Guidance for Grants and Agreements, 10439-10440 [2021-02969]
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10439
Rules and Regulations
Federal Register
Vol. 86, No. 33
Monday, February 22, 2021
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
PART 25—UNIVERSAL IDENTIFIER
AND SYSTEM FOR AWARD
MANAGEMENT
1. The authority citation for part 25
continues to read as follows:
■
Authority: Pub. L. 109–282; 31 U.S.C.
6102.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
2. Revise paragraph 3 of item C of
Appendix A to Part 25 to read as
follows:
■
OFFICE OF MANAGEMENT AND
BUDGET
Appendix A to 2 CFR Part 25—Award
Term
2 CFR Parts 25 and 200
*
[Docket No. 2020–17468]
Guidance for Grants and Agreements
AGENCY:
Office of Management and
Budget.
ACTION:
Correcting amendments.
The Office of Management
and Budget (OMB) is correcting the final
guidance that appeared in the Federal
Register on August 13, 2020. That
document incorrectly cited specific
sections or laws and inadvertently
omitted specific language from the
revisions. This amendment fixes
citations and references and clarifies
specific language.
SUMMARY:
DATES:
Effective on February 22, 2021.
FOR FURTHER INFORMATION CONTACT:
Nicole Waldeck or Gil Tran at the OMB
Office of Federal Financial Management
at GrantsTeam@omb.eop.gov or 202–
395–3993.
This is a
summary of the revisions to OMB’s
Guidance for Grants and Agreements
published August 13, 2020 (85 FR
49506).
SUPPLEMENTARY INFORMATION:
tkelley on DSKBCP9HB2PROD with RULES
List of Subjects in 2 CFR Parts 25 and
200
Accounting, Administrative practice
and procedure, Colleges and
universities, Grant programs, Grants
administration, Hospitals, Indians, Loan
programs, Nonprofit organizations,
Reporting and recordkeeping
requirements, State and local
governments.
Accordingly, 2 CFR parts 25 and 200
are corrected by making the following
correcting amendments:
VerDate Sep<11>2014
16:23 Feb 19, 2021
Jkt 253001
*
*
*
*
C. * * *
3. Entity includes non-Federal entities as
defined at 2 CFR 200.1 and also includes all
of the following, for purposes of this part:
a. A foreign organization;
b. A foreign public entity;
c. A domestic for-profit organization; and
d. A Federal agency.
*
*
*
*
*
PART 200—UNIFORM
ADMINISTRATIVE REQUIREMENTS,
COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL
AWARDS
3. The authority citation for part 200
continues to read as follows:
■
Authority: 31 U.S.C. 503.
4. In § 200.1, add in alphabetical order
the definition of Federal awarding
agency and revise the definition of
oversight agency for audit to read as
follows:
■
§ 200.1
Definitions
*
*
*
*
*
Federal awarding agency means the
Federal agency that provides a Federal
award directly to a non-Federal entity.
*
*
*
*
*
Oversight agency for audit means the
Federal awarding agency that provides
the predominant amount of funding
directly (direct funding) (as listed on the
schedule of expenditures of Federal
awards, see § 200.510(b)) to a nonFederal entity unless OMB designates a
specific cognizant agency for audit.
When the direct funding represents less
than 25 percent of the total Federal
expenditures (as direct and sub-awards)
by the non-Federal entity, then the
Federal agency with the predominant
amount of total funding is the
designated oversight agency for audit.
When there is no direct funding, the
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Frm 00001
Fmt 4700
Sfmt 4700
Federal awarding agency which is the
predominant source of pass-through
funding must assume the oversight
responsibilities. The duties of the
oversight agency for audit and the
process for any reassignments are
described in § 200.513(b).
*
*
*
*
*
§§ 200.2
through 200.99 [Removed]
5. Remove §§ 200.2 through 200.99.
■ 6. In § 200.101, revise paragraphs (e)
introductory text and (f) introductory
text to read as follows:
■
§ 200.101
Applicability.
*
*
*
*
*
(e) Program applicability. Except for
§§ 200.203, 200.216, and 200.331
through 200.333, the requirements in
subparts C, D, and E of this part do not
apply to the following programs:
*
*
*
*
*
(f) Additional program applicability.
