The uniform guidance supersedes the following omb circulars. Can your organization use federal grant funds to pay legal fees. The doe guide to financial assistance us department of. The circular also contains a listing of specific cost items and if they are allowable. Part 215, 6 a122 cost principles for nonprofit organizations 2 cfr part 230, 7 a3 audits of states, local governments and nonprofit organizations, and 8 those sections of a50 related to audits under subpart f of 2 cfr part 200. An indirect cost rate is simply a device for determining fairly and conveniently within the boundaries of sound administrative principles, what proportion of indirect cost each program should bear. Uniform administrative requirements, cost principles, and audit requirements for federal awards. The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. The department of transportations dot common grant rules at 2 cfr part 1201, adopted the office of management and budgets omb revised uniform administrative requirements. Management and budget circulars a21 cost principles for educational institutions, a 122 cost principles for nonprofit organizations, and a87 cost principles for state, local and indian tribal governments.
A 122 cost principles for nonprofit organizations in 20, effective december 26, 2014, the omb issued the uniform administrative requirements, cost principles and audit requirements for federal awards uniform guidance to clarify and streamline the federal guidance. Determining costs for federal awards carried out through. Uniform guidance uniform administrative requirements, cost principles, and audit requirements. Cost principles comparison chart 2 cfr part 225 a87, 2 cfr part 220 a21, 2 cfr part 230 a122, and final uniform guidance. Refer to specific applicable set of federal cost principles for entire text. Omb circular a4, regulatory analysis 09172003 html or pdf 48 pages, 435 kb. Omb circular a 122 any incentive compensation arrangement must also be structured to comply with the requirements of omb circular a 122, cost principles for nonprofit organizations. Omb a87, allowable when reasonable omb a122, allowable when reasonable. Text from 2 cfr part 225 a87 serves as the guiding comparison text, therefore text from the other comparison guidance may not be listed in chronological order. The purpose of those revisions was to simplify the cost principles by making the descriptions of similar cost items consistent across the circulars where possible, thereby. Allowable based on acquisition cost as stipulated in omb a21. Disbursing service allowable for cost of disbursing funds by treasurer or other designated officer. Cost principles comparison chart 2 cfr part 225 a 87, 2 cfr part 220 a 21, 2 cfr part 230 a 122, and final uniform guidance.
Grantees should consult the complete set of applicable cost principles to determine allowability and unallowability of costs prior to expending funds. Consult the appropriate omb circular or call for clarification of any questdcs ions you may have. Dols center for faithbased and community initiatives center was created when president bush signed executive order 198 on january 29, 2001. These principles apply whether a cost is treated as direct or indirect. Implementation of the new uniform guidance regulations.
Appendix a list of selected items of cost contained in omb cost principles regulations the following table lists the selected items of cost along with a cursory description of their allowability. Allowable costs are defined and discussed in detail in the following circulars. Can your organization use federal grant funds to pay. Costs of help wanted advertising that includes color, advertising material for other than recruitment purposes, or is excessive in size omb a 122. Requirements, cost principles, and audit requirements for federal awards, 2 cfr part 200, which supersedes and streamlines the former omb circulars on uniform administrative guidance, a102 and a110, former omb circulars on cost principles, a21, a87, and a122, and former omb circulars addressing single audit issues, a3. A122 cost principles for nonprofit organizations in 20, effective december 26, 2014, the omb issued the uniform administrative requirements, cost principles and audit requirements for federal awards uniform guidance to clarify and streamline the federal guidance. Can your organization use federal grant funds to pay legal. A122 cost principles for nonprofit organizations a.
