(3) Uses net proceeds to maintain, improve, or expand the operations of the organization.
What are the sources of revenue for the federal government? 2313), then archived; (3) Each Federal awarding agency that considers making a Federal award to the non-Federal entity during that five year period must consider that information in judging whether the non-Federal entity is qualified to receive the Federal award when the total Federal share of the Federal award is expected to include an amount of Federal funding in excess of the simplified acquisition threshold over the period of performance; (4) The non-Federal entity may go to the awardee integrity and performance portal accessible through SAM (currently the Contractor Performance Assessment Reporting System (CPARS)) and comment on any information the system contains about the non-Federal entity itself; and. (a) Paperwork clearances. (4), 3.f and g, and 4.b and c; c. Under section C by revising paragraphs 2.a through c; and. For discretionary grants and cooperative agreements that are competed, the Federal awarding agency must announce specific funding opportunities by providing the following information in a public notice: (a) Summary information in notices of funding opportunities. Unobligated balance means the amount of funds under a Federal award that the non-Federal entity has not obligated. i. Amend 200.464 by revising paragraph (c) to read as follows: (c) Allowable relocation costs for new employees are limited to those described in paragraphs (b)(1) and (2) of this section. If the Federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances: (a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe enforcement action by the Federal awarding agency or pass-through entity. This section also should address whether applications for renewal or supplementation of existing projects are eligible to compete with applications for new Federal awards. (i) If the non-Federal entity does not submit all reports in accordance with this section within one year of the period of performance end date, the Federal awarding agency must report the non-Federal entity's material failure to comply with the terms and conditions of the award with the OMB-designated integrity and performance system (currently FAPIIS). (2) Costs of severance payments are divided into two categories as follows: (i) Actual normal turnover severance payments must be allocated to all activities; or, where the non-Federal entity provides for a reserve for normal severances, such method will be acceptable if the charge to current operations is reasonable in light of payments actually made for normal severances over a representative past period, and if amounts charged are allocated to all activities of the non-Federal entity. (6) Establishing additional prior approvals. The intent of the changes to this section are to make clear that the FAR applies to Federal contracts awarded to non-Federal entities, and that these requirements supersede the requirements of 2 CFR part 200 in a Federal contract. All concerned Federal agencies must be given the opportunity Start Printed Page 49581to participate in the negotiation process but, after a rate has been agreed upon, it will be accepted by all Federal agencies. The definition of renewal was edited to help clarify that a renewal award begins a distinct period of performance that starts contiguous with, or closely following, the end of the expiring award. 123. Costs to the non-Federal entity resulting from financial obligations incurred by the non-Federal entity during a suspension or after termination of a Federal award or subaward are not allowable unless the Federal awarding agency or pass-through entity expressly authorizes them in the notice of suspension or termination or subsequently. OMB looks forward to furthering this discussion with stakeholder sessions in fall 2020 and will also consider these proposals in future revisions of 2 CFR. When no longer needed for the originally authorized purpose, disposition of the intangible property must occur in accordance with the provisions in 200.313(e). (c) Federal award of cost-reimbursement contract under the FAR to a non-Federal entity. Fixed amount awards. (5) Application Review Information including the criteria and process to be used to evaluate applications. Micro-purchase threshold means the dollar amount at or below which a non-Federal entity may purchase property or services using micro-purchase procedures (see 200.320). (c) Upon termination of a Federal award, the Federal awarding agency must provide the information required under FFATA to the Federal website established to fulfill the requirements of FFATA, and update or notify any other relevant governmentwide systems or entities of any indications of poor performance as required by 41 U.S.C. OMB aims to clarify the methods for collection, transmission, and storage of data in 2 CFR 200.336 to further explain and promote the collection of data in machine-readable formats. The indirect cost pools must be classified within two broad categories: Facilities and Administration, as described in 200.414(a). The Federal awarding agency may make a Federal award to a recipient who does not fully meet these standards, if it is determined that the information is not relevant to the current Federal award under consideration or there are specific conditions that can appropriately mitigate the effects of the non-Federal entity's risk in accordance with 200.208. Requirement for recipients to ensure subrecipients have a unique entity identifier. (3) Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Major IHEs are defined as those required to use the Standard Format for Submission as noted in appendix III to this part, and Rate Determination for Institutions of Higher Education paragraph C. 11. If the proposal, plan, or other computation is Start Printed