Uniform Guidance

Compendium of Key Changes to Uniform Guidance (2 CFR 200) as of 10/1/24

This information is adapted from COGR’s Fifth Look Implementation and Readiness Guide for the Uniform Guidance for the University of Delaware by the Research Office (RO). See RO’s updated Uniform Guidance webpage.

Effective Date: Effective for all new awards issued after 10/1/24 as well as all existing awards when the sponsor adds new funding. Existing awards will follow the previous version of the Uniform Guidance until the agency implements the change. Modifications to existing awards that do not add funding (e.g. no cost time extension) are likely to keep the previous requirements. The new rules apply only prospectively to activities (requirements may not be imposed retroactively).

ACTION: SPA will notify the PI and department administrator via a Notice of Grant Award (NOGA) when an award is subject to the new rules. For awards that previously used the FDP Research Terms and Conditions and agency-specific requirements, these awards will now be subject to the Grant General Conditions (“GC-1”) and the prior approval matrix designated by the funding agency.

Prior Approval for Personnel and Contractor Changes: Changes to key personnel (employees and contractors, including subrecipients) listed by name or position in an award notice require prior approval. Note that this language is broader than the previous language, which only focused on key personnel named in an award notice.

ACTION: PIs and departmental administrators need to identify on each award those entities and contractors (includes subrecipients) named in the award so that they can request prior approvals when needed. All such prior approval requests need to go through SPA using the agency’s standard approach for requesting prior approvals (agency system or countersigned letter).

Cost-Sharing (for proposals): For research grants, voluntary committed cost-sharing can only be used in merit review if authorized by the agency. For research and non-research grants, the Notice of Funding Opportunity (NOFO) must specify how any cost-sharing proposed by an applicant will be considered during the proposal review process. The wording in the new rules allows agencies more discretion in the use of voluntary cost-sharing, though cost-sharing is still not expected for research awards.

ACTION: PIs and department administrators should read each NOFO closely to determine how cost-sharing will be treated. Note that there may be changes in treatment from prior cycles of a similar NOFO.

Equipment Threshold: The revised rules allow for an increase in the equipment capitalization threshold from

$5,000 up to $10,000 per item. However, these changes can only take place as of the effective date of a new F&A rate agreement. The University’s F&A rate agreement runs through 6/30/28, so no changes in the University’s equipment thresholds will occur at least until then. Note, however, that subrecipients or pass-through entities may be using different thresholds.

ACTION: No action is needed. For PIs with prospective subrecipients, it is helpful to double-check that proposed subrecipients have institutionally endorsed their subaward proposal to verify that they have applied the thresholds consistent with their own F&A rate agreement.

Unused Supplies at the End of the Award: Each ending award may retain up to $10,000 (an increase from

$5,000) in unused supplies (new condition, not having been used or opened) on awards subject to the new rules. These supplies are expected to be used for future federal research projects. If the award has excess items at the end of the award exceeding that amount, the federal agency is entitled to compensation (through sale or calculation of current market value) minus $1,000 of the proceeds to cover institutional expenses.

Action: SPA and SFR will be reviewing the University’s procedures to ensure that this rule is carried through locally. PIs and department administrators should review ending awards to determine whether the old threshold ($5,000) or the new threshold ($10,000) applies and take the corresponding action needed.

Publication and Costs Incurred for Closeout after the Award End Date: Publication-related costs or costs to share the research results (including the salaries of personnel preparing final reports) and costs associated with the disposition of equipment may be incurred after the award end date and charged to the final budget period if (and only if) all charges are liquidated prior to the due date of the final report.

ACTION: SPA and SFR will issue an announcement to clarify related deadlines no later than December 31st. PIs and department administrators should note that direct charges and cost transfers must be completed by these deadlines. PIs and department administrators should contact SPA if more immediate assistance is needed on an ending award subject to the updated rules.

Procurement Costs: OMB previously permitted institutions to justify sole source purchases for scientific equipment through an FAQ. The language was not incorporated into this new version, but OMB has stated that it will reinstate the FAQ when the new rules go into effect.

ACTION: The Council on Governmental Relations (COGR) and the University are both monitoring this issue since it has the potential for a significant impact on our research community. Follow-up with OMB will occur if this issue is not addressed. It is likely safe to assume that the FAQ will be reinstated.

Participant Support: Prior agency approval is no longer needed to ADD participant support costs in a budget, but funds still may not be rebudgeted OUT of this category without prior agency approval.

ACTION: SPA and SFR will be reviewing the University’s procedures to ensure that this rule is carried through locally. PIs and department administrators should note that they do not need to submit a prior approval request to add participant support costs.

Pre-Award Costs for Continuation Awards: OMB makes it clear that spending against a forthcoming budget period is not considered pre-award spending.

ACTION: No new action is needed since the University already follows this approach for awards that have designated future funding.

