Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 22107-22109 [2021-08731]

Agencies

• DEPARTMENT OF LABOR

[Federal Register Volume 86, Number 79 (Tuesday, April 27, 2021)]
[Rules and Regulations]
[Pages 22107-22109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08731]



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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. 

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Federal Register / Vol. 86, No. 79 / Tuesday, April 27, 2021 / Rules 
and Regulations

[[Page 22107]]



DEPARTMENT OF LABOR

2 CFR Part 2900

RIN 1205-AC03


Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards

AGENCY: Department of Labor.

ACTION: Final rule; technical amendments.

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SUMMARY: The Department of Labor (DOL or Department) is making 
technical amendments to regulations most recently finalized on December 
30, 2015. This document updates cross-references and terminology used 
in the Department's regulations to conform to changes made to the 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards (Uniform Guidance) on August 13, 2020. 
All regulatory language included here is consistent with either the 
policies in the Uniform Guidance or the Department's existing policies 
and practices.

DATES: Effective April 27, 2021.

FOR FURTHER INFORMATION CONTACT: Laura P. Watson, Administrator, Office 
of Grants Management, Employment and Training Administration, United 
States Department of Labor, 200 Constitution Ave. NW, Rm N4716, 
Washington, DC 20210; telephone 202-693-3333.

SUPPLEMENTARY INFORMATION: Section 553(b)(3)(B) of the Administrative 
Procedure Act (APA) (5 U.S.C. 551 et seq.) authorizes Federal agencies 
to dispense with notice and comment procedures for rules when an 
agency, for ``good cause,'' finds that those procedures are 
``impracticable, unnecessary, or contrary to the public interest.'' 
Section 553(d)(3) of the APA requires that agencies publish a rule not 
less than 30 days before its effective date, except as otherwise 
provided by an agency for good cause found and published with the rule.
    Because this action only makes technical amendments to codified 
regulations in order to conform cross-references and terminology with a 
final rule issued by another Federal agency (Office of Management and 
Budget), DOL finds that notice and public comment under 5 U.S.C. 553(b) 
is unnecessary. For the same reason, DOL finds that good cause exists 
under 5 U.S.C. 553(d) for making this rule effective in less than 30 
days.

Background

    On August 13, 2020, the OMB published amendments to the Uniform 
Guidance (2 CFR 200.0 et seq.) in the Federal Register (85 FR 49506). 
These revisions became effective November 12, 2020, except for the 
amendments to 2 CFR 200.216 and 200.340, which became effective August 
13, 2020. These changes to the Uniform Guidance necessitate changes to 
cross-references in the Department's corresponding regulations found at 
2 CFR 2900 et seq.

Technical Amendments

    The Department is not making any new policy with the technical 
amendments in this final rule; all regulatory language included here is 
consistent with either the policies in the updated Uniform Guidance or 
the Department's existing policies and practices as codified in 2 CFR 
parts 200 and 2900, respectively.
    This rule revises cross-references made in 2 CFR part 2900 to 
corresponding sections in 2 CFR part 200. These changes are not 
substantive. They are intended to align the Department's regulations 
with the updated Uniform Guidance. This final rule incorporates minor 
changes to 2 CFR part 2900 to align citations and cross-references in 
Sec. Sec.  2900.1, 2900.2, 2900.3, 2900.5, 2900.6, 2900.8, 2900.9, 
2900.10, 2900.11, 2900.14, 2900.15, 2900.16, and 2900.18. Paragraph (d) 
was also added to Sec.  2900.3 to align the Department's definition of 
``questioned cost'' with that found in the updated Uniform Guidance at 
Sec.  200.1.
    In addition to the above changes, this final rule makes certain 
minor changes to align the language and terminology of the Department's 
regulations with that of the updated Uniform Guidance, such as 
replacing the proprietary term ``Creative Commons Attribution license'' 
with the industry-recognized standard ``open license'' terminology and 
associated language in Sec.  2900.13, as well as minor technical 
corrections and additions to improve the clarity of Sec. Sec.  2900.1, 
2900.4, 2900.5, 2900.6, 2900.7, 2900.12, 2900.15, and 2900.16. These 
include grammatical changes and corrections to punctuation.
    Accordingly, the regulations in 2 CFR part 2900 are amended to 
include the updated information.