Page 49559required to be submitted to the Federal Government (or to the pass-through entity) to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts from the date of such submission. The Federal awarding agency may only exercise this authority upon a written determination by the Federal awarding agency that relies on a finding by the commander of a covered combatant command that there is reason to believe that funds, including supplies and services, received under the grant or cooperative agreement may have been provided directly or indirectly to a covered person or entity. The auditee must also prepare a corrective action plan for current year audit findings. With prior approval of the Federal awarding agency, program income may be used to meet the cost sharing or matching requirement of the Federal award. (1) Capital assets is defined as noted in 200.1 of this part. 109. Different definitions may be found in Federal statutes or regulations that apply more specifically to particular programs or activities. Amend 200.468 by revising paragraph (a) and (b)(2) to read as follows: (a) The costs of services provided by highly complex or specialized facilities operated by the non-Federal entity, such as computing facilities, wind tunnels, and reactors are allowable, provided the charges for the services meet the conditions of either paragraph (b) or (c) of this section, and, in addition, take into account any items of income or Federal financing that qualify as applicable credits under 200.406. (2) Authorize others to receive, reproduce, publish, or otherwise use such data for Federal purposes. The informal methods used for procurement of property or services at or below the SAT include: (1) Micro-purchases(i) Distribution. OMB appreciates the commenters who challenged OMB to go even further with the proposal with regards to evidence-building. One commenter requested that OMB add language to discourage pass-through entities from the practice of requiring more frequent and more detailed financial reporting. When original records are paper, electronic versions may be substituted through the use of duplication or other forms of electronic media provided that they are subject to periodic quality control reviews, provide reasonable safeguards against alteration, and remain readable. Some commenters questioned the use of the term systemic findings to describe the findings that impact the whole organization. Assistance listing program title means the title that corresponds to the Federal Assistance Listings Number, formerly known as the CFDA program title. If a subrecipient has a current Single Audit report posted in the Federal Audit Clearinghouse and has not otherwise been excluded from receipt of Federal funding (e.g., has been debarred or suspended), the pass-through entity may rely on the subrecipient's cognizant audit agency or cognizant oversight agency to perform audit follow-up and make management decisions related to cross-cutting findings in accordance with section 300.513(a)(3)(vii). 115. A. Jurisdictions in all 50 states and the District of Columbia impose property taxes. (e) Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility over confidentiality. An IHE may proceed with implementing the change after it has notified the Federal cognizant agency for indirect costs. (iii) Amounts funded by the non-Federal entity in excess of the actuarially determined amount for a fiscal year may be used as the non-Federal entity's contribution in future periods. OMB also received comments that requiring Federal awarding agencies to only grant exemptions to foreign organizations or foreign public entities on a case-by-case basis to be overly burdensome. (a) A Federal awarding agency may not make a Federal award or financial modification to an existing Federal award to an applicant or recipient until the entity has complied with the requirements described in 25.200 to provide a valid unique entity identifier and maintain an active SAM registration with current information (other than any requirement that is not applicable because the entity is exempted under 25.110). 1773); and. Subrecipients are not required to complete full SAM registration to obtain a unique entity identifier. Based on some confusion expressed in comments, minor modifications to the definition of internal controls were made to provide greater clarity on the internal controls requirements for non-Federal entities and Federal agencies. It may be as long as needed to adequately communicate to potential applicants the areas in which funding may be provided. When the value of the procurement for property or services under a Federal financial assistance award exceeds the SAT, or a lower threshold established by a non-Federal entity, formal procurement methods are required. One commenter expressed strong support for the revisions proposed for this provision. (b) After closeout of the Federal award, a relationship created under the Federal award may be modified or ended in whole or in part with the consent of the Federal awarding agency or pass-through entity and the non-Federal entity, provided the responsibilities of the non-Federal entity referred to in paragraph (a) of this section, including those for property management as applicable, are considered and provisions made for continuing responsibilities of the non-Federal entity, as appropriate. Amend appendix VI to part 200 by revising paragraph 2 in section D to read as follows: 2. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect (F&A) costs. 