must not encumber the equipment without prior approval of the Federal agency or pass-through entity. The Federal agency may require the submission of the applicable common forms for reporting on equipment. When no longer needed for the original project or program, the equipment may be used in other activities in the following order of priority:
(i) Activities under other Federal awards from the Federal agency that funded the original program or project; then
(ii) Activities under Federal awards from other Federal agencies. These activities include consolidated equipment for information technology systems.
(2) During the time that equipment is used on the project or program for which it was acquired, the recipient or subrecipient must also make the equipment available for use on other programs or projects supported by the Federal Government, provided that such use will not interfere with the purpose for which it was originally acquired. First preference for other use of the equipment must be given to other programs or projects supported by the Federal agency that financed the equipment. Second preference must be given to programs or projects under Federal awards from other Federal agencies. Use for non-federally-funded projects is also permissible, provided such use will not interfere with the purpose for which it was originally acquired. The recipient or subrecipient should consider charging user fees as appropriate.
(3) Notwithstanding the encouragement in § 200.307 to earn program income, the recipient or subrecipient must not use equipment acquired with the Federal award to provide services for a fee that is less than a private company would charge for similar services unless specifically authorized by Federal statute. This restriction is effective as long as the Federal Government retains an interest in the equipment.
(4) When acquiring replacement equipment, the recipient or subrecipient may either trade-in or sell the equipment and use the proceeds to offset the cost of the replacement equipment.
(d)
Management requirements.
Regardless of whether equipment is acquired in part or its entirety under the Federal award, the recipient or subrecipient must manage equipment (including replacement equipment) utilizing procedures that meet the following requirements:
(1) Property records must include a description of the property, a serial number or another identification number, the source of funding for the property (including the FAIN), the title holder, the acquisition date, the cost of the property, the percentage of the Federal agency contribution towards the original purchase, the location, use and condition of the property, and any disposition data including the date of disposal and sale price of the property. The recipient and subrecipient are responsible for maintaining and updating property records when there is a change in the status of the property.
(2) A physical inventory of the property must be conducted, and the results must be reconciled with the property records at least once every two years.
(3) A control system must be in place to ensure safeguards for preventing property loss, damage, or theft. Any loss, damage, or theft of equipment must be investigated. The recipient or subrecipient must notify the Federal agency or pass-through entity of any loss, damage, or theft of equipment that will have an impact on the program.
(4) Regular maintenance procedures must be in place to ensure the property is in proper working condition.
(5) If the recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure the highest possible return.
(e)
Disposition.
When equipment acquired under a Federal award is no longer needed for the original project, program, or for other activities currently or previously supported by a Federal agency, the recipient or subrecipient must request disposition instructions from the Federal agency or pass-through entity if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal agency or pass-through entity disposition instructions:
(1) Equipment with a current fair market value of $10,000 or less (per unit) may be retained, sold, or otherwise disposed of with no further responsibility to the Federal agency or pass-through entity.
(2) Except as provided in § 200.312(b), or if the Federal agency or pass-through entity fails to provide requested disposition instructions within 120 days, items of equipment with a current fair market value in excess of $10,000 (per-unit) may be retained or sold by the recipient or subrecipient. However, the Federal agency is entitled to an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase by the current market value or proceeds from the sale. If the equipment is sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the equipment.
(3) The recipient or subrecipient may transfer title to the property to the Federal Government or to an eligible third party provided that the recipient or subrecipient must be entitled to compensation for its attributable percentage of the current fair market value of the property.
(4) In cases where a recipient or subrecipient fails to take appropriate disposition actions, the Federal agency or pass-through entity may direct the recipient or subrecipient to take disposition actions.
(f)
Equipment retention.
When included in the terms and conditions of the Federal award, the Federal agency may permit the recipient to retain equipment, or authorize a pass-through entity to permit the subrecipient to retain equipment, with no further obligation to the Federal Government unless prohibited by Federal statute or regulation.
§ 200.314
Supplies.
Section 200.314 states that recipients or subrecipients of Federal awards own supplies acquired under the award and can keep or sell unused supplies valued over $10,000 at the end of the performance period, with some compensation owed to the Federal agency. Additionally, these supplies cannot be used to provide services for a fee lower than what a private company would charge, as long as the Federal Government has an interest in them.
View
§ 200.314
Supplies.
3 findings
in our database
This regulation outlines rules about supplies purchased with federal funds. When an organization receives federal money to buy supplies, they own those supplies as soon as they acquire them. If, at the end of the project, they have unused supplies worth more than $10,000 and don’t need them for other federal projects, they can either keep or sell these supplies. However, if they sell them, they must share some of the money from the sale with the federal agency that funded the purchase. Specifically, they calculate the amount owed based on how much federal money contributed to the original purchase. They can keep $1,000 from the sale to help cover their selling costs.
Additionally, the regulation states that organizations cannot use these federally funded supplies to provide services for a fee that is lower than what a private company would charge for similar services. This rule is in place to ensure that federal resources are not used to undercut private businesses. This restriction remains until the federal government no longer has an interest in those supplies, unless a federal law allows otherwise.
Generated by gpt-4o-mini on 2025-10-16 10:49:46
See also § 200.453.
(a) Title to supplies acquired under the Federal award will vest upon acquisition in the recipient or subrecipient. When there is a residual inventory of unused supplies exceeding $10,000 in aggregate value at the end of the period of performance, and the supplies are not needed for any other Federal award, the recipient or subrecipient may retain or sell the unused supplies. Unused supplies supplies that are in new condition, not having been used or opened before. The aggregate value of unused supplies consists of all supply types, not just like-item supplies. The Federal agency or pass-through entity is entitled to compensation in an amount calculated by multiplying the percentage of the Federal agency's or pass-through entity's contribution towards the cost of the original purchase(s) by the current market value or proceeds from the sale. If the supplies are sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the supplies. (b) Unless expressly authorized by Federal statute, the recipient or subrecipient must not use supplies acquired with the Federal award to provide services for a fee that is less than a private company would charge for similar services. This restriction is effective as long as the Federal Government retains an interest in the supplies or as authorized by Federal statute.
§ 200.315
Intangible property.
Section 200.315 states that intangible property acquired under a Federal award belongs to the recipient or subrecipient, who must use it for its intended purpose and cannot encumber it without approval. Recipients can copyright their work but must allow the Federal agency to use it freely, and they must provide research data upon request, especially if it relates to published findings used by the Federal Government.
View
§ 200.315
Intangible property.
This regulation outlines how intangible property, like copyrights and research data, is handled when funded by a Federal award. When a recipient or subrecipient (like a university or nonprofit) acquires intangible property through Federal funding, they own it but must use it for the purpose it was intended. They can’t put any restrictions on it without getting approval from the Federal agency that provided the funding. If the property is no longer needed for its original purpose, it must be disposed of according to specific rules.
The regulation also allows recipients to copyright their work developed under Federal funding, but the government retains the right to use that work freely for its own purposes. This includes the ability to share the work with others. Additionally, if the Federal agency requests research data related to published findings, the recipient must provide it, especially if it’s needed for legal actions. However, certain types of information, like personal data or trade secrets, are protected and don’t have to be shared. Overall, this regulation ensures that the government can access and use research funded by taxpayer money while balancing the rights of the researchers.
Generated by gpt-4o-mini on 2025-10-16 10:49:53
(a) Title to intangible property acquired under a Federal award vests upon acquisition in the recipient or subrecipient. The recipient or subrecipient must use that intangible property for the originally authorized purpose and must not encumber the property without the approval of the Federal agency or pass-through entity. When no longer needed for the originally authorized purpose, disposition of the intangible property must occur in accordance with the provisions in § 200.313(e).
(b) To the extent permitted by law, the recipient or subrecipient may copyright any work that is subject to copyright and was developed, or for which ownership was acquired, under a Federal award. The Federal agency reserves a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes and to authorize others to do so. This includes the right to require recipients and subrecipients to make such works available through agency-designated public access repositories.
(c) The recipient or subrecipient is subject to applicable regulations governing patents and inventions, including government-wide regulations in 37 CFR part 401.
(d) The Federal Government has the right to:
(1) Obtain, reproduce, publish, or otherwise use the data produced under a Federal award; and
(2) Authorize others to receive, reproduce, publish, or otherwise use the data for Federal purposes.
(e)(1) The recipient or subrecipient must provide research data relating to published research findings produced under the Federal award and that were used by the Federal Government in developing an agency action that has the force and effect of law if requested by the Federal agency in response to a Freedom of Information Act (FOIA) request. When the Federal agency obtains the research data solely in response to a FOIA request, the Federal agency may charge the requester a fee for the cost of obtaining the research data. This fee should reflect the costs incurred by the Federal agency and the recipient or subrecipient. This fee is in addition to any fees the Federal agency may assess under the FOIA (5 U.S.C. 552(a)(4)(A)).
(2) Published research findings mean:
(i) Research findings published in a peer-reviewed scientific or technical journal; or
(ii) Research findings publicly cited by a Federal agency in developing an agency action that has the force and effect of law.
(3) Research data means the recorded factual material commonly accepted in the scientific community as necessary to validate research findings. Research data does not include any of the following:
(i) Preliminary analyses, drafts of scientific papers, plans for future research, peer reviews, or communications with colleagues. This “recorded” material excludes physical objects (for example, laboratory samples).
(ii) Trade secrets, commercial information, materials necessary to be held confidential by a researcher until they are published, or similar information which is protected under law; and
(iii) Personnel, medical, and other personally identifiable information that, if disclosed, would constitute an invasion of personal privacy. Information that could identify a particular person in a research study is not considered research data.
(f) Federal agencies should work with recipients to maximize public access to Federally funded research results and data in a manner that protects data providers' confidentiality, privacy, and security. Agencies should provide guidance to recipients to make restricted-access data available through a variety of mechanisms. FOIA may not be the most appropriate mechanism for providing access to intangible property, including Federally funded research results and data.
§ 200.316
Property trust relationship.
Section 200.316 states that property obtained or enhanced with federal funds must be held in trust by the recipient for the project's beneficiaries. Federal agencies may require documentation to show that the property is subject to specific use and disposal rules.
View
§ 200.316
Property trust relationship.
This regulation requires that any real estate, equipment, or other valuable items bought or improved with federal funding must be treated as if they are held in trust. This means that the organization receiving the federal money (called the recipient) or any organization they work with (called a subrecipient) must manage these assets responsibly for the benefit of the project or program that received the funding. Essentially, they are acting like a trustee, ensuring that the property is used as intended.
This rule applies to any organization that receives federal funds for a project, including nonprofits, state agencies, and local governments. It comes into play whenever they acquire or enhance property with that funding. The federal agency or the organization that provided the funds can also require these recipients to officially record certain legal notices, like liens, to show that the property was funded by federal money and that there are specific rules about how it can be used or disposed of.
Understanding this regulation is important because it ensures that federal funds are used properly and that the benefits of the investments made with those funds are preserved for the intended purposes. It helps prevent misuse of property and ensures accountability, which is crucial for maintaining public trust in how federal money is spent.
Generated by gpt-4o-mini on 2025-10-16 10:49:59
Real property, equipment, and intangible property acquired or improved with the Federal award must be held in trust by the recipient or subrecipient as trustee for the beneficiaries of the project or program under which the property was acquired or improved. The Federal agency or pass-through entity may require the recipient or subrecipient to record liens or other appropriate notices of record to indicate that personal or real property has been acquired or improved with a Federal award and that use and disposition conditions apply to the property.
§ 200.317
Procurements by States and Indian Tribes.
States and Indian Tribes must use their own procurement policies for Federal awards, or follow specific federal standards if they don't have their own. All other recipients and subrecipients must also adhere to these federal procurement standards.
View
§ 200.317
Procurements by States and Indian Tribes.
2,849 findings
in our database
This regulation requires that when States or Indian Tribes are buying goods or services with federal funds, they must use the same rules and procedures they normally follow when spending their own non-federal money. If they don’t have their own rules in place, they must follow specific federal guidelines outlined in sections 200.318 to 200.327. Additionally, they must also adhere to certain other standards mentioned in sections 200.321, 200.322, 200.323, and 200.327.
This regulation applies to States and Indian Tribes when they are using federal awards, which are funds provided by the federal government for specific purposes. It also applies to any organizations or individuals that receive funds from these States or Indian Tribes, known as subrecipients. The practical implication is that it ensures a consistent approach to spending federal money, promoting fairness and accountability in how these funds are used. This matters because it helps prevent misuse of federal funds and ensures that the procurement process is transparent and efficient.
Generated by gpt-4o-mini on 2025-10-16 10:50:07
When conducting procurement transactions under a Federal award, a State or Indian Tribe must follow the same policies and procedures it uses for procurements with non-Federal funds. If such policies and procedures do not exist, States and Indian Tribes must follow the procurement standards in §§ 200.318 through 200.327. In addition to its own policies and procedures, a State or Indian Tribe must also comply with the following procurement standards: §§ 200.321, 200.322, 200.323, and 200.327. All other recipients and subrecipients, including subrecipients of a State or Indian Tribe, must follow the procurement standards in §§ 200.318 through 200.327.
§ 200.318
General procurement standards.
Section 200.318 requires recipients and subrecipients of federal awards to have documented procurement procedures that comply with applicable laws and ensure oversight of contractors. It also mandates written standards to prevent conflicts of interest among employees involved in contract management, prohibiting them from participating in contracts where they have a personal financial interest.
View
§ 200.318
General procurement standards.
8,107 findings
in our database
Section 200.318 outlines the rules for how organizations that receive federal funds must handle purchasing goods and services. First, these organizations must have clear written procedures for procurement that align with local laws and federal standards. They need to keep an eye on contractors to ensure they meet the terms of their contracts. Additionally, organizations must have written rules to prevent conflicts of interest, meaning that employees involved in selecting or managing contracts cannot have personal stakes in the companies they are working with. They also cannot accept gifts or favors from contractors, although there are some exceptions for small, unsolicited gifts.
This regulation applies to any organization or individual receiving federal awards or subawards, including state and local governments, nonprofits, and other entities. It is crucial in ensuring that public funds are spent wisely and fairly, preventing waste and corruption. For practical purposes, organizations must avoid buying unnecessary items, consider using shared resources, and keep detailed records of all procurement activities. By following these standards, they can ensure they are making cost-effective decisions and maintaining transparency and accountability in their spending.
Generated by gpt-4o-mini on 2025-10-16 10:50:13
(a)
Documented procurement procedures.
The recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327.
(b)
Oversight of contractors.
Recipients and subrecipients must maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. See also § 200.501(h).
(c)
Conflicts of interest.
(1) The recipient or subrecipient must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award, and administration of contracts. No employee, officer, agent, or board member with a real or apparent conflict of interest may participate in the selection, award, or administration of a contract supported by the Federal award. A conflict of interest includes when the employee, officer, agent, or board member, any member of their immediate family, their partner, or an organization that employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from an entity considered for a contract. An employee, officer, agent, and board member of the recipient or subrecipient may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors. However, the recipient or subrecipient may set standards for situations where the financial interest is not substantial or a gift is an unsolicited item of nominal value. The recipient's or subrecipient's standards of conduct must also provide for disciplinary actions to be applied for violations by its employees, officers, agents, or board members.
(2) If the recipient or subrecipient has a parent, affiliate, or subsidiary organization that is not a State, local government, or Indian Tribe, the recipient or subrecipient must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest mean that because of relationships with a parent company, affiliate, or subsidiary organization, the recipient or subrecipient is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization.
(d)
Avoidance of unnecessary or duplicative items.
The recipient's or subrecipient's procedures must avoid the acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. When appropriate, an analysis should be made between leasing and purchasing property or equipment to determine the most economical approach.
(e)
Procurement arrangements using strategic sourcing.
When appropriate for the procurement or use of common or shared goods and services, recipients and subrecipients are encouraged to enter into State and local intergovernmental agreements or inter-entity agreements for procurement transactions. These or similar procurement arrangements using strategic sourcing may foster greater economy and efficiency. Documented procurement actions of this type (using strategic sourcing, shared services, and other similar procurement arrangements) will meet the competition requirements of this part.
(f)
Use of excess and surplus Federal property.
The recipient or subrecipient is encouraged to use excess and surplus Federal property instead of purchasing new equipment and property when it is feasible and reduces project costs.
(g)
Use of value engineering clauses.
When practical, the recipient or subrecipient is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering means analyzing each contract item or task to ensure its essential function is provided at the overall lowest cost.
(h)
Responsible contractors.
The recipient or subrecipient must award contracts only to responsible contractors that possess the ability to perform successfully under the terms and conditions of a proposed contract. The recipient or subrecipient must consider contractor integrity, public policy compliance, proper classification of employees (see the Fair Labor Standards Act, 29 U.S.C. 201, chapter 8), past performance record, and financial and technical resources when conducting a procurement transaction. See also § 200.214.
(i)
Procurement records.
The recipient or subrecipient must maintain records sufficient to detail the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractor selection or rejection, and the basis for the contract price.
(j)
Time-and-materials type contracts.
(1) The recipient or subrecipient may use a time-and-materials type contract only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time-and-materials type contract means a contract whose cost to a recipient or subrecipient is the sum of:
(i) The actual cost of materials; and
(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.
(2) Because this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. Further, the recipient or subrecipient awarding such a contract must assert a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
(k)
Settlement of contractual and administrative issues.
The recipient or subrecipient is responsible for the settlement of all contractual and administrative issues arising out of its procurement transactions. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the recipient or subrecipient of any contractual responsibilities under its contracts. The Federal agency will not substitute its judgment for that of the recipient or subrecipient unless the matter is primarily a Federal concern. The recipient or subrecipient must report violations of law to the Federal, State, or local authority with proper jurisdiction.
(l)
Examples of labor and employment practices.
(1) The procurement standards in this subpart do not prohibit recipients or subrecipients from:
(i) Using Project Labor Agreements (PLAs) or similar forms of pre-hire collective bargaining agreements;
(ii) Requiring construction contractors to use hiring preferences or goals for people residing in high-poverty areas, disadvantaged communities as defined by the Justice40 Initiative (see OMB Memorandum M-21-28), or high-unemployment census tracts within a region no smaller than the county where a federally funded construction project is located. The hiring preferences or goals should be consistent with the policies and procedures of the recipient or subrecipient, and must not prohibit interstate hiring;
(iii) Requiring a contractor to use hiring preferences or goals for individuals with barriers to employment (as defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(24)), including women and people from underserved communities as defined by Executive Order 14091;
(iv) Using agreements intended to ensure uninterrupted delivery of services; using agreements intended to ensure community benefits; or
(v) Offering employees of a predecessor contractor rights of first refusal under a new contract.
(2) Recipients and subrecipients may use the practices listed in paragraph (1) if consistent with the U.S. Constitution, applicable Federal statutes and regulations, the objectives and purposes of the applicable Federal financial assistance program, and other requirements of this part.
§ 200.319
Competition.
Section 200.319 requires that all procurement transactions under federal awards promote full and open competition, ensuring fairness and objectivity. It affects recipients and subrecipients by mandating written procedures that prevent conflicts of interest and unreasonable qualifications, while allowing for clear descriptions of technical requirements without overly restrictive specifications.
View
§ 200.319
Competition.
2,592 findings
in our database
This regulation, Section 200.319, requires that all purchasing activities funded by federal awards be conducted in a way that encourages fair competition. This means that everyone interested in providing goods or services should have a fair chance to participate. The regulation also specifies that if a contractor helps create the requirements for a project, they cannot bid on that project to avoid any unfair advantages.
The regulation applies to organizations or individuals who receive federal funds and are involved in purchasing goods or services. It outlines situations that could limit competition, such as setting overly strict qualifications for bidders or requiring unnecessary experience. It also emphasizes the need for clear and accurate descriptions of what is being purchased, avoiding overly specific brand names unless absolutely necessary. Additionally, organizations must keep their lists of qualified suppliers up to date to ensure a wide range of bidders can participate.
Practically, this regulation matters because it helps ensure that taxpayer money is spent efficiently and fairly. By promoting competition, it can lead to better prices and services. It also protects against favoritism or conflicts of interest, making the procurement process more transparent and accountable. Overall, following these guidelines helps create a level playing field for all potential suppliers.
Generated by gpt-4o-mini on 2025-10-16 10:50:23
(a) All procurement transactions under the Federal award must be conducted in a manner that provides full and open competition and is consistent with the standards of this section and § 200.320.
(b) To ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements.
(c) Examples of situations that may restrict competition include, but are not limited to:
(1) Placing unreasonable requirements on firms for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding;
(3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts;
(5) Organizational conflicts of interest;
(6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(d) The recipient or subrecipient must have written procedures for procurement transactions. These procedures must ensure that all solicitations:
(1) Are made in accordance with § 200.319(b);
(2) Incorporate a clear and accurate description of the technical requirements for the property, equipment, or service being procured. The description may include a statement of the qualitative nature of the property, equipment, or service to be procured. When necessary, the description must provide minimum essential characteristics and standards to which the property, equipment, or service must conform. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to clearly and accurately describe the technical requirements, a “brand name or equivalent” description of features may be used to provide procurement requirements. The specific features of the named brand must be clearly stated; and
(3) Identify any additional requirements which the offerors must fulfill and all other factors that will be used in evaluating bids or proposals.
(e) The recipient or subrecipient must ensure that all prequalified lists of persons, firms, or products used in procurement transactions are current and include enough qualified sources to ensure maximum open competition. When establishing or amending prequalified lists, the recipient or subrecipient must consider objective factors that evaluate price and cost to maximize competition. The recipient or subrecipient must not preclude potential bidders from qualifying during the solicitation period.
(f) To the extent consistent with established practices and legal requirements applicable to the recipient or subrecipient, this subpart does not prohibit recipients or subrecipients from developing written procedures for procurement transactions that incorporate a scoring mechanism that rewards bidders that commit to specific numbers and types of U.S. jobs, minimum compensation, benefits, on-the-job-training for employees making work products or providing services on a contract, and other worker protections. This subpart also does not prohibit recipients and subrecipients from making inquiries of bidders about these subjects and assessing the responses. Any scoring mechanism must be consistent with the U.S. Constitution, applicable Federal statutes and regulations, and the terms and conditions of the Federal award.
(g) Noncompetitive procurements can only be awarded in accordance with § 200.320(c).
§ 200.320
Procurement methods.
Section 200.320 outlines three procurement methods: informal (for small purchases), formal (sealed bids or proposals), and noncompetitive. Recipients and subrecipients must follow documented procedures for these methods, ensuring compliance with federal standards, affecting organizations that receive federal funds.
View
§ 200.320
Procurement methods.
5,457 findings
in our database
This section of the Code of Federal Regulations outlines the rules for how organizations that receive federal funding must buy goods and services. There are three main methods for procurement: informal, formal, and noncompetitive. Informal methods are used for smaller purchases and allow for quicker transactions with less paperwork. For example, if a purchase is small enough, organizations can buy items without getting multiple price quotes, as long as they believe the price is fair. Formal methods, on the other hand, are required for larger purchases and involve a competitive bidding process, where organizations must publicly invite bids and select the lowest qualified offer. Noncompetitive procurement can occur in specific situations, such as emergencies or when only one supplier can meet the need.
These procurement rules apply to any organization receiving federal funds, including state and local governments, nonprofits, and educational institutions. The regulations ensure that taxpayer money is spent wisely and fairly, promoting competition and transparency in how purchases are made. By following these guidelines, organizations can avoid waste and ensure they are getting the best value for their money. Understanding and adhering to these procurement methods is crucial for compliance and effective financial management in federally funded projects.
Generated by gpt-4o-mini on 2025-10-16 10:50:31
There are three types of procurement methods described in this section: informal procurement methods (for micro-purchases and simplified acquisitions); formal procurement methods (through sealed bids or proposals); and noncompetitive procurement methods. For any of these methods, the recipient or subrecipient must maintain and use documented procurement procedures, consistent with the standards of this section and §§ 200.317, 200.318, and 200.319.
(a)
Informal procurement methods for small purchases.
These procurement methods expedite the completion of transactions, minimize administrative burdens, and reduce costs. Informal procurement methods may be used when the value of the procurement transaction under the Federal award does not exceed the simplified acquisition threshold as defined in § 200.1. Recipients and subrecipients may also establish a lower threshold. Informal procurement methods include:
(1)
Micro-purchases
—(i)
Distribution.
The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold defined in § 200.1. To the extent practicable, the recipient or subrecipient should distribute micro-purchases equitably among qualified suppliers.
(ii)
Micro-purchase awards.
Micro-purchases may be awarded without soliciting competitive price or rate quotations if the recipient or subrecipient considers the price reasonable based on research, experience, purchase history, or other information; and maintains documents to support its conclusion. Purchase cards may be used as a method of payment for micro-purchases.
(iii)
Micro-purchase thresholds.
The recipient or subrecipient is responsible for determining and documenting an appropriate micro-purchase threshold based on internal controls, an evaluation of risk, and its documented procurement procedures. The micro-purchase threshold used by the recipient or subrecipient must be authorized or not prohibited under State, local, or tribal laws or regulations. The recipient or subrecipient may establish a threshold higher than the Federal threshold established in the Federal Acquisition Regulations (FAR) in accordance with paragraphs (a)(1)(iv) and (v) of this section.
(iv)
Recipient or subrecipient increase to the micro-purchase threshold up to $50,000.
The recipient or subrecipient may establish a threshold higher than the micro-purchase threshold identified in the FAR in accordance with the requirements of this section. The recipient or subrecipient may self-certify a threshold up to $50,000 on an annual basis and must maintain documentation to be made available to the Federal agency or pass-through entity and auditors in accordance with § 200.334. The self-certification must include a justification, clear identification of the threshold, and supporting documentation of any of the following:
(A) A qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent audit;
(B) An annual internal institutional risk assessment to identify, mitigate, and manage financial risks; or,
(C) For public institutions, a higher threshold is consistent with State law.
(v)
Recipient or subrecipient increase to the micro-purchase threshold over $50,000.
Micro-purchase thresholds higher than $50,000 must be approved by the cognizant agency for indirect costs. The recipient or subrecipient must submit a request that includes the requirements in paragraph (a)(1)(iv) of this section. The increased threshold is valid until any factor that was relied on in the establishment and rationale of the threshold changes.
(2)
Simplified acquisitions
—(i)
Simplified acquisition procedures.
The aggregate dollar amount of the procurement transaction is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If simplified acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Unless specified by the Federal agency, the recipient or subrecipient may exercise judgment in determining what number is adequate.
(ii)
Simplified acquisition thresholds.
The recipient or subrecipient is responsible for determining an appropriate simplified acquisition threshold based on internal controls, an evaluation of risk, and its documented procurement procedures, which may be lower than, but must not exceed, the threshold established in the FAR.
(b)
Formal procurement methods.
Formal procurement methods are required when the value of the procurement transaction under a Federal award exceeds the simplified acquisition threshold of the recipient or subrecipient. Formal procurement methods are competitive and require public notice. The following formal methods of procurement are used for procurement transactions above the simplified acquisition threshold determined by the recipient or subrecipient in accordance with paragraph (a)(2)(ii) of this section:
(1)
Sealed bids.
This is a procurement method in which bids are publicly solicited through an invitation and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid conforms with all the material terms and conditions of the invitation and is the lowest in price. The sealed bids procurement method is preferred for procuring construction services.
(i) For sealed bidding to be feasible, the following conditions should be present:
(A) A complete, adequate, and realistic specification or purchase description is available; (B) Two or more responsible bidders have been identified as willing and able to compete effectively for the business; and
(C) The procurement lends itself to a firm-fixed-price contract, and the selection of the successful bidder can be made principally based on price.
(ii) If sealed bids are used, the following requirements apply:
(A) Bids must be solicited from an adequate number of qualified sources, providing them with sufficient response time prior to the date set for opening the bids. Unless specified by the Federal agency, the recipient or subrecipient may exercise judgment in determining what number is adequate. For local governments, the invitation for bids must be publicly advertised.
(B) The invitation for bids must define the items or services with specific information, including any required specifications, for the bidder to properly respond;
(C) All bids will be opened at the time and place prescribed in the invitation for bids. For local governments, the bids must be opened publicly.
(D) A firm-fixed-price contract is awarded in writing to the lowest responsive bid and responsible bidder. When specified in the invitation for bids, factors such as discounts, transportation cost, and life-cycle costs must be considered in determining which bid is the lowest. Payment discounts must only be used to determine the low bid when the recipient or subrecipient determines they are a valid factor based on prior experience.
(E) The recipient or subrecipient must document and provide a justification for all bids it rejects.
(2)
Proposals.
This is a procurement method used when conditions are not appropriate for using sealed bids. This procurement method may result in either a fixed-price or cost-reimbursement contract. They are awarded in accordance with the following requirements:
(i) Requests for proposals require public notice, and all evaluation factors and their relative importance must be identified. Proposals must be solicited from multiple qualified entities. To the maximum extent practicable, any proposals submitted in response to the public notice must be considered.
(ii) The recipient or subrecipient must have written procedures for conducting technical evaluations and making selections.
(iii) Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the recipient or subrecipient considering price and other factors; and
(iv) The recipient or subrecipient may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby the offeror's qualifications are evaluated, and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation. The method, where the price is not used as a selection factor, can only be used to procure architectural/engineering (A/E) professional services. The method may not be used to purchase other services provided by A/E firms that are a potential source to perform the proposed effort.
(c)
Noncompetitive procurement.
There are specific circumstances in which the recipient or subrecipient may use a noncompetitive procurement method. The noncompetitive procurement method may only be used if one of the following circumstances applies:
(1) The aggregate amount of the procurement transaction does not exceed the micro-purchase threshold (see paragraph (a)(1) of this section);
(2) The procurement transaction can only be fulfilled by a single source;
(3) The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation;
(4) The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass-through entity provides written approval; or
(5) After soliciting several sources, competition is determined inadequate.
§ 200.321
Contracting with small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms.
Section 200.321 encourages recipients of federal funds to actively include small businesses, minority-owned businesses, women-owned businesses, veteran-owned businesses, and firms from labor surplus areas in their contracting processes. This means they should consider these businesses in solicitations, divide contracts to allow more participation, set delivery schedules that support them, and require contractors to do the same with their subcontracts.
View
§ 200.321
Contracting with small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms.
140 findings
in our database
This regulation, Section 200.321, focuses on encouraging the use of small businesses and businesses owned by minorities, women, veterans, and those located in areas with high unemployment when federal funds are involved. It requires organizations that receive federal money, known as recipients or subrecipients, to actively consider these types of businesses when they are looking for suppliers or contractors. This means they should include these businesses on their lists of potential vendors and reach out to them to see if they can provide the needed goods or services.
To make it easier for these businesses to participate, the regulation suggests breaking larger contracts into smaller parts so that more of these businesses can compete for them. It also encourages setting delivery schedules that allow these businesses to meet their commitments without being overwhelmed. Additionally, recipients are encouraged to work with organizations that support small and minority businesses to help them get involved. Finally, if a recipient hires a contractor, that contractor must also follow these guidelines when they subcontract work, ensuring that the commitment to include diverse businesses continues throughout the supply chain. This regulation matters because it helps promote economic opportunities for underrepresented groups and supports local economies.
Generated by gpt-4o-mini on 2025-10-16 10:50:37
(a) When possible, the recipient or subrecipient should ensure that small businesses, minority businesses, women's business enterprises, veteran-owned businesses, and labor surplus area firms (See U.S. Department of Labor's list) are considered as set forth below.
(b) Such consideration means:
(1) These business types are included on solicitation lists;
(2) These business types are solicited whenever they are deemed eligible as potential sources;
(3) Dividing procurement transactions into separate procurements to permit maximum participation by these business types;
(4) Establishing delivery schedules (for example, the percentage of an order to be delivered by a given date of each month) that encourage participation by these business types;
(5) Utilizing organizations such as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Requiring a contractor under a Federal award to apply this section to subcontracts.
§ 200.322
Domestic preferences for procurements.
Section 200.322 encourages recipients of federal funds to prioritize purchasing U.S.-made goods and materials, especially for infrastructure projects. This requirement applies to all contracts and subawards related to federal assistance, affecting organizations and businesses involved in these procurements.
View
§ 200.322
Domestic preferences for procurements.
61 findings
in our database
This regulation, Section 200.322, requires organizations that receive federal funds to prioritize buying goods and materials made in the United States whenever possible. This includes a wide range of products, such as iron, aluminum, steel, and cement. If these organizations are giving out contracts or purchase orders, they must include this preference in those agreements. Essentially, the goal is to support American manufacturing by encouraging the use of domestically produced items in projects funded by federal money.
The regulation applies to any recipient or subrecipient of federal financial assistance, particularly in situations involving infrastructure projects. This means that if a company or organization is using federal funds for construction or similar activities, they must follow these guidelines and try to source their materials from U.S. manufacturers. The regulation also defines what "produced in the United States" means, specifying that for certain products like iron and steel, all manufacturing steps must take place in the U.S.
The practical implications of this regulation are significant. By promoting the purchase of American-made products, it aims to boost the domestic economy and create jobs. It also ensures that federal funds are used in a way that supports local industries, which can lead to better quality control and potentially lower transportation costs. Overall, this regulation is about making sure that taxpayer money helps strengthen the U.S. economy by favoring local production.
Generated by gpt-4o-mini on 2025-10-16 10:50:44
(a) The recipient or subrecipient should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section must be included in all subawards, contracts, and purchase orders under Federal awards.
(b) For purposes of this section:
(1) “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
(2) “Manufactured products” items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber. (c) Federal agencies providing Federal financial assistance for infrastructure projects must implement the Buy America preferences set forth in 2 CFR part 184.
§ 200.323
Procurement of recovered materials.
Section 200.323 requires State agencies and their contractors to follow federal guidelines for purchasing products with recovered materials, ensuring they buy items with the highest recycled content when costs exceed $10,000. It also encourages the purchase of sustainable and reusable products to minimize waste and promote environmental efficiency.
View
§ 200.323
Procurement of recovered materials.
197 findings
in our database
Section 200.323 requires certain state agencies and their contractors to follow specific rules when buying materials and services. They must prioritize purchasing items that are made from recycled materials, as outlined by the Environmental Protection Agency (EPA). This applies when the cost of the item is over $10,000 or if the total value of similar items purchased in the previous year was over $10,000. Additionally, they should look for ways to manage waste that recover energy and resources effectively. They are also required to create a program that encourages the purchase of these recycled materials.
This regulation applies to state agencies and local government agencies, as well as their contractors, when they are spending public funds. It encourages them to make environmentally friendly choices, such as buying products that can be reused or recycled, contain recycled materials, or are designed to be energy-efficient. This is important because it helps reduce waste, promotes sustainability, and supports the recycling industry, ultimately benefiting the environment and public health.
Generated by gpt-4o-mini on 2025-10-16 10:50:50
(a) A recipient or subrecipient that is a State agency or agency of a political subdivision of a State and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 as amended, 42 U.S.C. 6962. The requirements of Section 6002 include procuring only items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
(b) The recipient or subrecipient should, to the greatest extent practicable and consistent with law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled; contain recycled content, are biobased, or are energy and water efficient; and are sustainable. This may include purchasing compostable items and other products and services that reduce the use of single-use plastic products. See Executive Order 14057, section 101, Policy.
§ 200.324
Contract cost and price.
Section 200.324 requires recipients or subrecipients to conduct a cost or price analysis for all procurement transactions over a certain threshold, considering factors like workforce impacts. They must make independent cost estimates before bids and cannot use certain contracting methods, ensuring compliance with federal cost principles.
View
§ 200.324
Contract cost and price.
497 findings
in our database
Section 200.324 requires organizations receiving federal funds (called recipients or subrecipients) to carefully analyze costs or prices for any procurement transactions that exceed a certain financial threshold. This means that before they buy goods or services or make changes to existing contracts, they need to assess the costs involved. The depth of this analysis can vary based on the specific situation. For example, if a contract might lead to job losses for public sector workers, they should consider how that might affect the community. Additionally, they must create their own cost estimates before looking at bids or proposals from vendors.
This regulation applies to any organization that receives federal funding and is involved in purchasing goods or services. It ensures that they are spending taxpayer money wisely and fairly. The costs they estimate or negotiate must comply with specific federal guidelines, meaning they can only include costs that are considered acceptable under federal rules. Importantly, the regulation prohibits certain types of contracting methods, like paying a contractor a percentage of their costs, which could lead to inflated expenses. This helps maintain accountability and ensures that funds are used effectively.
Generated by gpt-4o-mini on 2025-10-16 10:50:58
(a) The recipient or subrecipient must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. The method and degree of analysis conducted depend on the facts surrounding the particular procurement transaction. For example, the recipient or subrecipient should consider potential workforce impacts in their analysis if the procurement transaction will displace public sector employees. However, as a starting point, the recipient or subrecipient must make independent estimates before receiving bids or proposals.
(b) Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that the costs incurred or cost estimates included in negotiated prices would be allowable for the recipient or subrecipient under subpart E of this part. The recipient or subrecipient may reference its own cost principles as long as they comply with subpart E of this part.
(c) The recipient or subrecipient must not use the “cost plus a percentage of cost” and “percentage of construction costs” methods of contracting.
§ 200.325
Federal agency or pass-through entity review.
Section 200.325 requires that recipients or subrecipients of federal awards submit their procurement specifications for review by the federal agency or pass-through entity when requested. This review ensures compliance with procurement standards, especially for significant purchases or specific conditions, affecting organizations that receive federal funding.
View
§ 200.325
Federal agency or pass-through entity review.
10 findings
in our database
Section 200.325 outlines the rules for federal agencies or organizations that pass federal funds to others, regarding the review of procurement processes. Essentially, it requires that if these agencies think it’s necessary, they can review the technical details of what a recipient (like a state or local government) wants to buy with federal funds. This review should happen before the recipient includes those details in any official requests for bids or proposals. If the recipient has already created a solicitation document, the agency can still review the technical aspects, but only those.
This regulation applies to recipients and subrecipients who are using federal funds for purchases that meet certain criteria. For example, if a purchase is expected to exceed a specific dollar amount, involves a brand-name product, or if there’s a significant change to an existing contract, the federal agency may require a review of the procurement documents. However, if the recipient can show that their procurement system meets the required standards, they may be exempt from this review. They can also self-certify their compliance, but the federal agency still has the right to check their processes.
The practical implications of this regulation are significant. It ensures that federal funds are spent appropriately and that the items or services purchased meet the necessary standards. This helps prevent waste and ensures accountability in how taxpayer money is used. By requiring reviews in certain situations, it aims to promote fair competition and transparency in the procurement process, ultimately leading to better outcomes for projects funded by federal money.
Generated by gpt-4o-mini on 2025-10-16 10:51:07
(a) The Federal agency or pass-through entity may review the technical specifications of proposed procurements under the Federal award if the Federal agency or pass-through entity believes the review is needed to ensure that the item or service specified is the one being proposed for acquisition. The recipient or subrecipient must submit the technical specifications of proposed procurements when requested by the Federal agency or pass-through entity. This review should take place prior to the time the specifications are incorporated into a solicitation document. When the recipient or subrecipient desires to accomplish the review after a solicitation has been developed, the Federal agency or pass-through entity may still review the specifications. In those cases, the review should be limited to the technical aspects of the proposed purchase.
(b) When requested, the recipient or subrecipient must provide procurement documents (such as requests for proposals, invitations for bids, or independent cost estimates) to the Federal agency or pass-through entity for pre-procurement review. The Federal agency or pass-through entity may conduct a pre-procurement review when:
(1) The recipient's or subrecipient's procurement procedures or operation fails to comply with the procurement standards in this part;
(2) The procurement is expected to exceed the simplified acquisition threshold and is to be awarded without competition, or only one bid is expected to be received in response to a solicitation;
(3) The procurement is expected to exceed the simplified acquisition threshold and specifies a “brand name” product;
(4) The procurement is expected to exceed the simplified acquisition threshold, and a sealed bid procurement is to be awarded to an entity other than the apparent low bidder; or
(5) A proposed contract modification changes the scope of a contract or increases the contract amount by more than the simplified acquisition threshold.
(c) The recipient or subrecipient is exempt from the pre-procurement review in paragraph (b) of this section if the Federal agency or pass-through entity determines that its procurement systems comply with the standards of this part.
(1) The recipient or subrecipient may request that the Federal agency or pass-through entity review its procurement system to determine whether it meets these standards for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding and third-party contracts are awarded regularly.
(2) The recipient or subrecipient may self-certify its procurement system. However, self-certification does not limit the Federal agency's or pass-through entity's right to review the system. Under a self-certification procedure, the Federal agency or pass-through entity may rely on written assurances from the recipient or subrecipient that it is complying with the standards of this part. The recipient or subrecipient must cite specific policies, procedures, regulations, or standards as complying with these requirements and have its system available for review.
§ 200.326
Bonding requirements.
Section 200.326 outlines bonding requirements for construction or facility improvement contracts exceeding a certain financial threshold. It affects federal agencies and pass-through entities, requiring them to ensure adequate protection of federal interests, and mandates that contractors provide bid guarantees, performance bonds, and payment bonds, each equal to 100% of the contract price.
View
§ 200.326
Bonding requirements.
2,657 findings
in our database
This regulation outlines bonding requirements for construction or facility improvement contracts that exceed a certain financial threshold. It states that federal agencies or organizations receiving federal funds can accept the bonding policies of the contractors they work with, but only if they ensure that the federal government's interests are protected. If they can't confirm that protection, they must follow specific bonding rules.
The regulation requires that each bidder must provide a bid guarantee equal to five percent of their bid amount. This guarantee can be in the form of a bid bond, certified check, or another secure payment method, ensuring that the bidder will sign the contract if their bid is accepted. Additionally, the contractor must secure a performance bond for the full contract amount, which guarantees that they will complete the project as agreed. Lastly, a payment bond is also required, ensuring that the contractor will pay all workers and suppliers involved in the project.
These bonding requirements are important because they help protect the federal investment in construction projects. They ensure that contractors are serious about their bids and that they will fulfill their obligations, both in completing the work and paying those who contribute to it. This helps prevent financial losses and ensures that projects are completed successfully.
Generated by gpt-4o-mini on 2025-10-16 10:51:15
The Federal agency or pass-through entity may accept the recipient's or subrecipient's bonding policy and requirements for construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold. Before doing so, the Federal agency or pass-through entity must determine that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute any required contractual documents within the specified timeframe.
(b) A performance bond on the contractor's part for 100 percent of the contract price. A performance bond is a bond executed in connection with a contract to secure the fulfillment of all the contractor's requirements under a contract.
(c) A payment bond on the contractor's part for 100 percent of the contract price. A payment bond is a bond executed in connection with a contract to assure payment as required by the law of all persons supplying labor and material in the execution of the work provided for under a contract.
§ 200.327
Contract provisions.
Contracts for recipients or subrecipients must include specific provisions outlined in Appendix II of this section. This requirement affects organizations receiving federal funds.
View
§ 200.327
Contract provisions.
2,583 findings
in our database
Section 200.327 requires that any contracts made by recipients or subrecipients of federal funds must include specific provisions listed in Appendix II of the regulation. This means that when organizations receive federal money to carry out projects or services, they need to ensure that their contracts with others (like vendors or service providers) include certain important terms and conditions.
This regulation applies to any organization or individual that receives federal funding, including state and local governments, nonprofits, and educational institutions. It’s especially relevant in situations where these entities are working on projects funded by federal grants or programs. The required provisions often cover things like ensuring compliance with federal laws, protecting against fraud, and ensuring that funds are used appropriately.
The practical implication of this regulation is that it helps ensure accountability and proper management of federal funds. By requiring specific contract terms, it aims to protect the interests of the federal government and taxpayers, making sure that the money is spent wisely and that all parties involved understand their responsibilities. This is crucial for maintaining transparency and trust in how public funds are used.
Generated by gpt-4o-mini on 2025-10-16 10:51:24
The recipient's or subrecipient's contracts must contain the applicable provisions described in Appendix II of this part.
§ 200.328
Financial reporting.
Section 200.328 outlines the requirements for financial reporting by recipients of federal awards, mandating that only OMB-approved data elements be used and that reports be submitted at least annually, with specific deadlines based on the reporting frequency. This affects federal agencies and pass-through entities, as well as recipients and subrecipients, by establishing clear timelines for report submissions and allowing for extensions under certain conditions.
View
§ 200.328
Financial reporting.
2,643 findings
in our database
This regulation outlines the requirements for financial reporting related to federal awards. It states that federal agencies must only use specific financial report formats approved by the Office of Management and Budget (OMB). Currently, this includes the Federal Financial Report (SF-425) and any future formats that OMB approves. Essentially, it ensures that all financial reports are standardized and consistent across different federal programs.
The regulation applies to federal agencies and any organizations that receive federal funding, known as recipients or subrecipients. These entities must submit financial reports at least once a year, but not more frequently than every three months unless certain conditions are met. The reports must be submitted on time—annual reports are due within 90 days after the reporting period ends, while quarterly or semiannual reports are due within 30 days. Additionally, the final financial report must be submitted within 120 days after the funding period ends, with subrecipients required to report to their pass-through entities within 90 days.
These requirements are important because they help ensure transparency and accountability in how federal funds are used. By standardizing the reporting process, it makes it easier for federal agencies to track spending and for the public to understand how taxpayer money is being allocated. This regulation ultimately aims to promote responsible financial management among organizations that receive federal support.
Generated by gpt-4o-mini on 2025-10-16 10:51:34
(a) The Federal agency must require only OMB-approved government-wide data elements on recipient financial reports. At the time of publication, this consists of the Federal Financial Report (SF-425); however, this also applies to any future OMB-approved government-wide data elements available from the OMB-designated standards lead.
(b) The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports.
(c) The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period.
(d) The final financial report submitted by the recipient must be due no later than 120 calendar days after the conclusion of the period of performance. A subrecipient must submit a final financial report to a pass-through entity no later than 90 calendar days after the conclusion of the period of performance. See also § 200.344. The Federal agency or pass-through entity may extend the due date for any financial report with justification from the recipient or subrecipient.
§ 200.329
Monitoring and reporting program performance.
Section 200.329 outlines the responsibilities of recipients and subrecipients in monitoring and reporting on Federal awards. They must ensure compliance and performance expectations are met, report on program performance using approved methods, and provide relevant financial and cost information to demonstrate effectiveness, impacting organizations receiving Federal funding.
View
§ 200.329
Monitoring and reporting program performance.
1,882 findings
in our database
Section 200.329 outlines the responsibilities of organizations that receive federal funding, known as recipients and subrecipients. These organizations must keep a close eye on their activities to ensure they comply with federal rules and meet performance goals. This means they need to regularly check how well they are doing in relation to the objectives set out in their funding agreements. They must also report on their progress, linking their financial spending to the results they achieve.
The regulation applies to any organization that receives federal awards, including those that pass on funds to other organizations (subrecipients). They must submit performance reports at least once a year, but no more than every three months, unless specific conditions allow for more frequent reporting. These reports should include comparisons of what they accomplished versus what they aimed to achieve, explanations for any shortfalls, and details about costs. If any significant changes happen that could affect their ability to meet goals—like delays or unexpected successes—they must inform the federal agency and outline how they plan to address any issues.
In practical terms, this regulation ensures that federal funds are used effectively and that organizations are held accountable for their performance. By requiring regular monitoring and reporting, it helps ensure that taxpayer money is spent wisely and that projects achieve their intended outcomes. This oversight is crucial for maintaining transparency and trust in how federal funds are managed.
Generated by gpt-4o-mini on 2025-10-16 10:51:42
(a)
Monitoring by the recipient and subrecipient.
