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Displaying title 2, up to date as of 1/06/2025. Title 2 was last amended 1/03/2025.
Title 2 —Federal Financial Assistance
Subtitle A —Office of Management and Budget Guidance for Federal Financial Assistance
Chapter II —Office of Management and Budget Guidance
ENHANCED CONTENT - TABLE OF CONTENTS
Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards
200.0 – 200.521
Subpart A Acronyms and Definitions
200.0 – 200.1
Acronyms
200.0 – 200.1
§ 200.0 Acronyms.
§ 200.1 Definitions.
Subpart B General Provisions
200.100 – 200.113
§ 200.100 Purpose.
§ 200.101 Applicability.
§ 200.102 Exceptions.
§ 200.103 Authorities.
§ 200.104 Supersession.
§ 200.105 Effect on other issuances.
§ 200.106 Agency implementation.
§ 200.107 OMB responsibilities.
§ 200.108 Inquiries.
§ 200.109 Review date.
§ 200.110 Effective date.
§ 200.111 English language.
§ 200.112 Conflict of interest.
§ 200.113 Mandatory disclosures.
Subpart C Pre-Federal Award Requirements and Contents of Federal Awards
200.200 – 200.217
§ 200.200 Purpose.
§ 200.201 Use of grants, cooperative agreements, fixed amount awards, and contracts.
§ 200.202 Program planning and design.
§ 200.203 Requirement to provide public notice of Federal financial assistance programs.
§ 200.204 Notices of funding opportunities.
§ 200.205 Federal agency review of merit of proposals.
§ 200.206 Federal agency review of risk posed by applicants.
§ 200.207 Standard application requirements.
§ 200.208 Specific conditions.
§ 200.209 Certifications and representations.
§ 200.210 Pre-award costs.
§ 200.211 Information contained in a Federal award.
§ 200.212 Public access to Federal award information.
§ 200.213 Reporting a determination that an applicant is not qualified for a Federal award.
§ 200.214 Suspension and debarment.
§ 200.215 Never contract with the enemy.
§ 200.216 Prohibition on certain telecommunications and video surveillance equipment or services.
§ 200.217 Whistleblower protections.
Subpart D Post Federal Award Requirements
200.300 – 200.346
§ 200.300 Statutory and national policy requirements.
§ 200.301 Performance measurement.
§ 200.302 Financial management.
§ 200.303 Internal controls.
§ 200.304 Bonds.
§ 200.305 Federal payment.
§ 200.306 Cost sharing.
§ 200.307 Program income.
§ 200.308 Revision of budget and program plans.
§ 200.309 Modifications to Period of Performance.
Property Standards
200.310 – 200.316
§ 200.310 Insurance coverage.
§ 200.311 Real property.
§ 200.312 Federally owned and exempt property.
§ 200.313 Equipment.
§ 200.314 Supplies.
§ 200.315 Intangible property.
§ 200.316 Property trust relationship.
Procurement Standards
200.317 – 200.327
§ 200.317 Procurements by States and Indian Tribes.
§ 200.318 General procurement standards.
§ 200.319 Competition.
§ 200.320 Procurement methods.
§ 200.321 Contracting with small businesses, minority businesses, women's business enterprises, veteran-owned
businesses, and labor surplus area firms.
§ 200.322 Domestic preferences for procurements.
§ 200.323 Procurement of recovered materials.
§ 200.324 Contract cost and price.
§ 200.325 Federal agency or pass-through entity review.
§ 200.326 Bonding requirements.
§ 200.327 Contract provisions.
Performance and Financial Monitoring and Reporting
200.328 – 200.330
§ 200.328 Financial reporting.
§ 200.329 Monitoring and reporting program performance.
§ 200.330 Reporting on real property.
Subrecipient Monitoring and Management
200.331 – 200.333
§ 200.331 Subrecipient and contractor determinations.
§ 200.332 Requirements for pass-through entities.
§ 200.333 Fixed amount subawards.
Record Retention and Access
200.334 – 200.338
§ 200.334 Record retention requirements.
§ 200.335 Requests for transfer of records.
§ 200.336 Methods for collection, transmission, and storage of information.
§ 200.337 Access to records.
§ 200.338 Restrictions on public access to records.
Remedies for Noncompliance
200.339 – 200.343
§ 200.339 Remedies for noncompliance.