39. This change further supports OMB Memorandum M-19-16 Centralized Mission Support Capabilities for the Federal Government, which requires that future shared service solutions must adhere to the Federal Integrated Business Framework standards (available at: https://ussm.gsa.gov/fibf/). (ii) For returning interest on Federal awards not paid through PMS, the refund should: (B) Include the name of the awarding agency; (10) Funds, principal, and excess cash returns must be directed to the original Federal agency payment system. (c) The Federal awarding agency or pass-through entity must make prompt payments to the non-Federal entity for costs meeting the requirements in Subpart E of this part under the Federal award being closed out. The clarification reinforces the machine-readable requirements in the Foundations of Evidence-Based Policymaking Act of 2018 (Pub. 2313.). Evaluation costs are allowed as a direct cost in existing guidance. This approach is based upon: (1) A strong commitment by Federal agency and non-Federal entity leadership to program integrity; (2) Federal agencies strengthening partnerships and working cooperatively with non-Federal entities and their auditors; and non-Federal entities and their auditors working cooperatively with Federal agencies; (3) A focus on current conditions and corrective action going forward; (4) Federal agencies offering appropriate relief for past noncompliance when audits show prompt corrective action has occurred; and. If the language is too prescriptive, it doesn't provide sufficient flexibility for use by the large array of users. If it is anticipated that the period of performance will include multiple budget periods, the Federal awarding 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. If the Federal awarding agency has assigned or will assign a number to the funding opportunity announcement, this number must be provided; (6) Key Dates. (See the definition of period of performance in this section.) OMB expects this guidance to have a significant economic impact on a substantial number of such entities. OMB sought to address commenter concerns by re-writing this section to align closely with the law, add a new definition for telecommunications and video surveillance costs, and add a new section 2 CFR 200.471. (iii) Recipient integrity and performance matters. Reporting Subawards and Executive Compensation, APPENDIX A TO PART 183CLAUSES FOR AWARD AGREEMENTS, Appendix A to Part 183Award Terms for Never Contract With the Enemy, Prohibition on Providing Funds to the Enemy, PART 200UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS, Subpart CPre-Federal Award Requirements and Contents of Federal Awards, Subpart DPost Federal Award Requirements, Performance and Financial Monitoring and Reporting, Post-Closeout Adjustments and Continuing Responsibilities, Appendix I to Part 200Full Text of Notice of Funding Opportunity, D. Application and Submission Information, F. Federal Award Administration Information, Appendix II to Part 200Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, Appendix III to Part 200Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), B. (8) The non-Federal entity must maintain advance payments of Federal awards in interest-bearing accounts, unless the following apply: (i) The non-Federal entity receives less than $250,000 in Federal awards per year. It cannot be used as a factor during the merit review of applications or proposals, but may be considered if it is both in accordance with Federal awarding agency regulations and specified in a notice of funding opportunity. A separate indirect cost rate(s) is usually necessary for each department or agency of the governmental unit claiming indirect costs under Federal awards. b. No documentation is required to support this allowance. A renewal award's start date will begin a distinct period of performance. See also 200.431. (d) When records are transferred to or maintained by the Federal awarding agency or pass-through entity, the 3-year retention requirement is not applicable to the non-Federal entity. (See also 200.414(c)(4)). Cooperate and provide support to the Federal agency designated by OMB to lead a governmentwide project to determine the quality of single audits by providing a reliable estimate of the extent that single audits conform to applicable requirements, standards, and procedures; and to make recommendations to address noted audit quality issues, including recommendations for any changes to applicable requirements, standards and procedures indicated by the results of the project. Taxes, special assessments, levies, fines, and other such revenues raised by a non-Federal entity are not program income unless the revenues are specifically identified in the Federal award or Federal awarding agency regulations as program income. Revenue: the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an entity (such as sales of goods, sales of services, interest, royalties, and dividends). Announcements must state whether there is required cost sharing, matching, or cost participation without which an application would be ineligible (if cost sharing is not required, the announcement must explicitly say so). (e) Charges for depreciation must be supported by adequate property records, and physical inventories must be taken at least once every two years to ensure that the assets exist and are usable, used, and needed. Where the accomplishments of the Federal award can be quantified, a computation of the cost (for example, related to units of accomplishment) may be required if that information will be useful. L. 96-422, 94 Stat. After further review, OMB retained the existing language. Non-Federal entities are encouraged to earn income to defray program costs where appropriate. Excise taxes on accumulated funding deficiencies and other penalties imposed under ERISA are unallowable. Since the summary schedule may include audit findings from multiple years, it must include the fiscal year in which the finding initially occurred. (2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no positive profit incentive to the contractor for cost control or labor efficiency. Factors to be considered in evaluating each proposal