Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for. Circular a122 cost principles for nonprofit organizations a. Hud grantee training omb circular a122 cost principles. One of the actions was a proposal to make to make the cost principles in omb circulars a21, a87, and a122 more consistent and to clarify some aspects of the cost principles. Part 225, and educational institutions omb circular a21, 2. To be allowable under an award, costs must meet the following general criteria. Omb circular a122 cost principles for nonprofit organizations codified at 28 cfr. Omb circulars 2 cfr 230 a122 and 2 cfr 225 a87 for general information purposes only. Omb circulars a21 cost principles for higher education and omb circular a110, administrative requirements for grants and omb a3 audits have been the cornerstone of costing and the rules for all federal grants and contracts.
Omb circular a4, regulatory analysis 09172003 html or pdf 48 pages, 435 kb. Omb circular a122 cost principles for nonprofit organizations, relocated to 2 cfr, part 230 32 pages, 235 kb omb circular a123. The total cost of an award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Basic considerations to be allowable, costs must meet the following. Management and budget omb cost principles provide general guidance regarding costs and cost related issues and requirements. Office of management and budget omb has consolidated eight of its circulars into one document, titled uniform administrative requirements, cost principles and audit requirements for federal awards 2 cfr part 200 commonly referred to as the uniform guidance. When omb published the uniform requirements, it also removed 2 cfr parts 215, 220. The uniform guidance was published in the federal register on december 26, 20 and became effective. The principles do not apply to awards under which an organization is not required to account to the federal. Part 31 and contract cost principles and procedures, office of management and budget circulars a21, a87, a122. Circular a122, cost principles for nonprofit organizations. Omb circular a122, cost principles for nonprofit organizations applicability major differences between a122 and a87 omb circular a21, cost principles for educational institutions applicability major differences between a21 and a87.
Budget omb circulars a21 and a122, cost principles for educational institutions and cost principles for nonprofit orsanizations. Appendix c to part 230nonprofit organizations not subject to this part. Office of departmental grants management and oversight december 16, 17, 2002 instructor. A21 and a122 ar e consolidated, merged and clarified into a single. Omb releases final uniform administrative requirements. The office of management and budgets omb uniform administrative requirements, cost principles, and audit requirements for federal awards commonly called uniform guidance was officially implemented in december 2014 by the council on financial assistance reform cofar now dissolved.
This circular establishes principles for determining costs of grants, contracts and other agreements with nonprofit organizations. Omb circular a122, cost principles for nonprofit organizations 2. This could materially increase prb costs claimed for. Part 230, state local and tribal governments omb circular a87, codified at 2. Omb circular a87 cost principles for state, local, and indian tribal governments, codified at 28 cfr part 66, by reference. Part 230 cost principles for nonprofit organizations omb circular a122 subtitle a office of management and budget guidance for grants and agreements chapter ii office of management and budget circulars and guidance subchap reserved. The web addresses for edgar and the various omb circulars are set out in the table below. Uniform administrative requirements, cost principles, and audit requirements for federal awards. Basic considerations to be allowable, costs must meet the following general criteria. Refer to specific applicable set of federal cost principles for entire text. So, for example, if the subgrantee is a local government as in the regular cdbg program, a87 would apply, while if the subaward was to a nonprofit corporation, omb circular a122 cost principles for nonprofit organizations would apply. The exemptions would be from all but the allocability of costs provisions of omb circulars a87 attachment a, subsection c. Rather than include the revised language in the three circulars cost principles separately, omb created a 206 page chart that permitted sidebyside comparison of. Determining costs for federal awards carried out through.
Double click on the pdf and a separate page will open. Omb revises cost circular a122 september 2004 caplaw update by maximillian j. Covered by omb circular a87, cost principles for state, local, of jatropha curcas pdf and indian. The cost principles for nonprofits omb circular a122, codified at 2 c. Omb circular a21 cost principles for educational institutions, codified at 28 cfr part 66, by reference. Bodoin, caplaw the office of management and budget omb recently amended the cost principles for federal grantees in omb circulars a21, a87, and a122 in order to comply with the simplification objectives established. A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a. Direct cost principles, tactics under circular a122 anne worrell beech slide 7 slide 21. Award requirements and contents of federal awards subpart d, 200. Part 200, uniform administrative requirements, cost principles, and audit requirements for federal awards section id is modified to delete the references to omb circular a122 and replace it with 2 c. All references in this article will be to the code of federal regulations. Omb circular a110 uniform administrative requirements for grants and agreements with institutions of higher education, hospitals, and other nonprofit organizations 2 cfr 215. Omb circular a122 cost objective an award housing services for residents of city of san francisco a projectservice oneonone employment. The highlighted sections are most relevant to daytoday operations of departmental business offices.
There are some situations where furniture is an allowable lsta expense. Appendix a to part 230general principles appendix b to part 230selected items of cost appendix c to part 230nonprofit organizations not subject to this part. This category includes all contracts and contract modifications for research and development, training, and other work performed by educational institutions defined as institutions of higher educations in the omb uniform guidance at 2 cfr part 200, subpart a, and 20 u. Critical changes and approaches for implementation. Cost reimbursement contracts shall conform to the cost principles set forth in 48 c. All terms used in this document such as direct costs, indirect costs and cost pools are defined in accordance with omb circulars a122 cost principles for non profit organizations, a21 cost principles for educational institutions or a87 cost principles for state, local and indian tribal governments except as noted in attachment a.
Omb circular a122 cost principles for nonprofit organizations 2 cfr 230 2. Cost principles for nonprofit organizations omb circular. Except as otherwise provided for in this circular, be determined in accordance with. Can your organization use federal grant funds to pay legal. Part 225 and circular a122 a122 can be found at 2 c. Other audit costs are allowable if included in a cost allocation plan or indirect cost proposal. This relocation is part of our broader initiative to create 2 cfr as a single location.
Principles for educational institutions, and a122 attachment a, subsection a. The principles are designed to provide that the federal government bear its fair. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost. Omb circular a122 cost principles for nonprofit organizations training omb circular a122 cost principles for nonprofit direct costs 92. Part 220 are also being superseded by the new provisions of the supercircular. Brief background and introduction of the uniform guidance background and purpose 2. Audit feesexpenses may not be charged to statefunded grants. Hud grantee training omb circular a122 cost principles for nonprofit organizations. Part 230 cost principles for nonprofit organizations. A searchable copy of the cfda and a pdf version are available through.
Reforms to cost principles circulars a21, a87, and a122 uniform set of cost principles for all grant recipients eliminate duplicative language clarify where there are important substantive policy variances across entities update language to reflect 21st century business practices i. A122, cost principles for nonprofit organizations, a3, audits of states, local governments, and nonprofit organizations, and the guidance in omb circular a50, audit followup, on single audit act followup. Grantees should consult the complete set of applicable cost principles to determine allowability and unallowability of costs prior to expending funds. Top seven facts about omb circular a87, cost principles. Other agreements with state and local governments and federallyrecognized indian tribal governments governmental units. The fasb 106 changed the treatment of postretirement benefits prb from the cash basis to the accrual basis of accounting. Most of these costs are allowable as long as they are used only in the commission of the lsta grant project. Cost allocation methodologies for nonprofit organizations informational session june 7, 2005. Omb circular a110 uniform administrative requirements for grants and other agreements with institutions of higher education, hospitals and other nonprofit organizations 11191993 further amended 09301999, relocated to 2 cfr, part 215 32 pages, 243 kb.