The recipient and subrecipient are responsible for the oversight of the Federal award. The recipient and subrecipient must monitor their activities under Federal awards to ensure they are compliant with all requirements and meeting performance expectations. Monitoring by the recipient and subrecipient must cover each program, function, or activity. See also § 200.332.
(b)
Reporting program performance.
The Federal agency must use OMB-approved common information collections (for example, Research Performance Progress Reports) when requesting performance reporting information. The Federal agency or pass-through entity may not collect performance reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should align the due dates of performance reports and financial reports. When reporting program performance, the recipient or subrecipient must relate financial data and project or program accomplishments to the performance goals and objectives of the Federal award. Also, the recipient or subrecipient must provide cost information to demonstrate cost-effective practices (for example, through unit cost data) when required by the terms and conditions of the Federal award. In some instances (for example, discretionary research awards), this may be limited to the requirement to submit technical performance reports. Reporting requirements must clearly indicate a standard against which the recipient's or subrecipient's performance can be measured. Reporting requirements should not solicit information from the recipient or subrecipient that is not necessary for the effective monitoring or evaluation of the Federal award. Federal agencies should consult monitoring framework documents such as the agency's Evaluation Plan to make that determination. As noted in OMB Circular A-11, Part 6, Section 280, measures of customer experience are of co-equal importance as traditional measures of financial and operational performance.
(c)
Submitting performance reports.
(1) The recipient or subrecipient must submit performance reports as required by the Federal award. Intervals must be no less frequent than annually nor more frequent than quarterly except if specific conditions are applied (See § 200.208). Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. Alternatively, the Federal agency or pass-through entity may require annual reports before the anniversary dates of multiple-year Federal awards. The final performance report submitted by the recipient must be due no later than 120 calendar days after the period of performance. A subrecipient must submit a final performance report to a pass-through entity no later than 90 calendar days after the conclusion of the period of performance. See also § 200.344. The Federal agency or pass-through entity may extend the due date for any performance report with justification from the recipient or subrecipient.
(2) As applicable, performance reports should contain information on the following:
(i) A comparison of accomplishments to the objectives of the Federal award established for the reporting period (for example, comparing costs to units of accomplishment). Where performance trend data and analysis would be informative to the Federal agency program, the Federal agency should include this as a performance reporting requirement.
(ii) Explanations on why established goals or objectives were not met; and
(iii) Additional information, analysis, and explanation of cost overruns or higher-than-expected unit costs.
(d)
Construction performance reports.
Federal agencies or pass-through entities rely on on-site technical inspections and certified percentage of completion data to monitor progress under Federal awards for construction. Therefore, the Federal agency or pass-through entity may require additional performance reports when necessary to ensure the goals and objectives of Federal awards are met.
(e)
Significant developments.
When a significant development that could impact the Federal award occurs between performance reporting due dates, the recipient or subrecipient must notify the Federal agency or pass-through entity. Significant developments include events that enable meeting milestones and objectives sooner or at less cost than anticipated or that produce different beneficial results than originally planned. Significant developments also include problems, delays, or adverse conditions which will impact the recipient's or subrecipient's ability to meet milestones or the objectives of the Federal award. When significant developments occur that negatively impact the Federal Award, the recipient or subrecipient must include information on their plan for corrective action and any assistance needed to resolve the situation.
(f)
Site visits.
The Federal agency or pass-through entity may conduct in-person or virtual site visits as warranted.
(g)
Performance report requirement waiver.
The Federal agency may waive any performance report that is not necessary to ensure the goals and objectives of the Federal award are being achieved.
§ 200.330
Reporting on real property.
Section 200.330 requires recipients or subrecipients of federal funds to submit annual reports on real property that the federal government has an interest in. For properties with a federal interest lasting 15 years or more, reports may be required every few years, but not exceeding five years, using only approved government data elements.
View
§ 200.330
Reporting on real property.
1,767 findings
in our database
This regulation requires that any organization receiving federal funds, known as a recipient or subrecipient, must regularly report on any real property—like land or buildings—that the federal government has an interest in. These reports must be submitted at least once a year. If the federal interest in the property lasts for 15 years or more, the reporting frequency can be adjusted to every few years, but it cannot exceed a five-year period between reports.
This regulation applies to federal agencies and organizations that receive federal funds, especially when they are managing or using real property. It ensures that the federal government stays informed about the status and use of these properties. The information reported must follow specific guidelines set by the Office of Management and Budget (OMB), which helps standardize the data collected. This is important because it helps the government track how federal resources are being used and ensures accountability in managing public assets.
Generated by gpt-4o-mini on 2025-10-16 10:51:49
The Federal agency or pass-through entity must require the recipient or subrecipient to submit reports on the status of real property in which the Federal Government retains an interest. Such reports must be submitted at least annually. In instances where the Federal Government's interest in the real property extends for 15 years or more, the Federal agency or pass-through entity may require the recipient or subrecipient to report at various multi-year frequencies. Reports submitted at multi-year frequencies may not exceed a five-year reporting period. The Federal agency must only require OMB-approved government-wide data elements on recipient real property reports.
§ 200.331
Subrecipient and contractor determinations.
Section 200.331 outlines how entities receiving Federal funds can be classified as either subrecipients or contractors, depending on their role in managing the funds. Pass-through entities must assess each relationship individually, focusing on the nature of the work rather than the agreement's form, affecting how Federal assistance is distributed and monitored.
View
§ 200.331
Subrecipient and contractor determinations.
2,576 findings
in our database
This regulation outlines how organizations receiving federal funds should determine whether they are acting as subrecipients or contractors. A subrecipient is someone who uses federal money to carry out part of a federal program, while a contractor provides goods or services to the organization using that federal money. The organization that passes on the federal funds, known as the pass-through entity, must carefully assess each situation to classify the relationship correctly. This means looking beyond just the paperwork to understand the actual nature of the relationship.
The regulation applies to any entity that receives federal awards, whether directly or indirectly. For instance, if a nonprofit receives federal funds and then gives some of that money to another organization to help run a program, the nonprofit needs to decide if that organization is a subrecipient (helping to fulfill the program's goals) or a contractor (providing services or products). This distinction is important because it affects how funds are managed and what compliance requirements apply. Understanding these roles helps ensure that federal funds are used correctly and effectively, which ultimately impacts the success of the programs they support.
Generated by gpt-4o-mini on 2025-10-16 10:51:56
An entity may concurrently receive Federal awards as a recipient, a subrecipient, and a contractor. The pass-through entity is responsible for making case-by-case determinations to determine whether the entity receiving Federal funds is a subrecipient or a contractor. The Federal agency may require the pass-through entity to comply with additional guidance to make these determinations, provided such guidance does not conflict with this section. The Federal agency does not have a direct legal relationship with subrecipients or contractors of any tier; however, the Federal agency is responsible for monitoring the pass-through entity's oversight of first-tier subrecipients. All of the characteristics listed below may not be present in all cases, and some characteristics from both categories may be present at the same time. No single factor or any combination of factors is necessarily determinative. The pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract. In making this determination, the substance of the relationship is more important than the form of the agreement.
(a)
Subrecipients.
A subaward is for the purpose of carrying out a portion of the Federal award and creates a Federal financial assistance relationship with a subrecipient. See the definition of
Subaward
in § 200.1. Characteristics that support the classification of the entity as a subrecipient include, but are not limited to, when the entity:
(1) Determines who is eligible to receive what Federal assistance;
(2) Has its performance measured in relation to whether the objectives of a Federal program were met;
(3) Has responsibility for programmatic decision-making;
(4) Is responsible for adherence to applicable Federal program requirements specified in the Federal award; and
(5) Implements a program for a public purpose specified in authorizing statute, as opposed to providing goods or services for the benefit of the pass-through entity.
(b)
Contractors.
A contract is for the purpose of obtaining goods and services for the recipient's or subrecipient's use and creates a procurement relationship with a contractor. See the definition of
contract
in § 200.1. Characteristics that support a procurement relationship between the recipient or subrecipient and a contractor include, but are not limited to, when the contractor:
(1) Provides the goods and services within normal business operations;
(2) Provides similar goods or services to many different purchasers;
(3) Normally operates in a competitive environment;
(4) Provides goods or services that are ancillary to the implementation of a Federal program; and
(5) Is not subject to compliance requirements of a Federal program as a result of the agreement. However, similar requirements may apply for other reasons.
§ 200.332
Requirements for pass-through entities.
Section 200.332 requires pass-through entities to verify that subrecipients are eligible for federal funding and to clearly identify subawards with specific information, such as the subrecipient's name, federal award details, and funding amounts. This affects organizations that distribute federal funds to ensure compliance and transparency in funding processes.
View
§ 200.332
Requirements for pass-through entities.
9,986 findings
in our database
This regulation outlines what pass-through entities—organizations that receive federal funds and then distribute them to other organizations (called subrecipients)—must do to ensure compliance with federal requirements. First, they need to check that subrecipients are eligible to receive federal funds by verifying that they are not suspended or disqualified. This is done through a government database called SAM.gov. Additionally, when a pass-through entity gives a subaward, it must clearly label it as such and include specific information about the federal award, such as the amount of funds, the duration of the award, and the requirements that the subrecipient must follow.
The regulation applies to any organization acting as a pass-through entity when they distribute federal funds to subrecipients. This includes ensuring that the subrecipient understands their responsibilities and providing necessary information about the funding. It also requires pass-through entities to monitor subrecipients to ensure they comply with federal laws and the terms of the subaward. This monitoring might involve reviewing financial reports, conducting site visits, and addressing any issues that arise. Overall, this regulation is important because it helps maintain accountability and transparency in the use of federal funds, ensuring that they are used effectively and in accordance with the law.
Generated by gpt-4o-mini on 2025-10-16 10:52:06
A pass-through entity must:
(a) Verify that the subrecipient is not excluded or disqualified in accordance with § 180.300. Verification methods are provided in § 180.300, which include confirming in
SAM.gov
that a potential subrecipient is not suspended, debarred, or otherwise excluded from receiving Federal funds.
(b) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the information provided below. A pass-through entity must provide the best available information when some of the information below is unavailable. A pass-through entity must provide the unavailable information when it is obtained. Required information includes:
(1) Federal award identification.
(i) Subrecipient's name (must match the name associated with its unique entity identifier);
(ii) Subrecipient's unique entity identifier;
(iii) Federal Award Identification Number (FAIN);
(iv) Federal Award Date;
(v) Subaward Period of Performance Start and End Date;
(vi) Subaward Budget Period Start and End Date;
(vii) Amount of Federal Funds Obligated in the subaward;
(viii) Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity, including the current financial obligation;
(ix) Total Amount of the Federal Award committed to the subrecipient by the pass-through entity;
(x) Federal award project description, as required by the Federal Funding Accountability and Transparency Act (FFATA);
(xi) Name of the Federal agency, pass-through entity, and contact information for awarding official of the pass-through entity;
(xii) Assistance Listings title and number; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at the time of disbursement;
(xiii) Identification of whether the Federal award is for research and development; and
(xiv) Indirect cost rate for the Federal award (including if the de minimis rate is used in accordance with § 200.414).
(2) All requirements of the subaward, including requirements imposed by Federal statutes, regulations, and the terms and conditions of the Federal award;
(3) Any additional requirements that the pass-through entity imposes on the subrecipient for the pass-through entity to meet its responsibilities under the Federal award. This includes information and certifications (see § 200.415) required for submitting financial and performance reports that the pass-through entity must provide to the Federal agency;
(4) Indirect cost rate:
(i) An approved indirect cost rate negotiated between the subrecipient and the Federal Government. If no approved rate exists, a pass-through entity must determine the appropriate rate in collaboration with the subrecipient. The indirect cost rate may be either:
(A) An indirect cost rate negotiated between the pass-through entity and the subrecipient. These rates may be based on a prior negotiated rate between a different pass-through entity and the subrecipient, in which case the pass-through entity is not required to collect information justifying the rate but may elect to do so; or
(B) The de minimis indirect cost rate.
(ii) The pass-through entity must not require the use of the de minimis indirect cost rate if the subrecipient has an approved indirect cost rate negotiated with the Federal Government. Subrecipients may elect to use the cost allocation method to account for indirect costs in accordance with § 200.405(d).
(5) A requirement that the subrecipient permit the pass-through entity and auditors to access the subrecipient's records and financial statements for the pass-through entity to fulfill its monitoring requirements; and
(6) Appropriate terms and conditions concerning the closeout of the subaward.
(c) Evaluate each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring described in paragraph (f) of this section. When evaluating a subrecipient's risk, a pass-through entity should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits. This includes considering whether or not the subrecipient receives a Single Audit in accordance with subpart F and the extent to which the same or similar subawards have been audited as a major program;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any Federal agency monitoring (for example, if the subrecipient also receives Federal awards directly from the Federal agency).
(d) If appropriate, consider implementing specific conditions in a subaward as described in § 200.208 and notify the Federal agency of the specific conditions.
(e) Monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must:
(1) Review financial and performance reports.
(2) Ensure that the subrecipient takes corrective action on all significant developments that negatively affect the subaward. Significant developments include Single Audit findings related to the subaward, other audit findings, site visits, and written notifications from a subrecipient of adverse conditions which will impact their ability to meet the milestones or the objectives of a subaward. When significant developments negatively impact the subaward, a subrecipient must provide the pass-through entity with information on their plan for corrective action and any assistance needed to resolve the situation.
(3) Issue a management decision for audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by § 200.521.
(4) Resolve audit findings specifically related to the subaward. However, the pass-through entity is not responsible for resolving cross-cutting audit findings that apply to the subaward and other Federal awards or subawards. If a subrecipient has a current Single Audit report and has not been excluded from receiving Federal funding (meaning, has not been debarred or suspended), the pass-through entity may rely on the subrecipient's cognizant agency for audit or oversight agency for audit to perform audit follow-up and make management decisions related to cross-cutting audit findings in accordance with section § 200.513(a)(4)(viii). Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and award-specific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward.
(f) Depending upon the pass-through entity's assessment of the risk posed by the subrecipient (as described in paragraph (c) of this section), the following monitoring tools may be useful for the pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals:
(1) Providing subrecipients with training and technical assistance on program-related matters;
(2) Performing site visits to review the subrecipient's program operations; and
(3) Arranging for agreed-upon-procedures engagements as described in § 200.425.
(g) Verify that a subrecipient is audited as required by subpart F of this part.
(h) Consider whether the results of a subrecipient's audit, site visits, or other monitoring necessitate adjustments to the pass-through entity's records.
(i) Consider taking enforcement action against noncompliant subrecipients as described in § 200.339 and in program regulations.
§ 200.333
Fixed amount subawards.
Section 200.333 allows recipients of federal funds to give subawards up to $500,000 as fixed amounts, but they need prior written approval from the federal agency and must comply with specific requirements. This affects organizations that receive federal grants and plan to distribute funds to others.
View
§ 200.333
Fixed amount subawards.
279 findings
in our database
Section 200.333 allows organizations that receive federal funds to give out smaller grants, called subawards, to other groups based on a fixed amount of money, up to $500,000. However, before doing this, the organization must get written permission from the federal agency that provided the original funding. This means they can't just decide to hand out money; they need to follow the rules and get approval first.
This regulation applies to any organization that is a recipient of federal funds and wants to distribute part of that money to other organizations or projects. It’s important in situations where the main organization wants to support smaller initiatives or partners without going through a lengthy application process for each individual project. By allowing fixed amounts, it simplifies the process and can make funding more accessible for smaller groups. Overall, this regulation helps ensure that federal money is used effectively while also providing flexibility for organizations to support their partners.
Generated by gpt-4o-mini on 2025-10-16 10:52:12
With prior written approval from the Federal agency, the recipient may provide subawards based on fixed amounts up to $500,000. Fixed amount subawards must meet the requirements of § 200.201.
§ 200.334
Record retention requirements.
Recipients and subrecipients of Federal awards must keep all related records for three years after submitting their final financial report, or longer if there are ongoing audits or litigation. This includes financial and supporting documents, and specific rules apply for records related to property, program income, and indirect costs.
View
§ 200.334
Record retention requirements.
2,492 findings
in our database
This regulation requires organizations that receive federal funds, known as recipients and subrecipients, to keep all records related to their federal awards for three years. This three-year period starts from the date they submit their final financial report. If the funding is renewed on a quarterly or annual basis, the records must be kept for three years from the date of each respective report. The types of records that need to be retained include financial documents, supporting papers, and any statistical data.
The regulation applies to any organization that receives federal funding, including those that might receive funds through another organization (subrecipients). It is important for these organizations to retain records until any legal issues, claims, or audits related to those records are fully resolved, even if that takes longer than three years. Additionally, if the federal agency or another overseeing body requests that the retention period be extended, the organization must comply. This regulation matters because it ensures accountability and transparency in how federal funds are used, helping to prevent misuse and ensuring that funds are spent appropriately.
Generated by gpt-4o-mini on 2025-10-16 10:52:20
The recipient and subrecipient must retain all Federal award records for three years from the date of submission of their final financial report. For awards that are renewed quarterly or annually, the recipient and subrecipient must retain records for three years from the date of submission of their quarterly or annual financial report, respectively. Records to be retained include but are not limited to, financial records, supporting documentation, and statistical records. Federal agencies or pass-through entities may not impose any other record retention requirements except for the following:
(a) The records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken if any litigation, claim, or audit is started before the expiration of the three-year period.
(b) When the recipient or subrecipient is notified in writing by the Federal agency or pass-through entity, cognizant agency for audit, oversight agency for audit, or cognizant agency for indirect costs to extend the retention period.
(c) The records for property and equipment acquired with the support of Federal funds must be retained for three years after final disposition.
(d) The three-year retention requirement does not apply to the recipient or subrecipient when records are transferred to or maintained by the Federal agency.
(e) The records for program income earned after the period of performance must be retained for three years from the end of the recipient's or subrecipient's fiscal year in which the program income is earned. This only applies if the Federal agency or pass-through entity requires the recipient or subrecipient to report on program income earned after the period of performance in the terms and conditions of the Federal award.
(f) The records for indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates) must be retained according to the applicable option below:
(1)
If submitted for negotiation.
When a proposal, plan, or other computation must be submitted to the Federal Government to form the basis for negotiation of an indirect cost rate (or other standard rates), then the three-year retention period for its supporting records starts from the date of submission.
(2)
If not submitted for negotiation.
When a proposal, plan, or other computation is not required to be submitted to the Federal Government to form the basis for negotiation of an indirect cost rate (or other standard rates), then the three-year retention period for its supporting records starts from the end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation.
§ 200.335
Requests for transfer of records.
Federal agencies must request the transfer of records with long-term value from recipients or subrecipients, but they can allow these entities to keep the records as long as they remain accessible to the Federal Government. This affects organizations that receive federal funds and manage records.
View
§ 200.335
Requests for transfer of records.
99 findings
in our database
Section 200.335 outlines the rules for federal agencies regarding the transfer of records that are important enough to keep for a long time. When a federal agency decides that certain records need to be kept for the long haul, it must formally ask the organization that currently holds those records (called the recipient or subrecipient) to transfer them to the agency’s control. This ensures that the federal agency has the records it needs for future reference or compliance.
However, there’s some flexibility in this regulation. The federal agency can allow the recipient or subrecipient to keep these important records as long as they make sure the records are always accessible to the federal government. This means that while the records might stay with the original holder, the federal agency must be able to access them whenever necessary.
This regulation is important because it helps ensure that valuable records are preserved and can be accessed when needed. It affects federal agencies and their partners, making sure that important information is not lost and can be used for accountability, audits, or historical purposes. By clarifying who is responsible for keeping these records, it helps maintain transparency and proper record-keeping practices.
Generated by gpt-4o-mini on 2025-10-16 10:52:28
The Federal agency must request the transfer of records to its custody from the recipient or subrecipient when it determines that the records possess long-term retention value. However, the Federal agency may arrange for the recipient or subrecipient to retain the records that have long-term retention value so long as they are continuously available to the Federal Government.
§ 200.336
Methods for collection, transmission, and storage of information.
Section 200.336 requires federal agencies and recipients of federal awards to collect, transmit, and store information in open, machine-readable formats when possible. It also allows for paper versions upon request but prohibits requiring extra copies, and permits electronic versions of original records with quality control measures to ensure they remain unaltered and readable.
View
§ 200.336
Methods for collection, transmission, and storage of information.
103 findings
in our database
This regulation requires that when possible, federal agencies and organizations receiving federal funds (called recipients or subrecipients) should collect, send, and store information related to federal awards in formats that computers can easily read and process. This means using standard digital formats instead of just plain text. However, if someone requests it, these agencies must also provide or accept paper copies of the information. They cannot ask for extra paper copies of what has already been submitted.
The regulation applies to federal agencies and any organizations that receive federal funding. It is relevant in situations where these entities are handling information about federal awards, like grants or contracts. Practically, this means that organizations can keep their records in digital formats without needing to print everything out. They can also convert paper records into digital ones, as long as they follow certain quality checks to ensure the information remains accurate and secure. This helps streamline processes, reduce paperwork, and make it easier to manage information effectively.
Generated by gpt-4o-mini on 2025-10-16 10:52:36
When practicable, the Federal agency or pass-through entity and the recipient or subrecipient must collect, transmit, and store Federal award information in open and machine-readable formats. A machine-readable format is a format in a standard computer language (not English text) that can be read automatically by a computer system. Upon request, the Federal agency or pass-through entity must always provide or accept paper versions of Federal award information to and from the recipient or subrecipient. The Federal agency or pass-through entity must not require additional copies of Federal award information submitted in paper versions. The recipient or subrecipient does not need to create and retain paper copies when original records are electronic and cannot be altered. In addition, the recipient or subrecipient may substitute electronic versions of original paper records through duplication or other forms of electronic conversion, provided that the procedures are subject to periodic quality control reviews. Quality control reviews must ensure that electronic conversion procedures provide safeguards against the alteration of records and assurance that records remain in a format that is readable by a computer system.
§ 200.337
Access to records.
Section 200.337 grants federal agencies and their representatives the right to access records of recipients and subrecipients related to federal awards for audits and official purposes. It also includes provisions for protecting the identities of crime victims, stating that access to such information is rare and requires approval, while the right to access records lasts as long as they are retained.
View
§ 200.337
Access to records.
1,413 findings
in our database
Section 200.337 outlines the rules regarding access to records related to federal awards. It requires that federal agencies, their representatives, and certain oversight officials have the right to access any relevant records from recipients (the organizations receiving federal funds) and subrecipients (those who receive funds from the recipients). This access is necessary for conducting audits, site visits, or other official activities. Additionally, these officials can interview the personnel involved to discuss the records or the federal award itself.
However, there are special considerations when it comes to protecting the identities of crime victims. If accessing a victim's name is necessary, it can only happen in very rare and extraordinary situations. Routine checks do not qualify as extraordinary. Any access to this sensitive information must be approved by a high-ranking official in the federal agency, unless it’s required by a court order or part of a legitimate confidential investigation.
The right of access to records does not expire when the typical retention period ends; it continues as long as the records are kept. Federal agencies cannot impose additional access requirements on recipients or subrecipients beyond what is stated in this regulation. This ensures that oversight can continue as needed, while also protecting sensitive information when necessary.
Generated by gpt-4o-mini on 2025-10-16 10:52:45
(a)
Records of recipients and subrecipients.
The Federal agency or pass-through entity, Inspectors General, the Comptroller General of the United States, or any of their authorized representatives must have the right of access to any records of the recipient or subrecipient pertinent to the Federal award to perform audits, execute site visits, or for any other official use. This right also includes timely and reasonable access to the recipient's or subrecipient's personnel for the purpose of interview and discussion related to such documents or the Federal award in general.
(b)
Extraordinary and rare circumstances.
The recipient or subrecipient and Federal agency or pass-through entity must take measures to protect the name of victims of a crime when access to the victim's name is necessary. Only under extraordinary and rare circumstances would such access include a review of the true name of victims of a crime. Routine monitoring cannot be considered extraordinary and rare circumstances that would necessitate access to this information. Any such access, other than under a court order or subpoena pursuant to a bona fide confidential investigation, must be approved by the head or delegate of the Federal agency.
(c)
Expiration of right of access.
The Federal agency's or pass-through entity's rights of access are not limited to the required retention period of this part but last as long as the records are retained. Federal agencies or pass-through entities must not impose any other access requirements upon recipients and subrecipients.
§ 200.338
Restrictions on public access to records.
Federal agencies cannot restrict public access to records related to federal awards, except for sensitive information that can be kept confidential. This affects recipients and subrecipients of federal funds, who are not required to allow public access to their records unless mandated by law.
View
§ 200.338
Restrictions on public access to records.
30 findings
in our database
This regulation, Section 200.338, states that federal agencies cannot impose rules that limit public access to records related to federal awards, except for certain sensitive information. Sensitive information includes personal details about individuals that could identify them, known as personally identifiable information (PII). If a federal agency wants to keep some records confidential, they must show that these records would have been protected from public disclosure under the Freedom of Information Act (FOIA) or other specific guidelines.
This regulation applies to organizations and individuals who receive federal funds, known as recipients and subrecipients. It means that while these entities generally don’t have to allow public access to their records, they must still comply with federal laws regarding transparency. The regulation is important because it ensures that the public can access information about how federal funds are used, promoting accountability and transparency, while still protecting sensitive personal information.
Generated by gpt-4o-mini on 2025-10-16 10:52:53
Federal agencies may not place restrictions on the recipient or subrecipient that limit public access to the records of the recipient or subrecipient pertinent to a Federal award, except for protected personally identifiable information (PII) or other sensitive information when the Federal agency can demonstrate that such records will be kept confidential and would have been exempted from disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) or controlled unclassified information pursuant to Executive Order 13556 if the records had belonged to the Federal agency. The Freedom of Information Act (5 U.S.C. 552) (FOIA) does not apply to records that remain under the recipient's or subrecipient's control except as required by § 200.315. Unless required by Federal, State, local, or tribal law, recipients and subrecipients are not required to permit public access to their records. The recipient's or subrecipient's records provided to a Federal agency generally will be subject to FOIA and applicable exemptions.
§ 200.339
Remedies for noncompliance.
Section 200.339 outlines actions that federal agencies or pass-through entities can take if recipients or subrecipients fail to comply with federal laws or award conditions. These actions include withholding payments, disallowing costs, suspending or terminating awards, initiating debarment proceedings, and withholding future funding.
View
§ 200.339
Remedies for noncompliance.
398 findings
in our database
This regulation outlines what happens if a recipient or subrecipient of federal funds does not follow the rules set by the U.S. Constitution, federal laws, or the specific terms of their funding agreement. If they fail to comply, the federal agency or the entity that provided the funds can impose certain conditions to encourage compliance. If those conditions don’t work, they have several options to address the issue.
The actions they can take include temporarily stopping payments until the recipient fixes the problem, refusing to cover costs related to the noncompliance, or even suspending or ending the funding altogether. They can also start processes to prevent the recipient from receiving future federal funds or recommend that the federal agency take further action against them. This regulation is important because it ensures that federal funds are used properly and that recipients are held accountable for their actions.
Generated by gpt-4o-mini on 2025-10-16 10:52:58
The Federal agency or pass-through entity may implement specific conditions if the recipient or subrecipient fails to comply with the U.S. Constitution, Federal statutes, regulations, or terms and conditions of the Federal award. See § 200.208 for additional information on specific conditions. When the Federal agency or pass-through entity determines that noncompliance cannot be remedied by imposing specific conditions, the Federal agency or pass-through entity may take one or more of the following actions:
(a) Temporarily withhold payments until the recipient or subrecipient takes corrective action.
(b) Disallow costs for all or part of the activity associated with the noncompliance of the recipient or subrecipient.
(c) Suspend or terminate the Federal award in part or in its entirety.
(d) Initiate suspension or debarment proceedings as authorized in 2 CFR part 180 and the Federal agency's regulations, or for pass-through entities, recommend suspension or debarment proceedings be initiated by the Federal agency.
(e) Withhold further Federal funds (new awards or continuation funding) for the project or program.
(f) Pursue other legally available remedies.
§ 200.340
Termination.
Section 200.340 outlines the conditions under which a Federal award can be terminated, affecting recipients and subrecipients. Termination can occur due to non-compliance, mutual consent, or a recipient's request, and must be clearly specified in the award's terms. If a Federal agency terminates an award for non-compliance, it must report this in SAM.gov.
View
§ 200.340
Termination.
22 findings
in our database
Section 200.340 outlines the rules for terminating a federal award, which is a type of funding provided by the federal government. This regulation specifies that a federal agency or a pass-through entity (an organization that distributes federal funds) can end the funding if the recipient (the organization receiving the funds) does not follow the agreed-upon terms. Alternatively, the termination can happen if both parties agree to it, or if the recipient decides to terminate the award by notifying the federal agency with reasons and effective dates. If the federal agency believes that the remaining funds won't achieve the intended goals, they can also terminate the entire award.
This regulation applies to any organization or individual receiving federal funds, including subrecipients who may receive funds from the main recipient. It matters because it ensures that both parties understand their responsibilities and the conditions under which funding can be terminated. If a federal award is terminated, the federal agency must report this in a public database, which helps maintain transparency and accountability. Additionally, if there are any errors in the termination information, the agency is required to correct it promptly. Overall, this regulation helps ensure that federal funds are used effectively and that there are clear procedures for ending funding when necessary.
Generated by gpt-4o-mini on 2025-10-16 10:53:06
(a) The Federal award may be terminated in part or its entirety as follows:
(1) By the Federal agency or pass-through entity if the recipient or subrecipient fails to comply with the terms and conditions of the Federal award;
(2) By the Federal agency or pass-through entity with the consent of the recipient or subrecipient, in which case the two parties must agree upon the termination conditions. These conditions include the effective date and, in the case of partial termination, the portion to be terminated;
(3) By the recipient or subrecipient upon sending the Federal agency or pass-through entity a written notification of the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the Federal agency or pass-through entity determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made, the Federal agency or pass-through entity may terminate the Federal award in its entirety; or
(4) By the Federal agency or pass-through entity pursuant to the terms and conditions of the Federal award, including, to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.
(b) The Federal agency or pass-through entity must clearly and unambiguously specify all termination provisions in the terms and conditions of the Federal award.
(c) When the Federal agency terminates the Federal award prior to the end of the period of performance due to the recipient's material failure to comply with the terms and conditions of the Federal award, the Federal agency must report the termination in
SAM.gov
. A Federal agency must use the Contractor Performance Assessment Reporting System (CPARS) to enter information in
SAM.gov
.
(1) The information required under paragraph (c) of this section is not to be reported in
SAM.gov
until the recipient has either:
(i) Exhausted its opportunities to object or challenge the decision (see § 200.342); or
(ii) Has not, within 30 calendar days after being notified of the termination, informed the Federal agency that it intends to appeal the decision to terminate.
(2) If a Federal agency, after entering information about a termination in
SAM.gov
, subsequently:
(i) Learns that any of that information is erroneous, the Federal agency must correct the information in the system within three business days;
(ii) Obtains an update to that information that could be helpful to other Federal agencies, the Federal agency is strongly encouraged to amend the information in the system to incorporate the update in a timely way.
(3) The Federal agency must not post any information that will be made publicly available in the non-public segment of
SAM.gov
that is covered by a disclosure exemption under the Freedom of Information Act (FOIA). When the recipient asserts within seven calendar days to the Federal agency which posted the information that a disclosure exemption under FOIA covers some of the information made publicly available, the Federal agency that posted the information must remove the posting within seven calendar days of receiving the assertion. Before reposting the releasable information, the Federal agency must resolve the issue in accordance with the agency's FOIA procedures.
(d) When the Federal award is terminated in part or its entirety, the Federal agency or pass-through entity and recipient or subrecipient remain responsible for compliance with the requirements in §§ 200.344 and 200.345.
§ 200.341
Notification of termination requirement.
Section 200.341 requires federal agencies or pass-through entities to give written notice to recipients or subrecipients when terminating a federal award, including reasons and effective dates. If the termination is due to noncompliance, it must be reported on SAM.gov for five years, affecting future eligibility for federal awards, and allowing recipients to comment on the information.
View
§ 200.341
Notification of termination requirement.
12 findings
in our database
This regulation requires that when a federal agency or an organization that receives federal funds (called a pass-through entity) decides to end a funding agreement, they must inform the recipient or subrecipient in writing. This notice must explain why the funding is being terminated, the date it will end, and which parts of the funding are affected. If the termination is due to serious issues with how the recipient handled the funding, the notice must also include specific information about how this decision will be reported and what it means for the recipient in the future.
The regulation applies to any federal awards, which are funds given by the federal government for specific projects or purposes. It affects both the organizations that receive these funds directly and those that receive them through another entity. The practical implications are significant: if a recipient has their funding terminated for not following the rules, this information will be publicly available for five years. Other federal agencies will look at this record when deciding whether to give the recipient more funding in the future. Additionally, the recipient has the opportunity to comment on this record, and those comments will be considered by federal agencies when evaluating future funding requests. This process helps ensure accountability and transparency in how federal funds are used.
Generated by gpt-4o-mini on 2025-10-16 10:53:14
(a) The Federal agency or pass-through entity must provide written notice of termination to the recipient or subrecipient. The written notice of termination should include the reasons for termination, the effective date, and the portion of the Federal award to be terminated, if applicable.
(b) If the Federal award is terminated for the recipient's material failure to comply with a Federal award, the notification must state the following:
(1) The termination decision will be reported in
SAM.gov
;
(2) The information will be available in
SAM.gov
for five years from the date of the termination and then archived;
(3) Federal agencies that consider making a Federal award to the recipient during the five year period must consider this information in judging whether the recipient is qualified to receive the Federal award when the Federal share of the Federal award is expected to exceed the simplified acquisition threshold over the period of performance;
(4) The recipient may comment on any information in
SAM.gov
about the recipient for future consideration by Federal agencies. The recipient may submit comments in
SAM.gov
.
(5) Federal agencies should consider the recipient's comments when determining whether the recipient is qualified for a Federal award.
(c) Upon termination of the Federal award, the Federal agency must provide the information required by the Federal Funding Accountability and Transparency Act (FFATA) to
USAspending.gov.
In addition, the Federal agency must update or notify any other relevant government-wide systems or entities of any indications of poor performance as required by 41 U.S.C. 2313 and 31 U.S.C. 3321.
§ 200.342
Opportunities to object, hearings, and appeals.
Section 200.342 requires federal agencies to have written procedures for handling objections, hearings, and appeals related to noncompliance actions. It ensures that recipients can contest these actions and mandates compliance with relevant statutes or regulations regarding hearings and appeals.
View
§ 200.342
Opportunities to object, hearings, and appeals.
This regulation requires federal agencies to have clear written procedures for handling objections, hearings, and appeals when someone disagrees with a decision made by the agency. For example, if a federal agency decides that certain costs are not allowed or if they want to take corrective actions, they must inform the recipient (like a state or local government receiving federal funds) and give them a chance to challenge that decision. This means the recipient can present their side of the story and provide evidence against the agency's action.
The regulation applies to any federal agency and the recipients of federal funds, including subrecipients who may also be involved. It is important in situations where a recipient feels that a decision made by the federal agency is unfair or incorrect. By allowing the recipient to object and potentially appeal the decision, the regulation ensures that there is a fair process in place. This matters because it helps protect the rights of those receiving federal assistance and ensures that decisions are made transparently and justly.
Generated by gpt-4o-mini on 2025-10-16 10:53:20
The Federal agency must maintain written procedures for processing objections, hearings, and appeals. Upon initiating a remedy for noncompliance (for example, disallowed costs, a corrective action plan, or termination), the Federal agency must provide the recipient with an opportunity to object and provide information challenging the action. The Federal agency or pass-through entity must comply with any requirements for hearings, appeals, or other administrative proceedings to which the recipient or subrecipient is entitled under any statute or regulation applicable to the action involved.
§ 200.343
Effects of suspension and termination.
Section 200.343 states that costs incurred by recipients or subrecipients during a suspension or after the termination of a Federal award are generally not allowed unless authorized by the Federal agency. However, costs incurred before the suspension or termination, and that would have been allowable if the award had continued, can be accepted.
View
§ 200.343
Effects of suspension and termination.
62 findings
in our database
This regulation outlines what happens to costs incurred by organizations (called recipients or subrecipients) when their federal funding is suspended or terminated. Generally, these organizations cannot claim costs that arise during the suspension or after the funding has been terminated unless the federal agency specifically allows it. This means that if they spend money during this time, they usually can’t get reimbursed unless they have prior permission.
The regulation applies to any organization that receives federal awards, which are funds provided by the government for specific projects or purposes. It’s important for these organizations to understand that they can only claim costs that were incurred before the suspension or termination took effect, as long as those costs were not anticipated because of the funding issues. Additionally, if the costs would have been acceptable under normal circumstances (if the funding had continued), then they can be claimed even after the funding has ended.
Understanding this regulation is crucial for organizations relying on federal funds because it helps them manage their finances during uncertain times. Knowing what costs are allowable can prevent them from facing unexpected financial losses and ensures they stay compliant with federal rules, which can affect their ability to receive future funding.
Generated by gpt-4o-mini on 2025-10-16 10:53:27
Costs to the recipient or subrecipient resulting from financial obligations incurred by the recipient or subrecipient during a suspension or after the termination of a Federal award are not allowable unless the Federal agency or pass-through entity expressly authorizes them in the notice of suspension or termination or subsequently. However, costs during suspension or after termination are allowable if:
(a) The costs result from financial obligations which were properly incurred by the recipient or subrecipient before the effective date of suspension or termination, and not in anticipation of it; and
(b) The costs would be allowable if the Federal award was not suspended or expired normally at the end of the period of performance in which the termination takes effect.
§ 200.344
Closeout.
Section 200.344 outlines the closeout process for Federal awards, requiring recipients to complete all necessary reports and financial obligations within specified timeframes—120 days for recipients and 90 days for subrecipients after the award period ends. This section affects Federal agencies, pass-through entities, recipients, and subrecipients by ensuring all administrative actions are finalized before closing out the award.
View
§ 200.344
Closeout.
588 findings
in our database
Section 200.344 outlines the process for closing out a Federal award, which is essentially the final step after a project funded by the Federal government is completed. This regulation requires that once all the necessary work and administrative tasks related to the award are finished, the Federal agency or the organization that provided the funds (called a pass-through entity) must officially close the award. If the recipient of the funds (the person or organization that received the award) hasn’t completed everything required, the Federal agency can still close the award based on the information they have.
The regulation applies to both recipients and subrecipients of Federal funds. Recipients must submit all required reports, like financial statements, within 120 days after the project ends, while subrecipients have 90 days to submit their reports. Additionally, any financial obligations must be settled within the same timeframes. If there are leftover funds that were not used, they must be returned. This process is important because it ensures that all financial matters are resolved and that the funds were used properly, which helps maintain accountability and transparency in how taxpayer money is spent. If recipients fail to comply with these requirements, it can lead to negative reports about their performance and potential enforcement actions.
Generated by gpt-4o-mini on 2025-10-16 10:53:36
(a) The Federal agency or pass-through entity must close out the Federal award when it determines that all administrative actions and required work of the Federal award have been completed. When the recipient or subrecipient fails to complete the necessary administrative actions or the required work for an award, the Federal agency or pass-through entity must proceed with closeout based on the information available. This section specifies the administrative actions required at the end of the period of performance.
(b) A recipient must submit all reports (financial, performance, and other reports required by the Federal award) no later than 120 calendar days after the conclusion of the period of performance. A subrecipient must submit all reports (financial, performance, and other reports required by a subaward) to the pass-through entity no later than 90 calendar days after the conclusion of the period of performance of the subaward (or an earlier date as agreed upon by the pass-through entity and subrecipient). When justified, the Federal agency or pass-through entity may approve extensions for the recipient or subrecipient. When the recipient does not have a final indirect cost rate covering the period of performance, a final financial report must still be submitted to fulfill the requirements of this section. The recipient must submit a revised final financial report when all applicable indirect cost rates have been finalized.
(c) The recipient must liquidate all financial obligations incurred under the Federal award no later than 120 calendar days after the conclusion of the period of performance. A subrecipient must liquidate all financial obligations incurred under a subaward no later than 90 calendar days after the conclusion of the period of performance of the subaward (or an earlier date as agreed upon by the pass-through entity and subrecipient). When justified, the Federal agency or pass-through entity may approve extensions for the recipient or subrecipient.
(d) The Federal agency or pass-through entity must not delay payments to the recipient or subrecipient for costs meeting the requirements of subpart E of this part.
(e) The recipient or subrecipient must promptly refund any unobligated funds that the Federal agency or pass-through entity paid and that are not authorized to be retained. See OMB Circular A-129 and § 200.346.
(f) The Federal agency or pass-through entity must make all necessary adjustments to the Federal share of costs after closeout reports are received (for example, to reflect the disallowance of any costs or the deobligation of an unliquidated balance).
(g) The recipient or subrecipient must account for any property acquired with Federal funds or received from the Federal Government in accordance with §§ 200.310 through 200.316 and 200.330.
(h) The Federal agency must make every effort to complete all closeout actions no later than one year after the end of the period of performance. If the indirect cost rate has not been finalized and would delay closeout, the Federal agency is authorized to mutually agree with the recipient to close an award using the current or most recently negotiated rate. However, the recipient is not required to agree to a final rate for a Federal award for the purpose of prompt closeout.
(i) If the recipient does not comply with the requirements of this section, including submitting all final reports, the Federal agency must report the recipient's material failure to comply with the terms and conditions of the Federal award in
SAM.gov
. A Federal agency must use the Contractor Performance Assessment Reporting System (CPARS) to enter or amend information in
SAM.gov
. Federal agencies may also pursue other enforcement actions as appropriate. See § 200.339.
§ 200.345
Post-closeout adjustments and continuing responsibilities.
Section 200.345 states that closing a Federal award does not eliminate the Federal agency's or pass-through entity's rights to audit costs, recover funds, or make financial adjustments. It also emphasizes that recipients or subrecipients must continue to meet certain responsibilities, including returning funds and adhering to audit and property management requirements, even after the award is closed.
View
§ 200.345
Post-closeout adjustments and continuing responsibilities.
This regulation outlines what happens after a federal award (like a grant or funding) is officially closed. Even after the closeout, the federal agency or the organization that provided the funding (called a pass-through entity) can still review and challenge costs that were claimed. If they find any issues during a later audit, they can disallow those costs and ask for money back. They must inform the recipient or subrecipient about any disallowed costs within a specific time frame. Additionally, recipients may need to return funds or may be eligible for remaining funds due to adjustments or corrections.
The regulation applies to anyone who has received federal funding, including organizations and individuals, and it covers situations where financial adjustments or audits might occur after the award is closed. It also emphasizes that recipients still have responsibilities related to managing property and keeping records, even after the funding is closed out. This is important because it ensures that all parties remain accountable and that any financial discrepancies can be resolved, which helps maintain the integrity of federal funding programs.
Generated by gpt-4o-mini on 2025-10-16 10:53:43
(a) The closeout of the Federal award does not affect any of the following:
(1) The right of the Federal agency or pass-through entity to disallow costs and recover funds on the basis of a later audit or review. However, the Federal agency or pass-through entity must make determinations to disallow costs and notify the recipient or subrecipient within the record retention period.
(2) The recipient's or subrecipient's requirement to return funds or right to receive any remaining and available funds as a result of refunds, corrections, final indirect cost rate adjustments (unless the Federal award in closed in accordance with § 200.344(h)), or other transactions.
(3) The ability of the Federal agency or pass-through entity to make financial adjustments to a previously closed Federal award, such as resolving indirect cost payments and making final payments.
(4) Audit requirements in subpart F of this part.
(5) Property management and disposition requirements in §§ 200.310 through 200.316.
(6) Records retention as required in §§ 200.334 through 200.337.
(b) After the closeout of the Federal award, a relationship created under the Federal award may be modified or ended in whole or in part. This may only be done with the consent of the awarding Federal agency or pass-through entity and the recipient or subrecipient, provided the responsibilities of the recipient or subrecipient referred to in paragraph (a) of this section, including those for property management as applicable, are considered and provisions are made for continuing responsibilities of the recipient or subrecipient, as appropriate.
§ 200.346
Collection of amounts due.
Section 200.346 states that if a recipient or subrecipient receives more Federal funds than they are entitled to, they owe that excess amount back to the Federal Government. Federal agencies are required to collect these debts following specific administrative guidelines.
View
§ 200.346
Collection of amounts due.
10 findings
in our database
Section 200.346 states that if a person or organization (called a recipient or subrecipient) receives more federal money than they are supposed to under a federal grant or award, that extra money is considered a debt to the federal government. This means they owe that money back. The federal agency that provided the funds is responsible for collecting this debt according to specific rules outlined in another regulation.
This regulation applies to anyone who receives federal funds, including individuals, businesses, and non-profit organizations. It comes into play when these recipients receive more money than they are entitled to, whether due to an error or other reasons. The practical implication is that if you find yourself in this situation, you need to be prepared to repay the excess funds. This matters because it helps ensure that federal money is used correctly and that taxpayers' money is handled responsibly.
Generated by gpt-4o-mini on 2025-10-16 10:53:50
Any Federal funds paid to the recipient or subrecipient in excess of the amount that the recipient or subrecipient is determined to be entitled to under the Federal award constitute a debt to the Federal Government. The Federal agency must collect all debts arising out of its Federal awards in accordance with the Standards for the Administrative Collection of Claims (31 CFR part 901).
§ 200.400
Policy guide.
Section 200.400 outlines that recipients and subrecipients of Federal awards must manage funds efficiently and in compliance with Federal regulations. They are responsible for proper accounting and documentation of costs, ensuring that any profit from Federal assistance is only kept if specifically allowed.
View
§ 200.400
Policy guide.
284 findings
in our database
This regulation outlines the responsibilities of organizations (called recipients and subrecipients) that receive federal funding. First, these organizations must manage the federal funds effectively and efficiently, following sound management practices. They are also required to use the money in line with federal laws and the specific rules attached to their funding. This means they need to have good systems in place to handle the funds properly, ensuring that they meet all the necessary guidelines.
The regulation applies to any organization that receives federal awards, particularly those involved in research and education. It emphasizes that these organizations must keep accurate records to show how they spend the funds and must use consistent accounting practices. Additionally, if there are differences in how costs are handled, those need to be justified to ensure fairness. Importantly, organizations cannot make a profit from federal funds unless specifically allowed by the funding agreement. If they have leftover money after completing the required work, that money isn't considered profit as long as it was used according to the rules.
This regulation is important because it helps ensure that federal funds are used wisely and transparently. By holding organizations accountable for their management of these funds, it aims to prevent misuse and promote fairness in how costs are allocated. This ultimately helps ensure that taxpayer money is spent effectively on programs and projects that benefit the public.
Generated by gpt-4o-mini on 2025-10-16 10:53:57
The application of these cost principles is based on the fundamental premises that:
(a) The recipient and subrecipient are responsible for the efficient and effective administration of the Federal award through sound management practices.
(b) The recipient and subrecipient are responsible for administering Federal funds in a manner consistent with Federal statutes, regulations, and the terms and conditions of the Federal award.
(c) The recipient and subrecipient, in recognition of their unique combination of staff, facilities, and experience, are responsible for employing organization and management techniques necessary to ensure the proper and efficient administration of the Federal award.
(d) The accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the Federal award.
(e) When reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, the cognizant agency for indirect costs should ensure that the recipient consistently applies these cost principles. Where wide variations exist in the treatment of a given cost item by the recipient, the reasonableness and equity of such treatments should be fully considered. See the definition of
indirect costs
in § 200.1.
