Uniform Guidance Changes: Impact Chart Available
ASU’s Uniform Guidance Impact Tracker summarizes changes to 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Note: Currently, Uniform Guidance changes to Modified Total Direct Costs (MTDC) cost thresholds do not apply to ASU’s F&A rates/rate base. Those changes will first need to be incorporated into ASU’s Facilities & Administrative (F&A) rate agreement, at the discretion of our cognizant federal agency, the Department of Health and Human Services (DHHS).
Changes to prior written approvals
Cross-Post Source: Huron Compliance alerts – Huron Consulting Group
As part of the revisions to Uniform Guidance, nine prior written approval requirements have been removed from the list found in Subpart E 200.407. This change is effective for all new awards and funded amendments made on or after October 1, 2024.
NOTE: Recipients must continue to follow applicable cost principles under Subpart E, even when prior approval is not required. This requirement remains unchanged despite revisions to this section. The following information is based on OMB’s 2 CFR 200 and may differ from agency-specific guidance. Be sure to review the terms and conditions specific to your award.
1. § 200.201(b)(5) Fixed Amount Subawards
- Prior approval no longer required for changes in key personnel and/or project scope for fixed amount subawards.
- Fixed amount subawards are entitled to unexpended funds at the end of the project if the required activities under the agreement were completed and certified that all expenditures were incurred in accordance with 200.403.
2. § 200.311(b) Real Property
- While real property is being used for the originally authorized purpose, the recipient must not dispose of or encumber its title or other interests unless prior approval from federal agency is obtained.
3. § 200.313(a)(2) Equipment
- While equipment is being used for its originally authorized purpose, the recipient must not dispose of or encumber its title or other interests without the prior approval of the federal agency.
4. § 200.413(c)(1-3) Administrative/Clerical Salaries
- Direct charging of administrative/clerical staff salaries is allowable without prior approval when the following conditions are met:
i. Salaries are integral to the federal award.
ii. Individuals involved can be specifically identified with the federal award.
iii. Costs are not also recovered as indirect costs.
5. § 200.438(b) Entertainment Costs and Prizes
- Costs of prizes are allowable without prior approval if they have a specific and direct programmatic purpose and are included in the federal award budget.
6. § 200.454(c) Memberships
- Prior approval is no longer required for costs of membership in any civic or community organization.
7. § 200.456, 200.308 Participant Support & Budget Revisions
- Participant support costs are allowable without prior approval given that the classification of participant support is documented in the recipient’s written policies and procedures and are treated consistently across federal awards.
- Rebudgeting costs from participant support to other budget areas after the award is made still requires approval.
8. § 200.467 Selling and Marketing Costs
- Costs of selling and marketing any products/services of the recipient are unallowable unless they are allowed under § 200.421 and are necessary to meet the requirements of the federal award. Prior approval cannot be obtained to compensate for these conditions not being met.
9. § 200.470(b)(2) Taxes
- In cases where foreign tax (VAT) costs are credited back to a federal award, the federal share of costs may be reduced by the amount of the reimbursement, or the agency may allow the recipient to use the foreign government tax refund for approved activities without requiring prior approval.
Other Key Takeaways
Cross-Post Source: Huron’s key takeaways from an initial brief published in May 2024 and August’s edition of the Huron Research Brief
Reference / subject | Change |
---|---|
§ 200.1 | Subawards and MTDC | Redefine MTDC to include up to the first $50,000 (previously $25,000) of each subaward and exclude any amount in excess of $50,000.1 |
§ 200.414 | De Minimis Indirect Cost Rate | Increase de minimis rate from 10% to 15% over MTDC.2 |
§ 200.501, § 200.512 | Audit Requirements | Increase the single audit threshold from $750,000 to $1 million. Cognizant agency may authorize an extension for single audit submission. |
§ 200.419 | Cost Accounting Standards (CAS) and DS-2 | Remove requirement for Institutions of Higher Education (IHE) that receive an aggregate total of $50 million or more in Federal awards to file DS-2.3 |
§ 200.201, § 200.313, §200.439 | Equipment Capitalization | Increase threshold of equipment capitalization from $5,000 to $10,000.1,4 |
§ 200.333 | Fixed Amount Subawards | Increase limit on fixed amount subawards from $250,000 to $500,000. Clarifies entitlement of unexpended funds. |
§ 200.307 | Program Income | Remove reference of deductive program income. |
§ 200.1, §200.456 | Participant Costs | Revise definition of ‘participant’: “An individual who is benefitting from or is otherwise playing a role in the overall program activities”. |
§ 200.407 | Prior Written Approval Requirements | Remove prior written approval requirement from the following categories: use of fixed amount award, real property, equipment, direct costing of administrative staff5, entertainment costs, memberships, participant costs, selling and marketing costs, and taxes. |
§ 200.403 (h), § 200.472 (b) | Closeout Costs | Allow applicable administrative closeout costs incurred until the due date of final report(s), instead of approved budget period, and charged to final budget period. |
1 Change only applicable in conjunction with IHE’s next indirect cost rate (IDC) proposal and effective with the new rates negotiated or negotiated as part of an indirect cost rate extension.
2 Recipient is authorized to determine the appropriate rate up to this limit.
3 Requirement remains for any IHE that has $50 million or more in CAS covered contracts.
4 Recipient may elect to use lower threshold than $10,000.
5 Removes requirement that administrative staff salaries be included in the budget and/or have prior written approval of sponsor agency.