The White House Office of Management & Budget (OMB ) Proposes Regulations to Improve Uniform Guidance Indirect Cost Rules

The federal rules governing grants to nonprofits would be substantially improved under proposed revisions to the Uniform Guidance recently published by the U.S. Office of Management and Budget. Most notably, the proposed revisions to the OMB Uniform Guidance would strengthen the guarantee that grantees receive reimbursement of indirect costs of at least 10 percent of their modified total direct costs (de minimis rate). The draft also clarifies that all granting agencies paying nonprofits with federal funds – whether federal, state, or local governments, native tribes, or other nonprofits – must pay nonprofits using the nonprofit's existing negotiated indirect cost rates and, if no negotiated rate exists yet, then they have the obligation to negotiate rates, at the option of the nonprofit. To date, various granting agencies have misinterpreted the rules in ways that deny nonprofits' rights under the Uniform Guidance. In other changes, the proposed rules would provide greater flexibility under procurement standards, implement standard data elements across agencies and grants, promote the collection of data in machine-readable formats, and strengthen end-of-grant closeout procedures and enforcement. Stakeholders are invited to review the proposed regulations and submit comments by March 22, 2020.

Post date: January 28, 2020
Topics: National News

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