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​Uniform Grants Guidance (UGG)

The Education Department General Administrative Regulations (EDGAR) includes various grants management rules applicable to all federal awards issued by the U.S. Department of Education (ED).

  • The Uniform Grant Guidance (UGG) are federal grants management rules that apply to all awards issued by all federal awarding agencies.
  • Created and amended by the Office of Management and Budget (OMB)

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.

OMB Revisions – Summary

  • Procurement Changes to Better Target Areas of Greater Risk and Conform to Statutory Requirements
  • Strengthen Merit Review and Improve Government wide Approach to Performance and Risk
  • Standardize Terminology, Data Elements and Alignment with Other Authoritative Source Requirements
  • Emphasize Machine Readable Information Format
  • Eliminate References to Non-Authoritative Guidance
  • Change Closeout to Reduce Burden and Support the Grants Oversight and New Efficiency (GONE) Act
  • Expanded Use of De Minimis Rate
  • Clarify Areas of Misinterpretation

Allowability of Costs

To determine if a grant cost is allowable for federal grants, the following three tests must be taken into consideration:

  • Costs must meet the following general criteria in order to be allowable under Federal awards: (a) be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles (2 CFR 200.403).
  • Necessary costs are those that are required in order to carry out the program and activities contained in an approved grant application.
  • Reasonable costs. A cost is reasonable if, in its nature and amount it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. … Consideration must be given to: (a) whether the cost is of a type generally recognized as ordinary and necessary for the operation of the subgrantee or the proper and efficient performance of the Federal award (2 CFR 200.404)
  • Allocable costs. (a) A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received (2 CFR 200.405).​