Subawards – Effective Date: When the federal agencies modify a current award to include the new rules, active subawards will need to be amended as well to also include the new rules. Subawards may not be updated until such time as the prime award is updated.

ACTION: SPA anticipates that the vast majority of subawards will be updated to incorporate the new rules during the normal course of business (e.g, the University receives a new or modified award incorporating the new rules; the department requests a subaward or a subaward modification in MN-GEMS; and SPA in turn takes action on that subaward request. When SPA is taking action on these requests, the Grant and Contract Officer will automatically check the parent award to see if it is subject to the new rules, and if so, will flow down the new rules to the subrecipient.

In the unlikely event that SPA receives an award modification from a federal agency with the sole purpose of updating the parent award to the new rules, SPA will check to see if there are subawards on the award and if so, SPA will assume responsibility for issuing the subaward modification.

There are an estimated 1,350 active federal subawards that may need to be adjusted.

Subawards – New De Minimis F&A Rate: Subrecipients without negotiated F&A rates (e.g., small businesses or nonprofits) may now charge up to 15% F&A (up from 10%) for proposals submitted on or after 10/1/2024 (grants and cooperative agreements only). Agencies may request that proposals submitted prior to 10/1/24 be adjusted for the new rule (since the award will be issued after 10/1/24).

ACTION: PIs and department administrators should make sure their prospective subrecipients without negotiated F&A rates are aware of the new de minimis rates prior to their subaward proposal being budgeted. If a PI is asked to submit updated proposal materials on a previously submitted proposal to an agency prior to an award being made, PIs or their department administrators must notify their subrecipients without negotiated F&A rates that they have the option to alter their budgets to increase their F&A from 10% to 15%. The bottom line increase to the subaward should then be reflected in the University’s revised budget to the agency (increasing total funds requested). If a prospective subrecipient does not wish to increase its rate, the PI or department administrator should include that documentation when the updated proposal is sent to SPA for submission to the agency.

Subawards MTDC – F&A Threshold Change: The revised rules allow for an increase for the pass-through entity to earn F&A on the first $50,000 of a subaward rather than the current $25,000. However, these changes can only be implemented as of the effective date of a new F&A rate agreement. The University’s F&A rate agreement runs through 6/30/28, so no changes in thresholds will occur at least until then.

ACTION: No change needed. University of Minnesota budgets should continue to use the $25,000 threshold when calculating the amount of F&A the University will be entitled to earn on each subaward.

Subawards – Fixed price/fixed amount subawards: Fixed-amount subawards continue to require agency prior approval but may now be issued up to a $500,000 ceiling rather than the previous threshold of $250,000. However, the expectation for accurate pricing for these transactions and the use of standard cost principles to judge allowable costs (and document of appropriateness of price) has increased. Pricing and costing documents may now also be audited. At the end of a fixed amount subaward, the subrecipient must certify completion, including completion of effort at the planned for level, and that all expenditures were in accordance with allowability rules (200.403). The significant increase in administrative burden for fixed price/amount subawards means it is likely that the University will reduce the frequency with which this type of subaward is used, instead relying on cost-reimbursement subawards. Note that NIH and DOD awards and clinical trial agreements that use a capitation model (price per patient or per procedure) have previously been deemed as “fixed-rate’ subawards not subject to these rules. The University is presuming this will continue.

ACTION: SPA will be issuing guidance in the coming months to help PIs select the best model for a given circumstance. In the interim, SPA will confer with PIs and department administrators wanting to use fixed price/amount subawards (often, for their foreign subrecipients or for community-based organizations to make an assessment on a case-by-case basis).

Subawards – Federal Contracts Only: Entities must now have a full System for Award Management (SAM) registration (not just a UEI #) in order to be eligible to receive a federal subcontract.

ACTION: When considering an entity for a federal subcontract, PIs should verify that the prospective subcontractor has such registration, is willing to obtain one, or is eligible for an exception from the federal agency before investing considerable time and energy in planning to work with that entity.

Subawards – Risk Assessments: SPA undertakes an annual risk assessment on subawards as required under federal regulations, and when needed incorporates additional terms in the subaward to mitigate potential risk (e.g., additional reporting or monitoring, rebudgeting restrictions, etc.). For subawards subject to the updated regulations, the University will now also be required to notify the sponsor when additional risk mitigation terms are included in the subaward agreement.

ACTION: SPA will continue to perform the mandatory risk assessments of subrecipients and, when needed incorporate additional terms in the subaward to mitigate potential risk (e.g., additional reporting or monitoring, rebudgeting restrictions, etc.). SPA will share a copy of the notification to the agency with the PI and the department administrator when one is required. In addition, SPA may have additional discussions (in advance of issuing subawards) with PIs about the need for risk mitigation terms, so that PI input can be incorporated into the decision to add terms that would trigger reporting. Ultimately, it remains SPA’s responsibility to decide whether such terms are necessary for the University.