Regulatory Analyses

Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review)

    The Department developed this final rule in accordance with the 
principles of Executive Orders (E.O.s) 12866 and 13563. E.O. 12866, 
which directs agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health, and safety effects; 
distributive impacts; and equity). E.O. 13563 supplements and reaffirms 
the principles, structures, and definitions governing regulatory review 
as established in E.O. 12866.
    The Office of Information and Regulatory Affairs at the Office of 
Management and Budget has determined that this final rule is a non-
significant regulatory action under E.O. 12866. Additionally, no 
analysis is required under the Regulatory Flexibility Act \1\ or Secs. 
202 and 205 of the Unfunded Mandates Reform Act of 1999,\2\ because, 
for the reasons discussed above, the Department is not required to 
engage in notice and comment under the APA.
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    \1\ See 5 U.S.C. 601(2) (limiting ``rules'' under the Regulatory 
Flexibility Act, to rules for which a general notice of proposed 
rulemaking is published).
    \2\ Public Law 104-4.
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E.O. 13132, Federalism

    This final rule does not have federalism implications warranting 
the application of E.O. 13132. This final rule does not have 
substantial economic or policy-related direct effects on the States, on 
the relationship between the Federal Government and the States, or the 
distribution of power and

[[Page 22108]]

responsibilities among the various levels of government.

Paperwork Reduction Act of 1995

    This action does not contain a new collection of information 
requirement under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). 
This action would not impose new recordkeeping or reporting 
requirements on State or local governments, individuals, businesses, or 
organizations, and does not contain a collection of information as 
defined by 44 U.S.C. 3502(3).

List of Subjects in 2 CFR Part 2900

    Accounting, Administrative practice and procedure, Appeal 
procedures, Auditing, Audit requirements, Cost principles, Grant 
programs, Grant programs--labor, Grants administration, Labor, 
Reporting and recordkeeping requirements.

    Under the authority of 5 U.S.C. 301, the Department of Labor amends 
2 CFR part 2900 as follows:

PART 2900--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, 
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

0
1. The authority citation for part 2900 continues to read as follows:

    Authority: 5 U.S.C. 301; 2 CFR 200.


0
2. Amend Sec.  2900.1 by revising the second sentence to read as 
follows:


Sec.  2900.1  Budget.

    * * * See Sec.  200.407 and Sec.  2900.16 for more information 
about prior written approval (prior approval) (see 2 CFR 200.1).

0
3. Revise Sec.  2900.2 to read as follows:


Sec.  2900.2  Non-Federal entity.

    In the DOL, Non-Federal entity means a state, local government, 
Indian tribe, institution of higher education (IHE), for-profit entity, 
foreign public entity, foreign organization or nonprofit organization 
that carries out a Federal award as a recipient or subrecipient (see 2 
CFR 200.1).

0
4. Amend Sec.  2900.3 by revising the introductory text and by adding 
paragraph (d) to read as follows:


Sec.  2900.3   Questioned cost.

    In the DOL, in addition to the guidance contained in 2 CFR 200.1, a 
questioned cost means a cost that is questioned by an auditor, Federal 
Project Officer, Grant Officer, or other authorized Awarding agency 
representative because of an audit or monitoring finding:
* * * * *
    (d) Questioned costs are not an improper payment until reviewed and 
confirmed to be improper as defined in OMB Circular A-123 Appendix C 
(see also the definition of improper payment in 2 CFR 200.1).

0
5. Revise Sec.  2900.4 to read as follows:


Sec.  2900.4  Adoption of 2 CFR part 200.

    Under the authority listed above, the Department of Labor adopts 
the Office of Management and Budget (OMB) Guidance in the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards to Non-Federal Entities (subparts A through F of 2 
CFR part 200), as supplemented by this part, as Department of Labor 
policies and procedures for financial assistance administration. This 
part gives regulatory effect to the OMB guidance as supplemented by 
this part. The DOL also has programmatic and administrative regulations 
located in titles 20 and 29 of the CFR.

0
6. Revise Sec.  2900.5 to read as follows:


Sec.  2900.5  Federal awarding agency review of risk posed by 
applicants.

