The federal government has issued significant updates to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) that impact how federal funds are managed and reported by non-federal entities.
• De Minimis Indirect Cost Rate Increased:
– Entities that have never had a negotiated indirect cost rate may now charge a 15% de minimis rate (previously 10%)
– Applies to Modified Total Direct Costs (MTDC)
– Can be used indefinitely if applied consistently across all eligible federal programs
• Single Audit Threshold Raised:
– The threshold for requiring a Single Audit has increased from $750,000 to $1 million in federal expenditures
– Includes funds received across all federal programs and clusters
– Organizations expending more than $1 million in federal funds in a fiscal year must obtain an independent audit
Additional updates to the Uniform Guidance also address procurement standards, subaward monitoring, and performance measurement.