§ 200.340 Termination.
§ 200.341 Notification of termination requirement.
§ 200.342 Opportunities to object, hearings, and appeals.
§ 200.343 Effects of suspension and termination.
Closeout
§ 200.344 Closeout.
Post-Closeout Adjustments and Continuing Responsibilities
§ 200.345 Post-closeout adjustments and continuing responsibilities.
Collection of Amounts Due
200.344
200.345
200.346
§ 200.346 Collection of amounts due.
Subpart E Cost Principles
200.400 – 200.476
General Provisions
200.400 – 200.401
§ 200.400 Policy guide.
§ 200.401 Application.
Basic Considerations
200.402 – 200.411
§ 200.402 Composition of costs.
§ 200.403 Factors affecting allowability of costs.
§ 200.404 Reasonable costs.
§ 200.405 Allocable costs.
§ 200.406 Applicable credits.
§ 200.407 Prior written approval (prior approval).
§ 200.408 Limitation on allowance of costs.
§ 200.409 Special considerations.
§ 200.410 Collection of unallowable costs.
§ 200.411 Adjustment of previously negotiated indirect cost rates containing unallowable costs.
Direct and Indirect Costs
200.412 – 200.415
§ 200.412 Classification of costs.
§ 200.413 Direct costs.
§ 200.414 Indirect costs.
§ 200.415 Required certifications.
Special Considerations for States, Local Governments and Indian Tribes
200.416 – 200.419
§ 200.416 Cost allocation plans and indirect cost proposals.
§ 200.417 Interagency service.
§ 200.418 Costs incurred by states and local governments.
§ 200.419 Cost accounting standards.
General Provisions for Selected Items of Cost
200.420 – 200.476
§ 200.420 Considerations for selected items of cost.
§ 200.421 Advertising and public relations.
§ 200.422 Advisory councils.
§ 200.423 Alcoholic beverages.
§ 200.424 Alumni activities.
§ 200.425 Audit services.
§ 200.426 Bad debts.
§ 200.427 Bonding costs.
§ 200.428 Collections of improper payments.
§ 200.429 Commencement and convocation costs.
§ 200.430 Compensation—personal services.
§ 200.431 Compensation—fringe benefits.
§ 200.432 Conferences.
§ 200.433 Contingency provisions.
§ 200.434 Contributions and donations.
§ 200.435 Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements.
§ 200.436 Depreciation.
§ 200.437 Employee health and welfare costs.
§ 200.438 Entertainment and prizes.
§ 200.439 Equipment and other capital expenditures.
§ 200.440 Exchange rates.
§ 200.441 Fines, penalties, damages and other settlements.
§ 200.442 Fundraising and investment management costs.
§ 200.443 Gains and losses on the disposition of depreciable assets.
§ 200.444 General costs of government.
§ 200.445 Goods or services for personal use.
§ 200.446 Idle facilities and idle capacity.
§ 200.447 Insurance and indemnification.
§ 200.448 Intellectual property.
§ 200.449 Interest.
§ 200.450 Lobbying.
§ 200.451 Losses on other awards or contracts.
§ 200.452 Maintenance and repair costs.
§ 200.453 Materials and supplies costs, including costs of computing devices.
§ 200.454 Memberships, subscriptions, and professional activity costs.
§ 200.455 Organization costs.
§ 200.456 Participant support costs.
§ 200.457 Plant and security costs.
§ 200.458 Pre-award costs.
§ 200.459 Professional service costs.
§ 200.460 Proposal costs.
§ 200.461 Publication and printing costs.
§ 200.462 Rearrangement and reconversion costs.
§ 200.463 Recruiting costs.
§ 200.464 Relocation costs of employees.
§ 200.465 Rental costs of real property and equipment.
§ 200.466 Scholarships, student aid costs, and tuition remission.
§ 200.467 Selling and marketing costs.
§ 200.468 Specialized service facilities.
§ 200.469 Student activity costs.
§ 200.470 Taxes (including Value Added Tax).
§ 200.471 Telecommunication and video surveillance costs.
§ 200.472 Termination and standard closeout costs.
§ 200.473 Training and education costs.
§ 200.474 Transportation costs.
§ 200.475 Travel costs.
§ 200.476 Trustees.
Subpart F Audit Requirements
General
§ 200.500 Purpose.