(f) For recipients and subrecipients that educate and engage students in research, the dual role of students as both trainees and employees (including pre- and post-doctoral staff) contributing to the completion of Federal awards for research must be recognized in the application of these principles.
(g) The recipient or subrecipient must not earn or keep any profit resulting from Federal financial assistance unless explicitly authorized by the terms and conditions of the Federal award. See also § 200.307. When the required activities of a fixed amount award were completed in accordance with the terms and conditions of the award, the unexpended funds retained by the recipient or subrecipient are not considered profit.
§ 200.401
Application.
Section 200.401 outlines that recipients and subrecipients of Federal awards must apply specific cost principles to determine allowable costs and pricing for contracts, but these principles do not apply to certain funding types like loans or fixed amount awards. Additionally, Federal contracts must adhere to Cost Accounting Standards (CAS), which take precedence over these cost principles for determining allowable costs.
View
§ 200.401
Application.
16 findings
in our database
This regulation outlines how organizations receiving federal funds should handle costs associated with those funds. Essentially, it requires that both the main recipient and any subrecipients follow specific guidelines to determine which costs are allowable when using federal awards. These guidelines also help in setting prices for contracts where costs are considered. However, there are certain situations where these cost principles do not apply, such as when federal funding comes in the form of loans or fixed amounts for education, or when it involves hospitals or food commodities.
The regulation specifically applies to organizations that receive federal contracts, which must adhere to additional standards known as Cost Accounting Standards (CAS). These standards dictate how costs should be allocated and reported, and they take precedence over the general cost principles mentioned earlier. This means that if an organization has both federal awards and CAS-covered contracts, they only need to maintain one set of accounting records for both, simplifying their financial management.
For some nonprofit organizations, particularly those that operate similarly to for-profit businesses, the same cost principles that apply to for-profits will also apply to them. This ensures consistency in how costs are managed across different types of organizations receiving federal funds. Understanding these requirements is crucial because they help ensure that federal money is spent appropriately and transparently, ultimately supporting the effective use of taxpayer dollars.
Generated by gpt-4o-mini on 2025-10-16 10:54:06
(a)
General.
The recipient and subrecipient must apply these principles in determining allowable costs under Federal awards. The recipient and subrecipient must also use these principles as a guide in pricing fixed-price contracts and subcontracts when costs are used in determining the appropriate price. These cost principles do not apply to:
(1) Arrangements under which Federal financing is in the form of loans, scholarships, fellowships, traineeships, or other fixed amounts based on items such as education allowance or published tuition rates and fees.
(2) Capitation awards based on case counts or the number of beneficiaries.
(3) Fixed amount awards, except as provided in § 200.101(b). See also § 200.201.
(4) Federal awards to hospitals (see Appendix IX of this part).
(5) Food commodities provided through grants and cooperative agreements.
(6) Other awards under which the recipient or subrecipient is not required to account for actual costs incurred.
(b)
Federal contract.
A Federal contract awarded to a recipient is subject to the Cost Accounting Standards (CAS). It must incorporate the applicable CAS requirements per 48 CFR Chapter 99 and 48 CFR part 30 (FAR Part 30). With respect to the allocation of costs, the Cost Accounting Standards at 48 CFR parts 9904 or 9905 take precedence over the cost principles in subpart E. When a contract with a recipient is subject to full CAS coverage, the allowability of certain costs under the cost principles will be affected by the allocation provisions of the Cost Accounting Standards (for example, CAS 414—48 CFR 9904.414—Cost of Money as an Element of the Cost of Facilities Capital, and CAS 417—48 CFR 9904.417—Cost of Money as an Element of the Cost of Capital Assets Under Construction, apply instead of the allowability provisions of § 200.449). For example, the allowability of costs in CAS-covered contracts is determined first by the allocation provisions of the Cost Accounting Standards rather than the allowability provisions in § 200.449 (unless the CAS does not address the specific costs). In complying with those requirements, the recipient's application of cost accounting practices for estimating, accumulating, and reporting costs for Federal awards and CAS-covered contracts must be consistent with 48 CFR. The recipient only needs to maintain one set of accounting records supporting the allocation of costs if the recipient administers both Federal awards and CAS-covered contracts.
(c)
Exemptions.
Some nonprofit organizations, because of their size and nature of operations, can be considered to be similar to for-profit organizations in terms of the applicability of cost principles. These nonprofit organizations must operate under Federal cost principles that apply to for-profit organizations located at 48 CFR 31.2. Appendix VIII contains a list of these nonprofit organizations. Other organizations may be added to this list if approved by the cognizant agency for indirect costs.
§ 200.402
Composition of costs.
Section 200.402 states that the total cost of a Federal award includes all allowable direct costs and allocable indirect costs, minus any applicable credits. This affects organizations receiving Federal funding, as they must account for these costs when managing their awards.
View
§ 200.402
Composition of costs.
93 findings
in our database
Section 200.402 explains how to calculate the total cost of a federal award, which is money given by the government for specific projects or programs. To find this total cost, you need to add together two types of expenses: direct costs and indirect costs. Direct costs are expenses that can be directly linked to the project, like salaries for staff working on it or materials needed. Indirect costs are expenses that support the project but aren’t directly tied to it, like utilities or administrative salaries. After adding these costs together, you subtract any applicable credits, which are reductions in expenses or income that can lower the total cost.
This regulation applies to organizations that receive federal funding, such as non-profits, universities, and businesses. It is important in situations where these organizations are managing federal grants or contracts. Understanding how to calculate costs accurately is crucial because it affects how much funding they can receive and how they report their expenses. This regulation helps ensure that federal money is spent appropriately and transparently, which is essential for accountability and effective use of taxpayer dollars.
Generated by gpt-4o-mini on 2025-10-16 10:54:13
The total cost of a Federal award is the sum of the allowable direct and allocable indirect costs minus any applicable credits
§ 200.403
Factors affecting allowability of costs.
Section 200.403 outlines the criteria for costs to be allowable under Federal awards, requiring them to be necessary, reasonable, and properly documented, among other conditions. This affects recipients of Federal funding, ensuring they adhere to specific guidelines for cost management and reporting.
View
§ 200.403
Factors affecting allowability of costs.
10,491 findings
in our database
This regulation outlines the rules for costs that can be covered by federal funding. To be allowed, costs must be necessary and reasonable for the project funded by the federal award. They also need to fit within any specific limits or exclusions stated in the funding agreement. Additionally, the costs must be treated consistently, meaning if a similar cost is categorized differently for another project, it cannot be treated as a direct cost for the federal award.
The regulation applies to organizations that receive federal funding, including state and local governments, as well as Indian Tribes. It’s important for these organizations to follow these rules when planning and reporting their expenses. Practically, this means they need to keep thorough records of their costs, ensure they are not using the same costs for multiple funding sources, and make sure all expenses are documented properly. Following these guidelines helps ensure that federal funds are used appropriately and can prevent issues during audits or funding reviews.
Generated by gpt-4o-mini on 2025-10-16 10:54:19
Except where otherwise authorized by statute, costs must meet the following criteria to be allowable under Federal awards:
(a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
(b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
(c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the recipient or subrecipient.
(d) Be accorded consistent treatment. For example, a cost must not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
(e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for State and local governments and Indian Tribes only, as otherwise provided for in this part.
(f) Not be included as a cost or used to meet cost sharing requirements of any other federally-financed program in either the current or a prior period. See § 200.306(b).
(g) Be adequately documented. See §§ 200.300 through 200.309.
(h) Administrative closeout costs may be incurred until the due date of the final report(s). If incurred, these costs must be liquidated prior to the due date of the final report(s) and charged to the final budget period of the award unless otherwise specified by the Federal agency. All other costs must be incurred during the approved budget period. At its discretion, the Federal agency is authorized to waive prior written approvals to carry forward unobligated balances to subsequent budget periods. See § 200.308(g)(3).
§ 200.404
Reasonable costs.
Section 200.404 defines a cost as reasonable if it aligns with what a sensible person would spend under similar circumstances. It affects recipients and subrecipients of federal awards by requiring them to consider factors like necessity, market prices, legal requirements, and adherence to their own policies when determining if a cost is appropriate.
View
§ 200.404
Reasonable costs.
3,860 findings
in our database
This regulation outlines what is considered a "reasonable cost" for organizations that receive federal funding. A cost is deemed reasonable if it is an amount that a sensible person would agree to pay under similar circumstances. To determine if a cost is reasonable, several factors must be considered. These include whether the cost is typical and necessary for the organization's operations, if it follows good business practices and legal requirements, how it compares to market prices in the area, whether the people involved acted wisely given their responsibilities, and if it aligns with the organization's own rules for spending.
This regulation applies to organizations and individuals who receive federal awards, such as grants or contracts. It is important in situations where these entities are deciding how to spend the funds they receive. By following this regulation, they ensure that their spending is justified and aligns with both federal guidelines and their own policies.
Understanding and applying this regulation is crucial because it helps prevent wasteful or inappropriate spending of federal funds. It ensures that taxpayer money is used effectively and responsibly, which ultimately benefits the public and maintains trust in how government funds are managed.
Generated by gpt-4o-mini on 2025-10-16 10:54:26
A cost is reasonable if it does not exceed an amount that a prudent person would incur under the circumstances prevailing when the decision was made to incur the cost. In determining the reasonableness of a given cost, consideration must be given to the following:
(a) Whether the cost is generally recognized as ordinary and necessary for the recipient's or subrecipient's operation or the proper and efficient performance of the Federal award;
(b) The restraints or requirements imposed by such factors as sound business practices; arm's-length bargaining; Federal, State, local, tribal, and other laws and regulations; and terms and conditions of the Federal award;
(c) Market prices for comparable costs for the geographic area;
(d) Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the recipient or subrecipient, its employees, its students or membership (if applicable), the public at large, and the Federal Government; and
(e) Whether the cost represents a deviation from the recipient's or subrecipient's established written policies and procedures for incurring costs.
§ 200.405
Allocable costs.
Section 200.405 outlines how costs can be allocated to Federal awards, stating that costs must be directly related to the award, benefit both the award and other work, or be necessary for overall operations. It affects recipients and subrecipients of Federal funds by specifying that costs cannot be charged to multiple awards to avoid restrictions, and indirect costs must be appropriately allocated among all benefiting activities.
View
§ 200.405
Allocable costs.
7,393 findings
in our database
This regulation outlines how costs can be assigned or allocated to federal awards, which are funds provided by the government for specific projects or activities. A cost can be considered allocable if it directly benefits the federal award, benefits both the federal award and other work, or is necessary for the overall operation of the organization receiving the funds. Essentially, if a cost can be tied to the benefits received from the federal funding, it can be charged to that award.
The regulation applies to organizations that receive federal funding, including both the primary recipients and any subrecipients. It specifies that costs benefiting multiple projects must be divided fairly based on how much each project benefits from the cost. Additionally, costs that are specifically tied to one federal award cannot be charged to another, ensuring that funds are used appropriately and not misallocated. This is important for maintaining accountability and transparency in how federal funds are spent.
Practically, this means organizations must carefully track and document their expenses to ensure they comply with these rules. They need to have clear methods for determining how costs are shared among different projects. This regulation helps prevent misuse of federal funds and ensures that taxpayers' money is spent effectively, supporting the intended purposes of the federal awards.
Generated by gpt-4o-mini on 2025-10-16 10:54:39
(a)
Allocable costs in general.
A cost is allocable to a Federal award or other cost objective if the cost is assignable to that Federal award or other cost objective in accordance with the relative benefits received. This standard is met if the cost satisfies any of the following criteria:
(1) Is incurred specifically for the Federal award;
(2) Benefits both the Federal award and other work of the recipient or subrecipient and can be distributed in proportions that may be approximated using reasonable methods; or
(3) Is necessary to the overall operation of the recipient or subrecipient and is assignable in part to the Federal award in accordance with these cost principles.
(b)
Allocation of indirect costs.
All activities which benefit from the recipient's or subrecipient's indirect cost, including unallowable activities and donated services by the recipient or subrecipient or third parties, will receive an appropriate allocation of indirect costs.
(c)
Limitation on charging certain allocable costs to other Federal awards.
A cost allocable to a particular Federal award may not be charged to other Federal awards (for example, to overcome fund deficiencies or to avoid restrictions imposed by Federal statutes, regulations, or the terms and conditions of the Federal awards). However, this prohibition would not preclude the recipient or subrecipient from shifting costs that are allowable under two or more Federal awards in accordance with existing Federal statutes, regulations, or the terms and conditions of the Federal awards.
(d)
Direct cost allocation principles.
If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit However, when those proportions cannot be determined because of the interrelationship of the work involved, then, notwithstanding paragraph (c), the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Where the purchase of equipment or other capital asset is specifically authorized under a Federal award, the costs are assignable to the Federal award regardless of the use that may be made of the equipment or other capital asset involved, when no longer needed for the purpose for which it was originally required. See also §§ 200.310 through 200.316 and 200.439.
(e)
Costs of contracts subject to CAS.
If a contract is subject to CAS, costs must be allocated to that contract according to the Cost Accounting Standards, which take precedence over the allocation provisions in this part.
§ 200.406
Applicable credits.
Section 200.406 defines "applicable credits" as transactions that reduce costs related to a Federal award, such as discounts or refunds. Recipients must apply these credits to the Federal award as cost reductions or refunds, and certain amounts received from the Federal Government may also be considered applicable credits in calculating charges to the award.
View
§ 200.406
Applicable credits.
52 findings
in our database
Section 200.406 talks about "applicable credits," which are financial transactions that can help lower the costs associated with a Federal award. These credits can come from various sources, like discounts you get when buying something, money returned from insurance, or adjustments for overpayments. If you receive any of these credits related to costs that are allowed under the Federal award, you must either reduce the total costs you report or return the money to the Federal government, depending on the situation.
This regulation applies to organizations or individuals who receive Federal funding for specific projects or services. It’s important for them to recognize and report any applicable credits they receive, as these can affect how much funding they can claim or how much they need to repay. Understanding and applying this regulation is crucial because it ensures that Federal funds are used properly and helps prevent overcharging the government, which can lead to financial penalties or loss of funding.
Generated by gpt-4o-mini on 2025-10-16 10:54:45
(a) Applicable credits refer to transactions that offset or reduce direct or indirect costs allocable to a Federal award. Examples of such transactions are purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the recipient or subrecipient relate to allowable costs, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate.
(b) In some instances, the amounts received from the Federal Government to finance activities or service operations of the recipient or subrecipient should be treated as applicable credits. Specifically, the concept of netting such credit items (including any amounts used to meet cost sharing requirements) must be recognized in determining the rates or amounts to be charged to the Federal award. See §§ 200.436 and 200.468 for potential application areas.
§ 200.407
Prior written approval (prior approval).
Section 200.407 requires recipients of Federal awards to obtain prior written approval from the Federal agency for certain costs to ensure they are reasonable and allocable. This affects organizations receiving Federal funding, as failure to seek approval for specific costs may lead to disputes or disallowance of those costs later on.
View
§ 200.407
Prior written approval (prior approval).
59 findings
in our database
Section 200.407 of the Code of Federal Regulations focuses on the need for prior written approval from federal agencies before spending certain types of money related to federal awards. This regulation helps ensure that costs are reasonable and properly allocated, meaning they are appropriate for the project and can be justified. If a recipient (like a nonprofit or a university) wants to avoid issues later on about whether a cost is acceptable, they should get this approval before making the expense. However, not having prior approval doesn’t automatically mean a cost is unreasonable unless specific rules in other sections require it.
This regulation applies to organizations that receive federal funding and need to manage their budgets carefully. It covers various situations, such as cost-sharing, program income, and travel costs, where prior approval is necessary. By following this regulation, organizations can prevent disputes and ensure they are using federal funds appropriately. This matters because it helps maintain accountability and transparency in how taxpayer money is spent, ultimately supporting the integrity of federal programs.
Generated by gpt-4o-mini on 2025-10-16 10:54:51
The reasonableness and allocability of certain costs under Federal awards may be difficult to determine. To avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, the recipient may seek the prior written approval of the Federal agency (or, for indirect costs, the cognizant agency for indirect costs) before incurring the cost. The absence of prior written approval on any element of cost will not, in itself, affect the reasonableness or allocability of that cost unless prior approval is specifically required for allowability as described under certain circumstances in the following sections:
(a) Section 200.306 Cost sharing;
(b) Section 200.307 Program income;
(c) Section 200.308 Revision of budget and 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;
(g) Section 200.439 Equipment and other capital expenditures;
(h) Section 200.440 Exchange rates;
(i) Section 200.441 Fines, penalties, damages and other settlements;
(j) Section 200.442 Fund raising and investment management costs;
(k) Section 200.445 Goods or services for personal use;
(l) Section 200.447 Insurance and indemnification;
(m) Section 200.455 Organization costs;
(n) Section 200.458 Pre-award costs;
(o) Section 200.462 Rearrangement and reconversion costs;
(p) Section 200.475 Travel costs.
§ 200.408
Limitation on allowance of costs.
Section 200.408 states that costs charged to a Federal award must not exceed the limits set by law. Only expenses within these legal limits can be billed to the Federal funding.
View
§ 200.408
Limitation on allowance of costs.
12 findings
in our database
Section 200.408 focuses on the rules about costs that can be charged to federal awards, which are funds provided by the government for specific projects or programs. This regulation states that there are limits on how much money can be spent on certain costs. If a cost is higher than what the law allows, it cannot be included in the expenses billed to the federal award. In simple terms, you can only charge the government for costs that fall within the legal limits.
This regulation applies to organizations and entities that receive federal funding, such as non-profits, educational institutions, and state or local governments. It is relevant whenever these organizations are managing federal funds for projects. The practical implication is that these entities need to be careful about their budgeting and spending. They must ensure that any costs they plan to charge to the federal award do not exceed the limits set by law. This is important because it helps prevent overspending and ensures that taxpayer money is used appropriately.
Generated by gpt-4o-mini on 2025-10-16 10:54:58
Statutory requirements may limit the allowability of costs. Any costs that exceed the maximum amount allowed by statute may not be charged to the Federal award. Only the amount allowable by statute may be charged to the Federal award.
§ 200.409
Special considerations.
Section 200.409 outlines special considerations and requirements for states, local governments, Indian Tribes, and institutions of higher education (IHEs) regarding costs. It specifies that certain cost provisions apply only to specific types of recipients and subrecipients, as detailed in subsequent sections.
View
§ 200.409
Special considerations.
This regulation outlines specific rules and requirements that apply to different groups, including states, local governments, Indian Tribes, and institutions of higher education (IHEs). It emphasizes that not all costs associated with funding are treated the same way; some costs are only relevant to certain types of recipients. For example, there are distinct guidelines for how direct costs (expenses that can be directly attributed to a project) and indirect costs (overhead expenses that support the project but aren't directly tied to it) should be handled.
The regulation also highlights that there are special considerations for states, local governments, and Indian Tribes, as well as for institutions of higher education. This means that these groups may have unique requirements or exceptions that they need to follow when managing funds. Understanding these distinctions is crucial for ensuring compliance and effectively managing budgets, as it helps these organizations know what costs they can include and how to report them accurately. This regulation matters because it helps ensure that public funds are used appropriately and transparently, which ultimately supports better governance and accountability.
Generated by gpt-4o-mini on 2025-10-16 10:55:05
Other sections in this part describe special considerations and requirements applicable to states, local governments, Indian Tribes, and IHEs. In addition, certain provisions among the items of cost in this subpart are only applicable to certain types of recipients and subrecipients, as specified in the following sections:
(a) Direct and Indirect Costs (§§ 200.412-200.415);
(b) Special Considerations for States, Local Governments and Indian Tribes (§§ 200.416 and 200.417); and
(c) Special Considerations for Institutions of Higher Education (§§ 200.418 and 200.419).
§ 200.410
Collection of unallowable costs.
Section 200.410 requires that any payments made for costs deemed unallowable by a federal agency or pass-through entity must be refunded with interest to the federal government. This affects organizations receiving federal funds, as they must follow specific instructions for repayment unless otherwise directed by law.
View
§ 200.410
Collection of unallowable costs.
634 findings
in our database
Section 200.410 requires that if a federal agency or other authorized entity decides that certain costs are not allowed (unallowable), any payments made for those costs must be returned to the federal government, along with interest. This means that if you receive funding from the federal government and spend it on something that is deemed unallowable, you need to pay that money back.
This regulation applies to organizations or individuals that receive federal funds, including businesses, nonprofits, and educational institutions. It comes into play when these entities submit costs for reimbursement and those costs are later found to be unallowable. The repayment process must follow specific instructions from the federal agency or entity that made the ruling about the costs.
The practical implication of this regulation is that organizations need to be very careful about how they spend federal funds. If they mistakenly spend money on unallowable costs, they could face financial penalties and have to return the funds, which can strain their budgets. Understanding this regulation helps ensure that organizations manage their federal funding responsibly and avoid unexpected financial burdens.
Generated by gpt-4o-mini on 2025-10-16 10:55:12
Payments made for costs determined to be unallowable by either the awarding Federal agency, cognizant agency for indirect costs, or pass-through entity must be refunded with interest to the Federal Government. Unless directed by Federal statute or regulation, repayments must be made in accordance with the instructions provided by the Federal agency or pass-through entity that made the allowability determination. See §§ 200.300 through 200.309, and § 200.346.
§ 200.411
Adjustment of previously negotiated indirect cost rates containing unallowable costs.
Section 200.411 requires adjustments or refunds for previously negotiated indirect cost rates that included unallowable costs, affecting recipients and subrecipients of federal awards. These adjustments must be made for both future and past periods, ensuring compliance with federal regulations and preventing duplicate recovery of costs.
View
§ 200.411
Adjustment of previously negotiated indirect cost rates containing unallowable costs.
18 findings
in our database
This regulation outlines what organizations must do if they find that their indirect cost rates—essentially, the overhead costs they charge for managing federal awards—include expenses that shouldn't have been included. Specifically, if any costs are deemed unallowable by federal laws or the terms of the federal award, organizations need to adjust their rates or provide a refund. This applies to all types of negotiated rates, whether they are predetermined, final, fixed, or provisional. The goal is to correct the rates based on accurate cost proposals, not to reopen negotiations.
The regulation applies to recipients of federal funds and their subrecipients when they discover unallowable costs in their indirect cost rates. For future fiscal years, organizations must remove these unallowable costs from their calculations and adjust their rates accordingly. For past periods, they must calculate the federal share of the unallowable costs and issue a cash refund, including any interest, to the federal government. The agency overseeing these costs will determine whether an adjustment or a refund is more practical for the current period, ensuring that organizations don't recover the same unallowable costs twice.
Overall, this regulation is important because it helps maintain accountability and transparency in how federal funds are used. By ensuring that only allowable costs are charged to federal awards, it protects taxpayer money and promotes fair practices among organizations receiving federal support.
Generated by gpt-4o-mini on 2025-10-16 10:55:21
(a) Negotiated indirect cost rates based on a proposal later found to have included costs that:
(1) Are unallowable as specified by Federal statutes, regulations or the terms and conditions of a Federal award; or
(2) Are unallowable because they are not allocable to the Federal award(s), must be adjusted, or a refund must be made in accordance with the requirements of this section. These adjustments or refunds are intended to correct the proposals used to establish the rates and do not constitute a reopening of the rate negotiation. The adjustments or refunds must be made regardless of the type of rate negotiated (predetermined, final, fixed, or provisional).
(b) For rates covering a future fiscal year of the recipient or subrecipient, the unallowable costs must be removed from the indirect cost pools and the rates must be adjusted.
(c) For rates covering a past period, the Federal share of the unallowable costs must be computed for each year involved, and a cash refund (including interest) must be made to the Federal Government in accordance with the directions provided by the cognizant agency for indirect costs. When cash refunds are made for past periods covered by provisional or fixed rates, appropriate adjustments must be made when the rates are finalized to avoid duplicate recovery of the unallowable costs.
(d) For rates covering the current period, either a rate adjustment or a refund, as described in paragraphs (b) and (c) of this section, must be required by the cognizant agency for indirect costs. The choice of method must be at the discretion of the cognizant agency for indirect costs, based on its judgment as to which method would be most practical.
(e) The amount or proportion of unallowable costs included in each year's rate will be assumed to be the same as the amount or proportion of unallowable costs included in the base year proposal used to establish the rate.
§ 200.412
Classification of costs.
Section 200.412 states that costs can be classified as either direct or indirect depending on the specific service or function, and they must be treated consistently to prevent double-charging Federal awards. This affects organizations receiving Federal funding, as they need to follow the guidelines for classifying costs correctly.
View
§ 200.412
Classification of costs.
65 findings
in our database
Section 200.412 explains how costs should be classified when dealing with federal funding. It states that there isn’t a one-size-fits-all rule for labeling costs as either "direct" or "indirect." A direct cost is one that can be specifically linked to a particular service or project, while an indirect cost is more general and supports multiple projects or services but can’t be traced to any one of them. This means that a cost might be considered direct for one situation but indirect for another. To keep things fair and clear, organizations must consistently classify similar costs in the same way to avoid mistakenly charging the federal government twice for the same expense.
This regulation applies to organizations that receive federal awards, such as grants or contracts, and it comes into play whenever they incur costs related to those awards. It’s important for these organizations to understand how to categorize their expenses correctly. By following the guidelines provided, they can ensure that they are not overcharging the federal government and are maintaining transparency in their financial practices. This helps prevent issues like audits or penalties and ensures that federal funds are used appropriately.
Generated by gpt-4o-mini on 2025-10-16 10:55:28
There is no universal rule for classifying certain costs as direct or indirect costs. A cost may be direct for some specific service or function but indirect for the Federal award or other final cost objective. Therefore, each cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double-charging of Federal awards. Guidelines for determining direct and indirect costs charged to Federal awards are provided in this subpart.
§ 200.413
Direct costs.
Section 200.413 defines direct costs as expenses that can be specifically linked to a Federal award or funded activity, while indirect costs are those that cannot be directly assigned. It primarily affects organizations receiving Federal funding, guiding them on how to categorize costs, especially regarding administrative salaries and minor expenses.
View
§ 200.413
Direct costs.
90 findings
in our database
Section 200.413 of the Code of Federal Regulations outlines how organizations should handle direct costs when they receive federal funding. Direct costs are expenses that can be clearly linked to a specific project or federal award, like supplies or salaries for work directly related to that project. The regulation emphasizes that costs must be consistently classified as either direct or indirect based on their purpose and context. For example, if a cost is necessary for a specific federal award, it can be charged directly to that award, even if it might usually be considered an indirect cost.
This regulation applies to any organization receiving federal awards, including non-profits and educational institutions. It specifies that certain costs, like salaries for administrative staff, are usually treated as indirect costs unless they meet specific criteria, such as being essential to the federal award and easily identifiable. Additionally, minor costs can be treated as indirect for practicality, and unallowable costs (those that can't be charged to federal awards) still need to be considered when calculating indirect cost rates.
Understanding this regulation is important because it helps organizations manage their finances accurately and ensures they comply with federal funding rules. Properly categorizing costs can affect how much funding an organization can receive and how they report their expenses. This clarity helps organizations avoid potential issues with funding agencies and ensures that they use federal funds appropriately.
Generated by gpt-4o-mini on 2025-10-16 10:55:36
(a)
General.
Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as direct or indirect costs. See § 200.405.
(b)
Application to Federal awards.
The association of costs with a Federal award determines whether costs are direct or indirect. Costs charged directly to a Federal award are typically incurred specifically for that Federal award (including, for example, supplies needed to achieve the award's objectives and the proportion of employee compensation and fringe benefits expended in relation to that specific award). Costs that otherwise would be treated as indirect costs may also be considered direct costs if they are directly related to a specific award (including, for example, extraordinary utility consumption, the cost of materials supplied from stock or services rendered by specialized facilities, cybersecurity, integrated data systems, asset management systems, performance management costs, program evaluation costs, or other institutional service operations).
(c)
Administrative and clerical staff salaries.
Administrative and clerical staff salaries should normally be treated as indirect costs. Direct charging of these costs may be appropriate only if they meet all of the following conditions:
(1) The administrative or clerical services are integral to a Federal award;
(2) Individuals involved can be specifically identified with a Federal award; and
(3) The costs are not also recovered as indirect costs.
(d)
Minor items.
A direct cost of a minor amount may be treated as an indirect cost, for reasons of practicality, provided that it is treated consistently for all Federal and non-Federal purposes.
(e)
Treatment of unallowable costs in determining indirect cost rates.
The costs of certain activities are not allowable as charges to Federal awards. Even though these costs are unallowable, they must be treated as direct costs for purposes of determining indirect cost rates and be allocated their equitable share of the recipient's or subrecipient's indirect costs if they represent activities which:
(1) Include the salaries of personnel;
(2) Occupy space; and
(3) Benefit from the recipient's or subrecipient's indirect costs.
(f)
Treatment of certain costs for nonprofit organizations.
For nonprofit organizations, the costs of activities performed by the nonprofit organization primarily as a service to members, clients, or the general public when significant and necessary to the organization's mission must be treated as direct costs whether or not allowable, and be allocated an equitable share of indirect costs. Some examples of these types of activities include:
(1) Maintenance of membership rolls, subscriptions, publications, and related functions. See § 200.454.
(2) Providing services and information to members, the government, or the public. See §§ 200.454 and 200.450.
(3) Promotion, lobbying, and other forms of public relations. See §§ 200.421 and 200.450.
(4) Conferences (except those held to conduct the general administration of the recipient or subrecipient). See also § 200.432.
(5) Maintenance, protection, and investment of special funds not used in the recipient's or subrecipient's operation. See also § 200.442.
(6) Administration of group benefits on behalf of members or clients, including life and hospital insurance, annuity or retirement plans, and financial aid. See also § 200.431.
§ 200.414
Indirect costs.
Section 200.414 outlines how major institutions of higher education and nonprofit organizations must categorize their indirect costs into "Facilities" and "Administration." It affects these organizations by requiring them to classify costs like building maintenance and general administrative expenses, ensuring consistency in how federal funding is managed and reported.
View
§ 200.414
Indirect costs.
2,615 findings
in our database
Section 200.414 of the Code of Federal Regulations outlines how indirect costs must be classified and handled by major institutions of higher education (IHEs) and large nonprofit organizations. Indirect costs are expenses that are not directly tied to a specific project but are necessary for the overall operation. These costs are divided into two main categories: "Facilities," which includes expenses like building maintenance and equipment depreciation, and "Administration," which covers general management costs such as salaries for administrative staff. For nonprofit organizations, library expenses fall under Administration, while for IHEs, they are considered Facilities.
This regulation applies to major IHEs and nonprofits that receive over $10 million in federal funding. It ensures that indirect costs are consistently categorized, which helps in budgeting and financial reporting. Federal agencies must accept negotiated indirect cost rates, which are agreed upon amounts that organizations can charge for these indirect costs. If there are any disputes about these rates, organizations can notify the Office of Management and Budget (OMB). Additionally, organizations that do not have a negotiated rate can choose a simplified "de minimis" rate of up to 15% of their direct costs, making it easier for smaller entities to manage their finances without extensive documentation. Overall, this regulation is important because it provides clarity and consistency in how indirect costs are handled, ensuring that federal funds are used effectively.
Generated by gpt-4o-mini on 2025-10-16 10:55:44
(a)
Facilities and administration classification.
For major Institutions of Higher Education (IHE) and major nonprofit organizations, indirect costs must be classified within two broad categories: “Facilities” and “Administration.” “Facilities” is defined as depreciation on buildings, equipment and capital improvements, interest on debt associated with certain buildings, equipment and capital improvements, and operations and maintenance expenses. “Administration” is defined as general administration and general expenses such as the director's office, accounting, personnel, and all other types of expenditures not listed specifically under one of the subcategories of “Facilities” (including cross allocations from other pools, where applicable). For nonprofit organizations, library expenses are included in the “Administration” category; for IHEs, they are included in the “Facilities” category. Major IHEs are defined as those required to use the Standard Format for Submission as noted in Appendix III. Major nonprofit organizations are those which receive more than $10 million in direct Federal funding.
(b)
Diversity of nonprofit organizations.
It is not always possible to specify the types of costs that may be classified as indirect costs for nonprofit organizations due to the diversity of their accounting practices. The association of a cost with a Federal award is the determining factor in distinguishing direct from indirect costs. However, typical examples of indirect cost for many nonprofit organizations may include depreciation on buildings and equipment, the costs of operating and maintaining facilities, and general administration and general expenses, such as the salaries and expenses of executive officers, personnel administration, and accounting.
(c)
Federal Agency Acceptance of Negotiated Indirect Cost Rates.
(See § 200.306.)
(1) Negotiated indirect cost rates must be accepted by all Federal agencies. A Federal agency may use a rate different from the negotiated rate for either a class of Federal awards or a single Federal award only when required by Federal statute or regulation, or when approved by the awarding Federal agency in accordance with paragraph (c)(3) of this section.
(2) The Federal agency must notify OMB of any approved deviations. The recipient or subrecipient may notify OMB of any disputes with Federal agencies regarding the application of a federally negotiated indirect cost rate.
(3) The Federal agency must implement, and make publicly available, the policies, procedures and general decision-making criteria that their programs will follow to seek and justify deviations from negotiated rates.
(4) The Federal agency must include, in the notice of funding opportunity, the policies relating to indirect cost rate reimbursement or cost share as approved under paragraph (e). As appropriate, the Federal agency should incorporate discussion of these policies into its outreach activities with applicants before posting a notice of funding opportunity. See § 200.204.
(d)
Pass-through entities.
Pass-through entities are subject to the requirements in § 200.332(b)(4) and must accept all federally negotiated indirect costs rates for subrecipients.
(e)
Appendices.
Requirements for development and submission of indirect cost rate proposals and cost allocation plans are contained in the following Appendices:
(1) Appendix III to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs);
(2) Appendix IV to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations;
(3) Appendix V to Part 200—State/Local Government-wide Central Service Cost Allocation Plans;
(4) Appendix VI to Part 200—Public Assistance Cost Allocation Plans;
(5) Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals; and
(6) Appendix IX to Part 200—Hospital Cost Principles.
(f)
De minimis rate.
Recipients and subrecipients that do not have a current Federal negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 15 percent of modified total direct costs (MTDC). The recipient or subrecipient is authorized to determine the appropriate rate up to this limit. Federal agencies and pass-through entities may not require recipients and subrecipients to use a de minimis rate lower than the negotiated indirect cost rate or the rate elected pursuant to this subsection unless required by Federal statute or regulation. The de minimis rate must not be applied to cost reimbursement contracts issued directly by the Federal Government in accordance with the FAR. Recipients and subrecipients are not required to use the de minimis rate. When applying the de minimis rate, costs must be consistently charged as either direct or indirect costs and may not be double charged or inconsistently charged as both. The de minimis rate does not require documentation to justify its use and may be used indefinitely. Once elected, the recipient or subrecipient must use the de minimis rate for all Federal awards until the recipient or subrecipient chooses to receive a negotiated rate.
(g)
One-time extension of indirect rates.
A recipient or subrecipient with a current Federal negotiated indirect cost rate may apply for a one-time extension of that agreement for up to four years. This extension will be subject to review and approval by the cognizant agency for indirect costs. If this extension is granted, the recipient or subrecipient may not request a rate review until the extension period ends. The recipient or subrecipient must re-apply to negotiate a new rate when the extension ends. After a new rate has been negotiated, the recipient or subrecipient may again apply for a one-time extension of the new rate in accordance with this paragraph.
§ 200.415
Required certifications.
Section 200.415 requires that financial reports related to federal awards include a signed certification from an authorized official, affirming the accuracy and completeness of the information provided. This applies to both the primary recipients and subrecipients of federal funds, ensuring accountability and legal compliance in financial reporting.
View
§ 200.415
Required certifications.
71 findings
in our database
Section 200.415 outlines specific certification requirements for financial reports related to federal awards. Essentially, anyone submitting these reports must sign a statement confirming that the information is true and complete. This certification must be done by someone who has the authority to legally represent the organization receiving the federal funds. If the information provided is found to be false or misleading, the signer could face serious legal consequences, including criminal charges.
This regulation applies to all organizations that receive federal funding, including those that may pass on funds to other entities (called subrecipients). Whenever these subrecipients apply for funds or submit financial reports, they also need to certify that their information is accurate. This ensures accountability at every level of funding. Additionally, if organizations want to establish a method for allocating indirect costs (overhead expenses), they must submit a certified proposal. If they fail to do so, the federal government can deny their indirect costs or set a rate themselves.
The practical implications of this regulation are significant. It helps maintain transparency and integrity in how federal funds are used, ensuring that money is spent appropriately and for its intended purposes. By requiring certifications, the regulation aims to prevent fraud and misuse of funds, which ultimately protects taxpayer dollars and promotes trust in federal funding programs.
Generated by gpt-4o-mini on 2025-10-16 10:55:52
(a) Financial reports must include a certification, signed by an official who is authorized to legally bind the recipient, which reads as follows: “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).”
(b) Subrecipients under the Federal award must certify to the pass-through entity whenever applying for funds, requesting payment, and submitting financial reports: “I certify to the best of my knowledge and belief that the information provided herein is true, complete, and accurate. I am aware that the provision of false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil, or administrative consequences including, but not limited to violations of U.S. Code Title 18, Sections 2, 1001, 1343 and Title 31, Sections 3729-3730 and 3801-3812.” Each such certification must be maintained pursuant to the requirements of § 200.334. This paragraph applies to all tiers of subrecipients.
(c) Certification of cost allocation plan or indirect cost rate proposal. Each cost allocation plan or indirect cost rate proposal must comply with the following:
(1) A proposal to establish a cost allocation plan or an indirect cost rate, whether submitted to a Federal cognizant agency for indirect costs or maintained on file by the recipient, must be certified by the recipient using the
Certificate of Cost Allocation Plan
or
Certificate of Indirect Costs
as set forth in appendices III through VII, and IX of this part. The certificate must be signed on behalf of the recipient by an individual at a level no lower than the vice president or chief financial officer of the recipient that submits the proposal.
(2) The Federal Government may either disallow all indirect costs or unilaterally establish an indirect cost rate when the recipient fails to submit a certified proposal for establishing a rate. This rate should be based upon audited historical data or other data furnished to the cognizant agency for indirect costs and for which it can be demonstrated that all unallowable costs have been excluded. The rate established must ensure that potentially unallowable costs are not reimbursed. Alternatively, the recipient may use the de minimis indirect cost rate. See § 200.414(f).
(d) Nonprofit organizations must certify that they did not meet the definition of a major nonprofit organization as defined in § 200.414(a), if applicable.
(e) The recipient must certify that the requirements and standards for lobbying (see § 200.450) have been met when submitting its indirect cost rate proposal.
§ 200.416
Cost allocation plans and indirect cost proposals.
Section 200.416 outlines how states, local governments, and Indian Tribes can allocate central service costs and claim indirect costs related to federal awards. It requires these entities to establish cost allocation plans and submit indirect cost rate proposals to ensure proper identification and assignment of costs associated with federal funding activities.
View
§ 200.416
Cost allocation plans and indirect cost proposals.
196 findings
in our database
This regulation, Section 200.416, outlines how states, local governments, and Indian Tribes can manage and claim costs associated with federal awards they receive. It specifically focuses on two main types of costs: central service costs and indirect costs. Central service costs are expenses that support multiple departments, like vehicle services or IT support. The regulation requires these entities to create a central service cost allocation plan, which helps them fairly distribute these shared costs to the specific activities funded by federal awards.
Additionally, departments must develop an indirect cost rate proposal to claim costs that aren't directly tied to a specific project but are still necessary for operations. These indirect costs can include things like administrative expenses that support various programs. The regulation specifies that each department needs its own proposal to ensure that all costs are accounted for properly. There are detailed guidelines in the appendices of this regulation that explain how to create and submit these plans and proposals.
Understanding this regulation is important because it ensures that federal funds are used efficiently and transparently. By having a clear process for allocating costs, states and local governments can better manage their budgets and ensure that they are reimbursed for the necessary expenses related to federal awards. This helps maintain accountability and ensures that public resources are used effectively.
Generated by gpt-4o-mini on 2025-10-16 10:55:59
(a) Awards to states, local governments, and Indian Tribes are often implemented at the level of department within the State, local government, or Indian Tribe. A central service cost allocation plan is established to allow such department to claim a portion of centralized service costs that are incurred in proportion to the award's activities. Examples of centralized service costs may include motor pools, computer centers, purchasing, and accounting. Since Federal awards are performed within the individual operating agencies, there needs to be a process whereby these central service costs can be identified and assigned to benefitted activities on a reasonable and consistent basis. The central service cost allocation plan establishes this process.
(b) Individual departments typically charge Federal awards for indirect costs through an indirect cost rate. A separate indirect cost rate proposal for each operating department is usually necessary to claim indirect costs under Federal awards. Indirect costs include:
(1) The indirect costs originating in each operating department of the State, local government, or Indian Tribe carrying out Federal awards; and
(2) The costs of central governmental services distributed through the central service cost allocation plan and not otherwise treated as direct costs.
(c) The requirements for developing and submitting cost allocation plans (for central service costs and public assistance programs) and indirect cost rate proposals are contained in appendices V, VI, and VII of this part.
§ 200.417
Interagency service.
Section 200.417 allows departments within the same State, local government, or Indian Tribe to offer services to each other, covering direct and a portion of indirect costs. A standard indirect cost rate of 15% of direct salaries and wages can be used, but it excludes centralized services outlined in specific cost allocation plans.
View
§ 200.417
Interagency service.
Section 200.417 allows one department within a state, local government, or Indian Tribe to provide services to another department within the same organization. When this happens, the department providing the service can charge for the costs involved. This includes direct costs, which are the expenses directly tied to the service, plus a portion of indirect costs, which are general expenses that support the service but aren't directly linked to it. Instead of calculating these indirect costs individually, departments can use a standard rate of 15% based on the direct salaries and wages of the employees providing the service.
This regulation applies to various departments within state and local governments and Indian Tribes, especially when they collaborate on projects or share resources. It’s important to note that this does not cover centralized services that are already accounted for in specific cost allocation plans. Understanding this regulation is crucial because it helps ensure that departments can fairly charge for the services they provide to each other, promoting transparency and accountability in how public funds are used.
Generated by gpt-4o-mini on 2025-10-16 10:56:06
An operating department may provide services to another operating department of the same State, local government, or Indian Tribe. In these instances, the cost of services provided may include allowable direct costs of the service plus a pro-rated share of indirect costs. A standard indirect cost rate equal to 15 percent of the direct salaries and wages for providing the service (excluding overtime, shift premiums, and fringe benefits) may be used instead of determining the actual indirect costs of the service. These services do not include centralized services that are included in central service cost allocation plans described in Appendix V of this part.
Special Considerations for Institutions of Higher Education
§ 200.418
Costs incurred by states and local governments.
States and local governments can cover costs for their institutions of higher education (IHEs), such as pension and FICA expenses, as long as these costs meet specific requirements, are backed by approved cost allocation plans, and are not funded by the Federal Government.
View
§ 200.418
Costs incurred by states and local governments.
This regulation, Section 200.418, states that state and local governments can cover certain costs for higher education institutions (IHEs) that benefit them directly. These costs can include things like employee benefits, such as pensions and social security taxes. Importantly, these costs can be counted as allowable expenses even if they aren’t officially recorded in the institutions' financial records, but they must meet specific conditions.
The regulation applies to any state or local government that is supporting higher education institutions. For the costs to be considered allowable, they must follow certain guidelines outlined in other sections of the regulations, be backed by approved plans that explain how the costs are calculated, and not be funded by the federal government in any way. This means that if a state or local government pays for these costs, they can be reimbursed or counted toward their funding contributions, as long as they meet the outlined requirements.
Understanding this regulation is important because it helps ensure that state and local governments can support their higher education institutions without worrying about losing funding or not being reimbursed for certain expenses. It clarifies what costs can be included and sets clear rules, making it easier for governments to plan their budgets and support educational programs effectively.
Generated by gpt-4o-mini on 2025-10-16 10:56:13
Costs incurred or paid by a State or local government on behalf of and in direct benefit to its IHEs are allowable. These costs include but are not limited to fringe benefit programs such as pension costs and Federal Insurance Contributions Act (FICA) costs. These costs are allowable regardless of whether they are recorded in the accounting records of the institutions, subject to the following conditions:
(a) The costs meet the requirements of § 200.402-200.411;
(b) The costs are properly supported by approved cost allocation plans in accordance with the applicable cost accounting principles of this part; and
(c) The costs are not otherwise borne directly or indirectly by the Federal Government.
§ 200.419
Cost accounting standards.
Institutions of Higher Education (IHEs) that receive $50 million or more in federal awards must follow specific cost accounting standards outlined in federal regulations. This requirement affects how these institutions manage and report their financial practices related to federal funding.
View
§ 200.419
Cost accounting standards.
1,284 findings
in our database
This regulation requires that any institution of higher education (IHE) that received $50 million or more in federal funding in its last fiscal year must follow specific cost accounting standards. These standards are rules that help ensure that the institution accurately tracks and reports its costs related to federal awards. The standards mentioned are detailed in a specific section of the federal code, which outlines how costs should be calculated and reported.
This requirement applies specifically to IHEs that meet the funding threshold and involves any contracts or agreements they have that are funded by federal money. Essentially, if an IHE is receiving significant federal support, it must adhere to these accounting standards to ensure transparency and accountability in how those funds are used. This matters because it helps prevent misuse of federal funds and ensures that taxpayer money is spent appropriately, which is crucial for maintaining public trust in educational institutions.
Generated by gpt-4o-mini on 2025-10-16 10:56:19
An IHE that receive an aggregate total $50 million or more in Federal awards and instruments subject to this subpart (as specified in § 200.101) in its most recently completed fiscal year must comply with the Cost Accounting Standards Board's cost accounting standards located at 48 CFR 9905.501, 9905.502, 9905.505, and 9905.506. CAS-covered contracts and subcontracts awarded to the IHEs are subject to the broader range of CAS requirements at 48 CFR 9900 through 9999 and 48 CFR part 30 (FAR Part 30).
§ 200.420
Considerations for selected items of cost.
Section 200.420 outlines principles for determining whether certain costs are allowable under federal awards, applicable to both direct and indirect costs. It emphasizes that not all potential costs are listed, and decisions on allowability should be based on similar costs and established principles, with specific federal award provisions taking precedence.
View
§ 200.420
Considerations for selected items of cost.
33 findings
in our database
This regulation, Section 200.420, outlines how to decide if certain costs can be covered when receiving federal funds. It sets out principles to help organizations figure out if specific expenses are allowed or not. This applies to both direct costs, which are directly tied to a project, and indirect costs, which are more general expenses that support the project but are not directly linked to it.
The section also clarifies that it doesn’t list every possible cost that might come up in federal funding situations. Just because a cost isn’t mentioned doesn’t mean it’s automatically allowed or not allowed. Instead, organizations should look at how similar costs have been treated in the past and follow the guidelines provided in other sections of the regulations. If there’s a conflict between these guidelines and a specific federal award, the terms of that award take precedence. Understanding these rules is important for organizations to ensure they use federal funds correctly and avoid potential issues with funding compliance.
Generated by gpt-4o-mini on 2025-10-16 10:56:26
(a) This section provides principles to be applied in establishing the allowability of certain items involved in determining cost, in addition to other requirements of this subpart. These principles apply whether or not a particular cost item is properly treated as a direct or indirect cost.