for audit services include the responsiveness to the request for proposal, relevant experience, availability of staff with professional qualifications and technical abilities, the results of peer and external quality control reviews, and price. (2) An explanation of the basis for the action taken. (2) The auditee must prepare the financial statement(s) for the Federal program that includes, at a minimum, a schedule of expenditures of Federal awards for the program and notes that Start Printed Page 49572describe the significant accounting policies used in preparing the schedule, a summary schedule of prior audit findings consistent with the requirements of 200.511(b), and a corrective action plan consistent with the requirements of 200.511(c). Authority: Under this alternative, no cost proposal need be prepared for the Administration portion of the indirect (F&A) cost rate nor is further identification or documentation of these costs required (see subsection c). See Section III or additional information on the comments received. 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. The statutory authority for funding the program and, to the extent possible, agency, sub-agency, or, if known, the specific program unit that will issue the Federal awards, and associated funding identifier (e.g., Treasury Account Symbol(s)); (5) General eligibility requirements. The intent of this section is to retain the existing NICRAs until they are renegotiated and incorporate the requirements from the revision to 2 CFR upon renegotiation. (e) Nothing in this part precludes combining of the audit reporting required by this section with the reporting required by 200.512(b) when allowed by GAGAS and appendix X to this part. Some commenters were in support of the revisions to this section. The non-Federal entity must make timely payment to contractors in accordance with the contract provisions. (xiv) Indirect cost rate for the Federal award (including if the de minimis rate is charged) per 200.414. A-123, Management's Responsibility for Enterprise Risk Management and Internal Control. Costs resulting from non-Federal entity violations of, alleged violations of, or failure to comply with, Federal, state, tribal, local or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with prior written approval of the Federal awarding agency. OMB concurred with the commenter's suggestion and moved the requirement accordingly. only attracted about 5-6 percent of the U.S. population. g. Individual Rate Components. 4. Rates for third-party volunteer services must be consistent with those paid for similar work by the non-Federal entity. OMB concurred and made this change in the final language. Further, the burden is minimal for a non-Federal entity to provide the name of its immediate owner and highest-level owner. Taxes and revenue represent our shared effort to provide vital public services and supports for Californians and our communities. has no substantive legal effect. Non-Federal entities may establish a threshold higher than the Federal threshold established in the Federal Acquisition Regulations (FAR) in accordance with paragraphs (a)(1)(iv) and (v) of this section. The data must include information available from the audit required by this part that is necessary for Federal agencies to use the audit to ensure integrity for Federal programs. a. The commenter provided a suggested edit that would enable the example to remain and retain the original intent. Items such as office supplies, postage, local telephone costs, periodicals and memberships should normally be treated as indirect costs. (2) The value of donated equipment must not exceed the fair market value of equipment of the same age and condition at the time of donation. The value of these services may not be charged to the Federal award either as a direct or indirect cost. OMB considered and discussed all the comments for clarity and made revisions accordingly. These commenters expressed concern with requiring subrecipients to fully register with the SAM database. (3) Void in whole or in part any grant, cooperative agreement or contracts of the executive agency concerned upon a written determination by the head of contracting activity or other appropriate official that the grant or cooperative agreement provides funds directly or indirectly to a covered person or entity. (b) General Federal award information. We clarified that the determination for funding is based the federal award expenditures as reported in the recipient's Schedule of expenditures of Federal Awards (see 200.510(b)). Indirect costs include (a) the indirect costs originating in each department or agency of the governmental unit carrying out Federal awards and (b) the costs of central governmental services distributed through the central service cost allocation plan (as described in Appendix V to this part) and not otherwise treated as direct costs. Such Start Printed Page 49564a plan or rate may be based upon audited historical data or such other data that have been furnished to the cognizant agency for indirect costs and for which it can be demonstrated that all unallowable costs have been excluded. OMB respectfully declines this comment. a. (1) All Federal awards which are assigned a single Assistance Listings Number. Federal awarding agencies and pass-through entities must not impose any other access requirements upon non-Federal entities. 31. The expenses included in this category could be grouped first according to major functions of the organization to which they render services or provide benefits. L. 113-291). In addition, procurements for goods and services that are directly charged to a Federal award must conform to the standards identified in this part. OMB agreed with this clarifying revision and incorporated it within 2 CFR 200.318.
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