FHWA Implementation

2CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

September 2015

Introduction to 2 CFR Part 200 “Supercircular”

Streamlines the language from eight OMB circulars to one consolidated set of guidance. The following have been combined in this document:

• A-21 Cost Principles for Educational Institutions• A-87 Cost Principles for State, Local and Indian Tribal Governments• A-89 Federal Domestic Assistance Program Information• A-102 Awards and Cooperative Agreements with State and Local

Governments• A-110 Uniform Administrative Requirements for Awards and Other

Agreements with Institutions of Higher Education, Hospitals and other Non-Profit Organizations

• A-122 Cost Principles for Non-Profit Organizations• A-133 Audits of States, Local Governments and Non-Profit Organizations• A-50 Audit Follow-Up, (as related to Single Audits)

Introduction to 2 CFR Part 200 “Supercircular”

Focuses Federal Resources on Improving Performance and Outcomes

Ensures Integrity of Federal Funds with Stakeholders Effective December 26, 2014 Cancels 49 CFR Parts 18 and 19 Application and Policy Implementation

2 CFR 200- Introduction

Applicability of the “Supercircular”

New Awards authorized on or after Dec 26, 2014 Project Modifications made on or after Dec 26, 2014

Example 1: Project ABC1234 is a new project submitted by the State for authorization on Dec 26, 2014 and approved by the FHWA on Dec 27 – Supercircular Applies

Example 2: Project DEF5678 is an existing project authorized for PE on Jul 11, 2012 and the project is not closed – Supercircular Doesn’t Apply

Example 3: On Dec 26, 2014 or later a modification to project DEF5678 is submitted for authorization to make a significant change to the scope of the project (such as advancing the project to ROW or CONST) – Modify terms, Supercircular Applies

2 CFR 200 Subparts and Appendices

2 CFR 200- Subparts A-F, VII

A. Acronyms and DefinitionsB. General ProvisionsC. Pre-Award Requirements and Contents of Federal AwardsD. Post-Award RequirementsE. Cost PrinciplesF. Audit Requirements

Appendix VII – States and Local Government and Indian Tribe Indirect Cost Proposals

Highlights

Subpart A – Acronyms and Definitions §200.0-.99

Federal Award versus Contract

Federal Award • Supercircular requirements• Subject to Single Audit Threshold

Contract• Utilized to purchase property or services to carry out Award• FAR requirements• NOT subject to Single Audit Threshold

Subpart A §200.0-200.99

Highlights

Subpart A – Acronyms and Definitions §200.0-.99 (con’t)

Period of Performance

• Project Start and End Date

• FMIS

Subpart A §200.0-200.99

Highlights

Subpart B- General Provisions §200.100-.113

Purpose and Application of the Uniform Guidance

Implementation and Effective Date - 12/26/2014

Accountability Through New Requirements Conflict of Interest (23 CFR 1.33) Mandatory Disclosures of Fraud, Bribery, or Gratuity

Violations

Subpart B §200.100-200.113

Highlights

Subpart C- Pre-Award Requirements §200.200-.211

Notices of Funding Opportunities, Merit Review, and Risk Assessment for Competitive Grants

Specific Conditions Failure to Comply or Meet Goals Federal Award Information

Performance End Date Indirect Cost Rate Catalog of Federal Domestic Assistance (CFDA) number

Subpart C §200.200-200.211

Highlights

Subpart D- Post Award Requirements §200.300-.345

Performance Measurement §200.301 Greater Focus on Internal Controls §200.303 Payments §200.305 Cost Sharing or Matching §200.306 Period of Performance §200.309 Greater Responsibilities for Sub-recipient Monitoring §200.331 Project Closeout §200.343 thru §200.345

Subpart D §200.300-200.345

Highlights

Subpart D- Post Award Requirements §200.300-.345

Greater Focus on Internal Controls §200.303

Consider them Earlier in the Process Provide Reasonable Assurance Exercise Judgment - Appropriate and Cost Effective based on

the circumstances Safeguard Personally Identifiable Information (PII)

Subpart D §200.300-200.345

Highlights

Subpart D- Post Award Requirements §200.300-.345

Period of Performance §200.309

Imposes a period when project costs can be incurred

= Start Date (Project Effective Authorization Date) through the End Date

Based on States Estimated Project Schedule Monitor and Revise End Date

Subpart D §200.300-200.345

Highlights

Subpart D- Post Award Requirements §200.300-.345

Greater Responsibilities for Sub-recipient Monitoring §200.331

Subawards include required data elements and requirements

including: Performance period (End Date), required financial and performance reports, and Indirect Cost Rate

Pre-award Risk Assessment Risk Based Oversight Framework Monitor the activities of the subrecipient

Subpart D §200.300-200.345

Highlights

Subpart D- Post Award Requirements §200.300-.345

Project Closeout §200.343 thru §200.345

90 days after the agreement end date recipient submits: All Eligible Incurred Costs Performance and Financial Reports Specified Project Records

Project Closure no later than 1 Year later FHWA Unilateral Authority to Close Project

Subpart D §200.300-200.345

Resources

2 CFR 200- Resources

2CFR200 URL http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

Council on Financial Assistance Reform (COFAR)https://cfo.gov/cofar/

FHWA Policy and Guidance Centerhttp://www.fhwa.dot.gov/pgc/

2 CFR 200 Implementation Guidance www.fhwa.dot.gov/cfo/2cfr200guidance_a.cfm