What three factors determine whether a cost can be charged to an award?

To be allowable under Federal awards, costs must:

• Be necessary and reasonable;
• Be allocable;
• Be accorded consistent treatment;
• Be net of all applicable credits;
• Be determined in accordance with generally accepted accounting principles;

What is the 2 CFR 700?

eCFR :: 2 CFR Part 700 — Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

What is the schedule of expenditures of federal awards?

The Schedule of Expenditures of Federal Awards (SEFA) is a financial statement schedule prepared by management that lists an organization’s expenditures of federal assistance for the fiscal year by federal agency, grant number and amount.

What is uniform administrative requirements cost principles and audit requirements for federal awards?

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The reforms that comprise the Uniform Guidance aim to reduce the administrative burden on award recipients and, at the same time, guard against the risk of waste and misuse of Federal funds.

What are the 4 cost principles?

MIT follows four cost principles. The cost must be (1) allowable, (2) allocable, (3) reasonable, and (4) consistent. Though these principles may change depending on the project, they must be used to determine whether the costs are appropriate for a sponsored project.

What are the tests of an allowable direct cost on a Federal award?

“The tests of allowability of costs under these principles are: (a) they must be reasonable; (b) they must be allocable to sponsored agreements; (c) they must be given consistent treatment through application of those generally accepted accounting principles appropriate to the circumstances; and (d) they must conform …

What does 2 CFR 200 apply to?

Laws, Regulations and Guidance Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R Part 200 establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards to non-Federal entities.

What did 2 CFR 200 Replace?

Part 200 Uniform Requirements – a DOJ regulation – largely replace 28 C.F.R. Parts 66 and 70, as well as the OMB Circulars on cost principles and audit requirements. do NOT alter or affect OJP awards made before January 2015.

What is the auditor’s responsibility for the schedule of Expenditures of federal awards?

The auditor is required by Circular A-133 to determine and provide an opinion on whether the SEFA is presented fairly in all material respects in relation to the auditee’s financial statements as a whole.

What gets reported on the Sefa?

The SEFA is a key reporting package component required by Uniform Guidance. It provides a picture of all federal awards for which an organization expended funds during its fiscal year. Auditors also use the SEFA to determine which programs listed are “major programs” or require testing in the compliance audit.

What is a 2 CFR 200?

Uniform Guidance (2 C.F.R. Part 200): 2 C.F.R Part 200 establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards to non-Federal entities.

What are OMB guidelines?

In plain English, the Uniform Guidance is simply a set of authoritative rules and regulations about federal grants from the Office of Management and Budget (OMB). This “guidance” is designed to keep everyone in the federal grants community – Congress, grant-making agencies, and applicants – on the same page.

What are federal cost principles?

Federal cost principles are regulations that help recipients and subrecipients determine eligible costs for specific activities identified in grant agreements and contracts and outlines financial management requirements including audits.

What are allowable costs?

An allowable cost is a cost that can be paid by your contract or grant. A cost is allowable only if: The cost is reasonable; it reflects what a prudent person might pay. The cost is allocable; the contract or grant that paid the expense benefits from it.

What is an example of allowable cost?

Examples of allowable costs include salaries and related expenses of technical staff, costs charged on long distance phone calls, justified computer costs, travel expenses, medical expenses and any form of publication fees. A company has been hired by the government to do work in a particular city.

What is CFR 200 Appendix XII?

As required by 2 CFR 200 Appendix XII of the Uniform Guidance, non-federal entities (NFEs) are required to disclose in FAPIIS any information about criminal, civil, and administrative proceedings, and/or affirm that there is no new information to provide.

What replaced OMB Circular A 133?

2 CFR part 200, subpart F
On December 26, 2013, OMB Circular A-133 was superseded by the issuance of 2 CFR part 200, subpart F. Among other things, those changes increased the audit threshold to $750,000 for auditee fiscal years beginning on or after December 26, 2014 and made changes to the major program determination process.

What replaced OMB Circular A-133?

What replaced OMB Circular A 122?

The Supercircular supersedes and streamlines requirements from eight OMB Circulars A–21, A–87, A–110, A–122, A–89, A–102, A–133, and A–50 that have been codified at different times for different types of organizations and by different parts of the Federal government.

Who prepares Sefa?

The SEFA, which is prepared by the auditee and considered supplementary information, is an important part of the reporting package required by Circular A-133.