(b) The following sections are not intended to be a comprehensive list of potential items of cost encountered under Federal awards. Failure to mention a particular item of cost, including as an example in certain sections, is not intended to imply that it is either allowable or unallowable. When determining the allowability for an item of cost, each case should be based on the treatment provided for similar or related items of cost and based on the principles described in §§ 200.402 through 200.411. In case of a discrepancy between the provisions of a specific Federal award and the provisions below, the Federal award governs. Criteria outlined in § 200.403 must be applied in determining allowability.
§ 200.421
Advertising and public relations.
Section 200.421 outlines the allowable costs for advertising and public relations related to Federal awards. It specifies that advertising costs can only be used for recruitment, procurement, disposal of materials, and program outreach, while public relations costs are limited to those required by the award or necessary for communicating accomplishments and maintaining public understanding.
View
§ 200.421
Advertising and public relations.
46 findings
in our database
This regulation outlines what costs related to advertising and public relations can be covered when using federal funds. It specifies that advertising costs can only be used for certain purposes, such as recruiting staff needed for a federal project, buying goods and services for that project, disposing of surplus materials from the project, or outreach activities like recruiting participants. Essentially, if you’re spending money on advertising, it must directly support the goals of the federal award you’re working on.
The regulation applies to organizations or individuals receiving federal awards, which are funds provided by the government for specific projects or services. It clarifies that public relations activities, like maintaining a good image or communicating with the public, are also limited to specific allowable costs. These include costs required by the federal award, communicating accomplishments related to the award, or general liaison with the media about public concerns. However, many advertising and public relations expenses, such as promotional items or costs for unrelated events, are not allowed. This helps ensure that federal funds are used efficiently and only for their intended purposes, promoting accountability in how taxpayer money is spent.
Generated by gpt-4o-mini on 2025-10-16 10:56:33
(a) The term advertising costs the costs of advertising media and corollary administrative costs. Advertising media includes, but is not limited to, magazines, newspapers, radio and television, direct mail, exhibits, and electronic or computer transmittals. (b) The only allowable advertising costs are those which are solely for:
(1) The recruitment of personnel required by the recipient or subrecipient for the performance of a Federal award (See also § 200.463);
(2) The procurement of goods and services for the performance of a Federal award;
(3) The disposal of scrap or surplus materials acquired in the performance of a Federal award except when the recipient or subrecipient is reimbursed for disposal costs at a predetermined amount; or
(4) Program outreach (for example, recruiting project participants) and other specific purposes necessary to meet the Federal award requirements.
(c) The term “public relations” includes community relations and those activities dedicated to maintaining the recipient's or subrecipient's image or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public. (d) The only allowable public relations costs are:
(1) Costs specifically required by the Federal award;
(2) Costs of communicating with the public and press about specific activities or accomplishments which result from the performance of the Federal award (these costs are considered necessary as part of the outreach effort for the Federal award); or
(3) Costs of conducting general liaison with news media and government public relations officers, to the extent that such activities are limited to communication and liaison necessary to keep the public informed on matters of public concern, such as notices of funding opportunities or financial matters.
(e) Unallowable advertising and public relations costs include the following:
(1) All advertising and public relations costs other than as specified in paragraphs (b) and (d) of this section;
(2) Costs of meetings, conventions, conferences, or other events related to other activities of the entity (see also § 200.432), including:
(i) Costs of displays, demonstrations, and exhibits;
(ii) Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows and other special events; and
(iii) Salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings;
(3) Costs of promotional items and memorabilia;
(4) Costs of advertising and public relations designed solely to promote the recipient or subrecipient.
§ 200.422
Advisory councils.
Section 200.422 allows costs for advisory councils or committees that provide advice to organizations, as long as these costs are authorized by law or a federal agency. This affects entities receiving federal awards, including states, local governments, and Indian Tribes.
View
§ 200.422
Advisory councils.
Section 200.422 talks about advisory councils or committees, which are groups that give advice to organizations like corporations or foundations. This regulation allows these groups to have their expenses covered if certain conditions are met. Specifically, the costs can be paid for if they are approved by law, by the federal agency involved, or if they are part of indirect costs related to federal funding.
This regulation applies to various entities, including states, local governments, and Indian Tribes, whenever they are using federal awards or funding. It means that if these groups set up advisory councils to help with their work, they can get reimbursed for the costs associated with those councils, as long as the expenses are properly authorized. This is important because it encourages organizations to seek expert advice, which can improve decision-making and overall effectiveness, without worrying about the financial burden of those advisory services.
Generated by gpt-4o-mini on 2025-10-16 10:56:39
An advisory council or committee is a body that provides advice to the management of such entities as corporations, organizations, or foundations. Costs incurred by both internal and external advisory councils or committees are allowable if authorized by statute, the Federal agency, or as an indirect cost where allocable to Federal awards. See § 200.444, which applies to States, local governments, and Indian Tribes.
§ 200.423
Alcoholic beverages.
Section 200.423 states that costs for alcoholic beverages cannot be reimbursed or included in federal funding. This affects organizations and entities receiving federal funds, as they cannot charge these expenses to their grants or contracts.
View
§ 200.423
Alcoholic beverages.
14 findings
in our database
Section 200.423 states that the costs associated with alcoholic beverages cannot be covered or reimbursed when using federal funds. This means that if an organization receives federal money for a project or program, they cannot use that money to buy alcohol.
This regulation applies to any organization or entity that is receiving federal funding, such as non-profits, schools, or government agencies. It is relevant in situations where these organizations are planning events, meetings, or activities that might involve food and drinks.
The practical implication of this rule is that organizations need to budget carefully and find alternative ways to provide refreshments without including alcohol. This matters because it ensures that taxpayer money is spent responsibly and that federal funds are used for their intended purposes, promoting accountability and good financial practices.
Generated by gpt-4o-mini on 2025-10-16 10:56:43
The cost of alcoholic beverages is unallowable.
§ 200.424
Alumni activities.
Costs related to alumni activities at institutions of higher education (IHEs) cannot be funded or reimbursed. This affects IHEs that may seek financial support for such activities.
View
§ 200.424
Alumni activities.
This regulation states that institutions of higher education (IHEs), like colleges and universities, cannot use federal funds to pay for expenses related to alumni activities. Alumni activities might include events like reunions, networking gatherings, or fundraising efforts aimed at former students. Essentially, if an IHE is receiving federal money, they cannot spend that money on anything that supports these alumni-focused events.
This rule applies to any college or university that receives federal funding. It means that when these institutions are budgeting their expenses, they need to ensure that costs associated with alumni activities are covered by other sources of funding, not federal grants or loans. This is important because it helps ensure that federal money is used for educational purposes, like teaching and research, rather than for activities that benefit alumni.
The practical implication of this regulation is that colleges and universities must carefully manage their budgets to comply with these rules. They need to find alternative funding sources for alumni events, which can impact how they plan and execute these activities. This matters because it helps maintain the integrity of federal funding, ensuring it is directed toward educational goals rather than alumni engagement.
Generated by gpt-4o-mini on 2025-10-16 10:56:52
Costs incurred by IHEs for, or in support of, alumni activities are unallowable.
§ 200.425
Audit services.
Section 200.425 outlines the allowable and unallowable costs for audit services related to federal awards. It affects entities receiving federal funds, specifying that audit costs are only allowable if they comply with the Single Audit Act, and details conditions under which certain financial statement audits and monitoring procedures can be charged to federal awards.
View
§ 200.425
Audit services.
88 findings
in our database
This regulation outlines the rules regarding the costs associated with audit services for organizations that receive federal funding. It states that organizations can cover a reasonable portion of the costs for audits required by the Single Audit Act, which ensures that federal funds are used properly. However, certain costs are not allowed. For example, if an organization hasn’t conducted the required audits or if those audits didn’t follow the proper guidelines, then the costs for those audits cannot be reimbursed. Additionally, if an organization spends less than $1,000,000 in federal funds during the year, it is exempt from needing an audit, and any costs related to auditing it are also not allowed.
The regulation applies to organizations that receive federal awards, including both primary recipients and subrecipients. It also mentions that if a recipient or subrecipient does not currently have a federal award, they can still include the costs of a financial statement audit in their indirect cost calculations. Furthermore, pass-through entities—those that distribute federal funds to other organizations—can charge for certain monitoring procedures to ensure compliance with federal requirements, even for those exempt from audits. These procedures must be conducted according to specific standards and focus on compliance areas like allowable costs and eligibility.
Understanding this regulation is important because it helps organizations manage their audit costs effectively and ensures they comply with federal requirements. By knowing what costs are allowable, organizations can better plan their budgets and avoid potential financial penalties. This regulation ultimately aims to promote transparency and accountability in the use of federal funds.
Generated by gpt-4o-mini on 2025-10-16 10:57:03
(a) A reasonably proportionate share of the costs of audits required by and performed in accordance with the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507), and the requirements of this part are allowable. However, the following audit costs are unallowable:
(1) Any costs when audits required by the Single Audit Act and subpart F of this part have not been conducted, or have been conducted but not in accordance with the requirements; and
(2) Except as provided for in paragraph (c) of this section, any costs of auditing a non-Federal entity that is exempted from having an audit conducted under the Single Audit Act and subpart F of this part because its expenditures under Federal awards are less than $1,000,000 during its fiscal year.”
(b) The costs of a financial statement audit of a recipient or subrecipient that does not currently have a Federal award may be included in the indirect cost pool for a cost allocation plan or indirect cost proposal.
(c) Pass-through entities may charge Federal awards for the cost of agreed-upon procedures engagements to monitor subrecipients (in accordance with §§ 200.331-333) exempt from having an audit conducted under the Single Audit Act and the
requirements of this part.
This cost is allowable only if the agreed-upon procedures engagements are:
(1) Conducted in accordance with GAGAS or applicable international attestation standards, as appropriate;
(2) Paid for and arranged by the pass-through entity; and
(3) Limited in scope to one or more of the following types of compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; and reporting.
§ 200.426
Bad debts.
Section 200.426 states that bad debts, which are debts deemed uncollectable, and any costs associated with collecting or legally pursuing these debts are not allowed for reimbursement. This affects organizations seeking federal funding, as they cannot include these losses in their financial claims.
View
§ 200.426
Bad debts.
This regulation states that if a business has debts that it cannot collect—meaning they are considered "bad debts"—those debts cannot be included in the costs that the business can claim for reimbursement. This includes any losses from these uncollectable debts, whether they are actual losses (money that was expected but not received) or estimated losses (money the business thinks it won’t be able to collect). Additionally, any costs associated with trying to collect these debts, such as legal fees, are also not allowed to be claimed.
This rule applies to organizations that receive federal funding or contracts, particularly in situations where they are trying to recover costs. It’s important for these organizations to understand that they cannot count on bad debts or the expenses related to collecting them as part of their allowable costs. This regulation matters because it encourages businesses to manage their finances responsibly and ensures that taxpayer money is not used to cover losses from debts that cannot be collected.
Generated by gpt-4o-mini on 2025-10-16 10:57:08
Bad debts (debts determined to be uncollectable), including losses (whether actual or estimated) arising from uncollectable accounts and other claims, are unallowable. Related collection costs, and related legal costs, arising from such debts are also unallowable. See § 200.428.
§ 200.427
Bonding costs.
Section 200.427 outlines that bonding costs, which provide financial assurance against losses, are allowable under federal awards. This applies to both federal requirements and those imposed by recipients or subrecipients, as long as the costs are reasonable and follow sound business practices.
View
§ 200.427
Bonding costs.
This regulation, Section 200.427, deals with bonding costs, which are expenses related to securing financial protection against potential losses. When a federal agency gives funds to an organization (called a recipient) or to another group that the recipient works with (called a subrecipient), they may require bonds. These bonds act like insurance to ensure that the recipient or subrecipient will fulfill their obligations. This can include various types of bonds, such as those needed for bidding on projects, ensuring work is completed as promised, or protecting against employee misconduct.
The regulation states that costs related to these bonding requirements are generally acceptable and can be covered by federal funding. This means that if a recipient or subrecipient needs to pay for bonds as part of their agreement with the federal agency, those costs can be reimbursed. Additionally, if the recipient or subrecipient needs bonds for their regular business operations, those costs can also be considered acceptable as long as they are reasonable and follow good business practices. This is important because it allows organizations to manage risks without facing financial burdens that could hinder their operations.
Generated by gpt-4o-mini on 2025-10-16 10:57:18
(a) Bonding costs arise when the Federal agency requires assurance against financial loss to itself or others because of an act or default of the recipient or subrecipient. They also arise when the recipient or subrecipient requires similar assurance, including bonds as bid, performance, payment, advance payment, infringement, and fidelity bonds for employees and officials.
(b) Costs of bonding required under the Federal award's terms and conditions are allowable.
(c) Costs of bonding required by the recipient or subrecipient in the general conduct of its operations are allowable as an indirect cost to the extent that such bonding is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances.
§ 200.428
Collections of improper payments.
Section 200.428 allows recipients or subrecipients to count costs for recovering improper payments as allowable expenses. They can use the collected amounts following specific cash management standards.
View
§ 200.428
Collections of improper payments.
This regulation, Section 200.428, states that if an organization receives money that it shouldn't have—like an overpayment—it can spend money to get that incorrect payment back. These costs related to recovering the improper payments can be counted as either direct costs (expenses directly tied to the recovery efforts) or indirect costs (general expenses that support the recovery process).
The rule applies to recipients and subrecipients of federal funds, which means any organization or entity that receives money from the government, either directly or through another organization. This situation typically arises when there are mistakes in payments, and the organization needs to take steps to correct those errors.
The practical implication of this regulation is that organizations can recoup some of the costs associated with fixing payment mistakes without losing out on funding. This is important because it encourages organizations to actively pursue the return of improper payments, ensuring that federal funds are used correctly and efficiently. It helps maintain financial integrity and accountability in the use of government resources.
Generated by gpt-4o-mini on 2025-10-16 10:57:27
The costs incurred by a recipient or subrecipient to recover improper payments, including improper overpayments, are allowable as either direct or indirect costs, as appropriate. The recipient or subrecipient may use the amounts collected in accordance with cash management standards described in § 200.305.
§ 200.429
Commencement and convocation costs.
Section 200.429 states that institutions of higher education cannot use federal funds for commencement and convocation costs, unless these expenses are specifically allowed as part of student administration and services. This affects IHEs that receive federal funding.
View
§ 200.429
Commencement and convocation costs.
This regulation states that institutions of higher education (IHEs), like colleges and universities, cannot use federal funds to cover expenses related to graduation ceremonies (commencements) and formal gatherings (convocations). However, there is an exception: if these events are part of specific student administration services outlined in a separate section of the regulations, then those related costs might be allowed.
This rule applies to any college or university that receives federal funding. It means that when planning graduation events, these institutions need to find other sources of money to pay for things like decorations, venues, or speakers, unless those costs fit into the specific guidelines mentioned in the appendix. Understanding this regulation is important because it helps ensure that federal funds are used for educational purposes rather than event planning, promoting accountability in how taxpayer money is spent.
Generated by gpt-4o-mini on 2025-10-16 10:57:34
For IHEs, costs incurred for commencements and convocations are unallowable, except as activity costs provided for in Appendix III, (B)(9) Student Administration and Services.
§ 200.430
Compensation—personal services.
Section 200.430 outlines the rules for compensation related to personal services under Federal awards, stating that payments must be reasonable, follow established policies, and comply with applicable laws. It affects organizations receiving Federal funding, ensuring that employee compensation aligns with similar roles in the market and adheres to the recipient's policies.
View
§ 200.430
Compensation—personal services.
14,288 findings
in our database
Section 200.430 of the Code of Federal Regulations outlines the rules for compensating employees who provide personal services under federal awards. It requires that any pay, including salaries and benefits, must be reasonable and in line with the organization’s established policies, which should apply equally to both federal and non-federal work. The regulation also specifies that compensation must be documented accurately, reflecting the actual work performed. If an organization has specific laws or rules about hiring and compensation, these must be followed, and any changes in compensation policies that lead to significant increases will be scrutinized, especially if they coincide with an increase in federal funding.
This regulation applies to organizations receiving federal funds, including nonprofits and educational institutions, when they compensate their employees for work related to federal awards. It covers various situations, such as how to handle compensation for faculty during academic and non-academic periods, and it sets limits on how much can be charged to federal awards. For instance, faculty members can only charge their base salary for work on federal projects unless additional compensation is explicitly allowed. The regulation also emphasizes the importance of maintaining accurate records of employee work hours and activities to ensure compliance and proper allocation of costs. This matters because it helps ensure that federal funds are used appropriately and that employees are compensated fairly for their work, ultimately promoting accountability and transparency in the use of taxpayer money.
Generated by gpt-4o-mini on 2025-10-16 10:57:43
(a)
General.
Compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award, including but not necessarily limited to wages and salaries. Compensation for personal services may also include fringe benefits addressed in § 200.431. Costs of compensation are allowable to the extent that they satisfy the specific requirements of this part and that the total compensation for individual employees:
(1) Is reasonable for the services rendered and conforms to the established written policy of the recipient or subrecipient consistently applied to both Federal and non-Federal activities;
(2) Follows an appointment made in accordance with the recipient's or subrecipient's laws, rules, or written policies and meets the requirements of Federal statute, where applicable; and
(3) Is determined and supported as provided in paragraph (g) of this section, when applicable.
(b)
Reasonableness.
Compensation for employees engaged in work on Federal awards will be reasonable to the extent that it is consistent with that paid for similar work in other activities of the recipient or subrecipient. In cases where the kinds of employees required for Federal awards are not found in the other activities of the recipient or subrecipient, compensation will be considered reasonable to the extent that it is comparable to that paid for similar work in the labor market in which the recipient or subrecipient competes for the kind of employees involved.
(c)
Professional activities outside the recipient or subrecipient.
Unless the Federal agency expressly authorizes an arrangement, a recipient or subrecipient must follow its written policies and procedures concerning the permissible extent of professional services that can be provided outside the recipient or subrecipient for non-organizational compensation. Where the recipient or subrecipient does not have written policies or procedures, or they do not adequately define the permissible extent of consulting or other non-organizational activities undertaken for extra outside pay, the Federal Government may require the recipient or subrecipient to allocate the effort of professional staff working on Federal awards between:
(1) Recipient or subrecipient activities, and
(2) Non-organizational professional activities. Appropriate arrangements governing compensation must be negotiated on a case-by-case basis if the Federal agency considers the extent of non-organizational professional effort excessive or inconsistent with the conflicts-of-interest terms and conditions of the Federal award.
(d)
Unallowable costs.
(1) Costs unallowable under other sections of these principles must not be allowable under this section solely because they constitute personnel compensation.
(2) The allowable compensation for certain employees is subject to a ceiling in accordance with Federal statute. See 10 U.S.C. 3744(a)(16), 41 U.S.C. 1127, and 41 U.S.C. 4304(a)(16) for the ceiling amount, covered compensation subject to the ceiling, covered employees, and other relevant provisions for cost-reimbursement contracts. For other types of Federal awards, other statutory ceilings may apply.
(e)
Special considerations.
Special considerations in determining the allowability of compensation will be given to any change in a recipient's or subrecipient's compensation policy resulting in a substantial increase in its employees' level of compensation (particularly when the change was concurrent with an increase in the ratio of Federal awards to other activities) or any change in the treatment of allowability of specific types of compensation due to changes in Federal policy.
(f)
Incentive compensation.
Incentive compensation to employees based on cost reduction, efficient performance, suggestion awards, or safety awards is allowable to the extent that the overall compensation is determined to be reasonable and such costs are paid or accrued according to an agreement entered into in good faith between the recipient or subrecipient and the employees before the services were rendered, or according to an established plan followed by the recipient or subrecipient so consistently as to imply, in effect, an agreement to make such payment.
(g)
Standards for Documentation of Personnel Expenses.
(1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:
(i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated;
(ii) Be incorporated into the official records of the recipient or subrecipient;
(iii) Reasonably reflect the total activity for which the employee is compensated by the recipient or subrecipient, not exceeding 100 percent of compensated activities (for IHEs, this is the IBS);
(iv) Encompass federally-assisted and all other activities compensated by the recipient or subrecipient on an integrated basis but may include the use of subsidiary records as defined in the recipient's or subrecipient's written policy;
(v) Comply with the established accounting policies and procedures of the recipient or subrecipient (See paragraph (i)(1)(ii) of this section for treatment of incidental work for IHEs.); and
(vi) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.
(vii) Budget estimates (meaning, estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:
(A) The system for establishing the estimates produces reasonable approximations of the activity performed;
(B) Significant changes in the related work activity (as defined by the recipient's or subrecipient's written policies) are promptly identified and entered into the records. Short-term (such as one or two months) fluctuations between workload categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the longer term; and
(C) The recipient's or subrecipient's system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
(viii) Because practices vary as to the activity constituting a full workload (for example, the Institutional Base Salary (IBS) for IHEs), records may reflect categories of activities expressed as a percentage distribution of total activities.
(ix) It is recognized that teaching, research, service, and administration are often inextricably intermingled in an academic setting. Therefore, a precise assessment of factors contributing to costs is not required when IHEs record salaries and wages charged to Federal awards.
(2) For records that meet the standards required in paragraph (g)(1) of this section, the recipient or subrecipient is not required to provide additional support or documentation for the work performed other than that referenced in paragraph (g)(3) of this section.
(3) In accordance with Department of Labor regulations implementing the Fair Labor Standards Act (FLSA) (29 CFR part 516), charges for the salaries and wages of nonexempt employees, in addition to the supporting documentation described in this section, must also be supported by records indicating the total number of hours worked each day.
(4) Salaries and wages of employees used in meeting cost sharing requirements on Federal awards must be supported in the same manner as salaries and wages claimed for reimbursement from Federal awards.
(5) States, local governments, and Indian Tribes may use substitute processes or systems for allocating salaries and wages to Federal awards either in place of or in addition to the records described in paragraph (g)(1) of this section if approved by the cognizant agency for indirect cost. Such systems may include, but are not limited to, random moment sampling, “rolling” time studies, case counts, or other quantifiable measures of work performed.
(i) Substitute systems that use sampling methods (primarily for Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP), Medicaid, and other public assistance programs) must meet acceptable statistical sampling standards, including:
(A) The sampling universe must include all of the employees whose salaries and wages are to be allocated based on sample results except as provided in paragraph (g)(5)(iii);
(B) The sample must cover the entire period involved; and
(C) The results must be statistically valid and applied to the period being sampled.
(ii) Allocating charges for the sampled employees' supervisors and clerical and support staff, based on the results of the sampled employees, will be acceptable.
(iii) Less than full compliance with the statistical sampling standards noted in paragraph (5)(i) may be accepted by the cognizant agency for indirect costs if it concludes that the amounts allocated to Federal awards will be minimal or if it concludes that the system proposed by the recipient or subrecipient will result in lower costs to Federal awards than a system which complies with the standards.
(6) Cognizant agencies for indirect costs are encouraged to approve alternative proposals based on outcomes and milestones for program performance when these are clearly documented. These plans are acceptable as an alternative to requirements in paragraph (g)(1) of this section when approved by the cognizant agency for indirect costs.
(7) For Federal awards of similar purpose activity or instances of approved blended funding, a recipient or subrecipient may submit performance plans that incorporate funds from multiple Federal awards and account for their combined use based on performance-oriented metrics, provided the plans are approved in advance by all involved Federal agencies. In these instances, the recipient or subrecipient must submit a request for waiver of the requirements based on documentation that describes the method of charging costs, relates the charging of costs to the specific activity that is applicable to all fund sources, and is based on quantifiable measures of the activity in relation to time charged.
(8) For a recipient or subrecipient whose records do not meet the standards described in this section, the Federal Government may require personnel activity reports, including prescribed certifications, or equivalent documentation supporting the records as required in this section.
(h)
Nonprofit organizations.
This paragraph (h) provides guidance specific to only nonprofit organizations. For compensation to members of nonprofit organizations, trustees, directors, associates, officers, or the immediate families thereof, a determination must be made that the compensation is reasonable for the actual personal services rendered rather than a distribution of earnings above actual costs. Compensation may include director's and executive committee member's fees, incentive awards, off-site or incentive pay, location allowances, hardship pay, and cost-of-living differentials.
(i)
Institutions of Higher Education (IHEs).
This paragraph provides guidance specific to only IHEs.
(1)
Determining allowable personnel costs.
Certain conditions require special consideration and possible limitations in determining allowable personnel compensation costs under Federal awards. Among such conditions are the following:
(i) Allowable activities. Charges to Federal awards may include reasonable amounts for activities contributing and directly related to work under an agreement, such as delivering special lectures about specific aspects of the ongoing activity, writing reports and articles, developing and maintaining protocols (human, animals, etcetera), managing substances/chemicals, managing and securing project-specific data, coordinating research subjects, participating in appropriate seminars, consulting with colleagues and graduate students, and attending meetings and conferences.
(ii) Incidental activities. Incidental activities for which supplemental compensation is allowable under the written institutional policy (at a rate not to exceed institutional base salary) do not need to be included in the records described in paragraph (g). To charge payments of incidental activities directly, such activities must either be expressly authorized in the Federal award budget or receive prior written approval by the Federal agency.
(2)
Salary basis.
Charges for work performed on Federal awards by faculty members during the academic year are allowable at the institutional base salary (IBS) rate. Except as noted in paragraph (i)(1)(ii), in no event will charges to Federal awards, irrespective of the basis of computation, exceed the proportionate share of the IBS for that period. This principle applies to all members of the faculty at an institution. IBS is the annual compensation paid by an IHE for an individual's appointment, whether that individual's time is spent on research, instruction, administration, or other activities. IBS excludes any income an individual earns outside of duties performed for the IHE. Unless there is prior approval by the Federal agency, charges of a faculty member's salary to a Federal award may not exceed the proportionate share of the IBS for the period during which the faculty member worked on the Federal award.
(3)
Intra-Institution of Higher Education (IHE) consulting.
Intra-IHE consulting by faculty should be undertaken as an IHE responsibility requiring no compensation in addition to IBS. However, in unusual cases where consultation is across departmental lines or involves a separate or remote operation, and the work performed by the faculty members is in addition to their regular responsibilities, any charges for such work representing additional compensation above IBS are allowable provided that such consulting arrangements are expressly authorized in the Federal award or approved in writing by the Federal agency.
(4)
Extra service pay.
Extra service pay typically represents overload compensation, subject to institutional compensation policies for services above and beyond IBS. Where extra service pay results from Intra-IHE consulting, it is subject to the same requirements of paragraph (b) of this section. It is allowable if all of the following conditions are met:
(i) The IHE establishes consistent written policies which apply uniformly to all faculty members, not just those working on Federal awards.
(ii) The IHE establishes a consistent written definition of work covered by IBS, which is specific enough to determine conclusively when work beyond that level has occurred. This definition may be described in appointment letters or other documentation.
(iii) The supplementation amount paid is commensurate with the IBS pay rate and additional work performed. See paragraph (i)(2) of this section.
(iv) The salaries, as supplemented, fall within the salary structure and pay ranges established by and documented in writing or otherwise applicable to the IHE.
(v) The total salaries charged to Federal awards, including extra service payments, are subject to the standards of documentation as described in paragraph (g).
(5)
Periods outside the academic year.
(i) Except as specified for teaching activity in paragraph (i)(5)(ii) of this section, charges for work performed by faculty members on Federal awards during periods not included in the base salary period must be at a rate not more than the IBS.
(ii) Charges for teaching activities performed by faculty members on Federal awards during periods not included in IBS period must be based on the written policy of the IHE governing compensation to faculty members for teaching assignments during such periods.
(6)
Part-time faculty.
Charges for work performed on Federal awards by faculty members having only part-time appointments must be determined at a rate not more than that regularly paid for part-time assignments.
(7)
Sabbatical leave costs.
Rules for sabbatical leave are as follows:
(i) Costs of leaves of absence by employees for performance of graduate work or sabbatical study, travel, or research are allowable, provided the IHE has a uniform written policy on sabbatical leave for persons engaged in instruction and persons engaged in research. These costs must be allocated equitably among all related activities of the IHE.
(ii) Where sabbatical leave is included in fringe benefits for which a cost is determined for assessment as a direct charge, the aggregate amount of such assessments applicable to all work of the institution during the base period must be reasonable in relation to the IHE's actual experience under its sabbatical leave policy.
(8)
Salary rates for non-faculty members.
Non-faculty full-time professional personnel may also earn “extra service pay” in accordance with the IHE's written policy and paragraph (i)(1)(i).
§ 200.431
Compensation—fringe benefits.
Section 200.431 outlines that fringe benefits are additional compensations, like leave and insurance, provided by employers to employees. These costs are allowable if they are reasonable, required by law or agreements, and follow established policies, impacting organizations receiving federal funds and their employees.
View
§ 200.431
Compensation—fringe benefits.
1,001 findings
in our database
This regulation outlines what employers can include as fringe benefits when compensating their employees. Fringe benefits are additional perks beyond regular pay, such as health insurance, retirement plans, and paid leave. The costs for these benefits are generally allowed if they are reasonable and required by law or company policy. For example, if an employer has a written policy that provides paid sick leave, the costs associated with that leave can be included in the overall compensation costs.
The regulation applies to organizations receiving federal funds, including non-profits and educational institutions. It specifies that any fringe benefits provided must be documented in written policies and allocated fairly across all employees and activities. For instance, if an organization offers health insurance, it must ensure that the costs are distributed fairly among all employees who benefit from it. This regulation matters because it helps ensure that federal funds are used appropriately and that employees receive fair compensation, which can impact employee satisfaction and retention.
Generated by gpt-4o-mini on 2025-10-16 10:57:49
(a)
General.
Fringe benefits are allowances and services employers provide to their employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefits. Except as provided elsewhere in these principles, the costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, an organization-employee agreement, or an established policy of the recipient or subrecipient.
(b)
Leave.
The cost of fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as for annual leave, family-related leave, sick leave, holidays, court leave, military leave, administrative leave, and other similar benefits, are allowable if all of the following criteria are met:
(1) They are provided under established written leave policies;
(2) The costs are equitably allocated to all related activities, including Federal awards; and,
(3) The accounting basis (cash or accrual) selected for costing each type of leave is consistently followed by the recipient or subrecipient or a specified grouping of employees.
(i) When a recipient or subrecipient uses the cash basis of accounting, the cost of leave is recognized in the period that the leave is taken and paid for. Payments for unused leave when an employee retires or terminates employment are allowable in the year of payment and should be allocated as a general administrative expense to all activities or included in the fringe benefit rate.
(ii) The accrual basis may be only used for those types of leave for which a liability as defined by GAAP exists when the leave is earned. When a recipient or subrecipient uses the accrual basis of accounting, allowable leave costs are the lesser of the amount accrued or funded.
(c)
Fringe benefits.
The cost of fringe benefits in the form of employer contributions or expenses for social security; employee life, health, unemployment, and worker's compensation insurance (except as indicated in § 200.447); pension plan costs; and other similar benefits are allowable, provided such benefits are permitted under established written policies. The recipient or subrecipient must allocate fringe benefits to Federal awards and all other activities in a manner consistent with the pattern of benefits attributable to the individuals or group(s) of employees whose salaries and wages are chargeable to such Federal awards and other activities, and charged as direct or indirect costs following the recipient's or subrecipient's accounting practices.
(d)
Cost objectives.
The recipient or subrecipient may assign fringe benefits to cost objectives by identifying specific benefits to specific individual employees or by allocating them based on entity-wide salaries and wages of the employees receiving the benefits. When the allocation method is used, separate allocations must be made to selective groupings of employees unless the recipient or subrecipient demonstrates that costs in relationship to salaries and wages do not differ significantly for different groups of employees.
(e)
Insurance.
See also § 200.447(d)(1) and (2).
(1) Provisions for a reserve under a self-insurance program for unemployment compensation or workers' compensation are allowable to the extent that the provisions represent reasonable estimates of the liabilities for such compensation and the types of coverage, the extent of coverage, and rates and premiums would have been allowable had insurance been purchased to cover the risks. However, provisions for self-insured liabilities which do not become payable for more than one year after the provision is made must not exceed the present value of the liability.
(2) Insurance costs on the lives of trustees, officers, or other employees holding positions of similar responsibility are allowable only to the extent that the insurance represents additional compensation. The cost of such insurance is unallowable when the recipient or subrecipient is named as beneficiary.
(3) Actual claims paid to or on behalf of employees or former employees for workers' compensation, unemployment compensation, severance pay, and similar employee benefits (
for example,
post-retirement health benefits) are allowable in the year of payment provided that the recipient or subrecipient follows a consistent costing policy.
(f)
Automobiles.
That portion of automobile costs furnished by the recipient or subrecipient that relates to personal use by employees (including transportation to and from work) is unallowable as a fringe benefit or indirect costs regardless of whether the cost is reported as taxable income to the employees.
(g)
Pension plan costs.
Pension plan costs incurred in accordance with the established written policies of the recipient or subrecipient are allowable, provided that:
(1) Such policies meet the test of reasonableness.
(2) The methods of cost allocation are not discriminatory.
(3) The cost assigned to each fiscal year should be determined in accordance with GAAP, except for State and local governments.
(4) The costs assigned to a given fiscal year are funded for all plan participants within six months after the end of that year. However, increases to normal and past service pension costs caused by a delay in funding the actuarial liability beyond 30 calendar days after each quarter of the year to which such costs are assignable are unallowable. The recipient or subrecipient may follow the “Cost Accounting Standard for Composition and Measurement of Pension Costs” (48 CFR 9904.412).
(5) Premiums for pension plan termination insurance that are paid according to the Employee Retirement Income Security Act (ERISA) of 1974 (29 U.S.C. 1301-1461) are allowable. Late payment charges on such premiums are unallowable. Excise taxes on accumulated funding deficiencies and other penalties imposed under ERISA are unallowable.
(6) Pension plan costs may be computed using a pay-as-you-go method or an actuarial cost method recognized by GAAP and following the recipient's or subrecipient's established written policies.
(i) For pension plans financed on a pay-as-you-go method, allowable costs will be limited to those representing actual payments to retirees or their beneficiaries.
(ii) Pension costs calculated using an actuarial cost method recognized by GAAP are allowable for a given fiscal year if they are funded for that year within six months after the end of that year. Costs funded after six months (or a later period agreed to by the cognizant agency for indirect costs) are allowable in the year funded. The cognizant agency for indirect costs may agree to an extension if an appropriate adjustment is made to compensate for the timing of the charges to the Federal Government and related Federal reimbursement and the recipient's or subrecipient's contribution to the pension fund. Adjustments may be made by cash refund or other equitable procedures to compensate the Federal Government for the time value of Federal reimbursements in excess of contributions to the pension fund.
(iii) Amounts funded by the recipient or subrecipient in excess of the actuarially determined amount for a fiscal year may be used as the recipient's or subrecipient's contribution in future periods.
(iv) When a recipient or subrecipient establishes or converts to an acceptable actuarial cost method, as defined by GAAP, and funds pension costs in accordance with this method, the unfunded liability at the time of conversion is allowable if amortized over a period of years in accordance with GAAP.
(v) Payments for unfunded pension costs must be charged in accordance with the allocation principles of this subpart. Specifically, the recipient or subrecipient may not charge unfunded pension costs directly to a Federal award if those unfunded pension costs are not allocable to that award.
(vi) The recipient or subrecipient must provide the Federal Government an equitable share of any previously allowed pension costs (including subsequent earnings) that revert or inure to the recipient or subrecipient through a refund, withdrawal, or other credit.
(h)
Post-retirement health.
A post-retirement health plan (PRHP) refers to the costs of health insurance or health services not included in a pension plan covered by paragraph (g) for retirees and their spouses, dependents, and survivors. PRHP costs may be computed using a pay-as-you-go method or an actuarial cost method recognized by GAAP and following the recipient's or subrecipient's established written policies.
(1) For PRHP financed on a pay-as-you-go method, allowable costs will be limited to those representing actual payments to retirees or their beneficiaries.
(2) PRHP costs calculated using an actuarial cost method recognized by GAAP are allowable for a given fiscal year if they are funded for that year within six months after the end of that year. Costs funded after six months (or a later period agreed to by the cognizant agency for indirect costs) are allowable in the year funded. The cognizant agency for indirect costs may agree to an extension if an appropriate adjustment is made to compensate for the timing of the charges to the Federal Government and related Federal reimbursement and the recipient's or subrecipient's contributions to the PRHP fund. Adjustments may be made by cash refund, reduction in the current year's PRHP costs, or other equitable procedures to compensate the Federal Government for the time value of Federal reimbursements in excess of contributions to the PRHP fund.
(3) Amounts funded by the recipient or subrecipient in excess of the actuarially determined amount for a fiscal year may be used as the recipient's or subrecipient's contribution in future periods.
(4) If a recipient or subrecipient establishes or converts to an actuarial cost method and funds PRHP costs in accordance with this method, the initial unfunded liability attributable to prior years is allowable if amortized over a period of years in accordance with GAAP, or, if no such GAAP period exists, over a period negotiated with the cognizant agency for indirect costs.
(5) Payments for unfunded PRHP costs must be charged in accordance with the allocation principles of this subpart. Specifically, the recipient or subrecipient may not charge unfunded PRHP costs directly to a Federal award if those unfunded PRHP costs are not allocable to that award.
(6) To be allowable in the current year, the PRHP costs must be paid either to:
(i) An insurer or other benefit provider as current year costs or premiums; or
(ii) An insurer or trustee that will maintain a trust fund or reserve for the sole purpose of providing post-retirement benefits to retirees and other beneficiaries.
(7) The recipient or subrecipient must provide the Federal Government an equitable share of any previously allowed post-retirement benefit costs (including subsequent earnings) that revert or inure to the recipient or subrecipient through a refund, withdrawal, or other credit.
(i)
Severance pay.
(1) Severance pay, also commonly referred to as dismissal wages, is a payment in addition to regular salaries and wages, by recipients and subrecipients to workers whose employment is being terminated. Severance pay is allowable only to the extent that, in each case, it is required by:
(i) Law;
(ii) Employer-employee agreement;
(iii) Established policy that constitutes, in effect, an implied agreement on the recipient's or subrecipient's part; or
(iv) Circumstances of the particular employment.
(2) Costs of severance payments are divided into two categories as follows:
(i) Actual severance payments for normal turnover must be allocated to all activities; or, where the recipient or subrecipient provides for a reserve for normal severances, such method is acceptable if the charge to current operations is reasonable in light of payments made for normal severances over a representative past period, and if amounts charged are allocated to all activities of the recipient or subrecipient.
(ii) Measuring the costs of abnormal or mass severance pay by means of an accrual method will not achieve equity for both parties. Therefore, accruals are not allowable. However, the Federal Government recognizes its responsibility to contribute its fair share toward a specific payment. Prior approval by the Federal agency or cognizant agency for indirect cost, as appropriate, is required.
(3) Costs incurred in severance pay packages that are in excess of the standard severance pay provided by the recipient or subrecipient to an employee upon termination of employment and that are paid to the employee contingent upon a change in management control over, or ownership of, the recipient's or subrecipient's assets, are unallowable.
(4) Severance payments to foreign nationals employed by the recipient or subrecipient outside the United States, to the extent that the amount exceeds the customary or prevailing practices for the recipient or subrecipient in the United States, are unallowable unless they are required by applicable foreign law or necessary for the performance of Federal programs and approved by the Federal agency.
(5) Severance payments to foreign nationals employed by the recipient or subrecipient outside the United States due to the termination of the foreign national as a result of the closing of, or curtailment of activities by, the recipient or subrecipient in that country, are unallowable unless they are either:
(i) Required by applicable foreign law; or
(ii) Necessary for the performance of Federal programs and approved by the Federal agency.
(j)
For IHEs only.
(1) Fringe benefits in the form of undergraduate and graduate tuition or tuition remission for individual employees are allowable, provided such benefits are granted in accordance with established written policies of the IHE and are distributed to all IHE activities on an equitable basis. Tuition benefits for family members other than the employee are unallowable.
(2) Fringe benefits in the form of undergraduate and graduate tuition or tuition remission for individual employees not employed by the IHE are limited to the tax-free amount allowed by the Internal Revenue Code as amended (26 U.S.C. 127).
(3) IHEs may offer employees tuition waivers or reductions, provided that the benefit does not discriminate in favor of highly compensated employees. Employees can exercise these benefits at other institutions according to institutional policy. See § 200.466, for treatment of tuition remission provided to students.
(k)
Fringe benefit programs and other benefit costs.
(1) For IHEs whose costs are paid by a State or local government, fringe benefit programs (such as pension costs and FICA) and any other benefits costs incurred specifically on behalf of, and in direct benefit to, the IHE, are allowable, subject to the following:
(i) The costs meet the requirements of Basic Considerations in §§ 200.402 through 200.411;
(ii) The costs are properly supported by approved cost allocation plans in accordance with applicable Federal cost accounting principles; and
(iii) The costs are not otherwise borne directly or indirectly by the Federal Government.
(2) The allowability of these costs for the IHE does not depend on whether they are recorded in the accounting records of the IHE.
§ 200.432
Conferences.
Section 200.432 outlines that conferences funded by Federal awards must primarily share technical information and be necessary for the award's success. Allowable costs include venue rental, speaker fees, meals, and transportation, but must be managed carefully to minimize expenses, with potential exceptions for specific programs like those for Indian Tribes, children, and the elderly.
View
§ 200.432
Conferences.
3,580 findings
in our database
This regulation outlines what costs are allowed when organizing conferences funded by federal awards. A conference is defined as an event aimed at sharing technical information with a wider audience. The costs that can be covered include things like renting a venue, paying speakers, charging attendance fees, providing meals and refreshments, and local transportation. However, these costs must be necessary for the success of the project funded by the federal money, and they should be managed carefully to keep expenses reasonable.
The regulation applies to organizations and individuals who receive federal funding for their projects, particularly when they host conferences. It emphasizes that those organizing the conference should use good judgment to ensure that the expenses are appropriate and necessary. Additionally, there are special considerations for certain groups, such as Indian Tribes, children, and the elderly, which may allow for some exceptions in costs. Understanding these guidelines is important because it helps ensure that federal funds are used wisely and effectively, ultimately supporting the goals of the funded projects.
Generated by gpt-4o-mini on 2025-10-16 10:57:57
A conference an event whose primary purpose is to disseminate technical information beyond the recipient or subrecipient and is necessary and reasonable for successful performance under the Federal award. Allowable conference costs may include the rental of facilities, speakers' fees, attendance fees, costs of meals and refreshments, local transportation, and other items incidental to such conferences unless further restricted by the terms and conditions of the Federal award. The costs of identifying and providing locally available dependent-care resources for participants are allowable as needed. Conference hosts/sponsors must exercise discretion and judgment in ensuring that conference costs are appropriate, necessary, and managed to minimize costs to the Federal award. The Federal agency may authorize exceptions for programs including Indian Tribes, children, and the elderly. See also §§ 200.438, 200.456, and 200.475.
§ 200.433
Contingency provisions.
Section 200.433 outlines rules for including contingency provisions in budget estimates for federal projects. It states that while certain contingency amounts for unforeseen costs cannot be included in federal awards, others can be if they are based on accepted cost estimation methods and comply with federal guidelines.
View
§ 200.433
Contingency provisions.
This regulation, Section 200.433, deals with how organizations can budget for unexpected costs in projects funded by federal money, like construction or IT systems. It states that when planning a budget, organizations cannot include extra money for major changes or unforeseen risks that could lead to higher costs. This means that if something unexpected happens that significantly alters the project, those costs can't be counted in the initial budget estimate.
However, the regulation does allow for smaller contingency amounts to be included in the budget, as long as they are calculated using accepted methods and clearly documented. These smaller amounts can help make the budget more accurate. For any costs to be approved for payment, they must be necessary, reasonable, and backed up by proper records. Additionally, payments made to a "contingency reserve" for uncertain future events are generally not allowed, except in specific circumstances outlined in other regulations.
This regulation is important because it helps ensure that federal funds are used responsibly and transparently. By setting clear rules on how to handle unexpected costs, it aims to prevent misuse of funds and encourages organizations to plan carefully for their projects.
Generated by gpt-4o-mini on 2025-10-16 10:58:05
(a) Contingency provisions are part of a budget estimate of future costs (typically of large construction projects, IT systems, or other items approved by the Federal agency) which are associated with possible events or conditions arising from causes for which the precise outcome is indeterminable at the time of estimate and that are likely to result, in the aggregate, in additional costs for the approved activity or project. Contingency amounts for major project scope changes, unforeseen risks, or extraordinary events must not be included in the budget estimates for a Federal award.
(b) It is permissible for contingency amounts other than those excluded in paragraph (a) of this section to be explicitly included in budget estimates to the extent necessary to improve their precision. Contingency amounts must be estimated using broadly-accepted cost estimating methodologies, specified in the budget documentation of the Federal award, and accepted by the Federal agency. As such, contingency amounts are to be included in the Federal award. In order for actual costs incurred to be allowable, they must comply with the cost principles and other requirements of this part (see §§ 200.300 and 200.403), be necessary and reasonable for proper and efficient accomplishment of project or program objectives, and be verifiable from the recipient's or subrecipient's records.
(c) Payments to a recipient's or subrecipient's “contingency reserve” or any similar payment made for events the occurrence of which cannot be foretold with certainty as to the time or intensity, or with an assurance of their happening, are unallowable, except as noted in §§ 200.431 and 200.447.
§ 200.434
Contributions and donations.
Section 200.434 states that costs for contributions and donations, including cash and in-kind services, from recipients or subrecipients to other entities are not allowed under federal awards. While the value of donated services can help meet cost-sharing requirements, it cannot be charged as a direct or indirect cost to the federal award, affecting nonprofit organizations and their funding practices.
View
§ 200.434
Contributions and donations.
57 findings
in our database
This regulation, Section 200.434, sets clear rules about contributions and donations when it comes to federal funding. It states that any costs related to contributions and donations—like cash, property, or services—from the organization receiving federal funds (the recipient) or those working under them (subrecipients) to other organizations are not allowed. This means that if you’re using federal money, you can’t use that money to give away resources to others.
The regulation applies mainly to organizations that receive federal awards, including nonprofits. It specifies that while the value of donated services and property cannot be charged to the federal award as costs, they can be used to meet certain funding requirements, known as cost sharing. For example, if a nonprofit receives volunteer services, they can count the value of those services towards their required match for federal funding, but they cannot charge those services directly to the federal grant. Additionally, if the value of donated services is significant, it must be factored into how the organization calculates its indirect costs, which are expenses not directly tied to a specific project but necessary for overall operations.
Understanding this regulation is important because it helps organizations manage their finances properly when dealing with federal funds. It ensures that federal money is used for its intended purpose and prevents misuse of funds through donations to other entities. By following these rules, organizations can maintain compliance, avoid penalties, and ensure they are maximizing their resources effectively.
Generated by gpt-4o-mini on 2025-10-16 10:58:14
(a) Costs of contributions and donations, including cash, property, and services, from the recipient or subrecipient to other entities are unallowable.
(b) The value of services and property donated (that is, in-kind donations) to the recipient or subrecipient may not be charged to the Federal award either as a direct or indirect cost. The value of donated services and property may be used to meet cost sharing requirements (see § 200.306). Depreciation on donated assets is permitted so long as the donated property is not counted towards meeting cost sharing requirements (see § 200.436).
(c) Services donated or volunteered to the recipient or subrecipient may be provided by professional and technical personnel, consultants, and other skilled and unskilled labor. The value of these services may not be charged to the Federal award as a direct or indirect cost. However, the value of donated services may be used to meet cost sharing requirements in accordance with the provisions of § 200.306.
(d) To the extent feasible, services donated to the recipient or subrecipient will be supported by the same methods used to support the allocability of regular personnel services.
