Uniform Grants Guidance: Summary of 2024 Revisions

In April 2024, the Office of Management and Budget (OMB) issued guidance regarding government-wide policies for the award and administration of Federal financial assistance, also known as the Uniform Grants Guidance.

These revisions are effective for all Federal awards issued on or after October 1, 2024. Federal agencies may elect to apply the final guidance to Federal awards prior to October 1, 2024, but they are not required to do so.

The Uniform Grants Guidance 2024 Revision (the Guidance) contains updates that will reduce burden for recipients of Federal funds and increase the efficiency of their financial management.

The Guidance provides clearer, more precise guidance to help reduce burdens on Federal agencies and recipients of Federal funds.

The Guidance also includes increased thresholds to reduce burden, as follows:

• Single Audit – The threshold for a single or program specific audit increases from $750,000 to $1,000,000.
• Fixed Amount Subawards – Fixed amount subawards that a subrecipient may provide with prior written approval from the Federal agency (see section 200.333) increases from $250,000 to $500,000.
• Equipment – The threshold for the value of equipment that at the end of the grant period “may be retained, sold, or otherwise disposed of with no further responsibility to the Federal agency” increases from $5,000 to $10,000.
• Unused Supplies – The total value of unused supplies that recipients of Federal funds are required to sell increases from $5,000 to $10,000. The Guidance clarifies that this is the total amount of unused supplies, not just like items (see Section 200.314).
• De Minimus Indirect Rate – The maximum rate that recipients may use for indirect costs without negotiating an alternative rate with the relevant Federal agency increases from 10% to 15%.
• Calculating Indirect Costs – The amount of subawards that recipients can apply to their indirect cost rate increases from $25,000 to $50,000.
• Labor Standards – The Guidance contains various updates that address labor standards for Federal grant awards including the following:  notices of funding opportunities, general procurement standards, such as the use of responsible contractors, labor and employment practices, competition, and contract cost and price analyses.
• Simplifying Language and Program Requirements - The Guidance also states that agencies should use plain language, make their grant announcements as clear and concise as possible, and limit the length and complexity of the announcements. There should also be a special focus on reaching underserved communities. Furthermore, the Revision allows agencies to translate grant notices or other documents to another language.
• Eliminating Burdensome Requirements - The cost accounting standards and disclosure statement has been updated to remove the requirement to submit a DS-2 disclosure statement in support of an indirect rate.
• Clarifying Costs and Requirements - The Guidance clarifies that certain costs associated with data and evaluation are allowable (see Section 200.455) and allows for certain administrative costs associates with closeout to be charged to the final budget period. It also clarifies the recipient right to receive any remaining and available funds (see Section 200.403).

Currently, we are awaiting further clarification on effective dates for the thresholds for audits. We will provide more information when available.

Article Contributed by Lydia Miller.