Audits
§ 200.501 Audit requirements.
§ 200.502 Basis for determining Federal awards expended.
§ 200.503 Relation to other audit requirements.
§ 200.504 Frequency of audits.
§ 200.505 Remedies for audit noncompliance.
§ 200.506 Audit costs.
§ 200.507 Program-specific audits.
Auditees
§ 200.508 Auditee responsibilities.
§ 200.509 Auditor selection.
§ 200.510 Financial statements.
§ 200.511 Audit findings follow-up.
§ 200.512 Report submission.
Federal Agencies
§ 200.513 Responsibilities.
Auditors
§ 200.514 Standards and scope of audit.
§ 200.515 Audit reporting.
§ 200.516 Audit findings.
§ 200.517 Audit documentation.
§ 200.518 Major program determination.
§ 200.519 Criteria for Federal program risk.
§ 200.520 Criteria for a low-risk auditee.
Management Decisions
§ 200.521 Management decisions.
Appendix I to Part 200
Full Text of Notice of Funding Opportunity
Appendix II to Part 200
Contract Provisions for Non-Federal Entity Contracts Under Federal Awards
Appendix III to Part 200
Indirect (F&A) Costs Identification and Assignment, and Rate Determination for
Institutions of Higher Education (IHEs)
Appendix IV to Part 200
Indirect (F&A) Costs Identification and Assignment, and Rate Determination for
Nonprofit Organizations
Appendix V to Part 200
State/Local Governmentwide Central Service Cost Allocation Plans
Appendix VI to Part 200
Public Assistance Cost Allocation Plans
Appendix VII to Part 200
States and Local Government and Indian Tribe Indirect Cost Proposals
Appendix VIII to Part 200
Nonprofit Organizations Exempted From Subpart E of Part 200
Appendix IX to Part 200
Hospital Cost Principles
Appendix X to Part 200
Data Collection Form
Appendix XI to Part 200
Compliance Supplement
200.500 – 200.521
200.500
200.501 – 200.507
200.508 – 200.512
200.513
200.514 – 200.520
200.521
Appendix XII to Part 200
Award Term and Condition for Recipient Integrity and Performance Matters
PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND
AUDIT REQUIREMENTS FOR FEDERAL AWARDS
Authority: 31 U.S.C. 503; 31 U.S.C. 6101-6106; 31 U.S.C. 6307; 31 U.S.C. 7501-7507.
Source: 89 FR 30136, Apr. 22, 2024, unless otherwise noted.
Subpart A—Acronyms and Definitions
Acronyms
§ 200.0 Acronyms.
(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 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 means 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 perunit 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 costreimbursement 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 means 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, means 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 passthrough 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 means 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” means 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” means 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” means 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” means 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 subawards) 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 means 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 A123 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.
[89 FR 30136, Apr. 22, 2024, as amended at 89 FR 79732, Oct. 1, 2024]
Subpart B—General Provisions
§ 200.100 Purpose.
(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 nonFederal 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.
(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. Passthrough 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 costreimbursement 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 fixedprice 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.
(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.
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. 11011131 (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.
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.
(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.
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 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.
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.
OMB will review this part periodically.
§ 200.110 Effective date.
(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.
(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 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.
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.)
Subpart C—Pre-Federal Award Requirements and Contents of Federal Awards
§ 200.200 Purpose.
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.
(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 passthrough 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.
(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 EvidenceBased 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.
(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.
The Federal agency must announce specific funding opportunities for Federal financial assistance that will be openly competed. The term openly
competed means 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.
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.
(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. 116117), 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.
(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.
(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.
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.
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.
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.
(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.
(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.
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.
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.
(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” means 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.
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.
Subpart D—Post Federal Award Requirements
§ 200.300 Statutory and national policy requirements.
(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 passthrough 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.
(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.
(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.
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.
(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.
(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 passthrough entity must make payment within 30 calendar days after receipt of the payment request unless the Federal agency or passthrough 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/grantrecipients/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/grantrecipients/returning-funds-interest.html.
§ 200.306 Cost sharing.
(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 inkind 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
(i)
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.
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.
(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.
(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 passthrough 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.
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.
Property Standards
§ 200.310 Insurance coverage.
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.
(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.
(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 means 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.
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 means 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 activiti
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