Most of these costs are allowable as long as they are used only in the commission of the lsta grant project. Cost allocation methodologies for nonprofit organizations informational session june 7, 2005. Omb circular a122 cost principles for nonprofit organizations codified at 28 cfr. The highlighted sections are most relevant to daytoday operations of departmental business offices. The principles are designed to provide that the federal government bear its fair. Part 220 are also being superseded by the new provisions of the supercircular. The principles do not apply to awards under which an organization is not required to account to the federal.
Top seven facts about omb circular a87, cost principles. Omb circular a110 uniform administrative requirements for grants and other agreements with institutions of higher education, hospitals and other nonprofit organizations 11191993 further amended 09301999, relocated to 2 cfr, part 215 32 pages, 243 kb. Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for. Omb circular a122, cost principles for nonprofit organizations 2. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost. Omb circular a110 uniform administrative requirements for grants and agreements with institutions of higher education, hospitals, and other nonprofit organizations 2 cfr 215.
A searchable copy of the cfda and a pdf version are available through. The fasb 106 changed the treatment of postretirement benefits prb from the cash basis to the accrual basis of accounting. This circular establishes principles for determining costs of grants, contracts and other agreements with nonprofit organizations. This category includes all contracts and contract modifications for research and development, training, and other work performed by educational institutions defined as institutions of higher educations in the omb uniform guidance at 2 cfr part 200, subpart a, and 20 u. Hud grantee training omb circular a122 cost principles for nonprofit organizations.
Audit feesexpenses may not be charged to statefunded grants. Part 230 cost principles for nonprofit organizations. Omb circulars a21 cost principles for higher education and omb circular a110, administrative requirements for grants and omb a3 audits have been the cornerstone of costing and the rules for all federal grants and contracts. The uniform guidance was published in the federal register on december 26, 20 and became effective. A122, cost principles for nonprofit organizations, a3, audits of states, local governments, and nonprofit organizations, and the guidance in omb circular a50, audit followup, on single audit act followup. The exemptions would be from all but the allocability of costs provisions of omb circulars a87 attachment a, subsection c. Basic considerations to be allowable, costs must meet the following general criteria. Rather than include the revised language in the three circulars cost principles separately, omb created a 206 page chart that permitted sidebyside comparison of. Part 225 and circular a122 a122 can be found at 2 c. Budget omb circulars a21 and a122, cost principles for educational institutions and cost principles for nonprofit orsanizations. Principles for educational institutions, and a122 attachment a, subsection a. Appendix a to part 230general principles appendix b to part 230selected items of cost appendix c to part 230nonprofit organizations not subject to this part. Part 230, state local and tribal governments omb circular a87, codified at 2.
Omb circular a122 cost principles for nonprofit organizations training omb circular a122 cost principles for nonprofit direct costs 92. Reforms to cost principles circulars a21, a87, and a122 uniform set of cost principles for all grant recipients eliminate duplicative language clarify where there are important substantive policy variances across entities update language to reflect 21st century business practices i. To be allowable under an award, costs must meet the following general criteria. Omb circulars 2 cfr 230 a122 and 2 cfr 225 a87 for general information purposes only. Direct cost principles, tactics under circular a122 anne worrell beech slide 7 slide 21. Circular a122, cost principles for nonprofit organizations. All terms used in this document such as direct costs, indirect costs and cost pools are defined in accordance with omb circulars a122 cost principles for non profit organizations, a21 cost principles for educational institutions or a87 cost principles for state, local and indian tribal governments except as noted in attachment a. This relocation is part of our broader initiative to create 2 cfr as a single location. Part 200, uniform administrative requirements, cost principles, and audit requirements for federal awards section id is modified to delete the references to omb circular a122 and replace it with 2 c. Management and budget omb cost principles provide general guidance regarding costs and cost related issues and requirements. So, for example, if the subgrantee is a local government as in the regular cdbg program, a87 would apply, while if the subaward was to a nonprofit corporation, omb circular a122 cost principles for nonprofit organizations would apply.
Omb circular a122 cost objective an award housing services for residents of city of san francisco a projectservice oneonone employment. Grantees should consult the complete set of applicable cost principles to determine allowability and unallowability of costs prior to expending funds. Office of management and budget omb has consolidated eight of its circulars into one document, titled uniform administrative requirements, cost principles and audit requirements for federal awards 2 cfr part 200 commonly referred to as the uniform guidance. Circular a122 cost principles for nonprofit organizations a. Except as otherwise provided for in this circular, be determined in accordance with. Omb circular a122, cost principles for nonprofit organizations applicability major differences between a122 and a87 omb circular a21, cost principles for educational institutions applicability major differences between a21 and a87. Award requirements and contents of federal awards subpart d, 200. Omb circular a122 cost principles for nonprofit organizations 2 cfr 230 2. There are some situations where furniture is an allowable lsta expense. One of the actions was a proposal to make to make the cost principles in omb circulars a21, a87, and a122 more consistent and to clarify some aspects of the cost principles.
Cost principles for nonprofit organizations omb circular. All references in this article will be to the code of federal regulations. Double click on the pdf and a separate page will open. Covered by omb circular a87, cost principles for state, local, of jatropha curcas pdf and indian.
Can your organization use federal grant funds to pay legal. Omb revises cost circular a122 september 2004 caplaw update by maximillian j. Part 225, and educational institutions omb circular a21, 2. Determining costs for federal awards carried out through. Uniform administrative requirements, cost principles, and audit requirements for federal awards. A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a. Other audit costs are allowable if included in a cost allocation plan or indirect cost proposal. The cost principles for nonprofits omb circular a122, codified at 2 c. Omb circular a21 cost principles for educational institutions, codified at 28 cfr part 66, by reference. The office of management and budgets omb uniform administrative requirements, cost principles, and audit requirements for federal awards commonly called uniform guidance was officially implemented in december 2014 by the council on financial assistance reform cofar now dissolved. Cost reimbursement contracts shall conform to the cost principles set forth in 48 c.
Office of departmental grants management and oversight december 16, 17, 2002 instructor. Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for grants and agreements chapter ii office of management and budget circulars and guidance subchap reserved. Refer to specific applicable set of federal cost principles for entire text. Bodoin, caplaw the office of management and budget omb recently amended the cost principles for federal grantees in omb circulars a21, a87, and a122 in order to comply with the simplification objectives established.
This could materially increase prb costs claimed for. Basic considerations to be allowable, costs must meet the following. Omb circular a87 cost principles for state, local, and indian tribal governments, codified at 28 cfr part 66, by reference. Critical changes and approaches for implementation.
The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. When omb published the uniform requirements, it also removed 2 cfr parts 215, 220. A21 and a122 ar e consolidated, merged and clarified into a single. Part 31 and contract cost principles and procedures, office of management and budget circulars a21, a87, a122. Hud grantee training omb circular a122 cost principles. Omb releases final uniform administrative requirements.
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