In 20, effective december 26, 2014, the omb issued the uniform administrative requirements, cost principles and audit requirements for federal awards uniform guidance to clarify and streamline the federal guidance. Basic considerations to be allowable, costs must meet the following. A87, cost principles for state, local, and indian tribal governments, omb circular a 122, cost principles for nonprofit organizations, and omb circular a3 audits of states, local governments, and nonprofit organizations. Omb published modifications to 2 cfr 180 and 200 to. This contract is based on a period of time beginning omb approval no. Reforms to cost principles circulars a21, a87, and a 122 uniform set of cost principles for all grant recipients eliminate duplicative language clarify where there are important substantive policy variances across entities update language to reflect 21st century business practices i. Omb circular a21, f4, cost principles for educational institutions, operation and maintenance expenses. Cost principles comparison chart 2 cfr part 225 a 87, 2 cfr part 220 a 21, 2 cfr part 230 a 122, and final uniform guidance text from 2 cfr part 225 a87 serves as the guiding comparison text, therefore text from the other comparison guidance may not be listed in chronological order. Omb circular a122, cost principles for nonprofit organizations. Government of the district of columbia subrecipient monitoring manual. An indirect cost rate is the ratio between the total indirect expenses and some direct cost base.
Costs of help wanted advertising that includes color, advertising material for other than recruitment purposes, or is excessive in size omb a122. Organizations the single audit act, and the circulars for cost principles, omb circular a21, cost principles for educational institutions, omb circular a87, cost principles for state, local and indian tribal governments, and omb circular a 122, cost principles for nonprofits. Cost principles, circulars a21, a87, and a122 uniform guidance subpart a acronyms and definitions subpart b general provisions subpart c prefederal award requirements and contents of federal awards subpart d post federal award requirements subpart e cost principles subpart f audit requirements uniform guidance. Cost accounting policies and procedures manual of the. Requirements, cost principles, and audit requirements for federal awards, 2 cfr part 200, which supersedes and streamlines the former omb circulars on uniform administrative guidance, a102 and a110, former omb circulars on cost principles, a21, a87, and a 122, and former omb circulars addressing single audit issues, a3. Part 230 cost principles for nonprofit organizations. Circular a 122 cost principles for nonprofit organizations a. The same federal cost principles apply to all professional services or consulting services subcontracts when the subcontract is a cost reimbursement contract. Please refer to the circular that represents your institution best. The exemptions would be from all but the allocability of costs provisions of omb circulars a87 attachment a, subsection c. All subgrants must be awarded as cost reimbursement grants. This circular establishes principles for determining costs of grants, contracts and other agreements with nonprofit organizations. Omb circular a122 any incentive compensation arrangement must also be structured to comply with the requirements of omb circular a122, cost principles for nonprofit organizations. Travel costs for consultants will be budgeted in 6200 and must be reasonable and necessary.
Ade accepts no responsibility for the interpretation of the cost principles. The basic underlying principle of circular a122 is that all costs incurred must be reasonable and necessary to properly complete the grant project. In addition, these principles provide requirements for the development and submission of cost allocation plans and indirect rate cost proposals. Omb regulations related to timekeeping 2 cfr 220 cost principles formerly omb circular a.
Omb circular a122 cost principles for nonprofit organizations 2 cfr 230. Cost principles, and audit requirements for federal awards super circular or omni circular. Reforms to cost principles circulars a21, a87, and a122 8 uniform set of cost principles for all grant recipients eliminate duplicative language clarify where there are importan t substantive policy variances across entities update language to reflect 21 st century business practices i. The guide to financial assistance is a reference document that provides a compilation of non. Grants management guidance for nonprofit organizations. Principles for educational institutions, and a122 attachment a, subsection a. Program assessment and reporting the ca agrees to conduct or otherwise assist the applicant in assessing grant activities.
