(iii) Programs for which no current services or performance are required such as annuities, insurance claims, or other benefit payments. (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $5,000 or more have the prior written approval of the Federal awarding agency or pass-through entity. The relevant sections of 2 CFR Part 200 are included in the paragraphs that follow: Appendix V to Part 200, Paragraph B.5. 435 Defense and prosecution of criminal and civil proceedings, claims appeals, and patent infringement are generally unallowable. (b)The following rules of allowability must apply to equipment and other capital expenditures: (b) The following rules of allowability must apply to equipment and other capital expenditures. §200.439 Equipment and other capital expenditures (a) See §§200.13 Capital expenditures, 200.33 Equipment, 200.89 Special purpose equipment, 200.48 General purpose equipment, 200.2 Acquisition cost, and 200.12 Capital assets. §§ 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements. § 200.439 Equipment and other capital expenditures. A: Fund payments are subject to the following requirements in the Uniform Guidance (2 C.F.R. §200.440 Exchange rates. This standard is met if the cost: (1) Is incurred specifically for the Federal award ; (2) Benefits both the Federal award and other work of the non-Federal entity and can be distributed in proportions that may be approximated using reasonable methods; and. § 200.13 Capital expenditures. Questions and Answers Regarding 2 CFR Part 200 . (a) To assure that expenditures are proper and in accordance with the terms and conditions of the Federal award and approved project budgets, the annual and final fiscal reports or vouchers requesting payment under the agreements must include a certification, signed by an official who is authorized to legally bind the non-Federal entity, which reads as follows: “By signing this report, I certify to the best … (c) For reports prepared on an accrual basis, expenditures are the sum of: (2) The amount of indirect expense incurred; (4) The net increase or decrease in the amounts owed by the non-Federal entity for: (ii) Services performed by employees, contractors, subrecipients, and other payees; and. The new regulations consolidated eight OMB Circulars, including the Circulars that governed direct and indirect costs (A-122 and A-87), into one location in the Code of Federal Regulations (www.ecfr.gov). §200.442 Fund raising and investment management costs. 2 CFR 200.216 – Prohibition on certain telecommunication and video surveillance services or equipment • No obligation or expenditure on prohibited items after 8/13/2020 • Includes non- par State funds on Federal projects • State DOTs should update contract provisions and subaward (a)See §§ 200.13 Capital expenditures, 200.33 Equipment, 200.89 Special purpose equipment, 200.48 General purpose equipment, 200.2 Acquisition cost, and 200.12 Capital assets. 2 CFR §200 Uniform Administrative Requirements, Cost Principles, And Audit … 200.2 Acquisition cost 6. (1) Capital expenditures for general purpose equipment, buildings, and land are unal owable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity. spending of any funds awarded by the federal government to Harvard is governed by 2CFR200 – Uniform Administrative Requirements 200.48 General purpose equipment 5. STTR , ARPA-E and EERE awards that exceed $750,000 in federal funds (irrespective of amounts drawn) during their fiscal year must have an annual audit performed in accordance with UGA . (b) The following rules of allowability must apply to equipment and other capital expenditures: sbir, sttr, arpa-e, and eere awards are subject to 2 cfr part 200 and the uniform guidance audit Organizations with expenditures from SBIR . These principles also must be used by the non-Federal entity as a guide in the pricing of fixed-price contracts and subcontracts where costs are used in determining the appropriate price. Summary of 2 CFR Part 200 “Uniform Guidance” (c) For reports prepared on an accrual basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services; (2) The amount of indirect expense incurred; (3) The value of third-party in-kind contributions applied; and (4) The net increase or decrease in the amounts owed by the non-Federal entity for: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee 's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502 . (a) The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and is consistently applied. The 55 items are not exhaustive of every expenditure out there, and leave a lot of gray area, so… The law provides guidance called “Basic Considerations” (5) The unamortized portion of any equipment written off as a result of a change in capitalization levels may be recovered by continuing to claim the otherwise allowable depreciation on the equipment, or by amortizing the amount to be written off over a period of years negotiated with the Federal cognizant agency for indirect cost. (6) Cost of equipment disposal. Expenditures means charges made by a non-Federal entity to a project or program for which a Federal award was received. 2 CFR 200 Q: Does 2 CFR 200 apply in its entirety? All Titles Title 2 Chapter II Part 200 Subpart E - Cost Principles Collapse to view only § 200.439 - Equipment and other capital expenditures. (1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity. If there is a question pertaining to the application … (a) See § 200.1 for the definitions of capital expenditures, equipment, special purpose equipment, general purpose equipment, acquisition cost, and capital assets. 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 … §200.441 Fines, penalties, damages and other settlements. OMB Circular A-21: "Cost Principals for Educational Institutions." Message from the Department of Education (the Department): Welcome to the Uniform Guidance (also referred to as 2 CFR Part 200) FAQ. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. § 200.439 Equipment and other capital expenditures. 438 Entertainment costs including amusement, diversion, and social activities and any costs directly associated with such costs are unallowable unless they 200.89 Special purpose equipment 4. 2 CFR 200 Carlos M ... §200.439 Equipment and other capital expenditures. (b) Schedule of expenditures of Federal awards. (7) Equipment and other capital expenditures are unallowable as indirect costs. 