The Office of Management and Budget (OMB) recently announced the issuance of the 2024 revisions to the Uniform Guidance (2 CFR Part 200). The Uniform Guidance consists of administrative requirements, cost principles, and audit requirements for federal awards. The revised guidance is effective on October 1, 2024. OMB issued the final Uniform Guidance on this link.
The purpose of the revision is to: 1) incorporate statutory requirements and administration priorities; 2) reduce agency and recipient burden; 3) clarify sections that have been interpreted differently; and 4) rewrite applicable sections in plain language, improving flow, and addressing inconsistent terms within the guidance.
Major Changes
There are many changes in the 2024 guidance compared to the existing guidance. See the bulleted list of highlights below.
- Raising the Single Audit Threshold: The 2024 revisions increase the threshold from $750,000 to $1,000,000 at which a recipient of federal funds is required to conduct a Single Audit or program-specific audit.
- De Minimis Cost Rate: Allows recipients and subrecipients that do not have a current federal negotiated indirect cost rate to elect to charge a de minimis rate of up to 15%, raised from the current 10% limit.
- Terms: Throughout the Uniform Guidance, the terms “recipient” or “subrecipient” are used rather than “non-federal entity” to increase understanding of the guidance.
- Plain Language: Agencies are directed to make their grant announcements as clear and concise as possible by limiting the length and complexity of the grant announcement by only including necessary information. Agencies should use plain language accessible to eligible applicants with a focus on reaching undeserved communities.
- Equipment: Increases the value of equipment from $5,000 to $10,000 that at the end of the grant period “may be retained, sold, or otherwise disposed of with no further responsibility to the Federal agency.”
How Can I Learn More?
The Bonadio Group has professionals who are experienced with the Uniform Guidance and can assist with implementation of the 2024 revisions. If you need further guidance or have any questions, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.