Uniform Guidance

Summary of Key Changes to Uniform Guidance (2 CFR 200) as of 10/1/2024

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 10/1/2024 as well as all existing awards when the sponsor adds new funding (to be determined by each federal agency). Existing awards will follow the previous version of the Uniform Guidance until an agency implements the change. Modifications to existing awards that do not add funding (e.g. no cost extension) will likely keep the previous requirements. The new guidelines apply only prospectively to activities (requirements may not be imposed retroactively).

ACTION: RO will notify the PI and department administrator via a Chart of Accounts (COA) when an award is subject to the new guidance.

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 (including subrecipients) named in the award so that they can request prior approval when needed. All such prior approval requests need to go through the RO using the agency’s standard approach for requesting prior approvals (e.g. agency system or countersigned letter).

Equipment Threshold: The revised guidelines 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. Note that subrecipients or pass-through entities may be using different thresholds.

ACTION: The University’s current F&A rate agreement runs through 6/30/2025; however, a new rate agreement is not expected to be effective until 7/1/2026. As a result, the new equipment threshold of $10,000 will not be effective until 7/1/2026.  We will notify campus if this date changes.

Unused Supplies at the End of the Award: At Closeout, each award may retain up to $10,000 (an increase from $5,000) in unused supplies in new condition, not having been used or opened on awards subject to the new guidelines. These supplies are expected to be used for future federal research projects. If the award has excess items (per the definition above) at the end of the award exceeding the $10,000 threshold, the federal agency is entitled to compensation per 2 CFR 200.314.

Action: RO will be reviewing the University’s procedures to ensure that this guideline is followed. PIs and department administrators should review closing awards to determine whether the old threshold ($5,000) or the new threshold ($10,000) applies and take the corresponding action needed. There will be a future update to the Automated Closeout Report (ACR) to monitor this requirement.

Publication and Costs Incurred for Closeout after the Award End Date: Publication-related costs or costs to share 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: RO will issue an announcement to clarify related deadlines in the coming months. PIs and department administrators should note that direct charges and cost transfers must be completed by these deadlines. PIs and department administrators should contact the RO if immediate assistance is needed on a closing award subject to the updated guidelines.

Participant Support: Prior agency approval is no longer needed to add participant support costs in a budget (previously waived by many federal agencies), but funds still may not be rebudgeted out of this category without prior agency approval. In addition, 2 CFR 200.1 includes an updated definition of Participant Support Costs. We expect federal agencies will be adopting and implementing this new definition.

ACTION: RO will be reviewing and updating the University’s participant support cost guidelines.

Pre-Award Costs for Continuation Awards: The new guidelines clarify 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 guidelines, active subawards will need to be amended to include the new guidelines. Subawards may not be updated until the prime award is updated.

ACTION: RO will amend subawards to incorporate the updated guidelines as needed.

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 MTDC (increase from 10% MTDC) for proposals submitted on or after 10/1/2024 (grants and cooperative agreements only). Agencies may request that proposals submitted prior to 10/1/2024 be adjusted for the new guidelines (since the award will be issued after 10/1/2024).

ACTION: Subrecipients using the de minimus rate have the option to increase their rate from 10% to 15% MTDC. It’s the subrecipient’s responsibility to notify the University if they would like to use the higher rate and the University would incorporate this in their rebudget submitted to the sponsor. We expect no additional dollars to be added to the budget as a result of the increased rate.

Subawards MTDC – F&A Threshold Change: Revised guidelines allow the pass-through entity to charge F&A on the first $50,000 of a subaward (increase from $25,000) per subaward. However, these changes can only be implemented as of the effective date of a new F&A rate agreement. Note that subrecipients or pass-through entities may be using different thresholds.

ACTION: The University’s current F&A rate agreement runs through 6/30/2025; however, a new rate agreement is not expected to be effective until 7/1/2026. As a result, the new subaward threshold of $50,000 will not be effective until 7/1/2026.  We will notify campus if this date changes.

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 (increase from $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 guidelines (2 CFR 200.403).

ACTION: RO will confer with PIs and department administrators wanting to use fixed price/amount subawards. We hope to see an updated FDP template based on the new threshold and requirements.

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

ACTION: When considering an entity for a federal subcontract, University should verify that the prospective subcontractor either is fully registered, is willing to fully register, or is eligible for an exception from the federal agency (see FAR 4.1102 for exceptions)

Subawards – Risk Assessments: RO 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: RO 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.). RO will share any federal requirements as established. A copy of the notification submitted to the agency by RO will be shared with the PI and the department administrator when one is required. Future guidance will be issued to meet this requirement.