Important Changes in the Uniform Guidance
This page describes specific differences between the Uniform Guidance and its predecessors, Circulars A21, A110, and A133. UMCES’s implementation or policy changes resulting from the UG are also discussed.
Click on any of the links below to find out more about changes resulting from the Uniform Guidance.
COST SHARE
Only Cost Share When it is Required by the Solicitation
Cost Sharing or Matching: (As defined by 200.29 ) is the portion of project costs not paid by Federal funds unless otherwise authorized by Federal statute. All cost sharing must be tracked and maintained in a separate account.
Voluntary Cost Sharing: (As defined by 200.99 ) is specifically pledged on a voluntary basis in the proposal’s budget or the Federal award on the part of the non-Federal entity and that becomes a binding requirement of the Federal award.
Section 200.306 specifies that cost sharing or matching should only be solicited for research proposals when required by regulation and transparent in the notice of funding opportunity Voluntary committed cost sharing is not expected under Federal research proposals and is not to be used as a factor in the review of applications or proposals unless it is specifically stated as such in the announcement. Only mandatory cost sharing or cost sharing committed in the budget must be included in the research base for computing F&A cost rate.
Shared costs, matching funds, and contributions must meet certain criteria to be accepted as cost sharing. In particular, salary costs above a Federal awarding agency’s cap are not mandatory cost-share or match. For more information on the criteria for cost-sharing allowability, go to Section 200.306.
For more information on cost sharing transparency in funding opportunities, go to Appendix I to Part 200 – Full Text of Notice of Funding Opportunity; E. Application Review Information, 1. Criteria – Required .
Impact at UMCES:
- UMCES’s Cost Sharing Policy is consistent with these requirements.
- Research proposals are to include cost sharing only when it is required by the solicitation.
ALLOCABLE COSTS
Definition of Allocable Expanded from “Solely” to “Specifically”
Section 200.405 language in the guidance changed from “incurred solely for the Federal award” to “incurred specifically for the Federal award”. Federal funds cannot be used to overcome deficiencies or reasons other than those specified at the time of the award. If an incurred cost benefits two or more projects, the cost should be allocated proportionately; costs for equipment purchased under an award are allocable regardless of the use of the equipment when it is no longer needed.
Impact at UMCES:
- Laboratory Business Offices will work with the PI to appropriately allocate costs.
COSTS REQUIRING PRIOR APPROVAL
Section 200.407. Specifies that the institution may want to seek prior written approval to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability. Many items require prior approval. For the full list, go to Code of Federal Regulations - Title 2 Section 200.407.
Changes have been made regarding the following items requiring prior approval:
- Revisions to the budget or program plan.
- Overloads (Section 200.430)
- Cost increases for fluctuations in exchange rates (2 CFR 200.440). See also Foreign Activities.
- Participant support costs (Section 200.456). See also Participant Costs.
Impact at UMCES:
- Any costs that you anticipate incurring during the performance of your research project should be included in your proposal budget and budget justification.
- Post-award changes to costs requiring prior approval must be requested in writing before the change is made. Contact ORAA for more information.
CONFLICT OF INTEREST
Conflict of Interest Disclosures to be Agency-Specific
Conflict of Interest: Federal agencies have specific policies on this that are appropriately tailored to the specific nature of their programs. Section 200.112 requires Federal agencies to have policies on conflict of interest in Federal awards and requires non-Federal entities to disclose in writing any potential conflicts of interest (in accordance with applicable policies) to the Federal awarding agency or pass-through entity. COFAR FAQ .112-1 specifies that this clause refers to conflicts related to how decisions are made for selecting subrecipients or procurement contracts.
Impact at UMCES:
- The impact at UMCES will remain an open issue until individual federal agencies have published their Implementation Plans.
- Budget preparation and cost principles:
PARTICIPANT COSTS
Participant Support Costs Must be tracked in a Separate Account
Section 200.75 . Participant support costs are direct costs such as stipends or subsistence allowances, travel allowances and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences or training projects.
