The guidance was drawn from omb circulars a21, a87, a110, and a122 which have been placed in past omb guidances. Omb uniform guidance super circular final version issued december 26, 20 effective for state and local governments for years beginning after december 26, 2014 streamline and consolidate the format of these with circulars that apply to institutions of. Interest paid to an external party for building purchase, construction, remodeling, or equipment is allowable as specifically outlined in omb a21. A searchable copy of the cfda and a pdf version are available. Refer to specific applicable set of federal cost principles for entire text. Crosswalk between 2 cfr part 225 omb circular a87 and 2 cfr part 200 ms word, 701kb nonprofit organizations. Omb circular a21, cost principles for educational institutions 05102004 omb circular a122, cost principles for nonprofit organizations 05102014 audit requirements. Crosswalk between 2 cfr part 230 omb circular a122 and 2 cfr part 200 ms word, 768kb. A single indirect cost rate for all activities of the organization may not be appropriate when work under the federal program is conducted in an offsite location and the level of administrative support is different than other programs. Omb circular a3, entities that receive federal funds are subject to audit requirements that are commonly referred to as single audits. This circular replaces and rescinds all previously issued omb circular a127 dated july 23, 1993, june 10, 1999, and december 1, 2004. Attachment b omb circular a122 selected items of cost.
Top seven facts about omb circular a87, cost principles. Those standards and omb circular a128 require that we plan and perform the audit to obtain reasonable assurance about whether the primary government financial statements are free of material misstatement. Omb circular a3 audits of states, local governments and nonprofit institutions. Office of federal awards management federal guidance. A guide for indirect cost determination table of contents august 2019 page. Omb circular a122 also provides for the use of special indirect cost rates. Omb circular a122, dated 060198 cost principles for nonprofit organizations omb circular a123, dated 062195 management accountability and control omb circular a125, was rescinded and replaced by the prompt pay regulations at 5 cfr part 15. Cost principles for nonprofit organizations omb circular. Part 220 are also being superseded by the new provisions of the supercircular. A122 revised may 10, 2004 to the heads of executive departments and establishments. This circular establishes principles for determining costs of grants, contracts and other agreements with nonprofit organizations.
Beyond grasping the cost principles and details of 50plus separate costs in circular a122, it is vital to anticipate challenges often faced by others in the nonprofit world. Omb circular a122 any incentive compensation arrangement must also be structured to comply with the requirements of omb circular a122, cost principles for nonprofit organizations. However, if the grantee is currently recording such information in another format, please request the oigs approval of this format before. 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. Omb circular a122 attachment b attachment 9 answers to the true false exercise. Circular a122 cost principles for nonprofit organizations a. This revision of circular a127 is effective october 2009. Office of management and budget circulars and bulletins.
Omb circular a122 attachment b selected items of cost attachment b identifies 56 categories of cost and provides guidance on the allowability of each as a cost to government grantscontracts. Omb releases final uniform administrative requirements. A sample format for presenting such information in accordance with omb circular a122 is provided in attachment 1. This article addresses changes made to omb circular a122, the cost principles applicable to nonprofit organization federal grantees. Circular a128, auditsofstate and local governments. Omb circular a87 for specific guidance for preparing personnel activity reports. Grants and cooperative agreements with state and local governments omb circular a110. Omb amended the circular on april 25, 1984 49 fr 18260, on may 19, 1987 52 fr 19788, and on september 29, 1995 60 fr 52516. The cost principles for nonprofits omb circular a122, codified at 2 c. Any exceptions will be subject to approval by omb, as indicated in. Omb circular a122 cost principles for nonprofit organizations codified at 28 cfr part 66, by reference audit requirements. Omb circular a87 cost principles for state, local, and indian tribal governments, codified at 28 cfr part 66, by reference. No costs can be covered by the grant unless they are directly related to the approved project.
Uniform administrative requirements, cost principles, and. Basic considerations to be allowable, costs must meet the following general criteria. The exemptions would be from all but the allocability of costs provisions of omb. As such, this final rule replaces omb citations in the far to the circulars cited above that have been replaced by this new omb uniform guidance, and. Be necessary and reasonable to carry out the federal award. Intimate familiarity with omb circular a122 and its practical applications is essential. Other audit costs require prior specific approval of tea. This appendix presents the fully recompiled circular a122. This relocation is part of our broader initiative to create 2 cfr as a single location. To be allowable under an award, costs must meet the following general criteria. This new omb uniform guidance supersedes and streamlines requirements from omb circulars a21, a87, a89, a102, a110, a122, and a3, and the guidance in circular a50 on audit followup. Omb circular a122 cost principles for nonprofit organizations, relocated to.
According to a87, to be allowable under federal awards, costs must. Part 230 cost principles for nonprofit organizations. Policies for federal credit programs and nontax receivables html or pdf. The director, bureau for management, office of acquisition and assistance, has been so designated. Final guidance has been issued that, upon implementation, will supersede requirements from omb circulars a21, a87, a110, and a122 which have been placed in 2 c. Omb originally issued circular a122 on june 27, 1980 45 fr 46022. The super circular 2 cfr part 200 replaces a21 a87 a122 cost circulars a102 common rule a110 a89 administrative requirements a3 a50 audit requirements session 5. Part 230, state local and tribal governments omb circular a87, codified at 2. The exemptions would be from all but the allocability of costs provisions of omb circulars a87 attachment a, subsection c. Department of education general administrative regulations edgar, and governmentwide requirements, including applicable office of.
Most of the documents on this page were created as pdfsclick here for pdf assistance. Uniform administrative requirements for grants and agreements with institutions of higher education, hospitals and other nonprofits omb circular a. Omb circular a122 cost principles for nonprofit organizations would apply. The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. The bureau for management, office of acquisition and assistance, cost. Under circular a122, incentive compensation is an allowable cost under a federal grant to the extent. All significant changes are summarized in the first page of the circular. Omb exhibit 300 omb circular a11, preparation and submission of budget estimates, part 7, section 300, exhibit 300, appendix 300 omb circular a34 instructions on budget execution was rescinded on 62702 and was superseded by omb circular no. Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for. Other audit costs are allowable if included in an indirect cost proposal. The office of management and budget omb, in its efforts to deliver on the promise of a 21stcentury government that is more efficient, effective and transparent, has streamlined the omb circulars on administrative requirements, cost principles, and audit requirements for all federal awards into one document, referred to as the super circular.
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