CAPTURE JULY 2016 Q3 ISSUE 03 | Page 17

2016 Q3 ISSUE COSTTREE CAPTURE. 17

he Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called the Uniform Guidance) aims to reduce the administrative burden on federal award recipients and, in doing so, create the opportunity for entities to better understand their financial environment.

In order to benefit from the Guidance, you need to fully understand your administrative burden. Any government agency receiving $100 million or more in direct federal funding is required to submit a cost allocation plan (the most widely accepted method to calculate indirect costs for reimbursements) to its cognizant agency for indirect costs. In doing so, not only will your agency be compliant, but you will also be able to leverage the information to better your community.

Are you a nonprofit organization? Although the rules are different for you, it cannot be stressed enough that it is imperative for you to understand your administrative burden and take advantage of the Uniform Guidance, which includes nonprofit organization guidelines.

Benefits of Compliance

T

CostTree 2 CFR Part 200 Desk Reference