Importance of understanding the 2 CFR 200

When working with federal grants, it is very important to understand and have a general understanding of 2 CFR 200.

What is 2 CFR 200?

2 CFR 200 is a set of authoritative rules and regulations on federal grants from the Office of Management and Budget (OMB). Establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards to non-Federal entities. LA 2 CFR 200 is also known as the Uniform Guide.

On August 13, 2020, the Office of Management and Budget published its Final Guidance on Amendments to 2 CFR 200. This revision included clarifications to existing provisions as well as the addition of new provisions.

We repeatedly encounter many problems with our clients, including inadequate procurement procedures, financial mismanagement, failure to comply with the provisions of federal statutes and regulations or the terms and conditions of federal awards, conflicts of interest, deficiencies in internal controls, among others. Most of these issues that result in findings are caused by a lack of knowledge of 2 CFR 200.

If you are administering a federal award, it is important to understand 2 CFR 200 because this regulation supersedes most OMB circulars and agency regulations. The Uniform Guide provides the authoritative direction that governs Federal awards throughout the life cycle of a grant project. The grant management life cycle is made up of the following phases: Pre-awarding, Awarding, Post-awarding, Monitoring and Closing. However, monitoring by the federal awarding agency or intermediary entity must be carried out throughout the life cycle.

Another important requirement set forth in 2 CFR 200 is that grant recipients must maintain internal programmatic and financial controls. If you are not familiar with all of the requirements set forth in 2 CFR 200, your organization may receive an audit result, the Federal awarding agency or intermediary entity may impose special conditions on the award, and/or there may be legal consequences.

Our clients have the advantage of identifying problems before they result in findings. We accomplish this by completing comprehensive assessments to review and analyze current grant processes, procedures, and needs; and conducting a noncompliance risk assessment to mitigate risk with client-administered federal programs. OPS helps you understand the provisions within 2 CFR 200, apply 2 CFR 200 to federal awards, and gain an understanding of the government's general requirements for federal grants and cooperative agreements.

After identifying the problems and/or needs, PAHO resolves this by providing technical assistance, including training and capacity building to better understand 2 CDR 200. We have had cases where key personnel have reported up to 20 years without participating in any training related to your federal government.

Our On Point Strategy (OPS) team conducts ongoing research and analysis to maintain awareness and knowledge of the latest federal and local compliance requirements that may apply to federal funds.

On Point Strategy LLC (OnPoint) is a management consulting firm that provides a wide range of operational improvement and compliance services to corporations, governments, nonprofits, and other organizations. Our office is in Puerto Rico and our experience allows us to provide services internationally. We can offer service without geographical limits. Our team is made up of bilingual experts who are fluent in English and Spanish and specialize in areas such as administration, accounting, engineering, operations and supply chain management, sports management, and human resources, among others.

For more information about our services please call 787-766-6100 or send an email to info@opspr.com.