    In addition to the guidance set forth in 2 CFR 200.206(b), in 
evaluating risks of applicants, DOL also considers audits and 
monitoring reports containing findings and issues of noncompliance or 
questioned costs, in addition to reports and findings from audits 
performed under Subpart F--Audit Requirements of 2 CFR 200 or the 
reports and findings of any other available audits (see 2 CFR 
200.206(b)).

0
7. Revise Sec.  2900.6 to read as follows:


Sec.  2900.6  Advance payment.

    In the DOL, except as authorized under 2 CFR 200.208, the non-
Federal entity must be paid in advance (see 2 CFR 200.305(b)(1)).

0
8. Amend Sec.  2900.7 by revising the section heading to read as 
follows:


Sec.  2900.7  Federal payment.

* * * * *

0
9. Revise Sec.  2900.9 to read as follows:


Sec.  2900.9  Revision of budget and program plans.

    In the DOL, approval of the budget as awarded does not constitute 
prior approval of those items requiring prior approval, including those 
items the Federal awarding agency specifies as requiring prior approval 
(see 2 CFR 200.407 and 2 CFR 200.308(a)).

0
10. Revise Sec.  2900.10 to read as follows:


Sec.  2900.10  Prior approval requests.

    In addition to the guidance set forth in 2 CFR 200.308(c), for 
Federal awards from the Department of Labor, the non-Federal entity 
must request prior approval actions at least 30 days prior to the 
effective date of the requested action (see 2 CFR 200.407).

0
11. Revise Sec.  2900.11 to read as follows:


Sec.  2900.11  Revision of budget and program plans including extension 
of the period of performance.

    In addition to the guidance set forth in 2 CFR 200.308(b), for 
Federal awards from the Department of Labor, the non-Federal entity 
must request prior approval for an extension to the period of 
performance.

0
12. Revise Sec.  2900.12 to read as follows:


Sec.  2900.12  Revision of budget and program plans approval from Grant 
Officers.

    In the DOL, unless otherwise noted in the grant agreement or 
cooperative agreement, prior written approval for revision of budget 
and program plans must come from the Grant Officer (see 2 CFR 
200.308(d)).

0
13. Revise Sec.  2900.13 to read as follows:


Sec.  2900.13  Intangible property.

    In addition to the guidance set forth in 2 CFR 200.315(d), the 
Department of Labor requires intellectual property developed under a 
discretionary Federal award process to be in a format readily 
accessible and available for open licensing to the public. An open 
license allows subsequent users to copy, distribute, transmit and adapt 
the copyrighted work and requires such users to attribute the work in 
the manner specified by the recipient.

0
14. Amend Sec.  2900.14 by revising the first sentence to read as 
follows:


Sec.  2900.14  Financial reporting.

    In addition to the guidance set forth in 2 CFR 200.328, for Federal 
awards from the Department of Labor, the DOL awarding agency will 
prescribe whether the report will be on a cash or an accrual basis. * * 
*

0
15. Revise Sec.  2900.15 to read as follows:


Sec.  2900.15  Closeout.

    In addition to the guidance set forth in 2 CFR 200.344(b), for 
Federal awards from the Department of Labor, the non-Federal entity 
must liquidate all financial obligations and/or accrued expenditures 
incurred under the Federal award. For non-Federal entities reporting on 
an accrual basis and

[[Page 22109]]

operating on an expenditure period, unless otherwise noted in the grant 
agreement or cooperative agreement, the only liquidation that can occur 
during closeout is the liquidation of accrued expenditures (NOT 
financial obligations) for goods and/or services received during the 
grant period.

0
16. Amend Sec.  2900.16 by revising the second sentence to read as 
follows:


Sec.  2900.16  Prior written approval (prior approval).

    * * * Unless otherwise noted in the grant agreement or cooperative 
agreement, the Grant Officer is the only official with the authority to 
provide prior written approval (prior approval). * * *

0
17. Revise Sec.  2900.18 to read as follows:


Sec.  2900.18  Contingency provisions.

    In addition to the guidance set forth in 2 CFR 200.433(c), for 
Federal awards from the Department of Labor, excepted citations include 
2 CFR 200.334 Retention requirements for records, and 2 CFR 200.335 
Requests for transfers of records.

    Signed.

Martin J. Walsh,
Secretary of Labor.
[FR Doc. 2021-08731 Filed 4-26-21; 8:45 am]
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