Except for §§ 200.203 and 200.216, the
guidance in subpart C of this part does
not apply to the following programs:
*
*
*
*
*
■ 7. In § 200.102, revise paragraph (c) to
read as follows:
§ 200.102
Exceptions.
*
*
*
*
*
(c) The Federal awarding agency may
adjust requirements to a class of Federal
awards or non-Federal entities when
approved by OMB, or when required by
Federal statutes or regulations, except
for the requirements in subpart F of this
part. A Federal awarding agency may
apply less restrictive requirements when
making fixed amount awards as defined
in subpart A of this part, except for
those requirements imposed by statute
or in subpart F of this part.
*
*
*
*
*
■ 8. In § 200.206, revise paragraph (a)(1)
to read as follows:
§ 200.206 Federal awarding agency review
of risk posed by applicants.
(a) * * * (1) Prior to making a Federal
award, the Federal awarding agency is
required by the Payment Integrity
Information Act of 2019, 31 U.S.C. 3301
note, and 41 U.S.C. 2313 to review
information available through any OMBdesignated repositories of
governmentwide eligibility qualification
or financial integrity information as
appropriate. See also suspension and
debarment requirements at 2 CFR part
E:\FR\FM\22FER1.SGM
22FER1
10440
Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Rules and Regulations
180 as well as individual Federal agency
suspension and debarment regulations
in title 2 of the Code of Federal
Regulations.
*
*
*
*
*
■ 9. In § 200.318, revise paragraph (e) to
read as follows:
assistance programs) and indirect cost
rate proposals are contained in
appendices V, VI and VII to this part.
*
*
*
*
*
■ 12. In § 200.509, revise paragraph (a)
to read as follows:
Deidre A. Harrison,
Deputy Controller (Acting).
§ 200.509
[FR Doc. 2021–02969 Filed 2–19–21; 8:45 am]
§ 200.318
(a) Auditor procurement. In procuring
audit services, the auditee must follow
the procurement standards prescribed
by the Procurement Standards in
§§ 200.317 through 200.327 of subpart D
of this part or the FAR (48 CFR part 42),
as applicable. In requesting proposals
for audit services, the objectives and
scope of the audit must be made clear
and the non-Federal entity must request
a copy of the audit organization’s peer
review report which the auditor is
required to provide under GAGAS.
Factors to be considered in evaluating
each proposal for audit services include
the responsiveness to the request for
proposal, relevant experience,
availability of staff with professional
qualifications and technical abilities,
the results of peer and external quality
control reviews, and price. Whenever
possible, the auditee must make positive
efforts to utilize small businesses,
minority-owned firms, and women’s
business enterprises, in procuring audit
services as stated in § 200.321, or the
FAR (48 CFR part 42), as applicable.
*
*
*
*
*
■ 13. In § 200.514, revise paragraph
(c)(4) to read as follow:
General Procurement standards.
*
*
*
*
*
(e) To foster greater economy and
efficiency, and in accordance with
efforts to promote cost-effective use of
shared services across the Federal
Government, the non-Federal entity is
encouraged to enter into state and local
intergovernmental agreements or interentity agreements where appropriate for
procurement or use of common or
shared goods and services. Competition
requirements will be met with
documented procurement actions using
strategic sourcing, shared services, and
other similar procurement
arrangements.
*
*
*
*
*
■ 10. In § 200.332, revise paragraph
(d)(4) to read as follows:
§ 200.332
entities.
Requirements for pass-through
*
*
*
*
(d) * * *
(4) The pass-through entity is
responsible for resolving audit findings
specifically related to the subaward and
not responsible for resolving
crosscutting findings. If a subrecipient
has a current Single Audit report posted
in the Federal Audit Clearinghouse and
has not otherwise been excluded from
receipt of Federal funding (e.g., has been
debarred or suspended), the passthrough entity may rely on the
subrecipient’s cognizant audit agency or
cognizant oversight agency to perform
audit follow-up and make management
decisions related to cross-cutting
findings in accordance with section
§ 200.513(a)(3)(vii). Such reliance does
not eliminate the responsibility of the
pass-through entity to issue subawards
that conform to agency and awardspecific requirements, to manage risk
through ongoing subaward monitoring,
and to monitor the status of the findings
that are specifically related to the
subaward.