Participant support costs are to be excluded from the MTDC (2 CFR 200.68).
Impact at UMCES:
UMCES already requires projects to track participant support costs in a separate KFS account.
CLERICAL AND ADMINISTRATIVE SALARY
Administrative Costs may be charged as Direct Costs under Certain Conditions
Administrative Costs as Direct Costs. Administrative or clerical salaries and expenses are allowed as direct costs when the activities are integral to a project, can be specifically identified, are included in the budget or have prior approval, and are not also recovered as indirect costs (Section 200.413 and 200.430). “Integral” is defined as essential to the accomplishment of the project’s goals and objectives, rather than necessary for the overall operation of the institution.
Impact at UMCES:
COMPUTING DEVICES
Computing Devices allowed as a Supply – Chargeable as a Direct Cost
Cost of Computing Devices: Section 200.453 allows computing devices to be charged as direct costs if they are essential and allocable, but not solely dedicated, to the performance of a Federal award.
Section 200.20 defines a computing device as a “machine used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or ‘peripherals’) for printing, transmitting and receiving, or storing electronic information.” To be considered a supply cost, the cost of the computing device must be less than $5,000.
Impact at UMCES:
- Computing devices should be itemized in your proposal budget and their use in the project clearly justified in the budget justification.
- The project must not have reasonable access to other devices or equipment that can achieve the same purpose. Devices may not be purchased for reasons of convenience or preference.
- See the UMCES Guidance on Purchasing Computers on Sponsored Projects
ACCUMULATED LEAVE PAYOUT
Payouts for Accumulated Leave and Compensation Claims are Allowable
Section 200.431 . The cost of compensation paid to employees for authorized absences, payments for unused leave when an employee retires or terminates employment, and actual claims for workers compensation, unemployment compensation, severance pay, and similar benefits are allowable as indirect costs. Cost must be recognized in the period that the leave is taken and paid for when the entity uses the cash basis of accounting.
Impact at UMCES:
- UMCES has a terminal leave rate for all faculty-status personnel; payouts for faculty come from this pool.
- For staff directly paid from sponsored projects, payouts would normally be paid as a direct charge to the project.
PUBLICATION COSTS
Publication Costs after the Period of Performance are Allowable
Publication and Printing Costs: Section 200.461 clarifies that non-Federal entities may charge the Federal award before closeout for the costs of publication or sharing of research results if the costs are not incurred during the period of performance of the Federal award.
Impact at UMCES:
- In developing your proposal, make sure that the costs for publication and printing are specified in the budget. The budget justification should include an explanation of why the costs will be incurred post-award.
- Lab business offices and PIs must work with ORAA and the Comptroller regarding the charging of these costs after the termination of the award. Costs must be charged within 90 days of termination.
RECRUITING COSTS
Short-term Travel Visas for Recruitment are Allowable as Direct Costs
Short-term travel visas in connection with recruitment efforts are allowable as direct costs provided they can be clearly identified as directly connected, critical and necessary to the project. (Section 200.463 Recruiting Costs (d)).
Impact at UMCES:
- Lab business offices must maintain documentation supporting this cost in accordance with the UG requirements.
FOREIGN ACTIVITIES
Allowable Expenses for Foreign Activities
Exchange Rates: Cost increases due to fluctuations in exchange rates are allowable subject to the availability of funding and prior approval. The institution must review local currency gains to determine the need for additional funding before the expiration date of the award. (Section 200.440 ).
Value Added Tax (VAT) is an allowable expense if it is charged for the purchase of goods or services and the non-Federal entity is legally required to pay in country. Any refunds or applicable credits resulting from the payment of VAT taxes must be credited to the awarding agency (Section 200.470 ).
Impact at UMCES:
- If applicable, additional documentation for foreign subrecipients may be needed to demonstrate requirement to pay in-country VAT tax.