(e) The following provisions apply to nonprofit organizations. The value of services donated to a nonprofit organization and used in the performance of a direct cost activity must be considered in the determination of the recipient's or subrecipient's indirect cost rate(s) and, accordingly, must be allocated a proportionate share of applicable indirect costs when the following circumstances exist:
(1) The aggregate value of the services is material;
(2) The services are supported by a significant amount of the indirect costs incurred by the recipient or subrecipient;
(i) In those instances where there is no basis for determining the fair market value of the services rendered, the recipient or subrecipient and the cognizant agency for indirect costs must negotiate an appropriate allocation of indirect cost to the services.
(ii) Where donated services directly benefit a project supported by the Federal award, the indirect costs allocated to the services will be considered as a part of the project's total costs. Such indirect costs may be reimbursed under the Federal award or used to meet cost sharing requirements.
(f) Fair market value of donated services must be computed as described in § 200.306.
(g) Personal property and use of space.
(1) Donated personal property and use of space may be furnished to a recipient or subrecipient. The value of the personal property and space may not be charged to the Federal award either as a direct or indirect cost.
(2) The value of the donations of personal property and use of space may be used to meet cost sharing requirements described in § 200.300. The recipient or subrecipient must value the donations in accordance with § 200.300. Where the recipient or subrecipient treats donations as indirect costs, indirect cost rates must separate the value of the donations so that reimbursement is not made.
§ 200.435
Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements.
Section 200.435 outlines that costs related to defending against criminal or civil proceedings involving fraud or violations of laws by recipients or subrecipients of federal funds are generally not allowable. This affects organizations and individuals receiving federal awards, as they cannot use federal funds to cover legal expenses from such proceedings if they result in a conviction or similar adverse outcomes.
View
§ 200.435
Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements.
2 findings
in our database
This regulation outlines what costs can and cannot be covered when someone is involved in legal proceedings related to federal funding. Specifically, if a person or organization (called a recipient or subrecipient) faces criminal, civil, or administrative actions due to violations of laws or regulations, the costs associated with defending themselves in those cases are generally not allowed to be paid for with federal funds. This includes situations where there’s a conviction for a crime or a finding of liability in a civil case. If the legal action leads to penalties, disallowances of costs, or other serious consequences, the costs incurred in defending against those actions are also not allowable.
The regulation applies to anyone receiving federal funds and covers various situations, including actions initiated by federal, state, or local governments, or even whistleblower complaints. However, if a case is resolved through an agreement with the federal government, some costs might be allowed, but only if explicitly stated in that agreement. Additionally, if a state or local government initiates a proceeding, costs may be covered if they relate to specific terms of the federal award or directions from federal officials. Overall, this regulation is important because it ensures that federal funds are not used to cover legal costs arising from misconduct or violations, promoting accountability and proper use of taxpayer money.
Generated by gpt-4o-mini on 2025-10-16 10:58:21
(a)
Definitions for this section
—(1)
Conviction
means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon verdict or a plea, including a conviction due to a plea of nolo contendere.
(2)
Costs
include the services that bear a direct relationship to a judicial or administrative proceeding and provided by in-house or private counsel, accountants, consultants, or others engaged to assist the recipient or subrecipient before, during, or after the commencement of that proceeding.
(3)
Fraud
means:
(i) Acts of fraud or corruption or attempts to defraud the Federal Government or to corrupt its agents,
(ii) Acts that constitute a cause for debarment or suspension (as specified in agency regulations), and
(iii) Acts that violate the False Claims Act (31 U.S.C. 3729-3732) or the Anti-kickback Act (42 U.S.C. 1320a-7b(b)).
(4)
Penalty
does not include restitution, reimbursement, or compensatory damages.
(5)
Proceeding
includes an investigation.
(b)
Costs.
(1) Except as otherwise described herein, costs incurred in connection with any criminal, civil, or administrative proceeding (including the filing of a false certification) commenced by the Federal Government, a State, local government, or foreign government, or joined by the Federal Government (including a proceeding under the False Claims Act), against the recipient or subrecipient, (or commenced by third parties or a current or former employee of the recipient or subrecipient who submits a whistleblower complaint of reprisal in accordance with 10 U.S.C. 4701 or 41 U.S.C. 4712), are not allowable if the proceeding:
(i) Relates to a violation of, or failure to comply with, a Federal, State, local or foreign statute, regulation, or the terms and conditions of the Federal award by the recipient or subrecipient (including its agents and employees); and
(ii) Results in any of the following dispositions:
(A) In a criminal proceeding, a conviction.
(B) In a civil or administrative proceeding involving an allegation of fraud or similar misconduct, a determination of recipient or subrecipient liability.
(C) In the case of any civil or administrative proceeding, the disallowance of costs, the imposition of a monetary penalty, or an order issued by the Federal agency head or delegate to the recipient or subrecipient to take corrective action under 10 U.S.C. 4701 or 41 U.S.C. 4712.
(D) A final decision by an appropriate Federal official to debar or suspend the recipient or subrecipient, to rescind or void a Federal award, or to terminate a Federal award because of a violation or failure to comply with a statute, regulation, or the terms and conditions of the Federal award.
(E) A disposition by consent or compromise if the action could have resulted in any of the dispositions described in paragraphs (b)(1)(ii)(A) through (D) of this section.
(2) If more than one proceeding involves the same alleged misconduct, the costs of all such proceedings are unallowable if any results in one of the dispositions shown in paragraph (b) of this section.
(c)
Allowability of costs for proceeding commenced by Federal Government.
If a proceeding referred to in paragraph (b) of this section is commenced by the Federal Government and is resolved by consent or compromise pursuant to an agreement by the recipient or subrecipient and the Federal Government, then the costs incurred may be allowed to the extent expressly authorized in the agreement.
(d)
Allowability of costs for proceeding commenced by State, local, or foreign government.
If a proceeding referred to in paragraph (b) of this section is commenced by a State, local or foreign government, then the costs incurred may be allowed if the authorized Federal official determines that the costs were incurred as a result of:
(1) A specific term or condition of the Federal award, or
(2) Specific written direction of an authorized official of the Federal agency.
(e)
Allowability of costs in general.
Costs incurred in connection with proceedings described in paragraph (b), and not made unallowable by that paragraph, may be allowed to the extent that:
(1) The costs are reasonable and necessary for the administration of the Federal award and activities required to deal with the proceeding and the underlying cause of action;
(2) Payment of the reasonable, necessary, allocable and otherwise allowable costs incurred is not prohibited by any other provision(s) of the Federal award;
(3) The costs are not recovered from the Federal Government or a third party, either directly as a result of the proceeding or otherwise; and,
(4) An authorized Federal official has determined the percentage of costs allowed considering the complexity of litigation, generally accepted principles governing the award of legal fees in civil actions involving the United States, and other factors that may be appropriate. This percentage must not exceed 80 percent unless an agreement under paragraph (c) has explicitly considered this limitation and permitted a higher percentage. In that case, the total amount of costs incurred may be allowable.
(f)
Major Fraud Act.
Costs incurred by the recipient or subrecipient in connection with the defense of suits brought by its employees or ex-employees under section 2 of the Major Fraud Act of 1988 (18 U.S.C. 1031), including the cost of all relief necessary to make the employee whole, where the recipient or subrecipient was found liable or settled, are unallowable.
(g)
Un-allowability of costs for prosecuting claims against Federal Government.
Costs for prosecuting claims against the Federal Government, including appeals of final Federal agency decisions, are unallowable.
(h)
Patent infringement litigation.
Costs of legal, accounting, and consultant services, and related costs incurred in connection with patent infringement litigation, are unallowable unless otherwise provided for in the Federal award.
(i)
Potentially unallowable costs.
Costs that may be unallowable under this section, including directly associated costs, must be segregated and accounted for separately. During the pendency of any proceeding covered by paragraphs (b) and (f) of this section, the Federal Government must generally withhold payment of such costs. However, if in its best interests, the Federal Government may provide for conditional payment upon provision of adequate security, or other adequate assurance, and agreement to repay all unallowable costs, plus interest, if the costs are subsequently determined to be unallowable.
§ 200.436
Depreciation.
Section 200.436 outlines how to calculate depreciation for fixed assets used in federal award activities. It affects recipients and subrecipients by allowing them to allocate costs for buildings, equipment, and software based on their useful life, while ensuring that certain costs, like land or federally funded portions, are excluded from depreciation calculations.
View
§ 200.436
Depreciation.
2 findings
in our database
Section 200.436 outlines how organizations can account for the depreciation of fixed assets—like buildings and equipment—when they receive federal funds. Depreciation is a way to spread out the cost of these assets over their useful life, which means organizations can get reimbursed for their use in federal projects. To qualify for this reimbursement, the assets must be necessary for the organization’s activities and properly documented. The section specifies that organizations can only claim depreciation based on the actual cost of the assets, excluding certain costs like land or any federal contributions.
This regulation applies to any organization that receives federal funding and uses fixed assets in their work. It requires them to follow specific guidelines for calculating depreciation, including how long an asset is expected to last and the method used to calculate its depreciation. Organizations must keep accurate records of their assets and conduct physical inventories every two years to confirm that the assets are still in use and necessary. This is important because it ensures that federal funds are used appropriately and that organizations are not over-claiming costs.
Generated by gpt-4o-mini on 2025-10-16 10:58:27
(a) Depreciation is the method for allocating the cost of fixed assets to periods benefitting from asset use. The recipient or subrecipient may be compensated for the use of its buildings, capital improvements, equipment, and software projects capitalized in accordance with GAAP provided that they are needed and used in the recipient's or subrecipient's activities and correctly allocated to Federal awards. The compensation must be made by computing the proper depreciation.
(b) The allocation for depreciation must be made in accordance with Appendices III through IX of this part.
(c) Depreciation is computed applying the following rules. The computation of depreciation must be based on the acquisition cost of the assets involved. For an asset donated to the recipient or subrecipient by a third party, its fair market value at the time of the donation must be considered as the acquisition cost. Such assets may be depreciated or claimed as cost sharing but not both. When computing depreciation charges, the acquisition cost will exclude:
(1) The cost of land;
(2) Any portion of the cost of buildings and equipment borne by or donated by the Federal Government, irrespective of where the title was originally vested or is presently located;
(3) Any portion of the cost of buildings and equipment contributed by or for the recipient or subrecipient that is already claimed as cost sharing or where law or agreement prohibits recovery; and
(4) Any asset acquired solely for the performance of a non-Federal award.
(d) When computing depreciation charges, the following must be observed:
(1) The period of useful service or useful life established in each case for usable capital assets must take into consideration such factors as the type of construction, nature of the equipment, technological developments in the particular area, historical data, and the renewal and replacement policies followed for the individual items or classes of assets involved.
(2) The depreciation method used to charge the cost of an asset (or group of assets) to accounting periods must reflect the pattern of consumption of the asset during its useful life. In the absence of clear evidence indicating that the expected consumption of the asset will be significantly greater in the early portions than in the later portions of its useful life, the straight-line method must be presumed to be the appropriate method. Once used, depreciation methods may not be changed unless approved in advance by the cognizant agency for indirect costs. The depreciation methods used to calculate the depreciation amounts for indirect cost rate purposes must be the same methods used by the recipient or subrecipient for its financial statements.
(3) The entire building, including the shell and all components, may be treated as a single asset and depreciated over a single useful life. A building may also be divided into multiple components. Each component may be depreciated over its estimated useful life in this case. The building components must be grouped into three general components: building shell (including construction and design costs), building services systems (for example, elevators, HVAC, and plumbing system), and fixed equipment (for example, sterilizers, casework, fume hoods, cold rooms, and glassware/washers). A cognizant agency for indirect costs may authorize a recipient or subrecipient to use more than these three groupings in exceptional cases. When a recipient or subrecipient elects to depreciate its buildings by their components, the same depreciation method must be used for indirect and financial statements purposes, as described in paragraphs (d)(1) and (2).
(4) No depreciation may be allowed on assets that have outlived their depreciable lives.
(5) Where the depreciation method is introduced to replace the use allowance method, depreciation must be computed as if the asset had been depreciated over its entire life (meaning, from the date the asset was acquired and ready for use to the date of disposal or withdrawal from service). The total amount of use allowance and depreciation for an asset (including imputed depreciation applicable to periods before the conversion from the use allowance method and depreciation after the conversion) may not exceed the total acquisition cost of the asset.
(e) Adequate property records must support depreciation charges, and physical inventories must be taken at least once every two years to ensure that the assets exist and are usable, used, and needed. The recipient or subrecipient may use statistical sampling techniques when taking these inventories. In addition, the recipient or subrecipient must maintain adequate depreciation records showing the amount of depreciation.
§ 200.437
Employee health and welfare costs.
Section 200.437 allows costs related to improving employee health and working conditions if they follow established policies and are fairly distributed across activities. It also permits losses from food services only if they aim to break even, with exceptions for unusual circumstances approved by the relevant agency.
View
§ 200.437
Employee health and welfare costs.
This regulation, Section 200.437, outlines what costs related to employee health and welfare are acceptable for organizations that receive federal funding. It states that organizations can cover expenses aimed at improving working conditions, enhancing employer-employee relations, and boosting employee health and performance, as long as these costs follow the organization's written policies.
The regulation applies to both the main organization (the recipient) and any smaller organizations they work with (subrecipients). It requires that any costs for employee welfare be fairly divided among all activities the organization undertakes. Additionally, if the organization makes money from these activities, that income must be used to offset the costs, unless it has been permanently donated to employee welfare groups.
When it comes to running food services, the regulation allows for losses only if the goal is to break even. If the organization has other objectives that lead to losses, those can only be covered if they can show that there were unusual circumstances and if they get approval from the agency overseeing their indirect costs. This matters because it ensures that organizations are using federal funds responsibly and transparently, promoting better working conditions while keeping financial practices in check.
Generated by gpt-4o-mini on 2025-10-16 10:58:33
(a) Costs incurred in accordance with the recipient's or subrecipient's established written policies for improving working conditions, employer-employee relations, employee health, and employee performance are allowable.
(b) These costs must be equitably apportioned to all activities of the recipient or subrecipient. Income generated from these activities must be credited to the cost thereof unless such income has been irrevocably sent to employee welfare organizations.
(c) Losses resulting from operating food services are allowable only if the recipient's or subrecipient's objective is to operate food services on a break-even basis. Losses sustained because of operating objectives other than the above are allowable only when:
(1) The recipient or subrecipient can demonstrate unusual circumstances; and
(2) Approved by the cognizant agency for indirect costs.
§ 200.438
Entertainment and prizes.
Section 200.438 states that costs for entertainment and prizes are generally not allowed unless they serve a specific programmatic purpose and are included in a Federal award. This affects organizations receiving federal funding, as they must adhere to these guidelines when budgeting for such expenses.
View
§ 200.438
Entertainment and prizes.
15 findings
in our database
This regulation, Section 200.438, outlines rules about spending on entertainment and prizes when using federal funds. First, it states that costs related to entertainment—like social events, amusement activities, and gifts—are generally not allowed unless they serve a specific purpose related to the program funded by the federal award. This means that if an organization wants to spend money on entertainment, they must show that it directly supports their project and is included in the funding agreement.
Second, the regulation addresses prizes. Organizations can use federal funds for prizes or challenges if these also have a clear purpose related to their program and are part of the federal award. To ensure proper use of these funds, federal agencies are encouraged to follow specific guidance that helps them understand how to effectively use prizes to promote government initiatives. This regulation is important because it helps ensure that taxpayer money is spent wisely and only on activities that directly benefit the intended programs.
Generated by gpt-4o-mini on 2025-10-16 10:58:41
(a)
Entertainment costs.
Costs of entertainment, including amusement, diversion, and social activities and any associated costs (such as gifts), are unallowable unless they have a specific and direct programmatic purpose and are included in a Federal award.
(b)
Prizes.
Costs of prizes or challenges are allowable if they have a specific and direct programmatic purpose and are included in the Federal award. Federal agencies should refer to OMB guidance in M-10-11 “Guidance on the Use of Challenges and Prizes to Promote Open Government,” issued March 8, 2010, or its successor.
§ 200.439
Equipment and other capital expenditures.
Section 200.439 outlines the rules for capital expenditures on equipment and property, stating that such costs are generally allowable as direct costs only with prior written approval from the relevant Federal agency. This affects organizations receiving federal funds, as they must seek approval for significant purchases or improvements and cannot claim these costs as indirect expenses.
View
§ 200.439
Equipment and other capital expenditures.
351 findings
in our database
This regulation outlines the rules for spending on equipment and other significant purchases, known as capital expenditures, when federal funds are involved. It requires that before spending on general-purpose equipment, buildings, or land, organizations must get written approval from the federal agency or the entity providing the funds. For special-purpose equipment costing $10,000 or more, the same prior approval is necessary. Additionally, if an organization wants to make improvements that significantly increase the value or lifespan of existing property, they also need to obtain this approval first.
The regulation applies to organizations that receive federal funding, including both the primary recipients and any subrecipients. It’s important for these organizations to understand that they must follow these rules to ensure that their spending is considered allowable costs. This matters because if they don’t get the necessary approvals, they risk not being reimbursed for these expenses, which could affect their budgets and financial planning. Furthermore, any costs related to disposing of or transferring equipment, if directed by the federal agency, can also be claimed. However, organizations cannot include these capital expenditures as indirect costs, meaning they can’t spread these costs across multiple projects or programs.
Generated by gpt-4o-mini on 2025-10-16 10:58:48
(a) See § 200.1 for the definitions of
capital expenditures, equipment, special purpose equipment, general purpose equipment, acquisition cost, and capital assets.
(b) The following rules of allowability must apply to equipment and other capital expenditures:
(1) Capital expenditures for general purpose equipment, buildings, and land are allowable as direct costs, but only with the prior written approval of the Federal agency or pass-through entity.
(2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $10,000 or more have the prior written approval of the Federal agency or pass-through entity.
(3) Capital expenditures for improvements to land, buildings, or equipment that materially increase their value or useful life are allowable as a direct cost, but only with the prior written approval of the Federal agency or pass-through entity. See § 200.436 on the allowability of depreciation on buildings, capital improvements, and equipment. See § 200.465 on the allowability of real property and equipment rental costs.
(4) When approved as a direct cost in accordance with paragraphs (b)(1) through (3), capital expenditures must be charged in the period in which the expenditure is incurred or as otherwise determined appropriate and negotiated with the Federal agency.
(5) The recipient or subrecipient may claim the unamortized portion of any equipment written off as a result of a change in capitalization levels by continuing to claim the otherwise allowable depreciation on the equipment or by amortizing the amount to be written off over a period of years negotiated with the cognizant agency for indirect cost.
(6) Cost of equipment disposal. If the Federal agency instructs the recipient or subrecipient to otherwise dispose of or transfer the equipment, the costs of disposal or transfer are allowable.
(7) Equipment and other capital expenditures are unallowable as indirect costs. See § 200.436.
§ 200.440
Exchange rates.
Section 200.440 allows for cost increases due to exchange rate fluctuations, but prior approval is needed if these changes require more Federal funding or significantly reduce the project's scope. Recipients must review local currency gains before the award expires and provide documentation for any adjustments, ensuring sufficient Federal funds are available.
View
§ 200.440
Exchange rates.
This regulation, Section 200.440, deals with how changes in exchange rates can affect the costs of projects funded by the federal government. It allows organizations to account for cost increases caused by fluctuations in exchange rates, but only if there is enough funding available. If these changes lead to a need for more federal money or require cutting back on the project significantly, the organization must get prior approval from the federal agency. The agency has to ensure that there are enough funds to cover these changes to avoid breaking a law that prevents overspending.
The regulation applies to organizations that receive federal funding, including those that may work with local currencies. These organizations must regularly check if they need more federal money due to gains or losses in local currency value before their funding period ends. If they find that they do need additional funds because of currency changes, they must provide proper documentation to the federal agency to justify the request. This process is important because it helps ensure that federal funds are used appropriately and that projects can continue without unnecessary financial strain.
Generated by gpt-4o-mini on 2025-10-16 10:58:55
(a) Cost increases for fluctuations in exchange rates are allowable costs subject to the availability of funding. Prior approval of exchange rate fluctuations is required only when the change results in the need for additional Federal funding, or the increased costs result in the need to significantly reduce the scope of the project. Before providing approval, the Federal agency must ensure that adequate funds are available to cover currency fluctuations in order to avoid a violation of the Antideficiency Act.
(b) The recipient or subrecipient is required to make reviews of local currency gains to determine the need for additional Federal funding before the expiration date of the Federal award. Subsequent adjustments for currency increases may be allowable only when the recipient or subrecipient provides the Federal agency with adequate source documentation from a commonly used source in effect at the time the expense was made, and to the extent that sufficient Federal funds are available.
§ 200.441
Fines, penalties, damages and other settlements.
Costs from violations of laws and regulations by recipients or subrecipients are not allowed, unless they are due to compliance with the Federal award or have prior written approval from the Federal agency. This affects organizations receiving federal funds.
View
§ 200.441
Fines, penalties, damages and other settlements.
2 findings
in our database
This regulation states that if an organization or individual receiving federal funds breaks laws or regulations—whether they are federal, state, local, tribal, or even foreign—they cannot use those costs to get reimbursed with federal money. This means that if they face fines, penalties, or damages because of their actions, those expenses won't be covered by the federal funds they received. The only exceptions are if the costs come from following specific rules outlined in the federal award or if they get written permission from the federal agency beforehand.
This regulation applies to any recipient of federal funds, including organizations and individuals who might receive grants or contracts. It’s important in situations where these recipients might be tempted to overlook legal requirements, as it clearly states that they cannot expect federal funds to cover the consequences of their actions. Understanding this regulation helps ensure that organizations manage their operations responsibly and comply with all applicable laws, which ultimately protects public funds and promotes accountability.
Generated by gpt-4o-mini on 2025-10-16 10:59:01
Costs resulting from recipient or subrecipient violations of, alleged violations of, or failure to comply with, Federal, State, local, tribal, or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with the prior written approval of the Federal agency. See § 200.435.
§ 200.442
Fundraising and investment management costs.
Section 200.442 states that costs for organized fundraising and investment management are generally unallowable unless specifically approved by the Federal agency. However, costs related to the physical custody of funds are allowable, and both types of activities must properly allocate indirect costs. This affects organizations seeking federal funding and their financial management practices.
View
§ 200.442
Fundraising and investment management costs.
6 findings
in our database
This regulation outlines what costs related to fundraising and managing investments are allowed or not allowed when receiving federal funds. First, it states that expenses for organized fundraising activities—like campaigns to raise money or solicit donations—are generally not allowed unless the federal agency gives prior written approval. This means that if an organization wants to spend money on fundraising to meet federal program goals, they need to get permission first.
Second, the regulation specifies that costs associated with hiring investment advisors or staff to manage investments are also not allowed, except in certain cases. Specifically, costs related to investments for things like pension funds or self-insurance are permitted if they involve federal funds. Additionally, expenses for keeping and managing money and securities are allowed. Lastly, any fundraising or investment costs, whether allowed or not, must be fairly divided among indirect costs, which are general expenses that support the overall operations of an organization but aren't directly tied to a specific project.
This regulation is important because it helps ensure that federal funds are used appropriately and efficiently, preventing misuse of money that should be directed toward specific program objectives. Organizations need to be careful about how they manage their fundraising and investment costs to stay compliant and avoid penalties.
Generated by gpt-4o-mini on 2025-10-16 10:59:08
(a) Costs of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions, are unallowable. Fundraising costs for meeting the Federal program objectives are allowable with the prior written approval of the Federal agency.
(b) Costs of investment counsel and staff and similar expenses incurred to enhance income from investments are unallowable except when associated with investments covering pension, self-insurance, or other funds, which include Federal participation allowed by this part.
(c) Costs related to the physical custody and control of monies and securities are allowable.
(d) Both allowable and unallowable fundraising and investment activities must be allocated an appropriate share of indirect costs in accordance with § 200.413.
§ 200.443
Gains and losses on the disposition of depreciable assets.
Section 200.443 requires recipients or subrecipients to record gains and losses from selling or disposing of depreciable assets in the year they occur. It affects organizations managing federal funds, specifying how to handle these financial changes and when they can be excluded from federal award cost calculations.
View
§ 200.443
Gains and losses on the disposition of depreciable assets.
This regulation, Section 200.443, outlines how organizations that receive federal funds must handle gains and losses when they sell or dispose of property that has depreciated in value over time. When an organization sells such property, it needs to record any profit or loss from that sale in the same year it happens. The profit or loss is calculated by subtracting the property's remaining value (after accounting for depreciation) from the amount received from the sale.
The regulation specifies certain situations where gains or losses should not be recorded separately. For example, if the gain or loss is already included in the depreciation calculations, or if the property is traded in as part of buying a new item, those gains or losses don’t need to be reported separately. Additionally, if a loss occurs because the organization didn’t maintain proper insurance, or if they used allowances instead of depreciation for compensation, those situations are also excluded. Lastly, any extraordinary sales or disposals should be evaluated individually.
This regulation is important because it helps ensure that organizations accurately report their financial activities related to federal funds. By following these guidelines, organizations can maintain transparency and accountability in how they manage and report on their assets, which is crucial for compliance with federal funding requirements.
Generated by gpt-4o-mini on 2025-10-16 10:59:16
(a) The recipient or subrecipient must include gains and losses on the sale, retirement, or other disposition of depreciable property in the year they occur as credits or charges to the asset cost grouping(s) of the property. The amount of the gain or loss is the difference between the amount realized on the property and the undepreciated basis of the property.
(b) Gains and losses from the disposition of depreciable property must not be recognized as a separate credit or charge under the following conditions:
(1) The gain or loss is processed through a depreciation account and is reflected in the depreciation allowable under §§ 200.436 and 200.439.
(2) The property is given in exchange as part of the purchase price of a similar item, and the gain or loss is taken into account in determining the depreciation cost basis of the new item.
(3) A loss results from failing to maintain proper insurance, except as provided in § 200.447.
(4) Compensation for the use of the property was provided through use allowances instead of depreciation.
(5) Gains and losses arising from extraordinary or bulk sales, retirements, or other dispositions must be considered on a case-by-case basis.
(c) Gains or losses of any nature arising from the sale or exchange of property other than the property covered in paragraph (a) of this section must be excluded in computing Federal award costs.
(d) When assets acquired with Federal funds, in part or wholly, are disposed of, the distribution of the proceeds must be made in accordance with §§ 200.310 through 200.316.
§ 200.444
General costs of government.
Section 200.444 states that general government costs for states, local governments, and Indian Tribes are generally unallowable, including salaries and expenses for governors, legislatures, and judicial branches. However, Indian Tribes and Councils of Governments can include up to 50% of certain salaries and expenses related to managing federal programs in their indirect cost calculations without needing documentation.
View
§ 200.444
General costs of government.
8 findings
in our database
This regulation outlines what costs are not allowed for states, local governments, and Indian Tribes when they are managing federal funds. Essentially, it says that many general government costs cannot be covered by these funds. For example, salaries and expenses for the governor, state legislatures, or tribal councils are not allowed. This also includes costs related to the judicial system and general public services like police and fire departments, unless those services are specifically tied to a federal program.
The regulation applies to state and local governments and Indian Tribes when they are using federal money. It specifies that while most general government costs are off-limits, Indian Tribes and Councils of Governments can include up to half of the salaries and expenses for their leaders and staff who manage federal programs in their indirect cost calculations without needing to provide extra documentation.
This matters because it helps ensure that federal funds are used for specific purposes rather than general government expenses. By limiting what can be charged to federal grants, the regulation aims to promote accountability and ensure that taxpayer money is spent effectively on programs that directly benefit the public.
Generated by gpt-4o-mini on 2025-10-16 10:59:24
(a) For states, local governments, and Indian Tribes, the general costs of government are unallowable except as provided in § 200.475. Unallowable costs include:
(1) Salaries and expenses of the Office of the Governor of a State or the chief executive of a local government or the chief executive of an Indian Tribe;
(2) Salaries and other expenses of a State legislature, tribal council, or similar local governmental body, such as a county supervisor, city council, or school board, whether incurred for purposes of legislation or executive direction;
(3) Costs of the judicial branch of a government;
(4) Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statute or regulation. However, this does not preclude the allowability of other legal activities of the Attorney General as described in § 200.435; and
(5) Costs of other general types of government services normally provided to the general public, such as fire and police, unless provided as a direct cost under a program statute or regulation.
(b) Indian Tribes and Councils of Governments (COGs) (see definition for
Local government
in § 200.1) may include up to 50 percent of salaries and expenses directly attributable to managing and operating Federal programs by the chief executive and their staff in the indirect cost calculation without documentation.
§ 200.445
Goods or services for personal use.
Section 200.445 states that costs for goods or services used personally by employees are not allowed, even if reported as taxable income. Housing costs and personal living expenses can only be covered if they are approved in advance by the Federal agency.
View
§ 200.445
Goods or services for personal use.
18 findings
in our database
Section 200.445 outlines rules about costs related to goods or services that are meant for personal use by employees of organizations receiving federal funds. Essentially, it states that any expenses for items or services that employees use personally—like meals, personal travel, or entertainment—cannot be charged to federal grants or contracts. This holds true even if these costs are reported as taxable income to the employees.
The regulation also addresses housing costs for employees, such as rent, utilities, and maintenance. These costs can only be covered if they are directly related to the work being done and must be approved in advance by the federal agency providing the funding. This means that organizations need to get permission before including these types of expenses in their budget.
This regulation is important because it ensures that federal funds are used appropriately and only for work-related purposes. By restricting personal use expenses, it helps maintain accountability and prevents misuse of taxpayer money. Organizations must be careful to follow these rules to avoid penalties and ensure they are using funds as intended.
Generated by gpt-4o-mini on 2025-10-16 10:59:31
(a) Costs of goods or services for the personal use of the recipient's or subrecipient's employees are unallowable regardless of whether the cost is reported as taxable income to the employees.
(b) Housing costs (for example, depreciation, maintenance, utilities, furnishings, rent), housing allowances, and personal living expenses for the recipient's or subrecipient's employees are only allowable as direct costs and must be approved in advance by the Federal agency.
§ 200.446
Idle facilities and idle capacity.
Section 200.446 defines "idle facilities" and "idle capacity," focusing on unused resources and their associated costs. It states that costs related to idle facilities are generally unallowable, except when necessary for fluctuating workloads or if they were needed when acquired but became idle due to unforeseen changes, allowing for costs to be covered for up to one year.
View
§ 200.446
Idle facilities and idle capacity.
This regulation, Section 200.446, focuses on how organizations should handle costs related to unused facilities and capacity. It defines "facilities" as any land, buildings, or equipment that an organization owns or leases. "Idle facilities" are those that are completely unused and not needed for current operations, while "idle capacity" refers to the part of a facility that is not being fully utilized. For example, if a factory can operate at full capacity but is only running at half capacity due to various delays, the unused portion is considered idle capacity.
The regulation states that costs associated with idle facilities are generally not allowed unless they are necessary for fluctuating workloads or were needed when the facilities were acquired but are now idle due to unforeseen changes. If costs are deemed allowable, they can only be covered for a limited time—usually up to one year. On the other hand, costs related to idle capacity are considered normal business expenses and can be covered if the capacity is expected to be needed for the federal project or was reasonable at the time it was established. This regulation is important because it helps ensure that federal funds are used efficiently, preventing waste on facilities and capacity that are not actively contributing to the organization’s goals.
Generated by gpt-4o-mini on 2025-10-16 10:59:40
(a) Definitions for the purpose of this section:
(1) Facilities land and buildings or any portion thereof, equipment individually or collectively, or any other tangible capital asset, wherever located, and whether owned or leased by the recipient or subrecipient. (2) Idle facilities mean completely unused facilities that exceed the recipient's or subrecipient's current needs.
(3) Idle capacity the unused capacity of partially used facilities. It is the difference between: (i) That which a facility could achieve under 100 percent operating time on a one-shift basis less operating interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other normal delays; and
(ii) The extent to which the facility was actually used to meet demands during the accounting period. A multi-shift basis should be used if it can be shown that this amount of usage would normally be expected for the type of facility involved.
(4) Cost of idle facilities or idle capacity maintenance, repair, housing, rent, and other related costs (for example, insurance, interest, and depreciation). These costs could include the costs of idle public safety emergency facilities, telecommunications, or information technology system capacity that is built to withstand major fluctuations in load (for example, consolidated data centers). (b) The costs of idle facilities are unallowable except to the extent that:
(1) They are necessary to meet workload requirements which may fluctuate, and are allocated appropriately to all benefiting programs; or
(2) Although not necessary to meet fluctuations in workload, they were necessary when acquired and are now idle because of changes in program requirements, efforts to achieve more economical operations, reorganization, termination, or other causes which could not have been reasonably foreseen. Under this exception, costs of idle facilities are allowable for a reasonable period, ordinarily not to exceed one year, depending on the initiative taken to use, lease, or dispose of such facilities.
(c) The costs of idle capacity are normal costs of doing business and are a factor in the normal fluctuations of usage or indirect cost rates from period to period. These costs are allowable, provided that the capacity is reasonably anticipated to be necessary to carry out the purpose of the Federal award or was originally reasonable and is not subject to reduction or elimination by use on other Federal awards, subletting, renting, or sale, in accordance with sound business, economic, or security practices. Widespread idle capacity throughout an entire facility or among a group of assets having substantially the same function may be considered idle facilities.
§ 200.447
Insurance and indemnification.
Section 200.447 outlines the rules for insurance costs related to Federal awards. It allows certain insurance costs if they follow established policies and sound practices, but restricts coverage for government property, management fees, and defects in materials, while permitting medical liability insurance for research involving human subjects.
View
§ 200.447
Insurance and indemnification.
8 findings
in our database
Section 200.447 outlines the rules regarding insurance costs and indemnification for organizations that receive federal funding. First, it states that costs for insurance that are required or approved as part of a federal award are acceptable. However, if an organization wants to purchase additional insurance for its general activities, it must follow its own written policies and sound business practices. Certain types of insurance costs, like those covering damage to federal property or management fees, are not allowed unless specifically approved. Additionally, costs for correcting defects in materials or workmanship, or for life insurance where the organization is the beneficiary, are also not permitted.
This regulation applies to any organization or individual receiving federal funds, including subrecipients. It is especially relevant in situations where federal money is used for research or projects that involve human subjects. The practical implications are significant: organizations must carefully manage their insurance costs to ensure compliance with federal guidelines, which can affect their budgets and funding. If they do not adhere to these rules, they risk losing funding or facing penalties. Overall, this regulation helps ensure that federal funds are used responsibly and that organizations are protected against certain risks while maintaining accountability.
Generated by gpt-4o-mini on 2025-10-16 10:59:50
(a) Costs of insurance required or approved and maintained by the terms and conditions of the Federal award are allowable.
(b) Costs of other insurance in connection with the general conduct of activities are allowable subject to the following limitations:
(1) The types, extent, and cost of coverage are in accordance with the recipient's or subrecipient's established written policy and sound business practices.
(2) Costs of insurance or contributions to any reserve covering the risk of loss of, or damage to, Federal Government property are unallowable except to the extent that the Federal agency has approved the costs.
(3) Costs allowed for business interruption or other similar insurance must exclude coverage of management fees.
(4) Insurance costs on the lives of trustees, officers, or other employees holding positions of similar responsibilities are allowable only when the insurance represents additional compensation (see § 200.431). This insurance is unallowable when the recipient or subrecipient is identified as the beneficiary.
(5) Insurance costs to correct defects in the recipient's or subrecipient's materials or workmanship are unallowable.
(6) Medical liability (malpractice) insurance is an allowable cost of a Federal research program only when the program involves human subjects or training of participants in research techniques. Medical liability insurance costs must be treated as a direct cost and assigned to individual projects based on how the insurer allocates the risk to the population covered by the insurance.
(c) Actual losses which could have been covered by permissible insurance (through a self-insurance program or otherwise) are unallowable unless expressly authorized in the Federal award. However, costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance, such as spoilage, breakage, and disappearance of small hand tools, which occur in the ordinary course of operations, are allowable.
(d) Contributions to a reserve for a self-insurance program, including workers' compensation, unemployment compensation, and severance pay, are allowable subject to the following requirements:
(1) The type, extent, and cost of coverage and the rates and premiums would have been allowed had insurance (including reinsurance) been purchased to cover the risks. However, a provision for known or reasonably estimated self-insured liabilities, which do not become payable for more than one year after the provision is made, must not exceed the discounted present value of the liability. The rate used for discounting the liability must be determined by considering factors such as the recipient's or subrecipient's settlement rate for those liabilities and its investment rate of return.
(2) Earnings or investment income on reserves must be credited to those reserves.
(3)(i) Contributions to reserves must be based on sound actuarial principles using historical experience and reasonable assumptions. Reserve levels must be analyzed and updated at least biennially for each major risk being insured and take into account any reinsurance, coinsurance, and other relevant factors or information. Reserve levels related to employee-related coverages must normally be limited to the value of claims:
(A) Submitted and adjudicated but not paid;
(B) Submitted but not adjudicated; and
(C) Incurred but not submitted.
(ii) Reserve exceeding the levels described in paragraph (d)(3)(i) of this section must be identified and justified in the cost allocation plan or indirect cost rate proposal.
(4) Accounting records, actuarial studies, and cost allocations (or billings) must recognize any significant differences due to the types of insured risk and losses generated by the various insured activities or agencies of the recipient or subrecipient. If individual departments or agencies of the recipient or subrecipient experience significantly different levels of claims for a particular risk, those differences must be recognized by using separate allocations or other techniques resulting in an equitable allocation.
(5) Whenever funds are transferred from a self-insurance reserve to other accounts (for example, general fund or unrestricted account), refunds must be made to the Federal Government for its share of funds transferred, including earned or imputed interest from the date of transfer and debt interest, if applicable, chargeable in accordance with the claims collection regulations of the cognizant agency for indirect cost.
(e) Insurance refunds must be credited against insurance costs in the year the refund is received.
(f) Indemnification includes securing the recipient or subrecipient against liabilities to third persons and other losses not compensated by insurance or otherwise. The Federal Government is obligated to indemnify the recipient or subrecipient only to the extent expressly provided for in the Federal award, except as provided in paragraph (c).
§ 200.448
Intellectual property.
Section 200.448 outlines the allowable and unallowable costs related to securing patents and copyrights for federal awards. It affects organizations receiving federal funding, specifying that certain costs for preparing documents and obtaining patents are allowable, while others, like foreign patent applications or unnecessary disclosures, are not. Additionally, royalties for using patents or copyrights are allowable unless certain conditions, such as invalidity or expiration, apply.
View
§ 200.448
Intellectual property.
This regulation outlines what costs related to patents and copyrights can be covered when a project is funded by the Federal government. It specifies that certain expenses, like preparing necessary documents and seeking patents, are allowed if they are required by the funding agreement. For example, if the government needs a title or a royalty-free license to a patent, the costs associated with filing that patent are allowable. However, costs for documents or patents that are not required by the funding agreement, or for foreign patents, are not allowed.
The regulation also addresses royalties, which are payments made for the use of patents or copyrights. These costs can be covered if they are necessary for the project and the government does not already have rights to use the patent or copyright for free. However, if the patent or copyright is invalid, unenforceable, or expired, then those costs cannot be claimed. Additionally, care must be taken to ensure that the royalties are reasonable, especially if they involve parties that are closely related to the recipient of the funding or were agreed upon after the funding was granted. This regulation is important because it helps ensure that federal funds are used appropriately and that costs are justified and necessary for the project.
Generated by gpt-4o-mini on 2025-10-16 10:59:58
(a)
Patent and copyright costs.
(1) The following costs related to securing patents and copyrights are allowable:
(i) Costs of preparing disclosures, reports, and other documents required by the Federal award and of searching the art to the extent necessary to make such disclosures;
(ii) Costs of preparing documents and any other patent costs in connection with the filing and prosecution of a United States patent application where the Federal Government requires that a title or a royalty-free license be conveyed to the Federal Government; and
(iii) General counseling services relating to patent and copyright matters, such as advice on patent and copyright laws, regulations, clauses, and employee intellectual property agreements (See § 200.459).
(2) The following costs related to securing patents and copyrights are unallowable:
(i) Costs of preparing disclosures, reports, and other documents and of searching the art to make disclosures not required by the Federal award;
(ii) Costs in connection with filing and prosecuting any foreign patent application, or any United States patent application, where the Federal award does not require conveying title or a royalty-free license to the Federal Government.
(b)
Royalties and other costs for the use of patents and copyrights.
(1) Royalties on a patent or copyright or amortization of the cost of acquiring by purchase a copyright, patent, or rights thereto, necessary for the proper performance of the Federal award are allowable unless:
(i) The Federal Government already has a license or the right to free use of the patent or copyright.
(ii) The patent or copyright has been adjudicated to be invalid or administratively determined to be invalid.
(iii) The patent or copyright is considered to be unenforceable.
(iv) The patent or copyright is expired.
(2) Special care should be exercised in determining reasonableness when the royalties may have been obtained as a result of less-than-arm's-length bargaining, such as:
(i) Royalties paid to persons, including corporations, affiliated with the recipient or subrecipient.
(ii) Royalties paid to unaffiliated parties, including corporations, under an agreement entered into in contemplation that a Federal award would be made.
(iii) Royalties paid under an agreement entered into after a Federal award is made to a recipient or subrecipient.
(3) In any case involving a patent or copyright formerly owned by the recipient or subrecipient, the amount of royalty allowed must not exceed the cost which would have been allowed had the recipient or subrecipient retained ownership.
§ 200.449
Interest.
Section 200.449 states that interest costs on borrowed funds or the recipient's own funds are generally unallowable for federal awards, but interest on financing for capital assets is allowable under specific conditions. This affects recipients and subrecipients of federal funds, requiring them to follow guidelines for allowable costs, ensure transactions are at fair market value, and limit claims to the least expensive financing options.
View
§ 200.449
Interest.
This regulation, Section 200.449, outlines what costs related to interest can and cannot be included when organizations receive federal funding. Generally, organizations cannot claim interest costs on borrowed money or their own funds as allowable expenses. However, if the interest is related to acquiring, constructing, or replacing capital assets—like buildings or equipment—then it may be allowed under certain conditions. Capital assets are significant items that have a long-term value, and the costs associated with them can include things like purchase price and construction expenses.
The regulation applies to various organizations, including state and local governments, Indian Tribes, institutions of higher education, and nonprofit organizations. It specifies that interest costs must be incurred for specific projects after certain dates, depending on the type of organization. For example, states and local governments must have incurred interest after October 1, 1980, while nonprofits must have incurred it after September 29, 1995. Additionally, organizations must ensure that any interest costs claimed are the lowest available options and must account for any earnings from investments of borrowed funds, which can reduce the allowable interest costs.
Understanding this regulation is important because it helps organizations manage their finances when dealing with federal funds. By knowing what costs can be reimbursed, organizations can better plan their budgets and avoid potential issues with funding. This ensures that taxpayer money is used efficiently and that organizations comply with federal guidelines.
Generated by gpt-4o-mini on 2025-10-16 11:00:08
(a)
General.
Costs incurred for interest on borrowed capital, temporary use of endowment funds, or the use of the recipient's or subrecipient's own funds are unallowable. Financing costs (including interest) to acquire, construct, or replace capital assets are allowable, subject to the requirements of this section.
(b)
Capital assets.
(1) Capital assets is defined in § 200.1. An asset cost includes (as applicable) acquisition costs, construction costs, and other costs capitalized in accordance with GAAP.
(2) For recipient or subrecipient fiscal years beginning on or after January 1, 2016, intangible assets include patents and computer software. For software development projects, only interest attributable to the portion of the project costs capitalized in accordance with GAAP is allowable.
(c)
Requirements for all recipients and subrecipients.
(1) The recipient or subrecipient uses the capital assets in support of Federal awards;
(2) The allowable asset costs to acquire facilities and equipment are limited to a fair market value available to the recipient or subrecipient from an unrelated (arm's length) third party.
(3) The recipient or subrecipient obtains the financing via an arm's-length transaction (meaning, a transaction with an unrelated third party); or claims reimbursement of actual interest cost at a rate available via such a transaction.
(4) The recipient or subrecipient limits claims for Federal reimbursement of interest costs to the least expensive alternative. For example, a lease contract that transfers ownership by the end of the contract may be determined less costly than purchasing through other types of debt financing, in which case reimbursement must be limited to the amount of interest determined if leasing had been used.
(5) The recipient or subrecipient expenses or capitalizes allowable interest cost in accordance with GAAP.
(6) Earnings generated by the investment of borrowed funds pending their disbursement for the asset costs are used to offset the current period's allowable interest cost, whether that cost is expensed or capitalized. Earnings subject to being reported to the Federal Internal Revenue Service under arbitrage requirements are excludable.
(7) The following conditions must apply to debt arrangements over $1 million to purchase or construct facilities unless the recipient or subrecipient makes an initial equity contribution to the purchase of 25 percent or more. For this purpose, “initial equity contribution” means the amount or value of contributions made by the recipient or subrecipient for the acquisition of facilities prior to occupancy.
(i) The recipient or subrecipient must reduce claims for reimbursement of interest cost by an amount equal to imputed interest earnings on excess cash flow attributable to the portion of the facility used for Federal awards.
(ii) The recipient or subrecipient must impute interest on excess cash flow as follows:
(A) Annually, the recipient or subrecipient must prepare a cumulative (from the project's inception) report of monthly cash inflows and outflows, regardless of the funding source. For this purpose, inflows consist of Federal reimbursement for depreciation, amortization of capitalized construction interest, and annual interest cost. Outflows consist of initial equity contributions, debt principal payments (less the pro-rata share attributable to the cost of land), and interest payments.
(B) To compute monthly cash inflows and outflows, the recipient or subrecipient must divide the above-mentioned annual amounts by the months in the year (usually 12) that the building is in service.
(C) For any month in which cumulative cash inflows exceed cumulative outflows, interest must be calculated on the excess inflows for that month and be treated as a reduction to allowable interest cost. The interest rate to be used must be the three-month Treasury bill closing rate as of the last business day of that month.
(8) Interest attributable to a fully depreciated asset is unallowable.
(d)
Additional requirements for states, local governments and Indian Tribes.
For interest costs to be allowable for states, local governments, and Indian Tribes, the recipient or subrecipient must have incurred the interest costs for buildings after October 1, 1980, or after September 1, 1995, for land and equipment.
(1) The requirement to offset the interest earned on borrowed funds against allowable interest cost (paragraph (c)(5) of this section) also applies to earnings on debt service reserve funds.
(2) The recipient or subrecipient must negotiate the amount of allowable interest cost related to the acquisition of facilities with asset costs of $1 million or more, as described in paragraph (c)(7) of this section. For this purpose, a recipient or subrecipient must consider only cash inflows and outflows attributable to that portion of the real property used for Federal awards.
(e)
Additional requirements for IHEs.
For interest costs to be allowable, the IHE must have incurred the interest costs after July 1, 1982, in connection with acquisitions of capital assets that occurred after that date.
(f)
Additional requirements for nonprofit organizations.
For interest costs to be allowable, the nonprofit organization must have incurred the interest costs after September 29, 1995, in connection with acquisitions of capital assets that occurred after that date.
(g)
Requirements for nonprofit organizations subject to full coverage under CAS.
The interest allowability provisions of this section do not apply to a nonprofit organization subject to “full coverage” under the Cost Accounting Standards (CAS), as defined at 48 CFR 9903.201-2(a). The nonprofit organization's Federal awards are instead subject to CAS 414 (48 CFR 9904.414), “Cost of Money as an Element of the Cost of Facilities Capital,” and CAS 417 (48 CFR 9904.417), “Cost of Money as an Element of the Cost of Capital Assets Under Construction.”