*
*
*
*
*
■ 11. In § 200.416, revise paragraph (c)
to read as follows:
tkelley on DSKBCP9HB2PROD with RULES
*
§ 200.416 Cost allocation plans and
indirect cost proposals.
*
*
*
*
*
(c) The requirements for development
and submission of cost allocation plans
(for central service costs and public
VerDate Sep<11>2014
16:23 Feb 19, 2021
Jkt 253001
§ 200.514
Auditor selection.
Scope of audit.
*
*
*
*
*
(c) * * *
(4) When internal control over some
or all of the compliance requirements
for a major program are likely to be
ineffective in preventing or detecting
noncompliance, the planning and
performing of testing described in
paragraph (c)(3) of this section are not
required for those compliance
requirements. However, the auditor
must report a significant deficiency or
material weakness in accordance with
§ 200.516, assess the related control risk
at the maximum, and consider whether
additional compliance tests are required
because of ineffective internal control.
*
*
*
*
*
■ 14. Revise Appendix IX to Part 200 to
read as follows:
Appendix IX to Part 200—Hospital Cost
Principles
Until such time as revised guidance is
proposed and implemented for
hospitals, the existing principles located
at 45 CFR part 75 Appendix IX, entitled
‘‘Principles for Determining Cost
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Applicable to Research and
Development Under Grants and
Contracts with Hospitals,’’ remain in
effect.
BILLING CODE 3110–01–P
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Parts 761
[Docket ID USDA–2019–0007]
RIN 0560–AA16
Farm Loan Programs, Debt Settlement
Farm Service Agency, USDA.
Correcting amendments.
AGENCY:
ACTION:
The Farm Service Agency
(FSA) amended the Farm Loan Programs
Debt Settlement regulations in through
a final rule published in the Federal
Register on June 17, 2020. This
correction is to remove a certain word
that erroneously appeared in the
regulation.
SUMMARY:
DATES:
Effective: February 22, 2021.
Bill
Cobb; telephone (202) 720–4671; email:
Bill.Cobb@usda.gov. Persons with
disabilities who require alternative
means for communication should
contact the USDA Target Center at (202)
720–2600 (voice).
SUPPLEMENTARY INFORMATION: This
document corrects the regulations in 7
CFR part 761, which was implemented
in the final rule that was published in
the Federal Register on June 17, 2020
(85 FR 36670–36714). This correction is
to remove the word ‘‘or’’ at the end of
the sentence and to end the sentence
with a period in 7 CFR 761.403(c)(3).
FOR FURTHER INFORMATION CONTACT:
List of Subjects in 7 CFR Part 761
Accounting, Administrative practice
and procedure, Loan programsagriculture, Reporting and
recordkeeping requirements, Rural
areas.
Accordingly, 7 CFR part 761 is
corrected by making the following
correcting amendment:
PART 761—FARM LOAN PROGRAMS;
GENERAL PROGRAM
ADMINISTRATION
1. The authority citation for part 761
continues to read as follows:
■
Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.
E:\FR\FM\22FER1.SGM
22FER1
]]>Agencies
[Federal Register Volume 86, Number 33 (Monday, February 22, 2021)]
[Rules and Regulations]
[Pages 10439-10440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02969]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 /
Rules and Regulations
[[Page 10439]]
OFFICE OF MANAGEMENT AND BUDGET
2 CFR Parts 25 and 200
[Docket No. 2020-17468]
Guidance for Grants and Agreements
AGENCY: Office of Management and Budget.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: The Office of Management and Budget (OMB) is correcting the
final guidance that appeared in the Federal Register on August 13,
2020. That document incorrectly cited specific sections or laws and
inadvertently omitted specific language from the revisions. This
amendment fixes citations and references and clarifies specific
language.
DATES: Effective on February 22, 2021.
FOR FURTHER INFORMATION CONTACT: Nicole Waldeck or Gil Tran at the OMB
Office of Federal Financial Management at [email protected] or
202-395-3993.
