# 2 CFR § 200.400: Policy guide

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-2-200.400

## Section

- **Citation:** 2 CFR § 200.400
- **Heading:** Policy guide
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** 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 > PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS > Subpart E—Cost Principles > General Provisions

## Text

The application of these cost principles is based on the fundamental premises that:
(a) The recipient and subrecipient are responsible for the efficient and effective administration of the Federal award through sound management practices.
(b) The recipient and subrecipient are responsible for administering Federal funds in a manner consistent with Federal statutes, regulations, and the terms and conditions of the Federal award.
(c) The recipient and subrecipient, in recognition of their unique combination of staff, facilities, and experience, are responsible for employing organization and management techniques necessary to ensure the proper and efficient administration of the Federal award.
(d) The accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the Federal award.
(e) When reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, the cognizant agency for indirect costs should ensure that the recipient consistently applies these cost principles. Where wide variations exist in the treatment of a given cost item by the recipient, the reasonableness and equity of such treatments should be fully considered. See the definition of indirect costs in § 200.1.
(f) For recipients and subrecipients that educate and engage students in research, the dual role of students as both trainees and employees (including pre- and post-doctoral staff) contributing to the completion of Federal awards for research must be recognized in the application of these principles.
(g) The recipient or subrecipient must not earn or keep any profit resulting from Federal financial assistance unless explicitly authorized by the terms and conditions of the Federal award. See also § 200.307. When the required activities of a fixed amount award were completed in accordance with the terms and conditions of the award, the unexpended funds retained by the recipient or subrecipient are not considered profit.

## Nearby sections

- [2 CFR § 200.400 § 200.400 Policy guide.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.400.md)
- [2 CFR § 200.401 § 200.401 Application.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.401.md)
- [2 CFR § 200.402 § 200.402 Composition of costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.402.md)
- [2 CFR § 200.403 § 200.403 Factors affecting allowability of costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.403.md)
- [2 CFR § 200.404 § 200.404 Reasonable costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.404.md)
- [2 CFR § 200.405 § 200.405 Allocable costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.405.md)
- [2 CFR § 200.406 § 200.406 Applicable credits.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.406.md)
- [2 CFR § 200.407 § 200.407 Prior written approval (prior approval).](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.407.md)
- [2 CFR § 200.408 § 200.408 Limitation on allowance of costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.408.md)
- [2 CFR § 200.409 § 200.409 Special considerations.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.409.md)
- [2 CFR § 200.410 § 200.410 Collection of unallowable costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.410.md)
- [2 CFR § 200.411 § 200.411 Adjustment of previously negotiated indirect cost rates containing unallowable costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.411.md)
- [2 CFR § 200.412 § 200.412 Classification of costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.412.md)
- [2 CFR § 200.413 § 200.413 Direct costs.](https://www.frixlaw.com/law-library/statutes/ecfr-2-200.413.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-2-200.400. Check the current official text before relying on it. Not legal advice.