CFR 200 (Uniform Guidance for Federal Financial Assistance): Final Revisions Effective October 1, 2024

The Office of Management and Budget has announced revisions to the Uniform Guidance (2 CFR 200) that are the most substantial since its creation in 2013. The Biden-Harris Administration announced the publication of the final revisions to the OMB’s Uniform Guidance 2 CFR in April 2024, proclaiming that “these changes will allow agencies and recipients of Federal funds to focus more time and money on delivering meaningful results for the American people.” 

The Uniform Guidance is a set of government-wide policies and regulations that apply to the management of federal grants. OMB states the following objectives for the current round of revisions: “(1) incorporating statutory requirements and administration priorities; (2) reducing agency and recipient burden; (3) clarifying sections that recipients or agencies have interpreted in different ways; and (4) rewriting applicable sections in plain language, improving flow, and addressing inconsistent use of terms.”  The effective date for these revisions is October 1, 2024.    

Included below are the most significant updated provisions that will have an immediate or eventual impact on federal grant management at Emerson College.

Please note that not all of these changes will immediately impact the Colleges rules and procedures related to federal funding. In the coming weeks, policies and procedures related to federal grants that are published on Emerson’s web site will be updated to reflect those changes that will be implemented for awards received on or after October 1, 2024.

For questions, please contact orcs@emerson.edu.

Subpart A – Definitions

Reference / subject	Change	Effective
§ 200.1 | Participants	Clarifies definition of Participant: 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… program activities under a Federal award are not participants. Examples of participants: 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. Related to Participant Support Costs.	Awards made on or after October 1, 2024
§ 200.1 | Modified Total Direct Costs (MTDC)	Redefine Modified Total Direct Costs to include up to the first $50,000 (previously $25,000) of each subaward and exclude any amount in excess of $50,000.	In conjunction with IHE’s next indirect cost rate (IDC) proposal and effective with the new rates negotiated or negotiated as part of an indirect cost rate extension.
§ 200.1 | Intangible Property	Expand definition of Intangible Property to mean 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.	Awards made on or after October 1, 2024
§ 200.1 | Prior Approval	Prior approval is clarified to mean the written approval obtained in advance by an authorized official of a Federal agency or pass-through entity of certain costs or programmatic decisions.	Awards made on or after October 1, 2024
§ 200.1 | Recipient and Subrecipient	Replaces Non-Federal Entity in Uniform Guidance	Awards made on or after October 1, 2024
§ 200.1 | Special Equipment	Equipment that is used only for research, medical, scientific, or other similar technical activities. Definition expanded to include associated software.	Awards made on or after October 1, 2024

Subpart B – General Provisions

Reference / subject	Change	Effective
§ 200.113 Mandatory Disclosures (“prompt disclosure of credible evidence”)	“Requires an applicant, recipient, or subrecipient to promptly make a written disclosure to the agency and the agency’s inspector general 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” or a violation of the civil False Claims Act.” Credible evidence has the same meaning as FAR 73 FR 67064.	Awards made on or after October 1, 2024

Subpart C – Pre-Award and Federal Award Requirements

Reference / subject	Change	Effective
§ 200.201,  Fixed-Price Awards	Raises threshold of fixed-price awards from $250k to $500k. Clarifies that recipients are entitled to any unexpended funds under a fixed amount award if the required activities were completed, along with record retention and post award certification requirements. Clarifies that unexpended funds are “not considered profit.”	Awards made on or after October 1, 2024
§ 200.216  | Prohibition on certain telecomm & video equipment	Clarifies the prohibition on the use of federal funds for telecommunications equipment or services or video surveillance equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).	Awards made on or after October 1, 2024

Subpart D – Post-Award Requirements

Reference / subject	Change	Effective
§ 200.306 (k)  | Cost Sharing	Confirms that voluntary uncommitted cost sharing should not be included in the organized research base for computing the indirect cost rate.	In conjunction with IHE’s next indirect cost rate (IDC) proposal and effective with the new rates negotiated or negotiated as part of an indirect cost rate extension.
§ 200.308 | Revision of budget and program plans	Clarifies when prior approval is not needed from the federal awarding agency for certain changes to budget or project scope, including–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. A one-time extension of the period of performance by up to 12 months may be initiated by the recipient, unless prohibited by certain restrictions, and differs from a No-Cost Extension, which requires prior approval.	Awards made on or after October 1, 2024
§ 200.313 | Equipment	Increases the threshold for capital equipment from $5,000 to $10,000. Recipient has the discretion to maintain the $5,000 threshold.	In conjunction with IHE’s next indirect cost rate (IDC) proposal and effective with the new rates negotiated or negotiated as part of an indirect cost rate extension.
§ 200.333 | Fixed Amount Subawards	Increase limit on fixed amount subawards from $250,000 to $500,000. Clarifies entitlement of unexpended funds.	Awards made on or after October 1, 2024

Subpart E – Cost Principles

Reference / subject	Change	Effective
§ 200.403 (h), § 200.472 (b) | Closeout Costs	Allow applicable administrative closeout costs incurred until the due date of final report(s), instead of approved budget period, and charged to final budget period.	Awards made on or after October 1, 2024
§ 200.407 | Prior Written Approval	Remove prior written approval requirement from the following categories: use of fixed amount award, real property, equipment, direct costing of administrative staff, entertainment costs, memberships, participant costs, selling and marketing costs, and taxes.	Awards made on or after October 1, 2024
§ 200.414 | De Minimis Indirect Cost Rate	Increase de minimis rate from 10% to 15% over MTDC.	Awards made on or after October 1, 2024
§200.456 | Participant Costs	Revise definition of ‘participant’: “An individual who is benefitting from or is otherwise playing a role in the overall program activities”. Remove the prior approval requirement for participant support costs.	Awards made on or after October 1, 2024

Subpart F – Audit Requirements

Reference / subject	Change	Effective
§ 200.501 | Audit Requirements	Raises the single audit threshold of federal expenditures from $750,000 to $1 million.	Awards made on or after October 1, 2024