The office of management and budgets omb uniform administrative requirements, cost principles, and audit requirements for federal awards commonly called uniform guidance was officially implemented in december 2014 by the council on financial assistance reform cofar now dissolved. Circular a122 cost principles for nonprofit organizations a. Usaid uniform administrative requirements, cost principles. Chapter iioffice of management and budget circulars and guidance part page 200214 reserved 215 uniform administrative requirements for grants and agreements with institutions of higher edu cation, hospitals, and other nonprofit organiza tions omb circular a110 39 216219 reserved. Management and budget omb cost principles, and the terms and conditions of your assistance agreement. A cost is unallowable for federal reimbursement based on established federal cost principles. Audit tips for managing disasterrelated project costs. In addition, it addresses the unique requirements that are program specific to a particular funding source. Circular a 122, cost principles for nonprofit organizations. Cost principles, circulars a21, a87, and a 122 uniform guidance subpart a acronyms and definitions subpart b general provisions subpart c prefederal award requirements and contents of federal awards subpart d post federal award requirements subpart e cost principles subpart f audit requirements uniform guidance.
Uniform guidance are applicable to all awards after 12262014. Management and budget circulars a21 cost principles for educational institutions, a122 cost principles for nonprofit organizations, and a87 cost principles for state, local and indian tribal governments. Accepting funding from a governmental agency imposes a number of additional administrative requirements on an nfp. Basic considerations to be allowable, costs must meet the following general criteria. However, the accounting practices of the nonfederal. A122, cost principles for nonprofit organizations, to title 2 in the code of federal regulations cfr, subtitle a, chapter ii, part 230. Applicability of other state and federal requirementsneither the governmentwide rule nor the law affect either 1 the applicability of cost principles in omb circulars a87 and a122, or 2 riders to the texas state appropriations acts which disallow use of state funds for. Ade accepts no responsibility for the interpretation of the cost principles as outlined below.
To deliver on the promise of a 21stcentury government that is more efficient, effective and transparent, the office of management and budget omb is streamlining the federal governments guidance on administrative requirements, cost principles, and audit requirements for federal awards. Under circular a122, incentive compensation is an allowable cost under a federal grant to the extent. Budget instructions all applicants submitting a full application in phase ii must submit a completed budget spreadsheet utilizing attachment c, full application budget template as well as a budget narrative refer to attachment e, sample budget narrative. Reforms to cost principles circulars a21, a87, and a122 uniform set of cost principles for all grant recipients eliminate duplicative language clarify where there are important substantive policy variances across entities update language to reflect 21st century business practices i. Federal cost principles sidebyside omb circulars a87, a122, and a21 page 7 of 36 item of cost omb circular a87 omb circular a122 omb circular a21 governmental unit. Cost principles for state, local, and indian tribal governments, omb circular a122, cost principles for nonprofit organizations, and omb circular a3 audits of states, local governments, and nonprofit organizations. Uniform administrative requirements, cost principles, and. The numbers in parentheses refer to the cost item in the applicable regulation. Federal cost principles sidebyside texas education agency. Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for. Grantees should consult the complete set of applicable cost principles to determine allowability and unallowability of. Omb circular a 122, cost principles for nonprofit organizations. Appendix a to part 230general principles appendix b to part 230selected items of cost appendix c to part 230nonprofit organizations not subject to this part.
Principles for educational institutions, and a 122 attachment a, subsection a. Other agreements with state and local governments and federallyrecognized indian tribal governments governmental units. Government of the district of columbia us department of. The office of management and budget omb, in its efforts to deliver on the promise of a 21stcentury government that is more. Requirements, cost principles, and audit requirements for ombfederal awards omb circular a21 cost principles for universities omb circular a87 cost principles for states circular a122 cost principles for nonprofits omb circular a110.
Requirements, cost principles, and audit requirements for ombfederal awards omb circular a21 cost principles for universities omb circular a87 cost principles for states circular a 122 cost principles for nonprofits omb circular a110. Omb circular a21 cost principles for educational institutions 2 cfr 220. Circular a122, cost principles for nonprofit organizations. Federal cost principles sidebyside omb circulars a87, a 122, and a21 page 7 of 36 item of cost omb circular a87 omb circular a 122 omb circular a21 governmental unit.
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