SUPPLEMENTARY INFORMATION: This is a summary of the revisions to OMB's
Guidance for Grants and Agreements published August 13, 2020 (85 FR
49506).
List of Subjects in 2 CFR Parts 25 and 200
Accounting, Administrative practice and procedure, Colleges and
universities, Grant programs, Grants administration, Hospitals,
Indians, Loan programs, Nonprofit organizations, Reporting and
recordkeeping requirements, State and local governments.
Accordingly, 2 CFR parts 25 and 200 are corrected by making the
following correcting amendments:
PART 25--UNIVERSAL IDENTIFIER AND SYSTEM FOR AWARD MANAGEMENT
0
1. The authority citation for part 25 continues to read as follows:
Authority: Pub. L. 109-282; 31 U.S.C. 6102.
0
2. Revise paragraph 3 of item C of Appendix A to Part 25 to read as
follows:
Appendix A to 2 CFR Part 25--Award Term
* * * * *
C. * * *
3. Entity includes non-Federal entities as defined at 2 CFR
200.1 and also includes all of the following, for purposes of this
part:
a. A foreign organization;
b. A foreign public entity;
c. A domestic for-profit organization; and
d. A Federal agency.
* * * * *
PART 200--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND
AUDIT REQUIREMENTS FOR FEDERAL AWARDS
0
3. The authority citation for part 200 continues to read as follows:
Authority: 31 U.S.C. 503.
0
4. In Sec. 200.1, add in alphabetical order the definition of Federal
awarding agency and revise the definition of oversight agency for audit
to read as follows:
Sec. 200.1 Definitions
* * * * *
Federal awarding agency means the Federal agency that provides a
Federal award directly to a non-Federal entity.
* * * * *
Oversight agency for audit means the Federal awarding agency that
provides the predominant amount of funding directly (direct funding)
(as listed on the schedule of expenditures of Federal awards, see Sec.
200.510(b)) to a non-Federal entity unless OMB designates a specific
cognizant agency for audit. When the direct funding represents less
than 25 percent of the total Federal expenditures (as direct and sub-
awards) by the non-Federal entity, then the Federal agency with the
predominant amount of total funding is the designated oversight agency
for audit. When there is no direct funding, the Federal awarding agency
which is the predominant source of pass-through funding must assume the
oversight responsibilities. The duties of the oversight agency for
audit and the process for any reassignments are described in Sec.
200.513(b).
* * * * *
Sec. Sec. 200.2 through 200.99 [Removed]
0
5. Remove Sec. Sec. 200.2 through 200.99.
0
6. In Sec. 200.101, revise paragraphs (e) introductory text and (f)
introductory text to read as follows:
Sec. 200.101 Applicability.
* * * * *
(e) Program applicability. Except for Sec. Sec. 200.203, 200.216,
and 200.331 through 200.333, the requirements in subparts C, D, and E
of this part do not apply to the following programs:
* * * * *
(f) Additional program applicability. Except for Sec. Sec. 200.203
and 200.216, the guidance in subpart C of this part does not apply to
the following programs:
* * * * *
0
7. In Sec. 200.102, revise paragraph (c) to read as follows:
Sec. 200.102 Exceptions.
* * * * *
(c) The Federal awarding agency may adjust requirements to a class
of Federal awards or non-Federal entities when approved by OMB, or when
required by Federal statutes or regulations, except for the
requirements in subpart F of this part. A Federal awarding agency may
apply less restrictive requirements when making fixed amount awards as
defined in subpart A of this part, except for those requirements
imposed by statute or in subpart F of this part.
* * * * *
0
8. In Sec. 200.206, revise paragraph (a)(1) to read as follows:
Sec. 200.206 Federal awarding agency review of risk posed by
applicants.
(a) * * * (1) Prior to making a Federal award, the Federal awarding
agency is required by the Payment Integrity Information Act of 2019, 31
U.S.C. 3301 note, and 41 U.S.C. 2313 to review information available
through any OMB-designated repositories of governmentwide eligibility
qualification or financial integrity information as appropriate. See
also suspension and debarment requirements at 2 CFR part
[[Page 10440]]
180 as well as individual Federal agency suspension and debarment
regulations in title 2 of the Code of Federal Regulations.
