2024 Uniform Guidance Update – Key Updates of the Revision
Posted by: V.Weber
On April 4, 2024 The White House announced a landmark revision to The Office of Management and Budget (OMB) Guidance. It comes ten years after the original Uniform Guidance (Section 2 C.F.R. 200) was introduced. Among the most significant changes are increased threshold that required a single audit from $750,000 to $1,000,000 and increased threshold for items that are considered supplies or equipment from $5,000 to $10,000, simplified funding application, as well as terminological standardization.
Here are the main changes to Uniform Guidance impacting nonprofit organizations in 2024:
- Single Audit threshold increased from $750,000 to $1,000,000
- Equipment purchased with federal funds threshold increased from $5,000 to $10,000
- Threshold for exclusion of the subaward costs increased from $25,000 to $50,000 for modified total direct costs
- Pre-award changes to Notices of Funding Opportunities (NOFOs) that simplify application process
- De minims indirect cost rate increased from 10% to 15% (recipients and subrecipients can elect lower rate and modify the definition of total direct cost to permit inclusion of the first $50,000 in the base)
- Mandatory disclosure adding False Claims Act Violations (200.113)
- Allows states and Indian tribes to use their own procurement standards rather than complying with federal procurement standards (Uniform Guidance 200.318 through 200.327)
- Increased fixed amount of awards and subawards from $250,000 to $500,000 (with prior written approval of the federal agency)
The revisions must be implemented no later than October 1, 2024. The full version of the pre-publication guidance can be found here Microsoft Word - Final 2 CFR Guidance - 4.3.2024 - Pre-Publication Version (cfo.gov)
Implementation memorandum can be found here Memoranda | OMB | The White House
Reference guidance can be found at the official Chief Financial Officer Council website here Uniform Guidance _Reference Guides FINAL 4-2024.pdf (cfo.gov)
In conclusion, I want to say that this is one of the most significant updates that were made to the Uniform Guidance in ten years. If you need help navigating the changes of the 2024 Uniform Guidance update – schedule you free consultation with us.