A recent webinar on Uniform Guidance yielded a slew of questions. A number of those questions have been grouped into major topics of concern and addressed below. Due to the sheer number of questions asked, this first blog will address general questions and allowability. Next week’s blog will address effort reporting, F&A, participant support costs, purchasing, and subawards.
GENERAL
Where is the best digital version of the Uniform Guidance (UG) available?
The version found on govinfo can download as a PDF or in XML. It can also be accessed from Grants.gov which takes you to the version in the e-CFR (electronic Code of Federal Regulations). For the most up-to-date, go to the Federal Register (downloadable as a pdf).
What are the parts of UG most commonly referred to/used to in daily research administration?
The answer to this question may depend on where you sit in the lifecycle of an award (pre- or post-award) and if you are in a central unit or department. For Tricia as a trainer, I often refer to Subpart A (definitions), Subpart D (post-award requirements) and Subpart E (cost principles).
What’s the difference between uniform guidance and NIH grant policy?
Uniform Guidance is guidance to the Federal awarding agencies on administrative requirements, cost principles, and audit requirements for Federal awards. Once the Federal agencies codify these guiding principles they become agency regulations. Therefore, the NIH grant policy document is NIH’s codification of Uniform Guidance and should be followed for NIH awards.
The Department of Education regulations used to be EDGAR (Education Department General Administrative Regulations). Was EDGAR replaced by Uniform Guidance?
EDGAR (Education Department General Administrative Regulations) was amended after the Uniform Guidance was published and the U.S. Department of Education now points to Uniform Guidance for much of its guidance, though parts of EDGAR are still applicable.
Is it possible to discuss briefly Appendix IX that applies to Hospitals? Why is the difference between academic institutions?
Personnel appointments in hospitals are different than in academic settings and many of the “other hospital activities” are not allowable costs under Uniform Guidance. Additionally, there are patient care costs that you may not see at an Institution of Higher Education that is addressed in Appendix IX and credits (insurance, etc.) that must be taken into consideration in a hospital setting. Finally, the “A” portion of F&A (Facilities & Administrative) costs is not capped for hospitals like it is for institutions.
The order of Precedence that I’ve seen is the following. Is this correct?
- Applicable Laws
- Code of Federal regulations
- Standard Terms and Conditions
- Award Specific Terms and Conditions
- Other documents and Attachments
Law always trumps all else. If you cannot by law engage in an activity (such as hemp research), then it doesn’t matter what award terms or Uniform Guidance say. Typically, the most restrictive law wins, though there are exceptions. Research using alcohol is an exception. While Uniform Guidance says that alcohol is typically an unallowable charge (meaning you cannot reimburse meals that include alcoholic beverages), you may be able to purchase alcohol for a research study.
How often is the Uniform Guidance updated? Where do we find updates?
Uniform guidance is reviewed every 5 years after the initial December 26, 2013 date (2 CFR 200.109). Updates are published in the Federal Register. Always consult the on-line version for the most up-to-date information. For the most up-to-date, go to the Federal Register (downloadable as a pdf).
As a manager, what are some ways that I can increase exposure to/increase the use of Uniform Guidance for my staff? What would be best practices for ‘getting to know’ the Uniform Guidance?
You can start by sharing the free webinar and these frequently asked questions with your staff. You can also create a Uniform Guidance scavenger hunt for your staff. Also, cite any references to Uniform Guidance in communications and training as applicable.
How do the FAR and Uniform Guidance overlap?
The Federal Acquisition Regulation (FAR) establishes rules and requirements that Federal agencies must follow when procuring goods and services. The Uniform Guidance (UG) establishes requirements that must be followed by grantees when procuring goods and services needed to carry out a Federal award.
What’s new for Uniform Guidance in 2020? Could you include changes over the years?
The newest changes are in Procurement and Audit Requirements. For the most up-to-date, go to the Federal Register (downloadable as a pdf).
ALLOWABILITY
Is an Airbnb allowable on federal awards?
Allowability of an Airbnb for travel supported with federal funds is not addressed. Uniform Guidance instructs that housing/travel costs are allowable as direct costs if reasonable and necessary and approved in advance by the Federal awarding agency. See more under 2 CFR 200.474 (Travel costs). As always, follow the travel rules of the agency/program and of your institution.
Is space rental for institutional space allowable? All departments on campus charge for space not used for instruction.
Yes, space rental for institutional space is generally allowable. Double-check sponsor/program guidelines as some may consider rent or space unallowable. Also, ensure that space is not part of the indirect cost base if charging as a direct cost.
Is alcohol allowed if the sponsor says okay to it?
Yes, alcohol used in research is generally an allowable charge as long as there are no state or local laws that state otherwise.
