Guidance for Grants and Agreements
| Published date | 22 February 2021 |
| Citation | 86 FR 10439 |
| Record Number | 2021-02969 |
| Section | Rules and Regulations |
| Court | Management And Budget Office |
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.
Rules and Regulations Federal Register
10439
Vol. 86, No. 33
Monday, February 22, 2021
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 GrantsTeam@omb.eop.gov 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
■1. The authority citation for part 25
continues to read as follows:
Authority: Pub. L. 109–282; 31 U.S.C.
6102.
■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
■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 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 § 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 OMB-
designated repositories of
governmentwide eligibility qualification
or financial integrity information as
appropriate. See also suspension and
debarment requirements at 2 CFR part
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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:
§ 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.
* * * * *
■10. In § 200.332, revise paragraph
(d)(4) to read as follows:
§ 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
§ 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.
* * * * *
■11. In § 200.416, revise paragraph (c)
to read as follows:
§ 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.
* * * * *
■12. In § 200.509, revise paragraph (a)
to read as follows:
§ 200.509 Auditor selection.
(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:
§ 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
§ 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
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
DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Parts 761
[Docket ID USDA–2019–0007]
RIN 0560–AA16
Farm Loan Programs, Debt Settlement
AGENCY
: Farm Service Agency, USDA.
ACTION
: Correcting amendments.
SUMMARY
: 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.
DATES
: Effective: February 22, 2021.
FOR FURTHER INFORMATION CONTACT
: 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).
List of Subjects in 7 CFR Part 761
Accounting, Administrative practice
and procedure, Loan programs-
agriculture, 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.
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