200.33 Equipment 3. See also § 200.465. Part 200): 2 C.F.R. At 2 CFR 200 The following are frequently asked questions presented by the OFAR on OM [s Uniform Guidance at 2 CFR 200. See § 200.436. capital expenditures, equipment, special purpose equipment, general purpose equipment, acquisition cost, Electronic Code of Federal Regulations (e-CFR), Subtitle A - Office of Management and Budget Guidance for Grants and Agreements, CHAPTER II - OFFICE OF MANAGEMENT AND BUDGET GUIDANCE, PART 200 - UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS, General Provisions for Selected Items of Cost. (4) When approved as a direct charge pursuant to paragraphs (b)(1) through (3) of this section, capital expenditures will be charged in the period in which the expenditure is incurred, or as otherwise determined appropriate and negotiated with the Federal awarding agency. §200.439 Equipment and other capital expenditures. Selected Items of Costs UG Section Description §200.440 Exchange rates. Table of Contents The reporting package must include the: (1) Financial statements and schedule of expenditures of Federal awards discussed in § 200.510 (a) and (b), respectively; (2) Summary schedule of prior audit findings discussed in § 200.511 (b); (3) Auditor's report (s) discussed in § 200.515; and. (2) Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a … 2 CFR Part 200 Section Reference Description 434 Contributions and donations made are unallowable. Electronic Code of Federal Regulations (e-CFR), Subtitle A - Office of Management and Budget Guidance for Grants and Agreements, CHAPTER II - OFFICE OF MANAGEMENT AND BUDGET GUIDANCE, PART 200 - UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS. PROCUREMENT STANDARDS Program Regulations: 7 CFR Parts 210.21 and 220.16 National School Lunch Program and School Breakfast Program Contractual responsibilities Procedures Written code of conduct - complies with 2 CFR Part 200.318 Pre-issuance review, if imposed Prototype solicitation documents/contracts Prohibited expenditures (3) Capital expenditures for improvements to land, buildings, or equipment which materially increase their value or useful life are unallowable as a direct cost except with the prior written approval of the Federal awarding agency, or pass-through entity. §200.444 General costs of government. Please note that in case of any discrepancy, the actual guidance at 2 CFR 200 governs. It … The cost principles in 2 CFR 200, Subpart E “…must be used in determining the allowable costs of work performed by the non-Federal entity under Federal awards. • As with Capital Equipment, there are purchasing restrictions within last 90 days of the award. (b) For reports prepared on a cash basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services; (2) The amount of indirect expense charged; (3) The value of third-party in-kind contributions applied; and. The County received less than $100 million in direct federal funding per the Schedule of Expenditures of Federal Awards in the most recent Single Audit. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200: 1. § 200.303 regarding internal controls, 2 C.F.R. 2 CFR Part 200 (§§200.330 – .332) requires pass-through entities of federal funds to monitor subawards and ensure, along with other requirements, that subrecipients meet the audit requirements outlined in Subpart F (§§200.500-.521), and use awarded funds in accordance with applicable laws, regulations, and terms of the award. 200.12 Capital assets. This Circular establishes principles for determining costs applicable to grants, contracts, and other agreements with educational institutions. (b) The following rules of allowability must apply to equipment and other capital expenditures: (1) Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity. 2 CFR Part 200 Federal Uniform Grant Guidance The Uniform Grant Guidance lists 55 “items of cost” that receive clarification regarding the allowability of charging to federal funds. See § 200.436, for rules on the allowability of depreciation on buildings, capital improvements, and equipment. Please note that the Uniform Guidance is evolutionary, not revolutionary. Definition: Expenditures from 2 CFR § 200.34 | LII / Legal Information Institute. §§200.13 Capital expenditures 2. regarding Capital Equipment expenditures still apply. §200.441 Fines, penalties, damages and other settlements. §200.443 Gains and losses on disposition of depreciable assets. * Opinion on Financial Statements 2 CFR 200.515(a) * Schedule of expenditures of Federal Awards 2 CFR 200.510(b) * Opinion or Disclaimer of Opinion on Schedule of Federal Awards 2 CFR 200.515(a) * Uniform Guidance Report on Internal Control 2 CFR 200.515(b) (major programs) * Uniform Guidance Report on Compliance 2 CFR 200.515(c) (major programs) part 200 - uniform administrative requirements, cost principles, and audit requirements for federal awards 2 CFR Part 200 - UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS Major local government means local government that receives more than Compliance Supplement 3.2-N-1 List of Selected Items of Cost Contained in 2 CFR part 200 The following exhibit provides a listing of selected items of cost contained in the cost principles in 2 CFR part 200, subpart E. Several cost items are unique to one type of entity (e.g., commencement and convocation costs are applicable only to IHEs). If the non-Federal entity is instructed by the Federal awarding agency to otherwise dispose of or transfer the equipment the costs of such disposal or transfer are allowable. §200.445 Goods or services for personal use. 2 CFR 200.300-309 Standards for Financial and Program Management Page 2 Statutory and National Policy Requirements 200.300 • The awarding agency must communicate all of the relevant public policy requirements including those in general appropriation provision and incorporate them directly or by reference in the terms and conditions. (4) The amount of cash advance payments and payments made to subrecipients. OMB Circular A-110… These sections include 2 CFR 200.300 Statutory and national policy requirements, 200.303 Internal controls, 200.339 Remedies for noncompliance, and 200.341 Notification of termination requirement. This regulation is effective on December 26, 2014. Title 2 CFR 200 was implemented by all federal agencies on December 19, 2014. §200.442 Fund raising and investment management costs. (b) Schedule of expenditures of Federal awards. 2 CFR Part 200, Subpart E & Appendix IV, establish the Federal requirements for the determination of allowable and unallowable direct and indirect costs for nonprofit organizations. Federal Awards 2 CFR 200 (Uniform Guidance), requires auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements that includes certain required elements described below.