Federal grant recipients alert: Uniform Grants Guidance is changing

While the headline above may be one of the most boring written in the SSTI Weekly Digest’s history, any recipient of federal grant funding should be aware that changes are coming to the Uniform Grants Guidance that governs federal grants, effective October 1. The guidance “sets the foundational requirements for agencies in making grants and providing other forms of Federal financial assistance, such as cooperative agreements and loans,” according to the White House. The changes will apply only to awards after October 1. Among the changes the White House is touting are directions to agencies to make grant announcements as “clear and concise as possible,” reduce unnecessary compliance costs, remove barriers to entry, and ensure assistance serves intended communities, including supporting programs for Tribal nations. Some of the specific details will be of interest to grant recipients.

Among the details that may be of greatest interest to Digest readers:

• The equipment threshold is raised to $10,000 (2 CFR 200.1);
• The single audit threshold is increased to $1 million (2 CFR 200.501);
• The de minimis indirect cost rate will be raised to 15% (2 CFR 200.414(f)); and
• Recipients “may notify OMB of any disputes with Federal agencies regarding the application of a federally negotiated indirect cost rate.” (2 CFR 200.414 (c)(2)).

A redline showing changes can be found here. Given the complexity of the 2 CFR 200, SSTI members may benefit from further training on the changes.