- Subrecipients:
INCLUDING SUBRECIPIENTS IN A PROPOSAL
Contractor vs Subaward
Elimination of the term Vendor and replaced with Contractor. See Sections 200.22 Contract, 200.92 Subaward , and 200.330 Subrecipient and Contractor Determinations. Determination must be documented.
- Subaward: A subaward is for the purpose of carrying out a portion of the Federal award and creates a Federal assistance relationship with the subrecipient. Subawards are subject to F&A up to the first $25,000 of the award for the entire period of performance.
- Contractor: A contract is for the purpose of obtaining goods and services and creates a procurement relationship with the contractor. The entire contract amount is subject to F&A.
Subrecipients: De Minimis indirect cost rate (F&A) of 10% of MTDC should be applied to non-federal entities without a negotiated indirect cost rate (F&A) (Sections 200.210 , 200.331 , and 200.510 ).
Fixed Amount Subawards. (200.332 ). With prior approval, fixed amount subawards may be awarded up to the Simplified Acquisition Threshold.
Impact at UMCES:
CONTRACT TERMS AND CONDITIONS
Terms and Conditions for Subrecipients
Uniform Guidance is Applicable to Subrecipients: Subrecipients receiving flow down from a federal award are subject to the Uniform Guidance. (Section 200.101 ).
Subcontracts under Federal Awards: Contracts over the Simplified Acquisition Threshold ($150,000) must address contract breach. Contracts in excess of $10,000 must address termination for cause. (Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts under Federal Awards ).
Federal cost-reimbursement contracts awarded under the FAR are subject to Subpart A, Subpart B, Subpart D (Post Federal Award Requirements and Subrecipient Monitoring and Management), Subpart E and Subpart F.
Impact at UMCES:
Contracts for subrecipients of federal awards administered by UMCES will include specific terms and conditions applicable to the Uniform Guidance.
RISK ASSESSMENT
Pass through Entities Must Assess Risk
Section 200.331(b) . Entities receiving federal awards who then subaward to other entities must consider the risks associated with that subaward combined.
Impact at UMCES:
Risk assessments for all subrecipients of federal awards will be conducted by ORAA.
MONITORING
Monitoring Required by Section 200.331 Mostly Unchanged
Oversight should be based on the consideration of risk (see above).
Monitoring should include the review of performance and financial reports required of the subawardee to meet the requirements of the federal award.
When Deficiencies are Identified: The subrecipient should take timely and appropriate action to correct deficiencies pertaining to the federal award. Unresolved deficiencies may result in the issuance of a management decision for audit findings. (Section 200.521 )
Impact at UMCES:
- Subrecipient Monitoring requires the participation of the PI and ORAA.
- ORAA reveiws the subrecipient for financial stability and audit concerns.
- The PI, with the assistance of the lab business office, reviews and approves all subrecipient invoices prior to payment. The PI is responsible for bringing any deficiencies in the subrecipient's performance to the immediate attention of the ORAA director.
- Reporting Requirements
EFFORT REPORTING
Effort Reporting Premised on Strong Internal Controls
Section 200.430(i) . Emphasis on documenting salary charges to federal awards using a system premised on strong internal controls which provides reasonable assurance as to the accuracy of the information. The institution’s official payroll system should be the basis for confirming payroll charges to federal awards.
Impact at UMCES:
- UMCES will continue to track effort via UMD's Effort Reporting System.
RECORD RETENTION
Retain Records for 3 Years after Closeout. Electronic Retention is Preferred.
Record Retention. Section 200.333 clarifies the requirement that records be retained for three years from the date of submission of the final expenditure report and permits the federal agency to extend the retention period if notified in writing.
Storage of Information. Section 200.335 (c) makes clear that electronic, open, machine readable information is preferable to paper as long as there are appropriate controls in place to safeguard from alteration of records.
Impact at UMCES:
UMCES record retention policy is in compliance with this requirement.
- Closeouts
- Audits
Questions?
Contact ORAA for technical questions or your business office for financial matters.