What does Uniform Guidance say about managing unallowable purchases, especially when there is no place to put the charges?
This is something each institution must have a way of handling and is not specifically addressed in the Uniform Guidance other than to say that costs determined as unallowable may not be charged to a Federal award, and if they are, must be reimbursed. Also, institutions are directed to have a way to segregate and account for unallowable costs. For best practices, consider asking this question on RESADM-L (https://www.healthresearch.org/office-sponsored-programs/research-administration-listserv/).
Please talk about the Fly America Act as it pertains to flights to/from Canada.
Fly America Act is not specifically addressed in the Uniform Guidance. However, the Fly America Act requires the use of a U.S. air carrier service for all air travel and cargo transportation funded by the U.S. government. Use a U.S. air carrier for flights to/from Canada. Find more guidance here- https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act
What does Uniform Guidance say about cost-sharing?
Federal awarding agencies are instructed to include cost-share requirements in their funding opportunities. Expenses that are cost-shared must be verifiable and allowable under the award terms and conditions. Uniform guidance states that voluntary-committed cost-sharing is not expected and cannot be used as a factor during the merit review process. See 2 CFR 200.306 for more on cost-sharing.
How does your organization deal with supplemental compensation?
Uniform guidance instructs us to follow institutional policies for supplemental compensation and instructs us to establish a consistent written definition of work covered under our definition of Institutional Base Salary (IBS). Our institutions discourage supplemental compensation during the contracted time.
Can you provide guidance compensation allowability – vacation leave payout, overload/extra pay, job announcements, and background checks?
Fringe benefits, including vacation, are allowable (2 CFR 200.431).
Overload/extra pay is addressed in 2 CRA 200.430. There are extensive guidelines for extra pay (see 2 CFR 200.430(h)(3) and (4)). Supplemental pay should not exceed Institutional Base Salary (IBS) and must follow established written institutional policy and consistently applied to both Federal and non-Federal activities.
Job announcements for grant-funded positions are allowed (unless the sponsor or guidance says differently). See 2 CFR 200.421(b)(1).
Background checks would be allowable if they are part of the non-Federal entity’s standard recruitment program. See 2 CFR 200.463(a).
We require detailed receipts for all travel meals to make sure no alcohol has been purchased and PIs are asking why we don’t use a per diem policy. Which is more prevalent?
We don’t know the ratio of institutions using per diem versus those that pay actual expenses. Based on experience, state institutions are more likely to use a state per diem rate while private institutions may reimburse for actual expenses. If reimbursing actual expenses, requiring receipts to ensure alcohol is not charged to a federal award is a best practice and it is up to the institution to decide if they want to pay for alcohol from non-federal funds.
Is there a sample allocation plan to guide the conversation for computer devices with PIs?
A sample allocation plan is not provided in Uniform Guidance. For sample plans, consider asking this question on RESADM-L (https://www.healthresearch.org/office-sponsored-programs/research-administration-listserv/).
Are membership allowed as a direct charge on awards?
Memberships, subscriptions, and professional activity costs are generally allowable as direct costs. Costs of memberships to social or dining clubs are generally unallowable. See 2 CFR 200.454.
What about direct charging dean’s or director’s salaries if they are providing “technical contributions”?
Administrative services are allowable if they meet all of the following conditions:
- Services are integral to the project/activity
- Individuals can be specifically identified with the project/activity
- Costs are included in the budget or have prior written approval
- Costs are not recovered as indirect costs
Can unrecovered F&A (Facilities & Administrative) costs and/or fringe that were included in the originally accepted budget carryover to subsequent years and used for other line items in the budget?
If the agreement allows for carryforward, the amounts could be carried forward to the next project year. Depending on budgeting restrictions, the unrecovered fringe may be able to be added to other direct cost budget lines and the F&A would carry forward as well.
F&A is a percent of expenses, so it would be the same percent in the second year as it was in the first and if you are increasing the direct costs (by carrying forward unused budget), you would need to carry forward F&A from year one to two to cover that.
I heard on computers, people are splitting between a grant and unrestricted funds (unobligated funds). Ninety percent (90%) grant and ten percent (10%) unobligated funds so they have not cost-shared. Thoughts?
This isn’t necessary as computing devices can be charged as direct costs if they are essential to the project. They do not have to be solely dedicated to the performance of the Federal award. See 2 CFR 200.453.
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For more Uniform Guidance FAQs, visit: https://cfo.gov/wp-content/uploads/2017/08/July2017-UniformGuidanceFrequentlyAskedQuestions.pdf
Blog post by Tricia Callahan, Senior Research Education and Information Officer, Office of Sponsored Programs and Shannon Sutton, Director of Sponsored Projects, Western Illinois University.