§ 200.450
Lobbying.
Section 200.450 prohibits certain lobbying costs related to obtaining federal assistance, meaning organizations cannot use funds to influence federal awards or regulatory actions improperly. This affects nonprofits and institutions of higher education by restricting their ability to engage in political activities or influence legislation and elections.
View
§ 200.450
Lobbying.
44 findings
in our database
This regulation, Section 200.450, outlines what costs related to lobbying are not allowed when organizations seek federal funding, like grants or contracts. Essentially, it prohibits spending money to influence government officials or legislation in ways that could affect the awarding of federal funds. For example, organizations cannot use federal money to lobby for political campaigns, influence elections, or sway legislation. If an organization tries to persuade a federal employee to act in a way that benefits them financially, that cost cannot be covered by federal funds.
The regulation applies to various entities, including nonprofit organizations and institutions of higher education (IHEs). It specifically addresses situations where these organizations might attempt to influence government decisions or legislation related to federal funding. However, there are exceptions; for instance, if an organization is providing factual information in response to a request from a government official, those costs may be allowable.
Understanding this regulation is crucial because it helps ensure that federal funds are used appropriately and not for political purposes. Organizations must keep track of their lobbying costs and certify compliance with these rules when seeking reimbursement for indirect costs. This helps maintain transparency and accountability in how federal funds are spent, ultimately ensuring that taxpayer money is used for its intended purposes.
Generated by gpt-4o-mini on 2025-10-16 11:00:14
(a)
Lobbying costs associated with obtaining Federal assistance awards.
The costs of certain influencing activities associated with obtaining grants, cooperative agreements, contracts, or loans are unallowable. Lobbying with respect to certain grants, cooperative agreements, contracts, and loans is governed by relevant statutes, including the provisions of 31 U.S.C. 1352, as well as the common rule, “New Restrictions on Lobbying,” published on February 26, 1990, including definitions, and the Office of Management and Budget “Government-wide Guidance for New Restrictions on Lobbying” and notices published on December 20, 1989, June 15, 1990, January 15, 1992, and January 19, 1996.
(b)
Executive lobbying costs.
Costs incurred in attempting to improperly influence, either directly or indirectly, an employee or officer of the executive branch of the Federal Government to give consideration or to act regarding a Federal award or a regulatory matter are unallowable. Improper influence means any influence that induces or tends to induce a Federal employee or officer to give consideration or to act regarding a Federal award or regulatory matter on any basis other than the merit.
(c)
Restrictions on nonprofit organizations and IHEs.
In addition, the following restrictions apply to nonprofit organizations and IHEs:
(1) Costs associated with the following activities are unallowable:
(i) Attempts to influence the outcomes of any Federal, State, or local election, referendum, initiative, or similar procedure through in-kind or cash contributions, endorsements, publicity, or similar activity;
(ii) Establishing, administering, contributing to, or paying the expenses of a political party, campaign, political action committee, or other organization established to influence the outcomes of elections in the United States;
(iii) Any attempt to influence:
(A) The introduction of Federal or State legislation;
(B) The enactment or modification of any pending Federal or State legislation through communication with any member or employee of the Congress or State legislature (including efforts to influence State or local officials to engage in similar lobbying activity);
(C) The enactment or modification of any pending Federal or State legislation by preparing, distributing, or using publicity or propaganda or by urging members of the general public, or any segment thereof, to contribute to or participate in any mass demonstration, march, rally, fundraising drive, lobbying campaign or letter writing or telephone campaign; or
(D) Any government official or employee in connection with a decision to sign or veto enrolled legislation;
(iv) Legislative liaison activities, including attendance at legislative sessions or committee hearings, gathering information regarding legislation, and analyzing the effect of legislation, when such activities are carried on in support of or in knowing preparation for an effort to engage in unallowable lobbying.
(2) The following activities are excepted from the coverage of paragraph (c)(1) of this section:
(i) Technical and factual presentations on topics directly related to the performance of a grant, contract, or other agreement (through hearing testimony, statements, or letters to the Congress or a State legislature, or subdivision, member, or cognizant staff member thereof), in response to a documented request (including a Congressional Record notice requesting testimony or statements for the record at a regularly scheduled hearing) made by the recipient's or subrecipient's member of congress, legislative body, subdivision, or a cognizant staff member thereof, provided such information is readily obtainable and can be readily put in deliverable form, and further provided that costs under this section for travel, lodging or meals are unallowable unless incurred to offer testimony at a regularly scheduled Congressional hearing pursuant to a written request for such presentation made by the Chairman or Ranking Minority Member of the Committee or Subcommittee conducting such hearings;
(ii) Any lobbying made unallowable by paragraph (c)(1)(iii) of this section to influence State legislation to directly reduce the cost, or to avoid material impairment of the recipient's or subrecipient's authority to perform the grant, contract, or other agreement;
(iii) Any activity specifically authorized by statute to be undertaken with funds from the Federal award; or
(iv) Any activity excepted from the definitions of “lobbying” or “influencing legislation” by the Internal Revenue Code provisions that require nonprofit organizations to limit their participation in direct and “grass roots” lobbying activities to retain their charitable deduction status and avoid punitive excise taxes, 26 U.S.C. (I.R.C.) 501(c)(3), 501(h), 4911(a), including:
(A) Nonpartisan analysis, study, or research reports;
(B) Examinations and discussions of broad social, economic, and similar problems; and
(C) Information provided upon request by a legislator for technical advice and assistance, as defined by I.R.C. 4911(d)(2) and 26 CFR 56.4911-2(c)(1) through (c)(3).
(3) When a recipient or subrecipient seeks reimbursement for indirect costs, total lobbying costs must be identified separately in the indirect cost rate proposal and thereafter be treated as other unallowable activity costs in accordance with § 200.413.
(4) The recipient or subrecipient must submit a certification that the requirements and standards of this section have been complied with as part of its annual indirect cost rate proposal. (See § 200.415.)
(5)(i) Time logs, calendars, or similar records are not required to be created for purposes of complying with the record-keeping requirements in § 200.302 with respect to lobbying costs during a particular calendar month when:
(A) The employee engages in lobbying (as defined in paragraphs (c)(1) and (2) of this section) for 25 percent or less of the employee's compensated hours of employment during that calendar month; and
(B) Within the preceding five-year period, the recipient or subrecipient has not materially misstated allowable or unallowable costs of any nature, including legislative lobbying costs.
(ii) When conditions in paragraph (c)(5)(i)(A) and (B) of this section are met, recipients and subrecipients are not required to establish records to support the allowability of claimed costs in addition to records already required or maintained. Also, when conditions in paragraphs (c)(5)(i)(A) and (B) of this section are met, the absence of time logs, calendars, or similar records will not serve as a basis for disallowing costs by contesting estimates of lobbying time spent by employees during a calendar month.
(iii) In consultation with OMB, the Federal agency must establish procedures for resolving, in advance, any significant questions or disagreements concerning the interpretation or application of this section. Any such advance resolutions must be binding in any subsequent settlements, audits, or investigations with respect to that grant or contract for purposes of interpretation of this part, provided, however, that this must not be construed to prevent a contractor or recipient or subrecipient from contesting the lawfulness of such a determination.
§ 200.451
Losses on other awards or contracts.
Section 200.451 states that any excess costs beyond income from other awards or contracts are not allowed, including costs from cost-sharing agreements or under-recoveries of indirect costs. This rule affects recipients and subrecipients by ensuring that losses cannot be claimed as indirect costs when calculating funding allocations.
View
§ 200.451
Losses on other awards or contracts.
This regulation states that if an organization incurs costs that exceed the income from any award or contract, those extra costs cannot be covered or reimbursed. This applies to all types of agreements, including those where the organization has agreed to share costs or has negotiated fixed amounts for indirect expenses. Essentially, if you spend more than you earn from a contract, you cannot claim those extra expenses as allowable costs.
The regulation affects organizations that receive federal funding or grants, including both the main recipients and any subrecipients involved. It is relevant in situations where organizations are managing multiple contracts or awards and may be tempted to transfer excess costs from one project to another to cover losses.
Practically, this means organizations need to be careful with their budgeting and financial management. They must ensure that they do not exceed the authorized funding levels for any project, as they cannot recoup those losses later. This regulation helps maintain accountability and ensures that federal funds are used appropriately, preventing misuse or misallocation of resources.
Generated by gpt-4o-mini on 2025-10-16 11:00:23
Any excess costs over income under any other award or contract of any nature is unallowable. This includes, but is not limited to, the recipient's or subrecipient's contributed portion by reason of cost sharing agreements or any under-recoveries through negotiation of flat amounts for indirect costs. Also, any excess of costs over authorized funding levels transferred from any award or contract to another is unallowable. All losses are not allowable indirect costs and must be included in the appropriate indirect cost rate base for allocating indirect costs.
§ 200.452
Maintenance and repair costs.
Section 200.452 allows costs for utilities, insurance, security, maintenance, and repairs that keep buildings and equipment operational, as long as they don't increase the property's value or extend its life. However, costs for improvements that enhance value or longevity must be treated as capital expenditures and cannot be covered if already paid through rental agreements.
View
§ 200.452
Maintenance and repair costs.
18 findings
in our database
This regulation outlines what costs related to maintaining and repairing buildings and equipment are acceptable for funding. It specifically allows expenses for things like utilities, insurance, security, maintenance, cleaning, and repairs that keep the property functioning well but do not significantly increase its value or extend its lifespan. For example, fixing a leaky roof or cleaning the premises would be covered, while major renovations that improve the property’s value would not.
The regulation applies to organizations that receive federal funding and need to manage properties or equipment, including federal property, unless stated otherwise. It’s important to note that any improvements that enhance the property’s value or extend its life must be treated differently and classified as capital expenditures, which have their own set of rules.
Practically, this means that organizations can budget for routine upkeep and necessary repairs without worrying about whether these costs will be covered. This helps ensure that facilities remain safe and functional, which is crucial for providing services effectively. Understanding these guidelines helps organizations manage their finances better and ensures compliance with federal funding requirements.
Generated by gpt-4o-mini on 2025-10-16 11:00:31
Costs incurred for utilities, insurance, security, necessary maintenance, janitorial services, repair, or upkeep of buildings and equipment (including Federal property unless otherwise provided for) which neither add to the permanent value of the property nor appreciably prolong its intended life, but keep it in an efficient operating condition, are allowable. Costs incurred for improvements that add to the permanent value of the buildings and equipment or appreciably prolong their intended life must be treated as capital expenditures (see § 200.439). These costs are only allowable to the extent not paid through rental or other agreements.
§ 200.453
Materials and supplies costs, including costs of computing devices.
Section 200.453 allows costs for materials, supplies, and computing devices necessary for federal awards to be charged as direct costs. These costs must reflect actual prices, and federally-donated materials can be used without charge, affecting organizations that receive federal funding.
View
§ 200.453
Materials and supplies costs, including costs of computing devices.
This regulation outlines the rules for handling costs related to materials and supplies when working on a Federal award, which is a type of funding from the government. It states that you can cover the costs of materials, supplies, and parts that you need to complete the project funded by the Federal award. However, if you buy these items, you must record them at their actual purchase price, minus any discounts or credits you receive. If you take items from a storage area, you should also charge them at their actual cost, using a consistent method for tracking these withdrawals. Additionally, any shipping costs to bring these materials to you can be included as part of the total cost.
The regulation applies to organizations or individuals who receive Federal funding for specific projects. It allows them to charge the costs of materials and supplies directly to the project, which means those costs can be reimbursed. For computing devices, you can also charge the costs if they are necessary for the project, even if they are used for other purposes as well. If you receive materials from the government for free, you can use them without any cost to your project. This is important because it helps ensure that the funds are used efficiently and that recipients can account for their expenses properly, ultimately supporting the successful completion of the funded projects.
Generated by gpt-4o-mini on 2025-10-16 11:00:40
(a) Costs incurred for materials, supplies, and fabricated parts necessary for the performance of a Federal award are allowable.
(b) Purchased materials and supplies must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms must be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are an allowable part of materials and supplies costs.
(c) Materials and supplies used for the performance of a Federal award may be charged as direct costs. Charging computing devices as direct costs is allowable for devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.
(d) Where Federally-donated or furnished materials are used in performing the Federal award, the materials will be used without charge.
§ 200.454
Memberships, subscriptions, and professional activity costs.
Section 200.454 allows recipients and subrecipients to use funds for memberships and subscriptions related to business, technical, and professional organizations, as well as civic or community groups. However, costs for memberships in country clubs, social clubs, or organizations focused on lobbying are not allowed.
View
§ 200.454
Memberships, subscriptions, and professional activity costs.
This regulation outlines what costs related to memberships and subscriptions are allowed for organizations receiving federal funds. Specifically, it states that organizations can use these funds to pay for memberships in business, technical, and professional groups, as well as subscriptions to relevant magazines or journals. Additionally, memberships in civic or community organizations are also permitted.
However, there are some restrictions. Organizations cannot use federal funds to pay for memberships in country clubs or social clubs, which are places primarily for leisure and socializing. Similarly, memberships in groups that mainly focus on lobbying, or trying to influence legislation, are not allowed. This regulation is important because it ensures that federal funds are spent on activities that directly support professional development and community engagement, rather than on social or political activities.
Generated by gpt-4o-mini on 2025-10-16 11:00:47
(a) Costs of the recipient's or subrecipient's membership in business, technical, and professional organizations are allowable.
(b) Costs of the recipient's or subrecipient's subscriptions to business, professional, and technical periodicals are allowable.
(c) Costs of membership in any civic or community organization are allowable.
(d) Costs of membership in any country club or social or dining club or organization are unallowable.
(e) Costs of membership in organizations whose primary purpose is lobbying are unallowable. See § 200.450.
§ 200.455
Organization costs.
Section 200.455 states that costs related to establishing or reorganizing an organization, such as incorporation fees and consultant fees, are generally not allowed unless approved by the Federal agency. Additionally, costs for persuading employees regarding union activities are also unallowable, while costs for data collection and evaluation to improve programs are permitted.
View
§ 200.455
Organization costs.
This regulation, Section 200.455, outlines what costs are not allowed when organizations receive federal funding. Specifically, it says that expenses related to starting or reorganizing an organization—like fees for lawyers, accountants, or consultants—cannot be covered unless the federal agency gives prior approval. This means that if an organization wants to use federal funds for these types of costs, they need to ask for permission first.
Additionally, the regulation prohibits using federal funds for activities aimed at influencing employees' decisions about joining unions or collective bargaining. This means organizations cannot use federal money to persuade workers either to support or oppose union activities. On the other hand, costs associated with collecting and analyzing data to improve programs are allowed. This includes expenses for data management systems, cybersecurity, and evaluations that help assess the effectiveness of programs.
Understanding these rules is important for organizations that receive federal funding. It helps them know what expenses they can and cannot claim, ensuring they use taxpayer money appropriately. By clearly defining allowable and unallowable costs, the regulation aims to promote responsible financial practices and accountability in how federal funds are spent.
Generated by gpt-4o-mini on 2025-10-16 11:00:57
(a) Costs such as incorporation fees, brokers' fees, fees to promoters, organizers or management consultants, attorneys, accountants, or investment counselors, whether or not employees of the recipient or subrecipient in connection with the establishment or reorganization of an organization, are unallowable except with prior approval of the Federal agency.
(b) The costs of any of the following activities are unallowable: activities undertaken to persuade employees of the recipient or subrecipient, or any other entity, to exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively through representatives of the employees' own choosing.
(c) The costs related to data and evaluation are allowable. Data costs include (but are not limited to) the expenditures needed to gather, store, track, manage, analyze, disaggregate, secure, share, publish, or otherwise use data to administer or improve the program, such as data systems, personnel, data dashboards, cybersecurity, and related items. Data costs may also include direct or indirect costs associated with building integrated data systems—data systems that link individual-level data from multiple State and local government agencies for purposes of management, research, and evaluation. Evaluation costs include (but are not limited to) evidence reviews, evaluation planning and feasibility assessment, conducting evaluations, sharing evaluation results, and other personnel or materials costs related to the effective building and use of evidence and evaluation for program design, administration, or improvement.
§ 200.456
Participant support costs.
Participant support costs are allowable expenses that must be clearly defined in the written policies of recipients or subrecipients and applied consistently across all Federal awards. This section affects organizations receiving Federal funding that need to manage and document these costs properly.
View
§ 200.456
Participant support costs.
2 findings
in our database
Section 200.456 talks about "participant support costs," which are expenses that can be covered when funding certain projects. These costs typically include things like stipends, travel expenses, or other support for individuals participating in a project or program. The regulation states that these costs are allowed, meaning organizations can use federal funds to pay for them, but they need to follow specific guidelines.
This section applies to organizations or groups that receive federal funding for projects, including both the main recipients and any subrecipients they work with. It's important that these organizations have clear written policies that outline what counts as participant support costs. They must also apply these policies consistently across all federal funding they receive.
Understanding this regulation is crucial because it ensures that organizations can properly allocate funds to support participants in their projects, which can enhance engagement and outcomes. However, it also emphasizes the need for clear documentation and consistent practices, helping to maintain accountability and transparency in how federal money is spent.
Generated by gpt-4o-mini on 2025-10-16 11:01:04
Participant support costs are allowable (see § 200.1
).
The classification of items as participant support costs must be documented in the recipient's or subrecipient's written policies and procedures and treated consistently across all Federal awards.
§ 200.457
Plant and security costs.
Section 200.457 allows organizations to cover necessary and reasonable expenses for protecting their facilities, staff, and products. This includes costs for security personnel, equipment, and services, but capital expenses for security must follow specific guidelines.
View
§ 200.457
Plant and security costs.
Section 200.457 outlines what costs related to plant and security are acceptable for reimbursement. It states that expenses that are necessary and reasonable for protecting facilities, staff, and products can be covered. This includes things like paying security personnel, buying uniforms for them, purchasing security equipment, installing barriers, and hiring outside security services or consultants. Essentially, if you need to spend money to keep your workplace safe and secure, those costs can be reimbursed.
This regulation applies to organizations that receive federal funding and need to ensure the safety of their operations. It’s relevant in situations where security is a concern, such as manufacturing plants, warehouses, or any facility where valuable work products or personnel are present. The regulation also mentions that larger investments in security, known as capital expenditures, must follow specific guidelines outlined in another section (§ 200.439).
Understanding this regulation is important because it clarifies what security-related expenses can be funded, helping organizations budget effectively. By knowing what costs are allowable, organizations can better protect their assets and personnel without worrying about whether they will be reimbursed for those expenses. This ultimately supports a safer working environment and ensures compliance with federal funding requirements.
Generated by gpt-4o-mini on 2025-10-16 11:01:14
Necessary and reasonable expenses incurred for the protection and security of facilities, personnel, and work products are allowable. Such costs include, but are not limited to, wages and uniforms of personnel engaged in security activities; equipment; barriers; protective (non-military) gear, devices, and equipment; contractual security services; and consultants. Capital expenditures for plant security purposes are subject to § 200.439.
§ 200.458
Pre-award costs.
Pre-award costs are expenses incurred before a Federal award starts, necessary for efficient project performance, and can only be charged if approved by the Federal agency. These costs must align with what would be allowed after the award's start date and are typically included in the initial budget period unless stated otherwise.
View
§ 200.458
Pre-award costs.
220 findings
in our database
Section 200.458 talks about "pre-award costs," which are expenses that organizations can incur before officially receiving a federal grant or contract. These costs must be directly related to preparing for the work they plan to do under the federal award. However, they are only allowed if they would also be acceptable if they were spent after the award officially starts, and the organization must get written permission from the federal agency before spending this money.
This regulation applies to any organization that is seeking federal funding and is planning to incur costs while preparing for the project. It’s important because it sets clear rules on how organizations can manage their finances before they officially start their work. If these pre-award costs are approved, they need to be included in the budget for the first period of the federal award, unless the federal agency says otherwise. This helps ensure that organizations can effectively plan and execute their projects without facing financial setbacks.
Generated by gpt-4o-mini on 2025-10-16 11:01:25
Pre-award costs are those incurred before the start date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. These costs are allowable only to the extent that they would have been allowed if incurred after the start date of the Federal award and only with the written approval of the Federal agency. If approved, these costs must be charged to the initial budget period of the Federal award unless otherwise specified by the Federal agency or pass-through entity.
§ 200.459
Professional service costs.
Section 200.459 allows costs for professional and consultant services to be covered if they are reasonable and not dependent on federal funding recovery. It affects recipients and subrecipients of federal awards, requiring them to consider factors like service necessity, past costs, and qualifications of service providers when determining if these costs are allowable.
View
§ 200.459
Professional service costs.
8 findings
in our database
This regulation outlines the rules for costs associated with hiring professional services, like consultants or legal experts, who are not employees of the organization receiving federal funds. These costs are allowed if they are reasonable for the services provided and not dependent on getting reimbursed by the federal government. However, there are specific limits on legal services, which are detailed in another section.
The regulation applies to organizations that receive federal funding and need to hire outside professionals for various services. When deciding if these costs are acceptable, several factors are considered. These include whether the service is necessary, the organization's ability to perform the service themselves, the history of similar costs, and whether hiring someone is more cost-effective than employing someone directly. Additionally, the qualifications of the service provider and the clarity of the contract for the service are important.
Understanding this regulation is crucial for organizations that rely on federal funding, as it helps them manage their budgets effectively. By knowing what costs are allowable, they can avoid financial issues and ensure compliance with federal guidelines. This regulation ultimately aims to promote responsible spending and accountability when using taxpayer money.
Generated by gpt-4o-mini on 2025-10-16 11:01:35
(a) Costs of professional and consultant services rendered by persons who are members of a particular profession or possess a special skill and who are not officers or employees of the recipient or subrecipient are allowable, subject to paragraphs (b) and (c) of this section when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Federal Government. In addition, legal and related services are limited under § 200.435.
(b) In determining the allowability of costs in a particular case, no single factor or any combination of factors is necessarily determinative. However, the following factors are relevant:
(1) The nature and scope of the service rendered in relation to the service required.
(2) The necessity of contracting for the service, considering the recipient's or subrecipient's capability in the particular area.
(3) The past pattern of such costs, particularly in the years prior to receiving a Federal award(s).
(4) The impact of Federal awards on the recipient's or subrecipient's business (meaning, what new problems have arisen).
(5) Whether the proportion of Federal work to the recipient's or subrecipient's total business influences the recipient or subrecipient in favor of incurring the cost, particularly where the services rendered are not of a continuing nature and have little relationship to work under Federal awards.
(6) Whether the service can be performed more economically by direct employment rather than contracting.
(7) The qualifications of the individual or entity providing the service and the customary fees charged, especially on non-federally funded activities.
(8) Adequacy of the contractual agreement for the service (for example, description of the service, estimate of the time required, rate of compensation, and termination provisions).
(c) To be allowable, retainer fees must be supported by evidence of bona fide services available or rendered in addition to the factors in paragraph (b) of this section.
§ 200.460
Proposal costs.
Section 200.460 states that costs for preparing bids and proposals for federal and non-federal projects are usually considered indirect costs and should be spread across all current activities. These costs can only be counted for the current period and not for any past periods.
View
§ 200.460
Proposal costs.
312 findings
in our database
This regulation, Section 200.460, deals with the costs associated with preparing bids or proposals for federal and non-federal projects. It specifies that the expenses incurred while creating these bids—whether successful or not—should generally be classified as indirect costs. Indirect costs are expenses that are not directly tied to a specific project but are necessary for the overall operation of an organization. These costs can then be spread across all current activities of the organization.
The rule applies to organizations that are applying for funding or contracts, whether from the federal government or other sources. It emphasizes that only the costs from the current accounting period can be included; any proposal costs from previous periods cannot be counted in the current budget. This is important because it ensures that organizations are only accounting for expenses that are relevant to their current financial situation, helping to maintain clear and accurate financial records. Understanding this regulation is crucial for organizations to manage their budgets effectively and comply with federal funding requirements.
Generated by gpt-4o-mini on 2025-10-16 11:01:43
Proposal costs are the costs of preparing bids, proposals, or applications on potential Federal and non-Federal awards or projects, including developing data necessary to support the recipient's or subrecipient's bids or proposals. Proposal costs of the current accounting period of both successful and unsuccessful bids and proposals normally should be treated as indirect costs and allocated to all current activities of the recipient or subrecipient. No proposal costs of past accounting periods may be allocated to the current period.
§ 200.461
Publication and printing costs.
Section 200.461 allows costs for publishing and printing, including distribution and promotion, to be charged as indirect costs to all related activities. It also permits fees for publishing research supported by federal funds, as long as they are applied equally to all publications, and allows charging these costs during the closeout phase of the federal award if not incurred during the award period.
View
§ 200.461
Publication and printing costs.
30 findings
in our database
This regulation outlines what costs related to publishing and printing can be covered when receiving federal funding. It states that expenses for producing and distributing materials—whether in print or online—are allowed, as long as these costs benefit the activities funded by the federal award. If these costs can't be linked to a specific project, they should be spread out as indirect costs across all relevant activities.
The regulation also covers specific fees related to publishing research, like page charges or open access fees for articles in professional journals. These fees can be paid for work that the federal government has supported, but they must be applied fairly to all articles published by the journal, regardless of whether they were funded by federal money. Additionally, if there are publication costs incurred after the main project period ends, these can still be charged to the federal award during the final budget review, as long as they are accounted for in the last budget period of the award.
Understanding this regulation is important because it helps organizations know what publication costs they can claim when working on federally funded projects. This can impact their budgeting and financial planning, ensuring they can share their research findings effectively without facing unexpected costs.
Generated by gpt-4o-mini on 2025-10-16 11:01:52
(a) Publication costs for electronic and print media, including distribution, promotion, and general handling, are allowable. These costs should be allocated as indirect costs to all benefiting activities of the recipient or subrecipient if they are not identifiable with a particular cost objective.
(b) Page charges, article processing charges (APCs), or similar fees such as open access fees for professional journal publications and other peer-reviewed publications resulting from a Federal award are allowable where:
(1) The publications report work supported by the Federal Government; and
(2) The charges are levied impartially on all items published by the journal, whether or not under a Federal award.
(3) The recipient or subrecipient may charge the Federal award during closeout for the costs of publication or sharing of research results if the costs were not incurred during the period of performance of the Federal award. These costs must be charged to the final budget period of the award unless otherwise specified by the Federal agency.
§ 200.462
Rearrangement and reconversion costs.
Section 200.462 allows costs for normal rearrangement and alteration of facilities as indirect costs, while special alterations can be direct costs if approved by the Federal agency. It also permits costs for restoring facilities to their prior condition, excluding normal wear and tear, affecting recipients and subrecipients of Federal awards.
View
§ 200.462
Rearrangement and reconversion costs.
This regulation outlines what costs related to rearranging or changing facilities can be covered when receiving federal funding. It states that if you make ordinary changes to your facilities, those costs can be included as indirect costs, which means they are not directly tied to a specific project but are necessary for overall operations. However, if the changes are special or unique and are specifically for a federal project, those costs can be counted as direct costs, but you must get prior approval from the federal agency or the organization providing the funds.
Additionally, if you need to restore or repair your facilities to the condition they were in before starting a federal project, those costs are also allowed. However, this does not include costs for normal wear and tear, which are expected over time. This regulation is important because it clarifies how organizations can manage their facility-related expenses when they receive federal funding, ensuring they can maintain their operations while complying with federal guidelines.
Generated by gpt-4o-mini on 2025-10-16 11:02:00
(a) Costs incurred for ordinary and normal rearrangement and alteration of facilities are allowable as indirect costs. Special arrangements and alterations are allowable as a direct cost if the costs are incurred specifically for a Federal award and with the prior approval of the Federal agency or pass-through entity.
(b) Costs incurred in restoring or rehabilitating the recipient's or subrecipient's facilities to approximately the same condition existing immediately before the commencement of a Federal award(s), less costs related to normal wear and tear, are allowable.
§ 200.463
Recruiting costs.
Section 200.463 outlines allowable recruiting costs for organizations receiving federal funds, including advertising, employment office operations, and travel expenses related to recruitment. It specifies that excessive benefits to attract professionals are not allowed, and if a new employee resigns within a year, the organization must refund relocation costs funded by federal awards.
View
§ 200.463
Recruiting costs.
Section 200.463 outlines the rules regarding costs related to recruiting new employees. It allows organizations to cover certain expenses like advertising for job openings, running employment offices, and travel costs for both recruiters and job applicants, as long as these costs are part of the organization's standard recruitment practices. If an organization uses employment agencies, they can also pay for these services as long as the fees are reasonable and in line with what is typically charged in the industry.
However, the regulation specifies that certain costs are not allowed. For example, if an organization offers excessive salaries or benefits to attract professionals that don’t fit their usual practices, those costs cannot be covered. Additionally, if a new employee who received relocation assistance leaves the job within a year for reasons they control, the organization must repay the federal government for those relocation costs. Lastly, short-term visas can be covered if they are necessary for the project and meet specific criteria, ensuring they are directly related to the work funded by federal money.
This regulation is important because it helps ensure that federal funds are used responsibly and effectively in the hiring process. By setting clear guidelines on what recruiting costs are allowable, it helps organizations manage their budgets while still attracting the right talent for their needs.
Generated by gpt-4o-mini on 2025-10-16 11:02:12
(a) Subject to paragraphs (b) and (c) of this section, and provided that the size of the staff recruited and maintained is in keeping with workload requirements, costs of “help wanted” advertising, operating costs of an employment office necessary to secure and maintain adequate staff, costs of operating an aptitude and educational testing program, travel costs of employees while engaged in recruiting personnel, travel costs of applicants for interviews for prospective employment, and relocation costs incurred incident to recruitment of new employees, are allowable to the extent that such costs are incurred pursuant to the recipient's or subrecipient's standard recruitment program. When the recipient or subrecipient uses employment agencies, costs not in excess of standard commercial rates for such services are allowable.
(b) Special emoluments, fringe benefits, and salary allowances incurred to attract professional personnel that do not meet the test of reasonableness or do not conform with the established practices of the recipient or subrecipient, are unallowable.
(c) If relocation costs incurred incident to recruitment of a new employee have been funded in whole or in part by a Federal award, and the newly hired employee resigns for reasons within the employee's control within 12 months after hire, the recipient or subrecipient must refund or credit the Federal Government for its share of those relocation costs. See § 200.464.
(d) Short-term visas (as opposed to longer-term immigration visas) are generally an allowable cost and they may be proposed as a direct cost because they are issued for a specific period and purpose and can be clearly identified as directly connected to work performed on a Federal award. For these costs to be directly charged to a Federal award, they must:
(1) Be critical and necessary for the conduct of the project;
(2) Be allowable under the applicable cost principles;
(3) Be consistent with the recipient's or subrecipient's cost accounting practices and established written policy; and
(4) Meet the definition of “direct cost” as described in the applicable cost principles.
§ 200.464
Relocation costs of employees.
Section 200.464 outlines the allowable relocation costs for employees who are moving for work, either due to a permanent change in duty or when hired. It specifies that costs must benefit the employer, follow a consistent reimbursement policy, and not exceed actual expenses, covering transportation, home-finding costs, closing costs, and other reasonable relocation expenses.
View
§ 200.464
Relocation costs of employees.
42 findings
in our database
This regulation outlines the rules for covering relocation costs when employees move for work. It allows employers to reimburse employees for certain expenses related to moving, but only if the move benefits the employer and follows a consistent written policy. The reimbursement must also reflect the actual costs incurred by the employee. For current employees, allowable costs include transportation for the employee and their family, expenses for finding a new home, closing costs when selling their old home, and some ongoing costs for maintaining the old home for a limited time.
The regulation applies to both current employees who are relocating and new hires. For new employees, the allowable costs are more limited, focusing mainly on transportation and temporary lodging while they find a home. If a new employee leaves their job within a year for reasons they control, the employer may need to refund any federal funding used for their relocation. Certain costs, like fees for buying a new home or losses from selling an old one, are not covered under this regulation.
Understanding these rules is important for both employers and employees. Employers need to follow these guidelines to ensure they are reimbursing costs correctly and not incurring unnecessary expenses. For employees, knowing what costs are covered can help them plan their move and avoid unexpected out-of-pocket expenses.
Generated by gpt-4o-mini on 2025-10-16 11:02:20
(a) Relocation costs are costs incident to the permanent change of duty assignment (for an indefinite period or a stated period of not less than 12 months) of an existing employee or upon recruitment of a new employee. Relocation costs are allowable, subject to the limitations described in paragraphs (b), (c), and (d) of this section, provided that:
(1) The move is for the benefit of the employer.
(2) Reimbursement to the employee is in accordance with an established written policy consistently followed by the employer.
(3) The reimbursement does not exceed the employee's actual (or reasonably estimated) expenses.
(b) Allowable relocation costs for current employees are limited to the following:
(1) The costs of transportation of the employee, members of their immediate family and their household, and personal effects to the new location.
(2) The costs of finding a new home, such as advance trips by employees and spouses to locate living quarters and temporary lodging during the transition period, up to a maximum period of 30 calendar days.
(3) Closing costs, such as brokerage, legal, and appraisal fees, incidental to the disposition of the employee's former home. These costs, together with those described in paragraph (b)(4) of this section, are limited to eight percent of the sales price of the employee's former home.
(4) The continuing costs of ownership (for up to six months) of the vacant former home after the settlement or lease date of the employee's new permanent home, such as maintenance of buildings and grounds (exclusive of fixing-up expenses), utilities, taxes, and property insurance.
(5) Other necessary and reasonable expenses normally incident to relocation, such as canceling an unexpired lease, transportation of personal property, and purchasing insurance against loss of or damages to personal property. The cost of canceling an unexpired lease is limited to three times the monthly rental.
(c) Allowable relocation costs for new employees are limited to those described in paragraphs (b)(1) and (2) of this section. If relocation costs incurred incident to the recruitment of a new employee have been funded in whole or in part by a Federal award, and the newly hired employee resigns for reasons within the employee's control within 12 months after hire, the recipient or subrecipient must refund or credit the Federal Government for its share of the cost. If a new employee is relocating to an overseas location and dependents are not permitted for any reason, and the costs do not include transporting household goods, the costs must be considered travel costs in accordance with § 200.474
, not relocation costs under
this section.
(d) The following costs related to relocation are unallowable:
(1) Fees and other costs associated with acquiring a new home.
(2) A loss on the sale of a former home.
(3) Continuing mortgage principal and interest payments on a home being sold.
(4) Income taxes paid by an employee related to reimbursed relocation costs.
§ 200.465
Rental costs of real property and equipment.
Section 200.465 allows rental costs for real property and equipment if rates are reasonable based on market conditions and property value. It affects recipients and subrecipients of federal funds, particularly in how they handle leases, especially those involving related parties or "sale and lease back" arrangements, which are limited to certain allowable costs.
View
§ 200.465
Rental costs of real property and equipment.
50 findings
in our database
This regulation outlines the rules for how rental costs for property and equipment can be charged to federal funds. It states that rental costs are acceptable as long as they are reasonable compared to similar properties in the area and take into account factors like market conditions and the condition of the property. Organizations must regularly check if their rental agreements are still fair and if there are better options available.
The regulation applies to organizations that receive federal funding and covers various rental situations, including special arrangements where the organization might have a close relationship with the property owner, such as family members or divisions within the same organization. In these cases, the rental costs can only be charged up to a certain limit, which is based on what the organization would have spent if they owned the property instead. Additionally, rental costs for properties that need to be treated as financed purchases under specific accounting standards are also limited to this same amount.
Practically, this regulation is important because it helps ensure that federal funds are used wisely and fairly. It prevents organizations from inflating rental costs or benefiting from related-party transactions that could lead to conflicts of interest. By setting these rules, the regulation promotes transparency and accountability in how federal money is spent on rental properties and equipment.
Generated by gpt-4o-mini on 2025-10-16 11:02:29
(a) Subject to the limitations described in paragraphs (b) through (d) of this section, rental costs are allowable to the extent that the rates are reasonable in light of such factors as costs of comparable rental properties; market conditions in the area; alternatives available; and the type, life expectancy, condition, and value of the property leased. Rental arrangements should be reviewed periodically to determine if circumstances have changed and if other options are available.
(b) Rental costs under “sale and lease back” arrangements are allowable only up to the amount that would have been allowed if the recipient or subrecipient had continued to own the property. This amount would include expenses such as depreciation, maintenance, taxes, and insurance.
(c) Rental costs under “less-than-arm's-length” leases are allowable only up to the amount described in paragraph (b) of this section. For this purpose, a less-than-arm's-length lease is one under which one party to the lease agreement can control or substantially influence the actions of the other. Such leases include, but are not limited to, those between:
(1) Divisions of the recipient or subrecipient;
(2) The recipient or subrecipient and another entity under common control through common officers, directors, or members; and
(3) The recipient or subrecipient and a director, trustee, officer, or key employee of the recipient or subrecipient or an immediate family member, either directly or through corporations, trusts, or similar arrangements in which they hold a controlling interest. For example, the recipient or subrecipient may establish a separate corporation to own property and lease it back to the recipient or subrecipient.
(4) Family members include one party with any of the following relationships to another party:
(i) Spouse and parents thereof;
(ii) Children and spouses thereof;
(iii) Parents and spouses thereof;
(iv) Siblings and spouses thereof;
(v) Grandparents and grandchildren and spouses thereof;
(vi) Domestic partner and parents thereof, including domestic partners of any individual in 2 through 5 of this definition; and
(vii) Any individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship.
(d) Rental costs under leases which are required to be accounted for as a financed purchase under GASB standards or a finance lease under FASB standards are allowable only up to the amount (described in paragraph (b) of this section) that would have been allowed if the recipient or subrecipient had purchased the property on the date the lease agreement was executed. Interest costs related to these leases are allowable if they meet the criteria in § 200.449. Unallowable costs include costs that would not have been incurred if the recipient or subrecipient had purchased the property, such as amounts paid for profit, management fees, and taxes.
(e) Rental or lease payments are allowable under lease contracts where the recipient or subrecipient is required to recognize an intangible right-to-use lease asset under GASB standards or right-of-use operating lease asset under FASB standards for purposes of financial reporting in accordance with GAAP.
(f) The rental of any property owned by any individuals or entities affiliated with the recipient or subrecipient, including commercial or residential real estate, for purposes such as the home office is unallowable.
§ 200.466
Scholarships, student aid costs, and tuition remission.
Section 200.466 allows costs for scholarships and student aid at institutions of higher education (IHEs) only if approved by the Federal agency and related to training participants. Tuition remission and other compensations for student work are permitted if they follow IHE policies, relate to the student's degree program, and are reasonable for the work performed.
View
§ 200.466
Scholarships, student aid costs, and tuition remission.
This regulation outlines the rules for using federal funds to cover costs related to scholarships, fellowships, and student aid at institutions of higher education (IHEs). Specifically, it states that these costs can only be covered if the federal funding is intended to provide training to participants and if the federal agency overseeing the funding approves these expenses. This means that schools can only use federal money for student aid when it directly supports training related to the federal project.
The regulation also allows for tuition remission, which is when students receive a reduction in tuition instead of wages for work they do that is necessary for the federal project. However, several conditions must be met: the work must be essential to the project, the tuition remission must follow the school’s written policies, the student must be enrolled in a relevant advanced degree program, the compensation must be reasonable for the work done, and the school must treat students working on federal projects similarly to those working on other projects.
Lastly, any tuition remission or similar compensation must be reported according to specific guidelines. This means that schools need to keep track of these costs and ensure they are appropriately categorized based on the actual work performed by the students. This regulation is important because it ensures that federal funds are used responsibly and that students are fairly compensated for their contributions to federally funded projects.
Generated by gpt-4o-mini on 2025-10-16 11:02:39
(a) Costs of scholarships, fellowships, and student aid programs at IHEs are allowable only when the purpose of the Federal award is to provide training to participants, and the Federal agency approves the cost.
(b) Tuition remission and other forms of compensation paid as, or instead of, wages to students performing necessary work are allowable provided that:
(1) The individual is conducting activities necessary to the Federal award;
(2) Tuition remission and other support are provided in accordance with the established written policy of the IHE and consistently provided in a like manner to students in return for similar activities conducted under Federal awards as well as other activities; and
(3) The student is enrolled in an advanced degree program at the IHE or an affiliated institution during the academic period and the student's activities under the Federal award are related to their degree program;
(4) The tuition or other payments are reasonable compensation for the work performed and are conditioned explicitly upon the performance of necessary work; and
(5) The IHE compensates students under Federal awards as well as other activities in similar manners.
(c) Charges for tuition remission and other forms of compensation paid to students as, or instead of, salaries and wages are subject to the reporting requirements in § 200.430. The charges must be treated as a direct or indirect cost in accordance with the actual work performed. Tuition remission may be charged on an average rate basis. See § 200.431.
§ 200.467
Selling and marketing costs.
Selling and marketing costs for products or services are not allowed unless they meet specific criteria under § 200.421 and are necessary for fulfilling federal award requirements. This affects recipients and subrecipients of federal funds.
View
§ 200.467
Selling and marketing costs.
18 findings
in our database
Section 200.467 states that costs related to selling and marketing products or services are generally not allowed when using federal funds. This means that if you receive federal money for a project, you can't spend that money on advertising or promoting your products unless certain conditions are met.
This regulation applies to organizations or individuals who receive federal awards, which are funds given by the government to support specific projects or activities. The only time selling and marketing costs can be covered is if they are specifically permitted under another section (§ 200.421) and are necessary to fulfill the goals of the federal funding.
The practical implication of this regulation is that organizations need to be careful about how they use federal funds. They must ensure that any marketing expenses are justified and comply with the rules. This matters because it helps to ensure that taxpayer money is spent appropriately and effectively, focusing on the intended purpose of the federal award rather than on promotional activities.
Generated by gpt-4o-mini on 2025-10-16 11:02:45
Costs of selling and marketing any products or services of the recipient or subrecipient are unallowable unless they are allowed under § 200.421
and are necessary to meet the requirements of the Federal award.
§ 200.468
Specialized service facilities.
Section 200.468 allows costs for specialized services from complex facilities to be charged to federal awards if they follow specific guidelines. This affects recipients and subrecipients of federal funds, requiring them to charge costs based on actual usage and ensure fair rates that cover only the necessary expenses.
View
§ 200.468
Specialized service facilities.
This regulation outlines how costs for specialized services from complex facilities can be charged to federal awards. It allows organizations (called recipients or subrecipients) to cover expenses for services like computing or testing facilities, as long as they follow certain rules. Specifically, the charges must either be based on actual usage of the services or allocated as indirect costs if the expenses are not significant. Additionally, any income or federal funding that offsets these costs must be taken into account.
The regulation applies to organizations that receive federal funding and use specialized facilities for their projects. When charging for these services, the organization must ensure that the rates used do not favor federal activities over other uses, and they should only recover the total costs of providing the service. Rates must be reviewed and adjusted at least every two years to reflect actual costs accurately. In special cases, organizations can negotiate different arrangements for costs if it benefits the federal government.
Understanding this regulation is important because it ensures that organizations manage their funding responsibly and transparently. It helps prevent misuse of federal funds and ensures that all costs are fairly allocated, which ultimately supports the integrity of federal funding programs.
Generated by gpt-4o-mini on 2025-10-16 11:02:54
(a) The costs of services provided by highly complex or specialized facilities operated by the recipient or subrecipient are allowable provided the charges for the services meet the conditions of either paragraph (b) or (c) of this section
and
take into account any items of income or Federal financing that qualify as applicable credits under § 200.406. These costs include charges for facilities such as computing facilities, wind tunnels, and reactors.
(b) The costs of such services, when material, must be charged directly to the applicable Federal awards based on actual usage of the services on the basis of a schedule of rates or established methodology that:
(1) Does not discriminate between activities under Federal awards and other activities of the recipient or subrecipient, including usage by the recipient or subrecipient for internal purposes; and
(2) Is designed to recover only the aggregate costs of the services. Each service's costs must normally consist of its direct costs and an allocable share of all indirect costs. Rates must be adjusted at least biennially and must consider any over or under-applied costs of the previous period(s).
(c) Where the costs incurred for a service are not material, they may be allocated as indirect costs.
(d) Under extraordinary circumstances, the cognizant agency for indirect costs and the recipient or subrecipient may negotiate and establish an alternative costing arrangement if it is in the Federal Government's best interest.
§ 200.469
Student activity costs.
Section 200.469 states that costs for student activities like intramural sports, publications, and clubs cannot be covered unless specifically approved in the Federal award. This affects educational institutions seeking federal funding for these activities.
View
§ 200.469
Student activity costs.
Section 200.469 outlines rules about costs related to student activities, such as intramural sports, student newspapers, and clubs. Essentially, it says that schools and organizations cannot use federal funds to pay for these activities unless they have specific permission in their federal grant or award. This means that if a school wants to fund a student club or sports team with money from a federal source, they need to check if their funding agreement allows for that.
This regulation applies to any educational institution or organization that receives federal funding. It’s important because it helps ensure that taxpayer money is used for its intended purposes. If schools want to support student activities, they must either find other funding sources or ensure that their federal grants explicitly allow for those expenses. This helps maintain accountability and proper use of federal funds.
Generated by gpt-4o-mini on 2025-10-16 11:03:01
Costs incurred for intramural activities, student publications, student clubs, and other student activities are unallowable unless expressly authorized in the Federal award.
§ 200.470
Taxes (including Value Added Tax).
Section 200.470 outlines the rules regarding allowable taxes for States, local governments, Indian Tribes, nonprofit organizations, and institutions of higher education (IHEs). It states that certain taxes are allowable if legally required, while others, like self-assessed taxes affecting Federal programs, are not; nonprofits and IHEs can generally claim taxes paid under GAAP, but must credit any refunds back to the Federal Government.
View
§ 200.470
Taxes (including Value Added Tax).
Section 200.470 outlines the rules regarding taxes that states, local governments, Indian Tribes, nonprofit organizations, and institutions of higher education (IHEs) can claim as allowable costs when they receive federal funding. For government entities, most taxes they are legally required to pay are acceptable, except for self-assessed taxes that negatively impact federal programs. Certain user fees, like gasoline taxes and vehicle fees that benefit the federal government, are also allowed. However, federal agencies can still identify taxes that shouldn’t be covered by federal funds.
For nonprofits and IHEs, taxes that they must pay and that are recorded according to Generally Accepted Accounting Principles (GAAP) are generally acceptable. This includes payments to local governments that match the services received. However, some taxes are not allowed, such as those for which the organization has exemptions, special assessments for land improvements, and federal income taxes. If they receive a tax refund, that amount must be credited back to the federal government, and any interest related to that refund must also be accounted for appropriately. Additionally, foreign taxes that must be paid for procurement in other countries are allowable, and any refunds or credits from these taxes must also be reported back to the federal agency.
Understanding these rules is important because they help ensure that federal funds are used appropriately and that organizations receiving these funds do not claim costs that are not justified. This regulation helps maintain accountability and transparency in how taxpayer money is spent, ensuring that only necessary and legitimate expenses are covered.
Generated by gpt-4o-mini on 2025-10-16 11:03:11
(a)
For States, local governments, and Indian Tribes.
(1) Taxes that a governmental unit is legally required to pay are allowable, except for self-assessed taxes that disproportionately affect Federal programs or changes in tax policies that disproportionately affect Federal programs.
(2) Gasoline taxes, motor vehicle fees, and other taxes that are, in effect, user fees for benefits provided to the Federal Government are allowable.
(3) This provision does not restrict the authority of the Federal agency to identify taxes where Federal participation is inappropriate. The cognizant agency for indirect costs may accept a reasonable approximation in circumstances where determining the amount of unallowable taxes would require an excessive amount of effort.