* * * * *
0
9. In Sec. 200.318, revise paragraph (e) to read as follows:
Sec. 200.318 General Procurement standards.
* * * * *
(e) To foster greater economy and efficiency, and in accordance
with efforts to promote cost-effective use of shared services across
the Federal Government, the non-Federal entity is encouraged to enter
into state and local intergovernmental agreements or inter-entity
agreements where appropriate for procurement or use of common or shared
goods and services. Competition requirements will be met with
documented procurement actions using strategic sourcing, shared
services, and other similar procurement arrangements.
* * * * *
0
10. In Sec. 200.332, revise paragraph (d)(4) to read as follows:
Sec. 200.332 Requirements for pass-through entities.
* * * * *
(d) * * *
(4) The pass-through entity is responsible for resolving audit
findings specifically related to the subaward and not responsible for
resolving crosscutting findings. If a subrecipient has a current Single
Audit report posted in the Federal Audit Clearinghouse and has not
otherwise been excluded from receipt of Federal funding (e.g., has been
debarred or suspended), the pass-through entity may rely on the
subrecipient's cognizant audit agency or cognizant oversight agency to
perform audit follow-up and make management decisions related to cross-
cutting findings in accordance with section Sec. 200.513(a)(3)(vii).
Such reliance does not eliminate the responsibility of the pass-through
entity to issue subawards that conform to agency and award-specific
requirements, to manage risk through ongoing subaward monitoring, and
to monitor the status of the findings that are specifically related to
the subaward.
* * * * *
0
11. In Sec. 200.416, revise paragraph (c) to read as follows:
Sec. 200.416 Cost allocation plans and indirect cost proposals.
* * * * *
(c) The requirements for development and submission of cost
allocation plans (for central service costs and public assistance
programs) and indirect cost rate proposals are contained in appendices
V, VI and VII to this part.
* * * * *
0
12. In Sec. 200.509, revise paragraph (a) to read as follows:
Sec. 200.509 Auditor selection.
(a) Auditor procurement. In procuring audit services, the auditee
must follow the procurement standards prescribed by the Procurement
Standards in Sec. Sec. 200.317 through 200.327 of subpart D of this
part or the FAR (48 CFR part 42), as applicable. In requesting
proposals for audit services, the objectives and scope of the audit
must be made clear and the non-Federal entity must request a copy of
the audit organization's peer review report which the auditor is
required to provide under GAGAS. Factors to be considered in evaluating
each proposal for audit services include the responsiveness to the
request for proposal, relevant experience, availability of staff with
professional qualifications and technical abilities, the results of
peer and external quality control reviews, and price. Whenever
possible, the auditee must make positive efforts to utilize small
businesses, minority-owned firms, and women's business enterprises, in
procuring audit services as stated in Sec. 200.321, or the FAR (48 CFR
part 42), as applicable.
* * * * *
0
13. In Sec. 200.514, revise paragraph (c)(4) to read as follow:
Sec. 200.514 Scope of audit.
* * * * *
(c) * * *
(4) When internal control over some or all of the compliance
requirements for a major program are likely to be ineffective in
preventing or detecting noncompliance, the planning and performing of
testing described in paragraph (c)(3) of this section are not required
for those compliance requirements. However, the auditor must report a
significant deficiency or material weakness in accordance with Sec.
200.516, assess the related control risk at the maximum, and consider
whether additional compliance tests are required because of ineffective
internal control.
* * * * *
0
14. Revise Appendix IX to Part 200 to read as follows:
Appendix IX to Part 200--Hospital Cost Principles
Until such time as revised guidance is proposed and implemented for
hospitals, the existing principles located at 45 CFR part 75 Appendix
IX, entitled ``Principles for Determining Cost Applicable to Research
and Development Under Grants and Contracts with Hospitals,'' remain in
effect.
Deidre A. Harrison,
Deputy Controller (Acting).
[FR Doc. 2021-02969 Filed 2-19-21; 8:45 am]
BILLING CODE 3110-01-P