(b)
For nonprofit organizations and IHEs.
(1) Taxes that the recipient or subrecipient is required to pay and which are paid or accrued in accordance with GAAP are generally allowable. These costs include payments made to local governments instead of taxes and that are commensurate with the local government services received. The following taxes are unallowable:
(i) Taxes for which exemptions are available to the recipient or subrecipient directly or which are available to the recipient or subrecipient based on an exemption afforded the Federal Government and, in the latter case, when the Federal agency makes available the necessary exemption certificates;
(ii) Special assessments on land which represent capital improvements; and
(iii) Federal income taxes.
(2) Any refund of taxes and interest thereon, which were allowed as Federal award costs, must be credited to the Federal Government as a cost reduction or cash refund, as appropriate. However, any interest paid or credited to a recipient or subrecipient incident to a refund of tax, interest, and penalty will be paid or credited to the Federal Government only to the extent that such interest accrued over the period during which the Federal Government has reimbursed the recipient or subrecipient for the taxes, interest, and penalties.
(c)
Value Added Tax (VAT).
Foreign taxes charged for procurement transactions that a recipient or subrecipient is legally required to pay in a country are allowable. Foreign tax refunds or applicable credits under Federal awards refer to receipts or reduction of expenditures, which operate to offset or reduce expense items that are allocable to Federal awards as direct or indirect costs. To the extent that such credits accrued or received by the recipient or subrecipient relate to allowable cost, these costs must be credited to the Federal agency as a cost reduction or cash refunds, as appropriate. In cases where the costs are credited back to the Federal award, the recipient or subrecipient may reduce the Federal share of costs by the amount of the foreign tax reimbursement, or where Federal award has not expired, the Federal agency may allow the recipient or subrecipient to use the foreign government tax refund for approved activities under the Federal award.
§ 200.471
Telecommunication and video surveillance costs.
Section 200.471 allows costs for telecommunications and video surveillance services or equipment, like phones and internet, unless they involve certain prohibited actions related to contracts or procurement as outlined in § 200.216. This affects organizations using federal funds for these services, ensuring compliance with specific contracting rules.
View
§ 200.471
Telecommunication and video surveillance costs.
This regulation outlines the rules for using funds for telecommunications and video surveillance services, like phones, internet, and security cameras. Generally, these costs are allowed, meaning organizations can use their funds to pay for these services and equipment. However, there are specific situations where these costs cannot be covered.
The restrictions apply when organizations are trying to buy or renew contracts for certain telecommunications and video surveillance services. This means that if an organization is looking to enter into a new contract or extend an existing one for these services, they need to be careful. The regulation specifies that they cannot use federal funds for these purposes if they fall under the outlined restrictions.
Understanding this regulation is important because it helps organizations manage their budgets effectively. By knowing what costs are allowed and what are not, they can avoid wasting money or facing penalties. This ensures that funds are used appropriately, which is crucial for maintaining trust and accountability in how public money is spent.
Generated by gpt-4o-mini on 2025-10-16 11:03:17
(a) Costs incurred for telecommunications and video surveillance services or equipment such as phones, internet, video surveillance, and cloud servers are allowable except for the following circumstances:
(b) Obligating or expending covered telecommunications and video surveillance services or equipment or services as described in § 200.216 to:
(1) Procure or obtain, extend or renew a contract to procure or obtain;
(2) Enter into a contract (or extend or renew a contract) to procure; or
(3) Obtain the equipment, services, or systems.
§ 200.472
Termination and standard closeout costs.
Section 200.472 outlines the rules for costs associated with the termination of a Federal award. It specifies that certain costs may be allowable if they cannot be immediately discontinued, but items usable for other work are generally not covered unless proven otherwise, affecting recipients and subrecipients of Federal funding.
View
§ 200.472
Termination and standard closeout costs.
Section 200.472 outlines the rules for handling costs when a federal award is terminated. When a federal grant or contract ends, certain costs may arise that wouldn’t have happened if the award hadn’t been terminated. For example, if the recipient has items that could be used for other projects, they can’t charge those costs unless they can prove they would lose money by keeping them. The federal agency will look at the recipient’s plans to determine if those items can be used elsewhere. If the recipient can’t stop certain costs immediately after termination, those costs may still be allowed as long as they made reasonable efforts to stop them. However, if they fail to do so intentionally, those costs won’t be covered.
This regulation applies to anyone receiving federal funds, including organizations and individuals who might be working on projects funded by the government. It’s important because it sets clear guidelines on what costs can be claimed after a project ends, ensuring that federal money is spent appropriately. Additionally, it allows for some administrative costs associated with closing out the award, like preparing final reports or managing equipment. Understanding these rules helps recipients manage their finances better and ensures compliance with federal requirements, which can prevent potential financial losses or disputes.
Generated by gpt-4o-mini on 2025-10-16 11:03:24
(a)
Termination Costs.
Termination of a Federal award generally gives rise to the incurrence of costs or the need for special treatment of costs, which would not have arisen had the Federal award not been terminated. Cost principles covering these items are set forth in this section. They must be used in conjunction with the other termination requirements of this part.
(1) The cost of items reasonably usable on the recipient's or subrecipient's other work is unallowable unless the recipient or subrecipient submits evidence that it would not retain such items without sustaining a loss. In deciding whether such items are reasonably usable on other work of the recipient or subrecipient, the Federal agency or pass-through entity should consider the recipient's or subrecipient's plans and orders for current and scheduled activity. Contemporaneous purchases of common items by the recipient or subrecipient must be considered evidence that the items are reasonably usable on the recipient's or subrecipient's other work. Any acceptance of common items as allocable to the terminated portion of the Federal award must be limited to the extent that the quantities of such items on hand, in transit, and on order do not exceed the reasonable quantitative requirements of other work.
(2) If the recipient or subrecipient cannot discontinue certain costs immediately after the effective termination date, despite making all reasonable efforts, then the costs are generally allowable within the limitations of this part. Any costs continuing after termination due to the negligent or willful failure of the recipient or subrecipient to immediately discontinue the costs are unallowable.
(3) Loss of useful value of special tooling, machinery, and equipment is generally allowable if:
(i) Such special tooling, special machinery, or equipment is not reasonably capable of use in the other work of the recipient or subrecipient;
(ii) The interest of the Federal Government is protected by transfer of title or by other means deemed appropriate by the Federal agency (see § 200.313 (d)); and
(iii) The loss of useful value for any one terminated Federal award is limited to the portion of the acquisition cost which bears the same ratio to the total acquisition cost as the terminated portion of the Federal award bears to the entire terminated Federal award and other Federal awards for which the special tooling, machinery, or equipment was acquired.
(4) If paragraph (a)(4)(i) and (ii) below are satisfied, rental costs under unexpired leases (less the residual value of such leases) are generally allowable where clearly shown to have been reasonably necessary for the performance of the terminated Federal award. These rental costs may include the cost of alterations of the leased property and the cost of reasonable restoration required by the lease, provided the alterations were necessary for the performance of the Federal award.
(i) The amount of claimed rental costs does not exceed the reasonable use value of the property leased for the period of the Federal award and a further period as may be reasonable; and
(ii) The recipient or subrecipient makes all reasonable efforts to terminate, assign, settle, or otherwise reduce the cost of the lease.
(5) The following settlement expenses are generally allowable.
(i) Accounting, legal, clerical, and similar costs that are reasonably necessary for:
(A) The preparation and presentation to the Federal agency or pass-through entity of settlement claims and supporting data with respect to the terminated portion of the Federal award, unless the termination is for cause (see §§ 200.339-200.343); and
(B) The termination and settlement of subawards.
(ii) Reasonable costs for the storage, transportation, protection, and disposition of property provided by the Federal Government or acquired or produced for the Federal award.
(6) Claims under subawards, including the allocable portion of claims common to the Federal award and other work of the recipient or subrecipient, are generally allowable. An appropriate share of the recipient's or subrecipient's indirect costs may be allocated to the amount of settlements with contractors and subrecipients, provided that the amount allocated is consistent with the requirements of § 200.414. These allocated indirect costs must exclude the same and similar costs claimed directly or indirectly as settlement expenses.
(b)
Closeout Costs.
Administrative costs associated with the closeout activities of a Federal award are allowable. The recipient or subrecipient may charge the Federal award during the closeout for the necessary administrative costs of that Federal award (for example, salaries of personnel preparing final reports, publication and printing costs, costs associated with the disposition of equipment and property, and related indirect costs). These costs may be incurred until the due date of the final report(s). If incurred, these costs must be liquidated prior to the due date of the final report(s) and charged to the final budget period of the award unless otherwise specified by the Federal agency.
§ 200.473
Training and education costs.
Section 200.473 allows costs for employee training and education as acceptable expenses. This affects organizations that receive federal funding and want to invest in their employees' development.
View
§ 200.473
Training and education costs.
2 findings
in our database
This regulation states that businesses can cover the costs of training and education for their employees. This means if a company wants to help its workers improve their skills or learn new things, they can pay for classes, workshops, or other educational programs without worrying about breaking any rules.
This rule applies to organizations that receive federal funding or grants. If they want to invest in their employees' growth through training, they can do so and include those expenses in their budget. This is important because it encourages companies to support their workforce, which can lead to better job performance and overall success for the organization.
The practical implication of this regulation is that it helps businesses create a more skilled and knowledgeable workforce. By allowing training costs to be covered, it promotes a culture of learning and development, which can benefit both employees and the company. This can lead to higher job satisfaction, lower turnover rates, and ultimately, a more competitive and effective organization.
Generated by gpt-4o-mini on 2025-10-16 11:03:30
The cost of training and education provided for employee development is allowable.
§ 200.474
Transportation costs.
Transportation costs for goods, such as freight and postage, are allowable expenses. These costs can be charged directly to specific items or allocated to indirect cost accounts if they can't be easily identified, as long as consistent procedures are followed. Outbound freight can be treated as a direct cost if it meets federal award conditions.
View
§ 200.474
Transportation costs.
25 findings
in our database
This regulation outlines how organizations can handle transportation costs related to goods they buy or receive. It states that costs for shipping items—like freight, express delivery, and postage—are allowed. If these costs can be easily linked to specific items, they can be charged directly to those items. If it’s hard to connect the transportation costs to specific goods, these costs can be included in general indirect costs, as long as the organization uses a fair and consistent method to do so.
The regulation applies to organizations that receive federal funding, such as nonprofits or educational institutions. It’s important for them to know how to categorize these transportation costs correctly, especially when they are seeking reimbursement for expenses. Properly managing these costs can help ensure that they stay compliant with federal guidelines and can receive the funding they need to support their operations.
Generated by gpt-4o-mini on 2025-10-16 11:03:36
Costs incurred for freight, express, cartage, postage, and other transportation services relating to goods purchased, in process, or delivered, are allowable. When the costs can be readily identified with the items involved, they may be charged directly as transportation costs or added to the cost of such items. When identification with the materials received cannot be readily made, the inbound transportation cost may be charged to the appropriate indirect cost accounts if the recipient or subrecipient follows a consistent, equitable procedure in this respect. If reimbursable under the terms and conditions of the Federal award, outbound freight should be treated as a direct cost.
§ 200.475
Travel costs.
Section 200.475 outlines the rules for travel costs incurred by employees on official business, including transportation, lodging, and subsistence. These costs must be reasonable, consistent with the organization's policies, and justified if charged to a Federal award, affecting recipients and subrecipients of Federal funds.
View
§ 200.475
Travel costs.
3,633 findings
in our database
Section 200.475 outlines the rules regarding travel costs for employees who are traveling for official business related to federal awards. It specifies that travel costs can include transportation, lodging, meals, and other related expenses. These costs can be charged based on actual expenses, a daily allowance (per diem), or mileage, but the chosen method must be consistent throughout the entire trip and align with the organization’s existing policies. If certain officials' travel costs are involved, they need prior written approval from the federal agency.
The regulation applies to organizations (recipients or subrecipients) that receive federal funds and their employees. It requires that any travel expenses must be reasonable and not exceed what the organization typically allows in its regular operations. For example, if an employee travels for a conference, the organization must justify that the employee's participation is necessary and that the costs are reasonable. Additionally, while temporary dependent care costs related to travel can be covered, travel costs for dependents are generally not allowed unless specific conditions are met.
This regulation is important because it ensures that federal funds are used responsibly and that travel expenses are kept in check. It helps organizations manage their budgets effectively while still allowing for necessary travel. By setting clear guidelines, it reduces the risk of misuse of funds and ensures accountability in how taxpayer money is spent.
Generated by gpt-4o-mini on 2025-10-16 11:03:49
(a)
General.
Travel costs include the transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of the recipient or subrecipient. These costs may be charged on an actual cost basis, on a per diem or mileage basis, or on a combination of the two, provided the method used is applied to an entire trip and not to selected days of the trip. The method used must be consistent with those normally allowed in like circumstances in the recipient's or subrecipient's other activities and in accordance with the recipient's or subrecipient's established written policies. Notwithstanding the provisions of § 200.444, travel costs of officials covered by that section are allowable with the prior written approval of the Federal agency or pass-through entity when they are specifically related to the Federal award.
(b)
Lodging and subsistence.
Costs incurred by employees and officers for travel, including costs of lodging, other subsistence, and incidental expenses, must be considered reasonable and otherwise allowable only to the extent such costs do not exceed charges normally allowed by the recipient or subrecipient in its regular operations as the result of the recipient's or subrecipient's established written policy. In addition, if these costs are charged directly to the Federal award documentation must justify that:
(1) Participation of the individual is necessary for the Federal award; and
(2) The costs are reasonable and consistent with the recipient's or subrecipient's established written policy.
(c)
Dependents.
(1) Temporary dependent care costs (dependent is defined in 26 U.S.C. 152) above and beyond regular dependent care are allowable provided that these costs:
(i) Are a direct result of the individual's travel to a conference for the Federal award;
(ii) Are consistent with the recipient's or subrecipient's established written policy for all travel; and
(iii) Are only temporary during the travel period.
(2) Travel costs for dependents are unallowable, except for travel of six months or more with prior approval of the Federal agency. See § 200.432.
(d)
Establishing rates and amounts.
In the absence of an established written policy regarding travel costs, the rates and amounts established under 5 U.S.C. 5701-11 (“Travel and Subsistence Expenses; Mileage Allowances”), by the Administrator of General Services, or by the President (or their designee) pursuant to any provisions of such subchapter must apply to travel under Federal awards (48 CFR 31.205-46(a)).
(e)
Commercial air travel.
(1) Airfare costs in excess of the basic least expensive unrestricted accommodations class offered by commercial airlines are unallowable except when such accommodations would:
(i) Require circuitous routing;
(ii) Require travel during unreasonable hours;
(iii) Excessively prolong travel;
(iv) Result in additional costs that would offset the transportation savings; or
(v) Offer accommodations not reasonably adequate for the traveler's medical needs. The recipient or subrecipient must justify and document these conditions on a case-by-case basis for the use of first-class or business-class airfare to be allowable in such cases.
(2) Unless a pattern of avoidance is detected, the Federal Government will generally not question a recipient's or subrecipient's determinations that customary standard airfare or other discount airfare is unavailable for specific trips if the recipient or subrecipient can demonstrate that such airfare was not available in the specific case.
(f)
Air travel by other than commercial carrier.
Travel costs by recipient or subrecipient-owned, -leased, or -chartered aircraft include the cost of the lease, charter, operation (including personnel costs), maintenance, depreciation, insurance, and other related costs. The portion of these costs that exceeds the cost of airfare, as provided for in paragraph (d), is unallowable.
§ 200.476
Trustees.
Section 200.476 allows travel and subsistence costs for trustees or directors at institutions of higher education (IHEs) and nonprofit organizations to be covered. This means these organizations can reimburse their leaders for related expenses.
View
§ 200.476
Trustees.
33 findings
in our database
This regulation, Section 200.476, states that trustees or directors of institutions of higher education (IHEs) and nonprofit organizations can have their travel and subsistence costs covered. "Travel and subsistence" means expenses related to traveling for work, such as transportation, meals, and lodging. This is important because it allows these leaders to attend meetings, conferences, or other events that are essential for the organization’s mission without worrying about personal costs.
The regulation applies specifically to trustees and directors of IHEs and nonprofit organizations. It means that when these individuals need to travel for their roles, the organization can use its funds to pay for those expenses, as long as they follow the guidelines set out in another section, § 200.475. This matters because it helps ensure that organizations can attract and retain qualified leaders who can effectively guide their missions, without financial barriers getting in the way.
Generated by gpt-4o-mini on 2025-10-16 11:03:55
Travel and subsistence costs of trustees (or directors) at IHEs and nonprofit organizations are allowable. See § 200.475.
§ 200.500
Purpose.
Section 200.500 establishes standards to ensure that all Federal agencies conduct consistent and uniform audits of non-Federal entities that receive Federal funding. This affects organizations that use Federal awards, ensuring they are audited in a standardized way.
View
§ 200.500
Purpose.
245 findings
in our database
Section 200.500 outlines the rules for how federal agencies should conduct audits of organizations that receive federal funding, known as non-Federal entities. The main goal of this regulation is to ensure that all federal agencies follow the same standards and procedures when auditing these organizations. This consistency helps to create a fair and reliable process for checking how federal money is spent.
This regulation applies to any federal agency that provides funding to non-Federal entities, such as state and local governments, nonprofits, and educational institutions. It comes into play whenever these organizations receive federal awards, which are funds given by the government to support specific projects or services. By having uniform standards, the regulation helps to ensure that audits are thorough and that all organizations are held to the same level of accountability.
The practical implications of this regulation are significant. By standardizing audit processes, it reduces confusion and helps organizations understand what is expected of them when they receive federal funds. This can lead to better management of taxpayer money and ensures that funds are used effectively for their intended purposes. Ultimately, it helps build trust in how federal funds are handled and promotes transparency in government spending.
Generated by gpt-4o-mini on 2025-10-16 11:04:05
This part sets forth standards for obtaining consistency and uniformity among Federal agencies for the audit of non-Federal entities expending Federal awards.
§ 200.501
Audit requirements.
Non-Federal entities that spend $1,000,000 or more in Federal awards during their fiscal year must undergo a single or program-specific audit. Entities spending less than $1,000,000 are exempt from these audit requirements but must still keep their records available for review by Federal officials.
View
§ 200.501
Audit requirements.
1,791 findings
in our database
Section 200.501 outlines the audit requirements for organizations that receive federal funding. If a non-Federal entity (like a nonprofit, state, or local government) spends $1,000,000 or more in federal awards during its fiscal year, it must undergo an audit. This audit can either be a single audit, which looks at all federal funding, or a program-specific audit, which focuses on a single federal program, depending on certain conditions. For example, if the organization only uses funds from one federal program and that program doesn’t require a full financial statement audit, it can choose the program-specific audit.
This regulation applies to various entities that receive federal funds, including nonprofits and government agencies, but not for-profit organizations. If an entity spends less than $1,000,000 in federal awards in a year, it doesn’t need to undergo an audit, but its records must still be available for review by federal officials. The regulation also specifies that if an organization is both a recipient of federal funds and a contractor providing services, the audit requirements mainly apply to the funds received as a recipient or subrecipient, not for the contractor services. This is important because it ensures that taxpayer money is being used properly and that organizations are held accountable for how they manage federal funds.
Generated by gpt-4o-mini on 2025-10-16 11:04:13
Acronym Definition (a) Audit required. A non-Federal entity that expends $1,000,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of this part. (b) Single audit. A non-Federal entity that expends $1,000,000 or more in Federal awards during the non-Federal entity's fiscal year must have a single audit conducted in accordance with § 200.514 except when it elects to have a program-specific audit conducted in accordance with paragraph (c) or (d) of this section. (c) Program-specific audit election (in general). A non-Federal entity may elect to have a program-specific audit conducted in accordance with § 200.507 if the following conditions are met: (1) The non-Federal entity expends Federal awards under only one Federal program (excluding research and development); and (2) The Federal program's statutes or regulations, or terms and conditions of the Federal award, do not require a financial statement audit of the non-Federal entity. (d) Program-specific audit election for research and development. A non-Federal entity may elect to have a program-specific audit for research and development conducted in accordance with § 200.507, but only if all of the following conditions are met: (1) The non-Federal entity expends Federal awards only from the same Federal agency, or the same Federal agency and the same pass-through entity; and (2) The Federal agency, or pass-through entity in the case of a subrecipient, approves a program-specific audit in advance. (e) Exemption when Federal awards expended are less than $1,000,000. A non-Federal entity that expends less than $1,000,000 in Federal awards during its fiscal year is exempt from Federal audit requirements for that year, except as noted in § 200.503. However, in all instances, the records of the non-Federal entity must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and the Government Accountability Office (GAO). (f) Federally Funded Research and Development Centers (FFRDC). Management of an auditee that owns or operates a FFRDC may elect to treat the FFRDC as a separate entity for purposes of this part. (g) Subrecipients and contractors. An auditee may simultaneously be a recipient, a subrecipient, and a contractor. Unless a program is exempt by Federal statute, Federal awards expended as a recipient or a subrecipient are subject to audit under this part. Payments received for goods or services provided as a contractor under a Federal award (see § 200.331) are not subject to audit under this part. (h) Compliance responsibility for contractors. In most cases, the auditee's compliance responsibility for contractors is to ensure that the procurement, receipt, and payment for goods and services comply with Federal statutes, regulations, and the terms and conditions of a Federal award. Federal award compliance requirements normally do not flow down to contractors. However, for procurement transactions in which the contractor is made responsible for meeting program requirements, the auditee must ensure those requirements are met, including by clearly stating the contractor's responsibilities within the contract and reviewing the contractor's records to determine compliance. Also, when these procurement transactions relate to a major program, the scope of the audit must include a determination of whether these transactions comply with Federal statutes, regulations, and the terms and conditions of a Federal award. See also § 200.318(b). (i) For-profit subrecipient. This subpart does not apply to for-profit organizations. As necessary, the pass-through entity is responsible for establishing requirements to ensure compliance by for-profit subrecipients. The subaward with a for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient's compliance responsibility. Methods to ensure compliance for Federal awards made to for-profit subrecipients may include pre-award audits, monitoring throughout the performance of the subaward, and post-award audits (see § 200.332).
§ 200.502
Basis for determining Federal awards expended.
Section 200.502 outlines how to determine when Federal awards are considered expended, focusing on activities that require compliance with Federal rules, such as grant transactions, fund disbursements, and loan usage. It affects non-Federal entities, including institutions of higher education, by specifying how to calculate the value of Federal awards, particularly in relation to loans and their compliance requirements.
View
§ 200.502
Basis for determining Federal awards expended.
5,761 findings
in our database
This regulation outlines how to determine when federal funds are considered "expended," meaning when they are used or spent by organizations that receive federal awards. It specifies that the timing of these expenditures is linked to specific activities related to the federal award, such as spending money from grants, distributing funds to other organizations, using loan proceeds, or receiving property. Essentially, it clarifies that any financial transactions or benefits tied to federal funding must be tracked carefully to ensure compliance with federal rules.
The regulation applies to various entities, including non-profit organizations, state and local governments, and educational institutions that receive federal funding. It covers different situations, such as loans, grants, and other forms of financial assistance. For example, if a college receives federal loans for students, only the loans issued during the current audit period count as expenditures, not previous loans. This is important for ensuring that organizations accurately report their use of federal funds, as incorrect reporting can lead to compliance issues or funding penalties.
Practically, this regulation matters because it helps ensure transparency and accountability in how federal funds are used. By clearly defining when and how to report expenditures, it protects both the federal government and the organizations receiving funds. This clarity helps prevent misuse of funds and ensures that resources are allocated effectively, ultimately supporting the intended programs and services funded by federal awards.
Generated by gpt-4o-mini on 2025-10-16 11:04:27
(a)
Determining Federal awards expended.
The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as:
(1) Expenditure/expense transactions associated with grants, cooperative agreements, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, and direct appropriations;
(2) The disbursement of funds to subrecipients;
(3) The use of loan proceeds under loan and loan guarantee programs;
(4) The receipt of property (including surplus property);
(5) The receipt or use of program income;
(6) The distribution or use of food commodities;
(7) The disbursement of amounts entitling the non-Federal entity to an interest subsidy; and
(8) The period when insurance is in force.
(b)
Loan and loan guarantees (loans).
The Federal Government is at risk for loans until the debt is repaid. Therefore, the following guidelines must be used to calculate the value of Federal awards expended under loan programs (except as noted in paragraphs (c) and (d)):
(1) The value of new loans made or received during the audit period; plus
(2) The balance of loans from previous years at the beginning of the audit period for which the Federal Government imposes continuing compliance requirements; plus
(3) Any interest subsidy, cash, or administrative cost allowance received.
(c)
Loan and loan guarantees (loans) at Institutions of Higher Education (IHE).
When loans are made to students of an IHE, but the IHE itself does not have continuing compliance requirements for the loans, then only the value of loans made during the audit period are considered Federal awards expended in that audit period. The balance of loans for previous audit periods is not included as Federal awards expended because the lender accounts for the prior balances.
(d)
Prior loan and loan guarantees (loans).
Loans, the proceeds of which were received and expended in prior years, are not considered Federal awards expended under this part when Federal statutes, regulations, and the terms and conditions of Federal awards pertaining to such loans impose no continuing compliance requirements other than to repay the loans.
(e)
Endowment funds.
The cumulative balance of Federal awards for endowment funds that are federally restricted is considered Federal awards expended in each audit period in which the funds are still restricted.
(f)
Free rent.
Free rent received by itself is not considered a Federal award expended under this part. However, free rent received as part of a Federal award to carry out a Federal program must be included in determining Federal awards expended and is subject to audit under this part.
(g)
Valuing non-cash assistance.
Federal non-cash assistance (such as free rent, food commodities, donated property, or donated surplus property that is received as part of a Federal award to carry out a Federal program) must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency and must be included in determining Federal awards expended under this part.
(h)
Medicare.
Medicare payments to a non-Federal entity for providing patient care services to Medicare-eligible individuals are not considered Federal awards expended under this part.
(i)
Medicaid.
Medicaid payments to a subrecipient for providing patient care services to Medicaid-eligible individuals are not considered Federal awards expended under this part unless a State requires the funds to be treated as Federal awards expended because reimbursement is on a cost-reimbursement basis.
(j)
Certain loans provided by the National Credit Union Administration.
For purposes of this part, loans from the National Credit Union Share Insurance Fund and the Central Liquidity Facility funded by contributions from insured non-Federal entities are not considered Federal awards expended.
§ 200.503
Relation to other audit requirements.
Section 200.503 states that audits of Federal awards conducted under this regulation replace any other required financial audits for non-Federal entities, but Federal agencies can still perform additional audits as needed. These additional audits must not duplicate existing ones and should build on previous audit work to ensure efficiency.
View
§ 200.503
Relation to other audit requirements.
This regulation outlines how audits of federal funds should be handled. First, if a non-federal entity (like a state or local government, or a nonprofit organization) is required to conduct a financial audit of federal awards, this audit can replace any other financial audits required by different federal laws. Federal agencies must use the information from this audit to fulfill their responsibilities, meaning they can rely on it instead of conducting their own audit.
However, federal agencies, their Inspectors General, or the Government Accountability Office (GAO) can still conduct additional audits if needed. These audits should not duplicate what has already been done, so the federal agency must check recent audits before starting a new one. If they decide to conduct an additional audit, they are responsible for covering the costs. Furthermore, federal agencies can request that certain programs be audited as major programs, which means they would receive more scrutiny. This request should be made well in advance, and if the auditee agrees and the agency covers the costs, the program must be audited accordingly.
Overall, this regulation ensures that audits are efficient and that federal agencies can effectively monitor how federal funds are used, while also minimizing unnecessary duplication of efforts. It helps streamline the audit process, ensuring that resources are used wisely and that compliance with federal requirements is maintained.
Generated by gpt-4o-mini on 2025-10-16 11:04:35
(a)
Other financial audits.
An audit conducted in accordance with this part must be in lieu of any financial audit of Federal awards which a non-Federal entity is required to undergo under any other Federal statute or regulation. To the extent that such an audit provides a Federal agency with the information it requires to carry out its responsibilities under Federal statute or regulation, a Federal agency must rely upon and use that information.
(b)
Conducting additional audits.
Notwithstanding paragraph (a) of this section, a Federal agency, Inspectors General, or GAO may conduct or arrange additional audits to carry out its responsibilities under Federal statute or regulation. The provisions of this part do not authorize any non-Federal entity to constrain, in any manner, such Federal agency from carrying out or arranging for such additional audits, except that the Federal agency must plan such audits not to be duplicative of other audits of Federal awards. Prior to commencing such an audit, the Federal agency or pass-through entity must review the FAC for recent audits submitted by the non-Federal entity, and to the extent such audits meet a Federal agency or pass-through entity's needs, the Federal agency or pass-through entity must rely upon and use such audits. Any additional audits must be planned and performed in such a way as to build upon work performed, including the audit documentation, sampling, and testing already performed by other auditors.
(c)
Authority to conduct additional audits.
The provisions of this part do not limit the authority of Federal agencies to conduct, or arrange for the conduct of, audits and evaluations of Federal awards, nor limit the authority of any Federal agency Inspector General or other Federal officials. For example, requirements that may be applicable under the FAR or CAS and the terms and conditions of a cost-reimbursement contract may include additional applicable audits to be conducted or arranged for by Federal agencies.
(d)
Federal agency to pay for additional audits.
A Federal agency that conducts or arranges for additional audits must, consistent with other applicable Federal statutes and regulations, arrange for funding the full cost of such additional audits.
(e)
Request for a program to be audited as a major program.
A Federal agency may request that an auditee have a particular Federal program audited as a major program in lieu of the Federal agency conducting or arranging for the additional audits. Such requests should be made at least 180 calendar days prior to the end of the fiscal year to be audited to allow for planning. After consultation with its auditor, the auditee should promptly respond to such a request by informing the Federal agency whether the program would otherwise be audited as a major program using the risk-based audit approach described in § 200.518 and, if not, the estimated incremental cost. The Federal agency must then promptly confirm to the auditee whether it wants the program audited as a major program. If the program is to be audited as a major program based upon this Federal agency request, and the Federal agency agrees to pay the full incremental costs, then the auditee must have the program audited as a major program. With approval of the Federal agency, a pass-through entity may use the provisions of this paragraph for a subrecipient.
§ 200.504
Frequency of audits.
Audits must generally be conducted annually, but certain states, local governments, or Indian Tribes can opt for biennial audits if allowed by their laws as of January 1, 1987. Additionally, nonprofit organizations that previously had biennial audits during specific periods can continue with this schedule.
View
§ 200.504
Frequency of audits.
This regulation states that most organizations need to have their financial audits done every year. However, there are some exceptions where audits can be done every other year, known as biennial audits. If an organization qualifies for these biennial audits, they must cover both years in that period.
The exceptions apply mainly to state and local governments or Indian Tribes that have laws in place since January 1, 1987, allowing them to audit less frequently than annually. Additionally, certain nonprofit organizations that were already doing biennial audits during specific years between 1992 and 1995 can continue to do so.
Understanding this regulation is important because it helps ensure that organizations are held accountable for their financial practices. Regular audits help maintain transparency and trust, especially for public entities and nonprofits that rely on public funding or donations. By knowing when and how often audits are required, organizations can better manage their finances and comply with legal requirements.
Generated by gpt-4o-mini on 2025-10-16 11:04:42
Audits required by this part must be performed annually unless biennial audits are permitted under paragraph (a) or (b) of this section. Biennial audits must cover both fiscal years within the biennial period.
(a) A State, local government, or Indian Tribe that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo biennial (every other year) audits pursuant to this part. This requirement must still be in effect for the biennial period.
(b) Any nonprofit organization that had biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, is permitted to undergo biennial audits pursuant to this part.
§ 200.505
Remedies for audit noncompliance.
Section 200.505 states that if a non-federal entity fails to conduct required audits, federal agencies or pass-through entities must take necessary actions as outlined in § 200.339. This affects non-federal entities that do not comply with audit requirements.
View
§ 200.505
Remedies for audit noncompliance.
192 findings
in our database
Section 200.505 deals with what happens if a non-federal entity, like a nonprofit organization or a local government, fails to get an audit done as required. An audit is a thorough review of an organization’s financial records to ensure they are accurate and comply with regulations. If these entities either can't or won't complete the audit, federal agencies or organizations that provide funding to them (called pass-through entities) must take specific actions outlined in another section, § 200.339.
This regulation applies to any non-federal entity that receives federal funds and is required to undergo an audit. It’s important because audits help ensure that taxpayer money is used properly. If an organization doesn’t comply with the audit requirements, it can lead to consequences, such as losing funding or facing other penalties. This helps maintain accountability and transparency in how federal funds are managed and spent.
Generated by gpt-4o-mini on 2025-10-16 11:04:48
In cases of continued inability or unwillingness of a non-federal entity to have an audit conducted in accordance with this part, Federal agencies or pass-through entities must take appropriate action as provided in § 200.339.
§ 200.506
Audit costs.
Section 200.506 refers to the costs associated with audits for federal awards. It affects organizations that receive federal funding, outlining how they can manage and allocate audit expenses.
View
§ 200.506
Audit costs.
Section 200.506 of the Code of Federal Regulations deals with the costs associated with audits, which are thorough checks of financial records and practices. This regulation specifies what expenses related to these audits can be covered or reimbursed. Essentially, it sets guidelines to ensure that organizations receiving federal funds can properly account for the money they spend on auditing their financial activities.
This regulation primarily applies to organizations that receive federal funding, such as non-profits, educational institutions, and state or local governments. It is relevant in situations where these organizations need to conduct audits to ensure they are using federal funds appropriately and in compliance with regulations. By outlining what audit costs are allowable, the regulation helps organizations manage their budgets effectively and ensures transparency in how public funds are handled.
Understanding this regulation is important because it helps organizations avoid unnecessary expenses and ensures that they can allocate their resources effectively. By knowing what audit costs are permissible, organizations can plan their finances better and maintain compliance with federal requirements, which can ultimately lead to more efficient use of taxpayer money and greater accountability in public spending.
Generated by gpt-4o-mini on 2025-10-16 11:04:54
§ 200.507
Program-specific audits.
Section 200.507 outlines the requirements for program-specific audits of Federal programs. It states that if a specific audit guide is available, auditors must follow it along with Generally Accepted Government Auditing Standards (GAGAS); if not, both the auditee and auditor must fulfill similar responsibilities as in a major program audit, including preparing financial statements and ensuring compliance with Federal regulations.
View
§ 200.507
Program-specific audits.
16 findings
in our database
Section 200.507 outlines the requirements for program-specific audits, which are audits focused on specific federal programs. When a program-specific audit guide is available, auditors must follow this guide along with established government auditing standards. This guide provides detailed instructions on what auditors should check, including internal controls (the processes that ensure accurate financial reporting), compliance with laws, and how to report their findings. If no specific guide is available, the responsibilities of both the organization being audited (the auditee) and the auditor remain similar to those in a standard audit.
This regulation applies to organizations that receive federal funding and are subject to audits of their financial activities related to those funds. It ensures that these organizations prepare accurate financial statements, including a summary of past audit findings and a plan for addressing any issues. Auditors are required to assess the organization’s internal controls, check for compliance with relevant laws, and report their findings clearly. The importance of this regulation lies in its role in promoting transparency and accountability in the use of federal funds, helping to ensure that taxpayer money is spent appropriately and effectively.
Generated by gpt-4o-mini on 2025-10-16 11:05:01
(a)
Program-specific audit guide available.
In some cases, a program-specific audit guide will be available to provide specific guidance to the auditor concerning internal controls, compliance requirements, suggested audit procedures, and audit reporting requirements. A listing of current program-specific audit guides can be found in the compliance supplement (Appendix VI, Program-Specific Audit Guides). When a current program-specific audit guide is available, the auditor must follow Generally Accepted Government Auditing Standards (GAGAS) and the guide when performing a program-specific audit.
(b)
Program-specific audit guide not available.
(1) When a current program-specific audit guide is not available, the auditee and auditor must have basically the same responsibilities for the Federal program as they would have for an audit of a major program in a single audit.
(2) The auditee must prepare the financial statement(s) for the Federal program that includes a schedule of expenditures of Federal awards for the program and notes that describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the requirements of § 200.511(b), and a corrective action plan consistent with the requirements of § 200.511(c).
(3) The auditor must:
(i) Perform an audit of the financial statement(s) for the Federal program in accordance with GAGAS;
(ii) Obtain an understanding of internal controls and perform tests of internal controls over the Federal program consistent with the requirements for a major program in accordance with§ 200.514(c);
(iii) Determine whether the auditee has complied with Federal statutes, regulations, and the terms and conditions of Federal awards that could have a direct and material effect on the Federal program consistent with the requirements for a major program under § 200.514(d);
(iv) Follow up on prior audit findings and perform procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by the auditee in accordance with the requirements of § 200.511 When the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding, the auditor must report this condition as a current-year audit finding.; and
(v) Report any audit findings consistent with the requirements of § 200.516.
(4) The auditor's report(s) may be in the form of either combined or separate reports. It may be organized differently from the manner presented in this section. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following:
(i) An opinion (or disclaimer of opinion) as to whether the financial statement(s) of the Federal program is presented fairly in all material respects in accordance with the stated accounting policies;
(ii) A report on internal control related to the Federal program, which must describe the scope of testing of internal control and the results of the tests;
(iii) A report on compliance that includes an opinion (or disclaimer of opinion) as to whether the auditee complied with laws, regulations, and the terms and conditions of Federal awards which could have a direct and material effect on the Federal program; and
(iv) A schedule of findings and questioned costs for the Federal program that includes a summary of the auditor's results relative to the Federal program in a format consistent with § 200.515(d)(1) and findings and questioned costs consistent with the requirements of § 200.515(d)(3).
(c)
Report submission for program-specific audits.
(1)
Submission deadline and public availability.
The audit must be completed and submitted in accordance with paragraph (c)(2) or (c)(3) of this section. Unless a different period is specified in the program-specific audit guide, the audit must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The submission is due the next business day when the due date falls on a Saturday, Sunday, or Federal holiday. Unless restricted by Federal law or regulation, the auditee must make copies of the reporting package available for public inspection. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information.
(2)
Program-specific audit guide available.
When a program-specific audit guide is available, the auditee must electronically submit the data collection form prepared in accordance with § 200.512(b), as applicable to the program-specific audit, to the Federal Audit Clearinghouse (FAC). The submission must also include the reporting required by the program-specific audit guide.
(3)
Program-specific audit guide not available.
When a program-specific audit guide is not available, the auditee must electronically submit the data collection form prepared in accordance with § 200.512(b) to the FAC. The submission must also include the financial statement(s) of the Federal program, summary schedule of prior audit findings, and corrective action plan as described in paragraph § 200.507(b)(2) and the auditor's report(s) described in paragraph § 200.507(b)(4).
(d)
Other sections of this part may apply.
Program-specific audits are subject to:
(1) 200.500 Purpose through 200.503 Relation to other audit requirements, paragraph (d);
(2) 200.504 Frequency of audits through 200.506 Audit costs;
(3) 200.508 Auditee responsibilities through 200.509 Auditor selection;
(4) 200.511 Audit findings follow-up;
(5) 200.512 Report submission, paragraphs (e) through (h);
(6) 200.513 Responsibilities;
(7) 200.516 Audit findings through 200.517 Audit documentation;
(8) 200.521 Management decision; and
(9) Other referenced provisions of this part unless contrary to the provisions of this section, a program-specific audit guide, or program statutes and regulations.
§ 200.508
Auditee responsibilities.
Section 200.508 outlines the responsibilities of the auditee, which include arranging and ensuring the proper execution of audits, preparing financial statements, addressing audit findings promptly, and granting auditors access to necessary information. This section primarily affects organizations receiving federal awards that must comply with these audit requirements.
View
§ 200.508
Auditee responsibilities.
4,138 findings
in our database
This regulation outlines the responsibilities of organizations that receive federal funding, known as "auditees." First, these organizations must arrange for an audit, which is a thorough review of their financial activities, to ensure they are using federal funds correctly. They need to make sure this audit is done properly and submitted on time.
Second, auditees are required to prepare detailed financial statements, which include a list of all federal funds they have received and spent. They must also address any issues that come up during the audit. This means they need to quickly respond to any problems identified, create a summary of past audit findings, and develop a plan to fix those issues.
Lastly, auditees must allow auditors access to all necessary information, including staff, financial records, and other documents. This is important because it helps auditors do their job effectively, ensuring that federal funds are being managed properly. Overall, these requirements help maintain transparency and accountability in how federal money is used.
Generated by gpt-4o-mini on 2025-10-16 11:05:08
The auditee must:
(a) Arrange for the audit required by this part in accordance with § 200.509, and ensure it is properly performed and submitted in accordance with § 200.512.
(b) Prepare financial statements, including the schedule of expenditures of Federal awards in accordance with § 200.510.
(c) Promptly follow up and take corrective action on audit findings. This includes preparing a summary schedule of prior audit findings and a corrective action plan in accordance with § 200.511(b) and (c), respectively.
(d) Provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required by this part.
§ 200.509
Auditor selection.
Section 200.509 outlines the rules for selecting auditors for audit services, requiring non-Federal entities to follow specific procurement standards and evaluate proposals based on clear criteria. It also prohibits auditors who prepare indirect cost proposals from being selected for audits if the auditee's indirect costs exceeded $1 million in the prior year, and allows Federal auditors to perform audit work if they comply with the requirements.
View
§ 200.509
Auditor selection.
6 findings
in our database
Section 200.Section 200.509 outlines the rules for selecting auditors for organizations that receive federal funds. First, when these organizations (called auditees) need to hire an auditor, they must follow specific procurement standards. This means they have to clearly define what they want from the audit and request proposals from different audit firms. The auditee must also ask for a report showing the auditor's past performance, known as a peer review report. When evaluating proposals, they should consider factors like the auditor's experience, qualifications, quality of past work, and cost. Additionally, they should try to work with certain types of businesses, as encouraged by other regulations.
The regulation also states that if an auditor has helped prepare a proposal for indirect costs (which are costs not directly tied to a specific project but necessary for overall operations), they cannot be chosen to conduct the audit if those indirect costs exceeded $1 million in the previous year. This rule is in place to prevent conflicts of interest, ensuring that the auditor is unbiased. Lastly, federal auditors can conduct some or all of the audit work as long as they meet the same standards set out in this regulation. This is important because it allows federal auditors to be involved while still maintaining the integrity of the auditing process.
Generated by gpt-4o-mini on 2025-10-16 11:05:22
(a)
Auditor procurement.
When procuring audit services, the auditee must follow the procurement standards in §§ 200.317 through 200.327 of subpart D or the FAR (48 CFR part 42), as applicable. When requesting proposals for audit services, the objectives and scope of the audit must be made clear, and the non-Federal entity must request a copy of the audit organization's peer review report, which the auditor must provide under GAGAS. Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of peer and external quality control reviews, and price. Whenever possible, the auditee must make efforts to contract with businesses as stated in § 200.321 or the FAR (48 CFR part 42), as applicable.
(b)
Restriction on auditor preparing indirect cost proposals.
An auditor who prepares the indirect cost proposal or cost allocation plan may not be selected to perform the audit required by this part when the indirect costs recovered by the auditee during the prior year exceed $1 million. This restriction applies to the base year used to prepare the indirect cost proposal or cost allocation plan and any subsequent years in which the resulting indirect cost agreement or cost allocation plan is used to recover costs.
(c)
Use of Federal auditors.
Federal auditors may perform all or part of the work required under this part if they fully comply with the requirements of this part.
§ 200.510
Financial statements.
Section 200.510 requires organizations receiving federal funds to prepare financial statements that show their financial position and results for the fiscal year being audited. Additionally, they must create a schedule detailing expenditures of federal awards, listing individual programs by agency and including relevant information to aid understanding, which affects non-Federal entities managing federal funds.
View
§ 200.510
Financial statements.
7,249 findings
in our database
This regulation requires organizations that receive federal funding to create financial statements that clearly show their financial situation for the year being audited. These statements must cover the entire organization, but they can also include details from specific departments or units that have their own audits. Essentially, the financial statements should give a complete picture of how the organization is doing financially, including income, expenses, and cash flow.
In addition to the financial statements, organizations must prepare a detailed schedule that lists all federal funds they received and spent during the same period. This schedule should categorize the funds by federal program and agency, making it easier to track where the money came from and how it was used. Organizations must also include information about any funds passed on to other entities and provide notes explaining their accounting practices. This regulation is important because it ensures transparency and accountability in how federal funds are managed, helping to prevent misuse and ensuring that taxpayers can see how their money is being spent.
Generated by gpt-4o-mini on 2025-10-16 11:05:32
(a)
Financial statements.
The auditee must prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. The financial statements must be for the same organizational unit and fiscal year chosen to meet this part's requirements. However, organization-wide financial statements of the non-Federal entity may also include departments, agencies, and other organizational units that have separate audits in accordance with § 200.514(a) and prepare separate financial statements.
(b)
Schedule of expenditures of Federal awards.
The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with § 200.502. The auditee may choose to provide information requested by Federal agencies or pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may separately list the amount of Federal awards expended for each year of a Federal award. The schedule must:
(1) List individual Federal programs by Federal agency using the applicable Assistance Listing number(s). For a cluster of programs, the non-Federal entity must provide the cluster name, a list of individual Federal programs within the cluster, and provide the Federal agency name and the applicable Assistance Listing number(s). For research and development, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision within the Department of Health and Human Services.
(2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included.
(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings number or other identifying number when the Assistance Listings information is unavailable. For a cluster of programs, the auditee must also provide the total for the cluster.
(4) Include the total amount provided to subrecipients from each Federal program.
(5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This requirement is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule.
(6) Include notes describing the significant accounting policies used in preparing the schedule and whether the auditee elected to use the de minimis indirect cost rate of up to 15 percent (see § 200.414).
§ 200.511
Audit findings follow-up.
Section 200.511 requires auditees to address and correct all audit findings by creating a summary schedule of prior findings and a corrective action plan for current findings. This affects organizations receiving federal funds, as they must report the status of past audit issues and outline their plans for resolving any ongoing problems.
View
§ 200.511
Audit findings follow-up.
97 findings
in our database
Section 200.511 outlines what an organization (referred to as the "auditee") must do after an audit reveals issues or findings. First, the organization is responsible for addressing these findings, which means they need to create a summary that lists past audit findings and a plan to correct any current issues. This summary should include specific reference numbers assigned by the auditor and indicate the fiscal year when each finding first appeared. The organization must report on the status of previous findings, noting whether they were fully corrected, partially corrected, or if they believe the findings are no longer relevant.
The summary must clearly state the status of each finding. If a finding has been fully corrected, it should simply note that corrective action was taken. If a finding was not fully addressed, the organization needs to explain why it happened again and what steps they are taking to fix it. If they think a finding is no longer valid, they must provide reasons for that belief, such as the time that has passed since the finding was reported. Additionally, after the audit, the organization must create a separate corrective action plan detailing how they will address each current finding, including who is responsible for the actions and when they expect to complete them. If the organization disagrees with any findings, they must explain their reasons in this plan.
This regulation is important because it ensures that organizations take responsibility for issues identified in audits, promoting accountability and transparency in how they manage funds and operations. By following these requirements, organizations can demonstrate their commitment to improving their practices and addressing any problems, which is crucial for maintaining trust with funding agencies and stakeholders.
Generated by gpt-4o-mini on 2025-10-16 11:05:46
(a)
General.
The auditee is responsible for follow-up and corrective action on all audit findings. As part of this responsibility, the auditee must prepare a summary schedule of prior audit findings. The auditee must also prepare a corrective action plan for current year audit findings. The summary schedule of prior audit findings and the corrective action plan must include the reference numbers the auditor assigns to audit findings under § 200.516(c). Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. The corrective action plan and summary schedule of prior audit findings must include financial statement findings that the auditor was required to report in accordance with GAGAS.
(b)
Summary schedule of prior audit findings.
The summary schedule of prior audit findings must report the status of all audit findings included in the prior audit's schedule of findings and questioned costs. The summary schedule must also include audit findings reported in the prior audit's summary schedule of prior audit findings except audit findings listed as corrected in accordance with paragraph (b)(1) of this section or no longer valid or not warranting further action in accordance with paragraph (b)(3) of this section.
(1) When audit findings were fully corrected, the summary schedule need only list the audit findings and state that corrective action was taken.
(2) When audit findings were not corrected or only partially corrected, the summary schedule must describe the reasons for the finding's recurrence, planned corrective action, and any partial corrective action taken. When the corrective action taken significantly differs from the corrective action previously reported in a corrective action plan or the Federal agency's or pass-through entity's management decision, the summary schedule must provide an explanation.
(3) When the auditee believes the audit findings are no longer valid or do not warrant further action, the reasons for this position must be described in the summary schedule. A valid reason for considering an audit finding as not warranting further action is that all of the following have occurred:
(i) Two years have passed since the audit report in which the finding occurred was submitted to the FAC;
(ii) The Federal agency or pass-through entity is not currently following up with the auditee on the audit finding; and
(iii) A management decision was not issued.
(c)
Corrective action plan.
At the completion of the audit, the auditee must prepare a corrective action plan to address each audit finding included in the auditor's report for the current year. The corrective action plan must be a document separate from the auditor's findings described in § 200.516. The corrective action plan must also provide the name(s) of the contact person(s) responsible for the corrective action, the corrective action to be taken, and the anticipated completion date. When the auditee does not agree with the audit findings or believes corrective action is not required, the corrective action plan must include a detailed explanation of the reasons.
§ 200.512
Report submission.
Section 200.512 requires auditees to submit their audit reports and data collection forms within 30 days of receiving the auditor's report or within nine months after the audit period, whichever is sooner. This affects organizations that receive federal funds, as they must ensure compliance and make their reports available for public inspection, while safeguarding personal information.
View
§ 200.512
Report submission.
12,067 findings
in our database
Section 200.512 outlines the requirements for submitting audit reports and related documents. Auditees, which are organizations or entities that receive federal funding, must submit their audit reports and a specific data collection form within 30 days of receiving the auditor's report or within nine months after the audit period ends—whichever comes first. If meeting this deadline would be too difficult, an agency can grant an extension. Additionally, if the due date falls on a weekend or holiday, the submission is due the next business day. The auditee must also make copies of the reports available for public viewing unless federal laws say otherwise.
This regulation applies to various entities that receive federal funds, including state and local governments, non-profits, and Indian Tribes. The data collection form provides essential information about the auditee and the audit results, ensuring that federal agencies can verify the integrity of federal programs. A senior official from the auditee must sign the form to confirm that it was prepared correctly, does not contain sensitive personal information, and is accurate. Indian Tribes can choose not to allow public access to their reports but must still provide them to relevant federal entities. Overall, this regulation ensures transparency and accountability in how federal funds are used, which is crucial for maintaining public trust and effective governance.
Generated by gpt-4o-mini on 2025-10-16 11:05:56
(a)
General.
(1) The audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier). The cognizant agency for audit or oversight agency for audit (in the absence of a cognizant agency for audit) may authorize an extension when the nine-month timeframe would place an undue burden on the auditee. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.
(2) The auditee must make copies available for public inspection unless restricted by Federal statute or regulation. Auditees and auditors must ensure that their respective parts of the reporting package do not include protected personally identifiable information.
(b)
Data collection.
The FAC is the repository of record for subpart F reporting packages and the data collection form. All Federal agencies, pass-through entities and others interested in a reporting package and data collection form must obtain it by accessing the FAC.
(1) The auditee must submit the required data collection form described in Appendix X of this part. This form provides information about the auditee, its Federal programs, the results of the audit, and whether the audit was completed in accordance with this part. The form must include all information required by this part that is necessary for Federal agencies to use the audit to ensure the integrity of Federal programs. The form includes data elements and a format that OMB must approve, is available from the FAC, and include collections of information from the reporting package described in paragraph (c).
(2) A senior-level representative of the auditee (for example, a State controller, director of finance, chief executive officer, or chief financial officer) must sign a statement to be included as part of the data collection form stating that the auditee complied with the requirements of this part, including that:
(i) The data collection form was prepared in accordance with this part (and the instructions accompanying the form);
(ii) The reporting package does not include protected personally identifiable information;
(iii) The information included in its entirety is accurate and complete; and
(iv) The FAC is authorized to make the reporting package and the form publicly available on a website.
(3) An auditee that is an Indian Tribe or a tribal organization (as defined in the Indian Self-Determination, Education and Assistance Act (ISDEAA), 25 U.S.C. 450b(l)) may opt not to authorize the FAC to make the reporting package publicly available on a website. To opt-out, an Indian Tribe or tribal organization must exclude the authorization described in paragraph (b)(2)(iv) of this section. In these instances, the Indian Tribe is responsible for submitting the reporting package directly to any pass-through entities through which it has received a Federal award and to pass-through entities for which the summary schedule of prior audit findings reported the status of any findings related to those Federal awards that the pass-through entity provided. Unless restricted by Federal statute or regulation, if the Indian Tribe opts not to authorize publication, it must make copies of the reporting package available for public inspection.
(4) The auditor must complete the applicable data elements of the data collection form using the information included in the reporting package described in paragraph (c) of this section. The auditor must sign a statement to be included as part of the data collection form stating:
(i) The source of information included in the data collection form;
(ii) The auditor's responsibility for the information;
(iii) The data collection form is not a substitute for the reporting package described in paragraph (c); and
(iv) The content of the form is limited to the collection of information prescribed by OMB.
(c)
Reporting package.
The reporting package must include the following:
(1) Financial statements and schedule of expenditures of Federal awards discussed in § 200.510(a) and (b), respectively;
(2) Summary schedule of prior audit findings discussed in § 200.511(b);
(3) Auditor's report(s) discussed in § 200.515; and
(4) Corrective action plan discussed in § 200.511(c).
(d)
Submission to FAC.
The auditee must electronically submit the data collection form described in paragraph (b) of this section and the reporting package described in paragraph (c) of this section to the FAC.
(e)
Requests for management letters issued by the auditor.
Auditees must submit, when requested by a Federal agency or pass-through entity, a copy of any management letters issued by the auditor.
(f)
Report retention requirements.
Auditees must keep a copy of the data collection form described in paragraph (b) of this section and a copy of the reporting package described in paragraph (c) on file for three years from the date of submission to the FAC. Copies of audit records must be maintained in accordance with § 200.336.
(g)
FAC responsibilities.
The FAC must make available the reporting packages received in accordance with paragraph (c) of this section and § 200.507(c) to the public, except for Indian Tribes exercising the option in paragraph (b)(3) of this section, and maintain a database of completed audits, provide appropriate information to Federal agencies, and follow up with known auditees that have not submitted the required data collection forms and reporting packages.
(h)
Electronic filing.
Nothing in this part must preclude electronic submissions to the FAC in such a manner as may be approved by OMB.
§ 200.513
Responsibilities.
Section 200.513 outlines that non-Federal entities receiving over $50 million in Federal awards must have a designated cognizant agency for audit, typically the Federal agency providing the most funding. This agency is responsible for offering audit support, conducting quality reviews, and ensuring compliance with audit standards, affecting organizations that manage significant Federal funding.
View
§ 200.513
Responsibilities.
675 findings
in our database
Section 200.513 outlines the responsibilities related to audits for organizations that receive federal funding. If an organization spends over $50 million a year in federal awards, it must have a designated federal agency, called the "cognizant agency for audit," that oversees its audits. This agency is usually the one providing the most funding. If that funding is less than 25% of the organization’s total expenditures, the agency with the largest total funding becomes the cognizant agency. The section also allows for changes in which agency is responsible, as long as both the old and new agencies notify relevant parties within 30 days.
The regulation applies to any non-federal entity receiving significant federal funding and outlines the duties of the cognizant agency. These include providing technical support for audits, reviewing audit quality, and ensuring that any issues found in audits are addressed. If an organization fails to correct deficiencies identified in audits, the cognizant agency must inform the relevant parties and may recommend further action. This regulation is important because it helps ensure that federal funds are used properly and that organizations are held accountable for their financial practices, ultimately aiming to prevent waste, fraud, and abuse of taxpayer money.
Generated by gpt-4o-mini on 2025-10-16 11:06:05
(a)
Cognizant agency for audit responsibilities.
(1) A non-Federal entity expending more than $50 million a year in Federal awards must have a cognizant agency for audit. The cognizant agency for audit must be the Federal agency that provides the largest amount of direct funding (as listed on the non-Federal entity's Schedule of expenditures of Federal awards, see § 200.510(b)) unless OMB designates a specific cognizant agency for audit. When the direct funding represents less than 25 percent of the total expenditures (as direct and subawards) by the non-Federal entity, then the Federal agency with the predominant amount of total funding is the designated cognizant agency for audit.
(2) To provide for continuity of cognizance, the determination of the predominant amount of direct funding must be based upon direct Federal awards expended in the non-Federal entity's fiscal years ending in 2019 and every fifth year after that.
(3) Notwithstanding how audit cognizance is determined, a Federal agency may reassign cognizance to another Federal agency that provides substantial funding to an auditee if it agrees to be the cognizant agency for audit. Within 30 calendar days after any reassignment, both the old and the new cognizant agency for audit must notify the FAC, the auditee, and the auditor (if known) of the change.
(4) The cognizant agency for audit must:
(i) Provide technical audit advice and liaison assistance to auditees and auditors.
(ii) Obtain or conduct quality control reviews on selected audits made by non-Federal auditors and provide the results to other interested organizations.
(iii) Cooperate and support the Federal agency designated by OMB to lead a government-wide analysis to assess the quality of single audits. The government-wide analysis may rely on the current and ongoing quality control review work performed by Federal agencies, State auditors, and professional audit associations. This government-wide audit analysis must be performed at an interval determined by OMB, and the results must be posted publicly. In providing support to the government-wide analysis, a Federal agency must provide the following:
(A) An assessment of the extent to which single audits conform to the requirements, standards, and procedures of this part; and
(B) Recommendations to address audit quality issues, including recommendations for any changes to this part's requirements, standards, and procedures.
(iv) Promptly inform the appropriate Federal law enforcement officials and impacted Federal agencies of any direct reporting by the auditee or its auditor required by GAGAS, Federal statute, or regulation.
(v) Advise the community of independent auditors of any noteworthy or important factual trends related to the quality of audits stemming from quality control reviews. Significant problems or quality issues consistently identified through quality control reviews of audit reports must be referred to appropriate State licensing agencies and professional bodies.
(vi) Advise the auditor, Federal awarding agencies, and, where appropriate, the auditee of any deficiencies found in the audits when the deficiencies require corrective action by the auditor. When advised of deficiencies, the auditee must work with the auditor to take corrective action. If corrective action is not taken, the cognizant agency for audit must notify the auditor, the auditee, and applicable Federal awarding agencies and pass-through entities of the facts and make recommendations for follow-up action. Major inadequacies or repetitive substandard performance by auditors must be referred to appropriate State licensing agencies and professional bodies for disciplinary action.
(vii) Coordinate, to the extent practical, audits or reviews made by or for Federal agencies that are in addition to the audits made pursuant to this part, so that the additional audits or reviews build upon, rather than duplicate, audits performed in accordance with this part.
(viii) Coordinate a management decision for cross-cutting audit findings that affect the Federal programs of more than one agency when requested by any Federal agency whose awards are included in the audit finding of the auditee. Cross-cutting audit finding means an audit finding where the same underlying condition or issue affects all Federal awards (including Federal awards of more than one Federal agency or pass-through entity); for example, a cross-cutting audit finding may include an issue related to the recipient's accounting system.
(ix) Coordinate the audit work and reporting responsibilities among auditors to achieve the most cost-effective audit.
(x) Provide advice to auditees as to how to handle changes in fiscal year.
(b)
Oversight agency for audit responsibilities.
An auditee who does not have a designated cognizant agency for audit will be under the general oversight of the Federal agency determined in accordance with § 200.1
oversight agency for audit.
A Federal agency with oversight for an auditee may reassign oversight to another Federal agency that agrees to be the oversight agency for audit. Within 30 calendar days after any reassignment, both the old and the new oversight agency for audit must provide notice of the change to the FAC, the auditee, and, if known, the auditor. The oversight agency for audit:
(1) Must provide technical advice and assistance to auditees and auditors.
(2) May assume all or some of the responsibilities normally performed by a cognizant agency for audit.
(c)
Awarding Federal agency responsibilities.
In addition to all other requirements of this part, the awarding Federal agency must:
(1) Ensure that audits are completed, and reports are received in a timely manner in accordance with the requirements of this part.
(2) Provide technical advice and assistance to auditees and auditors.
(3) Follow-up on audit findings to ensure that non-Federal entities take appropriate and timely corrective action. Follow-up includes:
(i) Issuing a management decision in accordance with § 200.521;
(ii) Monitoring the non-Federal entity's progress implementing a corrective action;
(iii) Using a cooperative audit resolution approach to improve Federal program outcomes through better audit resolution, follow-up, and corrective action, which means the use of audit follow-up techniques promoting prompt corrective action by improving communication, fostering collaboration, promoting trust, and developing an understanding between the Federal agency and the non-Federal entity. This approach is based upon:
(A) A strong commitment by Federal agency and non-Federal entity leadership to Federal program integrity;
(B) Federal agencies strengthening partnerships and working cooperatively with non-Federal entities and their auditors; non-Federal entities and their auditors working cooperatively with Federal agencies;
(C) A focus on current conditions and corrective action going forward;
(D) Federal agencies offering appropriate relief for past noncompliance when audits show prompt corrective action has occurred; and
(E) Federal agency leadership sending a clear message that continued failure to correct conditions identified by audits likely to cause improper payments, fraud, waste, or abuse is unacceptable and will result in sanctions.
(iv) Tracking the effectiveness of the Federal agency's follow-up processes, the effectiveness of single audits in improving non-Federal entity accountability, and the use of single audits in making Federal award decisions. The Federal agency should develop a baseline, metrics, and targets to track, over time, the effectiveness of the Federal agency's process to follow up on audit findings.
(4) Provide OMB with annual updates to the compliance supplement. These updates include working with OMB to ensure that the compliance supplement focuses the auditor on testing the compliance requirements most likely to cause improper payments, fraud, waste, abuse, or generate audit findings for which the Federal agency will take action in accordance with § 200.505. Prior to submitting compliance supplement drafts to OMB, Federal agencies should engage with external audit stakeholders, the Federal agency's Office of Inspector General, and the National Single Audit Coordinator (NSAC).
(5) Provide OMB with the name of a single audit accountable official from among the senior policy officials of the Federal agency. The accountable official must be:
(i) Responsible for ensuring that the Federal agency fulfills the requirements of this section and effectively uses the single audit process to reduce improper payments and improve Federal program outcomes.
(ii) Accountable for improving the effectiveness of the Federal agency's single audit processes in accordance with paragraph (c)(3)(iv).
(iii) Responsible for designating the Federal agency's key management single audit liaison.
(6) Provide OMB with the name of a key management single audit liaison. The liaison must:
(i) Serve as the Federal agency's point of contact for the single audit process within and outside the Federal Government.
(ii) Promote interagency coordination, consistency, and information sharing. This includes coordinating audit follow-up, identifying higher risk non-Federal entities, providing input on single audit and follow-up policy, enhancing the utility of the FAC, and identifying ways to use single audit results to improve Federal award accountability and best practices.
(iii) Oversee training for the Federal agency's program management personnel related to the single audit process.
(iv) Promote the Federal agency's use of a cooperative audit resolution approach as described in paragraph (c)(3)(iii) of this section.
(v) Coordinate the Federal agency's audit follow-up processes and ensure non-Federal entities implement corrective actions for audit findings.
(vi) Ensure the Federal agency fulfills its responsibility, as a cognizant agency for audit, to coordinate a management decision for cross-cutting audit findings under (a)(4)(viii) of this section. Cross-cutting audit findings means an audit finding where the same underlying condition or issue affects all Federal awards (including Federal awards of more than one Federal agency or pass-through entity). For example, this may include an issue related to the recipient's accounting system.
(vii) Ensure the Federal agency provides OMB with annual updates to the compliance supplement consistent with the compliance supplement preparation guide.
(viii) Support the mission of the Federal agency's single audit accountable official and coordinate with the Federal agency's Office of Inspector General and National Single Audit Coordinator (NSAC).
§ 200.514
Standards and scope of audit.
Section 200.514 outlines the standards and scope for audits of organizations receiving Federal awards. It requires audits to follow GAGAS, cover all operations or specific units as chosen by the auditee, assess the fairness of financial statements, and evaluate internal controls over Federal programs, impacting entities that manage Federal funds.
View
§ 200.514
Standards and scope of audit.
593 findings
in our database
Section 200.514 outlines the requirements for audits of organizations that receive federal funds. First, it mandates that audits must follow specific standards known as GAGAS (Generally Accepted Government Auditing Standards). The audit should cover all operations of the organization or can focus on specific departments that used federal funds during the audit period. The auditor must review the financial statements and the schedule of federal expenditures to ensure they accurately reflect the organization’s financial activities.
This regulation applies to any organization that receives federal awards, including state and local governments, non-profits, and other entities. Auditors are required to assess whether the organization’s financial statements are presented fairly and in line with accepted accounting principles. They also need to evaluate the internal controls—these are the processes that help ensure compliance with federal laws and regulations. If any internal controls are found to be weak or ineffective, the auditor must report these issues and may need to conduct additional compliance tests.
The practical implications of this regulation are significant. It ensures that organizations are held accountable for how they use federal funds, which helps protect taxpayer money. By requiring thorough audits, the regulation aims to identify any financial mismanagement or non-compliance with federal rules, ultimately promoting transparency and trust in how public funds are handled. Additionally, following up on previous audit findings ensures that past issues are addressed, contributing to continuous improvement in financial practices.
Generated by gpt-4o-mini on 2025-10-16 11:06:14
(a)
General.
The audit must be conducted in accordance with GAGAS. The audit must also cover the entire operations of the auditee, or, at the option of the auditee, such audit must include a series of audits that cover departments, agencies, and other organizational units that expended or otherwise administered Federal awards during the audit period. In these instances, the audit must include the financial statements and schedule of expenditures of Federal awards for each such department, agency, and other organizational unit, which must be considered to be a non-Federal entity. The financial statements and schedule of expenditures of Federal awards must be for the same audit period.
(b)
Financial statements.
The auditor must determine whether the auditee's financial statements are presented fairly in all material respects in accordance with generally accepted accounting principles (or a special purpose framework such as cash, modified cash, or regulatory as required by State law). The auditor must also determine whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole.
(c)
Internal control.
(1) The compliance supplement provides guidance on internal controls over Federal programs based upon the guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States and the Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
(2) In addition to the requirements of GAGAS, the auditor must perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs.
(3) Except as provided in paragraph (c)(4) of this section, the auditor must:
(i) Plan the testing of internal control over compliance for major programs to support a low assessed level of control risk for assertions relevant to the compliance requirements for each major program; and
(ii) Perform testing of internal control as planned in paragraph (c)(3)(i) of this section.
(4) When internal control over some or all of the compliance requirements for a major program are likely to be ineffective in preventing or detecting noncompliance, the planning and performing of testing described in paragraph (c)(3) of this section are not required for those compliance requirements. However, the auditor must report a significant deficiency or material weakness in accordance with § 200.516, assess the related control risk at the maximum, and consider whether additional compliance tests are required because of ineffective internal control.
(d)
Compliance.
(1) In addition to the requirements of GAGAS, the auditor must determine whether the auditee has complied with Federal statutes, regulations, and the terms and conditions of Federal awards that may have a direct and material effect on each of its major programs.
(2) The principal compliance requirements applicable to most Federal programs and the compliance requirements of the largest Federal programs are included in the compliance supplement.
(3) For the compliance requirements related to Federal programs contained in the compliance supplement, an audit of these compliance requirements will meet the requirements of this part. Where there have been changes to the compliance requirements, and the changes are not reflected in the compliance supplement, the auditor must determine the current compliance requirements and modify the audit procedures accordingly. For those Federal programs not covered in the compliance supplement, the auditor must follow the compliance supplement's guidance for programs not included.
(4) The compliance testing must include tests of transactions or other auditing procedures necessary to provide the auditor with sufficient appropriate audit evidence to support an opinion on compliance.
(e)
Audit follow-up.
The auditor must follow up on prior audit findings regardless of whether a prior audit finding is related to a major program in the current year. Audit follow-up includes performing procedures to assess the reasonableness of the summary schedule of prior audit findings prepared by the auditee in accordance with the requirements of § 200.511. When the auditor concludes that the summary schedule of prior audit findings materially misrepresents the status of any prior audit finding, the auditor must report this condition as a current-year audit finding.
(f)
Data collection form.
As required in § 200.512(b)(4), the auditor must complete and sign specified sections of the data collection form.
§ 200.515
Audit reporting.
Section 200.515 outlines the requirements for audit reporting, stating that auditors must provide opinions on financial statements and compliance with federal regulations. It affects entities receiving federal awards, as they must have their financial practices and compliance evaluated through these audits.
View
§ 200.515
Audit reporting.
7 findings
in our database
Section 200.515 outlines the requirements for audit reports related to organizations that receive federal funds. Auditors must provide a clear opinion on whether the organization’s financial statements are accurate and follow standard accounting rules. They also need to assess how well the organization manages its finances and complies with laws and agreements tied to federal funding. This means the auditor will check if the organization is following the rules and report any significant issues they find.
This regulation applies to any organization that receives federal awards, such as grants or contracts. It’s particularly important for those managing large amounts of federal money, as they must demonstrate they are using these funds properly. The audit report must include a summary of findings, detailing any problems with financial controls or compliance, and identify major programs that received federal funds. This helps ensure transparency and accountability in how federal money is spent.
The practical implications of this regulation are significant. By requiring detailed audit reports, it helps to protect taxpayer money and ensures that organizations are held accountable for their financial practices. If issues are found, they must be reported, which can lead to corrective actions and improvements. This regulation ultimately aims to promote trust in how federal funds are managed and used.
Generated by gpt-4o-mini on 2025-10-16 11:06:23
The auditor's report(s) may be in the form of either combined or separate reports. It may be organized differently from the manner presented in this section. The auditor's report(s) must state that the audit was conducted in accordance with this part and include the following:
(a) An opinion (or disclaimer of opinion) on whether the financial statement(s) of the auditee is presented fairly in all material respects in accordance with generally accepted accounting principles (or a special purpose framework such as cash, modified cash, or regulatory as required by State law). The auditor must also decide whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole.
(b) A report on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements. This report must describe the scope of internal control and compliance testing and the results of the tests. Where applicable, the report must refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section.
(c) A report on compliance for each major program and a report on internal control over compliance. This report must describe the scope of testing of internal control over compliance and include an opinion (or disclaimer of opinion) as to whether the auditee complied with Federal statutes, regulations, and the terms and conditions of Federal awards that could have a direct and material effect on each major program and refer to the separate schedule of findings and questioned costs described in paragraph (d) of this section.
(d) A schedule of findings and questioned costs which must include the following three components:
(1) A summary of the auditor's results, which must include:
(i) The type of report the auditor issued (unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion) on whether the audited financial statements were prepared in accordance with GAAP;
(ii) A statement about whether significant deficiencies or material weaknesses in internal control were disclosed by the audit of the financial statements;
(iii) A statement as to whether the audit disclosed any noncompliance that is material to the financial statements of the auditee;
(iv) A statement about whether significant deficiencies or material weaknesses in internal control over major programs were disclosed by the audit;
(v) The type of report the auditor issued (unmodified opinion, qualified opinion, adverse opinion, or disclaimer of opinion) on compliance for major programs;
(vi) A statement as to whether the audit disclosed any audit findings that the auditor is required to report under § 200.516(a);
(vii) An identification of major programs by listing each individual major program; however, in the case of a cluster of programs, only the cluster name as shown on the schedule of expenditures of Federal Awards is required; (viii) The dollar threshold used to distinguish between Type A and Type B programs, as described in § 200.518(b)(1) or (3) when a recalculation of the Type A threshold is required for large loan or loan guarantees; and
(ix) A statement as to whether the auditee qualified as a low-risk auditee under§ 200.520.
(2) Findings relating to the financial statements required to be reported in accordance with GAGAS.
(3) Findings and questioned costs for Federal awards which must include audit findings as defined in § 200.516(a) and be reported in the following manner:
(i) Audit findings (for example, internal control findings, compliance findings, questioned costs, or fraud) that relate to the same issue must be presented as a single audit finding. Where practical, audit findings should be organized by Federal agency or pass-through entity.
(ii) Audit findings that relate to both the financial statements (paragraph (d)(2) of this section) and Federal awards (this paragraph (d)(3)) must be reported in both sections of the schedule. However, the reporting in one section of the schedule may be in summary form and reference a detailed reporting in the other section.
(e) Nothing in this part precludes combining the reporting required by this section with the reporting required by § 200.512(b) when allowed by GAGAS and Appendix X of this part.
§ 200.516
Audit findings.
Section 200.516 requires auditors to report significant deficiencies in internal controls, material noncompliance with federal laws, and questioned costs over $25,000 related to major federal programs. This affects entities receiving federal funds, ensuring they adhere to compliance requirements and maintain proper financial oversight.
View
§ 200.516
Audit findings.
4,271 findings
in our database
Section 200.516 outlines what auditors must report when they conduct audits of federal programs. Specifically, it requires auditors to identify and document significant issues that arise during their review. This includes any serious problems with how a program is managed (called "internal control"), instances where the program did not follow federal laws or guidelines, and any costs that are questioned or disputed, especially if they exceed $25,000. If there are issues of fraud or if previous audit findings were misrepresented, these also need to be reported.
This regulation applies to organizations that receive federal funding and are subject to audits, such as state and local governments, nonprofits, and educational institutions. It is particularly relevant when these organizations are managing major federal programs. The practical implications are significant: the findings help ensure that federal funds are used correctly and efficiently. By requiring detailed reporting, the regulation aims to promote accountability and transparency, allowing organizations to address issues and improve their operations. This ultimately helps protect taxpayer money and ensures that federal resources are used as intended.
Generated by gpt-4o-mini on 2025-10-16 11:06:33
(a)
Audit findings reported.
The auditor must report the following as an audit finding in the schedule of findings and questioned costs:
(1) Significant deficiencies and material weaknesses in internal control over major programs. The auditor's determination of whether a deficiency in internal control is a significant deficiency or a material weakness for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program identified in the compliance supplement.
(2) Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program. The auditor's determination of whether noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards is material for the purpose of reporting an audit finding is in relation to a type of compliance requirement for a major program identified in the compliance supplement.
(3) Known questioned costs when either known or likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. When reporting questioned costs, the auditor must include information to provide proper perspective for evaluating the prevalence and consequences of the questioned costs.
(4) Known questioned costs greater than $25,000 for a Federal program that is not audited as a major program. Except for audit follow-up, the auditor is not required to perform audit procedures for such a Federal program; therefore, the auditor will normally not find questioned costs for a program that is not audited as a major program. However, if the auditor does become aware of questioned costs for a Federal program that is not audited as a major program (for example, as part of audit follow-up or other audit procedures) and the known questioned costs are greater than $25,000, the auditor must report this as an audit finding.
(5) The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion. This must be included unless the circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs.
(6) Known or likely fraud affecting a Federal award, unless the fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs. This paragraph does not require the auditor to publicly report information that could compromise investigative or legal proceedings or to make an additional reporting when the auditor confirms that the fraud was reported outside the auditor's reports under the direct reporting requirements of GAGAS.
(7) Instances where the results of audit follow-up procedures disclosed that the summary schedule of prior audit findings prepared by the auditee in accordance with § 200.511(b) materially misrepresents the status of any prior audit finding.
(b)
Audit finding detail and clarity.
Audit findings must be presented with sufficient detail and clarity for the auditee to prepare a corrective action plan and take corrective action and for Federal agencies or pass-through entities to arrive at a management decision. As applicable, the following information must be included in audit findings:
(1) The Federal program and specific Federal award identification, including the Assistance Listings title and number, Federal award identification number and year, the name of the Federal agency, and name of the applicable pass-through entity. When information, such as the Assistance Listings title and number or Federal award identification number, is unavailable, the auditor must provide the best information available to describe the Federal award.
(2) The criteria or specific requirement for the audit finding (for example, the specific Federal statute, regulation, or term and condition of the Federal award). The criteria or specific requirement provides a context for evaluating evidence and understanding findings. The criteria should generally identify the required or desired state or expectation with respect to the program or operation.
(3) The condition found, including facts that support the deficiency identified in the audit finding.
(4) A statement of cause that identifies the reason or explanation for the condition or the factors responsible for the difference between the situation that exists (condition) and the required or desired state (criteria), which may also serve as a basis for recommendations for corrective action
(5) The possible asserted effect to provide sufficient information to the auditee and Federal agency or pass-through entity to permit them to determine the cause and effect to facilitate prompt and proper corrective action. A statement of the effect or potential effect should provide a clear, logical link to establish the impact or potential impact of the difference between the condition and the criteria.
(6) The identification of known questioned costs, by applicable Assistance Listing number(s) and Federal award identification number(s), and how these questioned costs were computed.
(7) When there are known questioned costs but the dollar amount is undetermined or not reported, a description of why the dollar amount was undetermined or otherwise could not be reported.
(8) Information to provide proper perspective for evaluating the prevalence and consequences of the audit finding. For example, whether the audit finding represents an isolated instance or a systemic problem. Where appropriate, instances identified must be related to the universe and the number of cases examined and be quantified in terms of dollar value. In addition, the audit finding should indicate whether the sampling was a statistically valid sample.
(9) The identification of whether the audit finding is a repeat of a finding in the immediately prior audit. The audit finding must identify the applicable prior year audit finding reference numbers in these instances.
(10) Recommendations to prevent future occurrences of the deficiency identified in the audit finding.
(11) Views of responsible officials of the auditee.
(c)
Reference numbers.
Each audit finding in the schedule of findings and questioned costs must include a reference number in the format meeting the requirements of the data collection form submission (see § 200.512(b)).
§ 200.517
Audit documentation.
Section 200.517 requires auditors to keep audit documentation and reports for at least three years after issuing the report. This section affects auditors and entities involved in audits, as it mandates that documentation be accessible to certain federal agencies upon request for oversight and review purposes.
View
§ 200.517
Audit documentation.
Section 200.517 outlines rules about keeping and sharing audit documentation. First, it requires auditors to keep their records and reports for at least three years after they issue their findings. If there’s a dispute over the audit results, the auditor must check in with the involved parties before getting rid of any documents. This ensures that important information is available if questions arise later.
The regulation applies to auditors working with organizations that receive federal funds, including those that manage indirect costs or act as intermediaries for federal grants. It’s important because it ensures that audit records are preserved for a reasonable time, allowing federal agencies and other oversight bodies to review them if needed. This helps maintain transparency and accountability in how federal funds are used, ensuring that any issues can be addressed properly.
Generated by gpt-4o-mini on 2025-10-16 11:06:39
(a)
Retention of audit documentation.
The auditor must retain audit documentation and reports for a minimum of three years after the date of issuance of the auditor's report(s) to the auditee. The cognizant agency for audit, oversight agency for audit, cognizant agency for indirect costs, or pass-through entity may extend the retention period by providing written notification to the auditor. When the auditor is aware that the Federal agency, pass-through entity, or auditee is contesting an audit finding, the auditor must contact the parties contesting the audit finding for guidance prior to the destruction of the audit documentation and reports.
(b)
Access to audit documentation.
Audit documentation must be made available upon request to the cognizant or oversight agency for audit or its designee, cognizant agency for indirect cost, a Federal agency, or GAO at the completion of the audit, as part of a quality review, to resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this part. Access to audit documentation includes the right of Federal agencies to obtain copies of audit documentation as is reasonable and necessary.
§ 200.518
Major program determination.
Section 200.518 outlines how auditors must identify major Federal programs using a risk-based approach, focusing on the size and risk of the programs. It affects auditors and entities receiving Federal funds, as they must categorize programs as Type A or Type B based on expenditure levels and assess their risk for audit purposes.
View
§ 200.518
Major program determination.
14 findings
in our database
This regulation outlines how auditors should identify which federal programs are considered "major programs" during audits. A major program is one that requires more thorough examination due to its size or risk factors. Auditors must first categorize federal programs into two types: Type A and Type B. Type A programs are larger programs that exceed certain funding thresholds, while Type B programs are smaller ones. The regulation emphasizes that even if a program involves large loans, it can still be classified as Type A if it meets specific criteria.
The regulation applies to auditors working with organizations that receive federal funding. It requires them to assess the risk associated with each program based on past audit results, oversight from federal agencies, and the inherent risks of the programs themselves. Auditors must ensure that they audit all Type A programs that are not low-risk and any high-risk Type B programs. Additionally, they must meet a coverage rule that ensures a certain percentage of total federal awards is audited, which helps maintain accountability in how federal funds are used.
Understanding this regulation is crucial because it ensures that federal funds are being managed and spent appropriately. By focusing on major programs, auditors can identify potential issues and help prevent misuse of taxpayer money. This process not only promotes transparency but also protects the integrity of federal funding by ensuring that higher-risk programs receive the scrutiny they need.
Generated by gpt-4o-mini on 2025-10-16 11:06:49
(a)
General.
The auditor must use a risk-based approach to determine which Federal programs are major programs. This risk-based approach must consider current and prior audit experience, oversight by Federal agencies and pass-through entities, and the inherent risk of the Federal program. The process described in paragraphs (b) through (h) of this section must be followed.
(b)
Step one.
(1) The auditor must identify and label the larger Federal programs as Type A programs. Type A programs are defined as Federal programs with Federal awards expended during the audit period exceeding the levels outlined in table 1:
Table 1 to Paragraph (
b
)(1)
(2) Federal programs not labeled Type A under paragraph (b)(1) of this section must be labeled Type B programs.
(3) Including large loans and loan guarantees (loans) must not result in the exclusion of other programs as Type A programs. A Federal program providing loans is considered a large loan program when it exceeds four times the largest non-loan program. The auditor must identify each large loan program as a Type A program and exclude its values in determining other Type A programs. This recalculation of the Type A program is performed after removing the total of all large loan programs. For this paragraph, a program is only considered a Federal program providing loans if the value of Federal awards expended for loans within the program comprises 50 percent or more of the total Federal awards expended for the program. A cluster of programs is treated as one program, and the value of Federal awards expended under a loan program is determined as described in § 200.502.
(4) For biennial audits (see § 200.504), the determination of Type A and Type B programs must be based on the Federal awards expended during the two-year audit period.
(c)
Step two.
(1) The auditor must identify Type A programs that are low-risk. In making this determination, the auditor must consider whether the requirements in § 200.519(c), the results of audit follow-up, or any changes in personnel or systems affecting the program indicate significantly increased risk and preclude the program from being low-risk. For a Type A program to be considered low-risk, it must have been audited as a major program in at least one of the two most recent audit periods (in the most recent audit period in the case of a biennial audit), and, in the most recent audit period, the program must not have had:
(i) Internal control deficiencies that were identified as material weaknesses in the auditor's report on internal control for major programs as required under § 200.515(c);
(ii) A modified opinion on the program in the auditor's report on major programs as required under § 200.515(c); or
(iii) Known or likely questioned costs that exceed five percent of the total Federal awards expended for the program.
(2) Notwithstanding paragraph (c)(1) of this section, OMB may approve a Federal agency request that a Type A program not be considered low-risk for a specific recipient. For example, it may be necessary for a large Type A program to be audited as a major program each year for a particular recipient for the Federal agency to comply with 31 U.S.C. 3515. The Federal agency must notify the auditee and, if known, the auditor of OMB's approval at least 180 calendar days prior to the end of the fiscal year to be audited.
(d)
Step three.
(1) The auditor must identify high-risk Type B programs using professional judgment and the criteria in § 200.519. However, the auditor is not required to identify more high-risk Type B programs than at least one-fourth of the number of low-risk Type A programs identified as low-risk under step two. Except for known material weakness in internal control or compliance problems as discussed in § 200.519(b)(1), (2), and (c)(1), a single criterion in risk would rarely cause a Type B program to be considered high-risk. When identifying which Type B programs to assess for risk, the auditor is encouraged to use an approach that provides an opportunity for different high-risk Type B programs to be audited as major programs over a period of time.
(2) The auditor is not expected to perform risk assessments on relatively small Federal programs. Therefore, the auditor is only required to perform risk assessments on Type B programs that exceed 25 percent (0.25) of the Type A threshold determined in step one.
(e)
Step four.
At a minimum, the auditor must audit all of the following as major programs:
(1) All Type A programs not identified as low-risk under step two.
(2) All Type B programs identified as high-risk under step three.
(3) Additional programs as necessary to comply with the percentage of coverage rule described in paragraph (f). This rule may require the auditor to audit more programs as major programs than the number of Type A programs.
(f)
Percentage of coverage rule.
When the auditee meets the criteria in § 200.520, the auditor only needs to audit the major programs identified in paragraphs (e)(1) and (2) of this section and such additional Federal programs with Federal awards expended that, in the aggregate, all major programs encompass at least 20 percent (0.20) of total Federal awards expended. Otherwise, the auditor must audit the major programs identified in paragraphs (e)(1) and (2) of this section and such additional Federal programs with Federal awards expended that, in the aggregate, all major programs encompass at least 40 percent (0.40) of total Federal awards expended.
(g)
Documentation of risk.
The auditor must include in the audit documentation the risk analysis used for determining major programs.
(h)
Auditor's judgment.
The auditor's judgment in applying the risk-based approach to determine major programs must be presumed correct when the determination was performed and documented in accordance with this part. Challenges by a Federal agency or pass-through entity must only be for clearly improper use of the requirements in this part. However, a Federal agency or pass-through entity may provide auditors guidance about the risk of a particular Federal program. The auditor must consider this guidance in determining major programs in audits not yet completed.
§ 200.519
Criteria for Federal program risk.
Section 200.519 outlines how auditors assess the risk of noncompliance in Federal programs by evaluating factors like internal control weaknesses, prior audit findings, and oversight by Federal agencies. This affects organizations receiving Federal funds, as they must ensure strong controls and address any past issues to minimize risk during audits.
View
§ 200.519
Criteria for Federal program risk.
Section 200.519 outlines how auditors should assess the risk of noncompliance in federal programs. Essentially, it requires auditors to evaluate the likelihood that a federal program may not follow the rules, which could lead to significant issues. To do this, auditors need to consider various factors, such as the effectiveness of internal controls (the systems in place to ensure compliance), past audit results, and the oversight provided by federal agencies. If there are weaknesses in how a program is managed or if previous audits found serious problems that weren’t fixed, the risk is considered higher.
This regulation applies to any federal program that receives funding and is subject to audits. It’s particularly relevant for organizations that manage these programs, such as universities or non-profits. The regulation also emphasizes that the complexity and current status of a program can affect its risk level. For example, new programs or those undergoing significant changes may be riskier than established ones. Understanding these risks is crucial because it helps ensure that federal funds are used properly and that organizations are held accountable for their management of these programs.
Generated by gpt-4o-mini on 2025-10-16 11:06:55
(a)
General.
The auditor's determination should be based on an overall evaluation of the risk of noncompliance occurring that could be material to the Federal program. The auditor must consider criteria, such as those described in paragraphs (b), (c), and (d) of this section, to identify risk in Federal programs. Also, as part of the risk analysis, the auditor may wish to discuss a particular Federal program with auditee management and the Federal agency or pass-through entity.
(b)
Current and prior audit experience.
(1) Weaknesses in internal control over Federal programs would indicate higher risk. Therefore, consideration should be given to the control environment over Federal programs. This includes considering factors such as the expectation of management's adherence to Federal statutes, regulations, and the terms and conditions of Federal awards, and the competence and experience of personnel who administer the Federal programs.
(i) A Federal program administered under multiple internal control structures may have higher risk. When assessing risk in a large single audit, the auditor must consider whether weaknesses are isolated in a single operating unit (for example, one college campus) or pervasive throughout the entity.
(ii) A weak system for monitoring subrecipients would indicate higher risk when significant parts of a Federal program are passed to subrecipients through subawards.
(2) Prior audit findings would indicate higher risk, especially when the situations identified in the audit findings could significantly impact a Federal program or have not been corrected.
(3) Federal programs not recently audited as major programs may be of higher risk than those recently audited as major programs without audit findings.
(c)
Oversight exercised by Federal agencies and pass-through entities.
(1) The oversight exercised by Federal agencies or pass-through entities may be used to assess risk. For example, recent monitoring or other reviews performed by an oversight entity that disclosed no significant problems would indicate lower risk, whereas monitoring that disclosed significant problems would indicate higher risk.
(2) With the concurrence of OMB, a Federal agency may identify Federal programs that are higher risk. OMB will identify these Federal programs in the compliance supplement.
(d)
Inherent risk of the Federal program.
(1) The nature of a Federal program may indicate risk. Consideration should be given to the complexity of the program and the extent to which the Federal program contracts for goods and services. For example, Federal programs that disburse funds through third-party contracts or have eligibility criteria may be higher risk. Federal programs primarily involving staff payroll costs may be at high risk for noncompliance with the requirements of § 200.430 but otherwise be at low risk.
(2) The phase of a Federal program in its lifecycle at the Federal agency may indicate risk. For example, a new Federal program with new or interim regulations may have higher risk than an established program with time-tested regulations. Also, significant changes in Federal programs, statutes, regulations, or the terms and conditions of Federal awards may increase risk.
(3) The phase of a Federal program in its lifecycle at the auditee may indicate risk. For example, during the first and last years that an auditee participates in a Federal program, the risk may be higher due to the start-up or closeout of program activities and staff.
(4) Type B programs with larger Federal awards expended would be of higher risk than programs with substantially smaller Federal awards expended.
§ 200.520
Criteria for a low-risk auditee.
Section 200.520 outlines the criteria for a low-risk auditee, which allows certain non-Federal entities to receive reduced audit coverage if they meet specific conditions over the past two audit periods. These conditions include having annual audits with unmodified opinions, no significant internal control issues, and no major audit findings related to federal programs.
View
§ 200.520
Criteria for a low-risk auditee.
298 findings
in our database
This regulation outlines the criteria that a "low-risk auditee" must meet to qualify for less intensive audit requirements. To be considered low-risk, an organization must have had annual audits for the past two years, and these audits must have been completed on time. Additionally, the financial statements must have received a clean opinion from the auditor, meaning they were found to be accurate and in line with standard accounting practices. The auditor must also confirm that there were no significant problems with the organization’s internal controls, which are the processes that help ensure the accuracy of financial reporting.
The regulation applies to non-Federal entities, such as state and local governments or non-profit organizations, that receive federal funding. It is relevant in situations where these entities undergo audits to ensure they are using federal funds appropriately. If an organization meets all the criteria listed, it can benefit from reduced audit coverage, meaning they won’t have to undergo as extensive an audit process in the future. This is important because it can save time and resources for the organization, allowing them to focus more on their programs and services rather than on compliance with audit requirements.
Generated by gpt-4o-mini on 2025-10-16 11:07:05
An auditee that meets all of the following conditions for each of the preceding two audit periods must qualify as a low-risk auditee and be eligible for reduced audit coverage in accordance with § 200.518.
(a) Single audits were performed on an annual basis in accordance with the provisions of this subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in § 200.512. A non-Federal entity that has biennial audits does not qualify as a low-risk auditee.
(b) The auditor's opinion on whether the financial statements were prepared in accordance with generally accepted accounting principles (or a special purpose framework such as cash, modified cash, or regulatory as required by State law), and the auditor's in-relation-to opinion on the schedule of expenditures of Federal awards were unmodified.
(c) No internal control deficiencies were identified as material weaknesses under the requirements of GAGAS.
(d) The auditor did not report a substantial doubt about the auditee's ability to continue as a going concern.
(e) None of the Federal programs had audit findings from any of the following in either of the preceding two audit periods in which they were classified as Type A programs:
(1) Internal control deficiencies that were identified as material weaknesses in the auditor's report on internal control for major programs as required under § 200.515(c);
(2) A modified opinion on a major program in the auditor's report on major programs as required under § 200.515(c); or
(3) Known or likely questioned costs that exceeded five percent (.05) of the total Federal awards expended for a Type A program during the audit period.
§ 200.521
Management decisions.
Section 200.521 outlines the requirements for management decisions regarding audit findings, specifying that they must clarify whether findings are upheld, provide reasons, and detail expected actions from the auditee, including timelines for corrective measures. This section affects federal agencies, pass-through entities, and auditees by establishing responsibilities and timelines for addressing audit findings and ensuring accountability in federal funding.
View
§ 200.521
Management decisions.
4,237 findings
in our database
This regulation outlines how management decisions should be made regarding audit findings. When an audit identifies issues, the management decision must clearly state whether the findings are accepted or rejected, explain the reasons for that decision, and outline what actions the organization being audited (the auditee) needs to take. This could include repaying any disallowed costs or making financial adjustments. If the auditee hasn’t completed the necessary corrective actions, the decision must include a timeline for follow-up. The federal agency or pass-through entity can ask for more information from the auditee before making a final decision, and they should also explain any options the auditee has to appeal the decision.
The regulation applies to federal agencies and pass-through entities, which are organizations that distribute federal funds to other entities. The federal agency in charge of the audit must coordinate decisions when multiple federal programs are involved, while the agency providing the funding is responsible for decisions related to its specific awards. Similarly, pass-through entities must make decisions regarding subawards they issue. All management decisions must be made within six months of the audit report being accepted, and the auditee is expected to start taking corrective actions as soon as they receive the audit report. Including reference numbers from the audit helps keep track of specific findings and ensures clarity in the decision-making process.
Generated by gpt-4o-mini on 2025-10-16 11:07:11
(a)
General.
The management decision must clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments or take other action. If the auditee has not completed corrective action, a timetable for follow-up should be given. Prior to issuing the management decision, the Federal agency or pass-through entity may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. The management decision should describe any appeal process available to the auditee. While not required, the Federal agency or pass-through entity may also issue a management decision on findings relating to the financial statements, which are required to be reported in accordance with GAGAS.
(b)
Federal agency.
The cognizant agency for audit is responsible for coordinating a management decision for audit findings that affect the programs of more than one Federal agency (see § 200.513(a)(4)(viii)). The awarding Federal agency is responsible for issuing a management decision for audit findings that affect the Federal awards it makes to a non-Federal entity (see § 200.513(c)(3)(i)).
(c)
Pass-through entity.
The pass-through entity is responsible for issuing a management decision for audit findings that affect subawards it issues to subrecipients under a Federal award (see § 200.332(e)).
(d)
Time requirements.
The Federal agency or pass-through entity responsible for issuing a management decision must do so within six months of the FAC's acceptance of the audit report. The auditee must initiate and proceed with corrective action as rapidly as possible and corrective action should begin no later than upon receipt of the audit report.
(e)
Reference numbers.
Management decisions must include the reference numbers the auditor assigned to each audit finding in accordance with § 200.516(c).