(a) Bonding fees arise in the event the HHS awarding company necessitates assurance in opposition to financial decline to by itself or Other people by motive from the act or default on the non-Federal entity.
(a) A price is allocable to a selected Federal award or other Expense objective if the goods or solutions involved are chargeable or assignable to that Federal award or Price tag aim in accordance with relative Added benefits gained. This typical is fulfilled if the associated fee:
suggests the Federal awarding company that gives the predominant quantity of funding directly to a non-Federal entity not assigned a cognizant company for audit. When there isn't a direct funding, the Federal awarding company and that is the predominant source of move-through funding must assume the oversight obligations.
(two) Withholding authority to continue to another section right up until receipt of proof of satisfactory functionality in just a provided period of overall performance;
(4) Whenever a non-Federal entity converts to an acceptable actuarial Price tag system and funds PRHP costs in accordance with this technique, the First unfunded liability attributable to prior years is allowable if amortized about a duration of many years in accordance with GAAP, or, if no such GAAP interval exists, in excess of a period of time negotiated with the cognizant agency for indirect costs.
(three) The non-Federal entity must have a prepared strategy for conducting complex evaluations from the proposals received and for selecting recipients;
(4) The phrase “loan promise motivation” signifies a binding arrangement by a Federal awarding company to create a loan promise when specified disorders are fulfilled with the borrower, the lender, or almost every other bash into the assure arrangement.
(g) Any non-Federal entity that features a current federally negotiated oblique Price tag fee may possibly make an application for a one particular-time extension from the premiums in that agreement to get a period of around 4 decades. This extension might be subject matter to your overview and approval on the cognizant agency for indirect fees.
(two) PRHP expenditures calculated utilizing an actuarial cost approach recognized by GAAP are allowable When they are funded for that yr inside of 6 months following the finish of that calendar year. Expenditures funded following the six thirty day period interval (or maybe a later interval agreed to with the cognizant agency) are allowable during the 12 months funded. The Federal cognizant agency for oblique fees may perhaps comply with an extension of your six thirty day period interval if an proper adjustment is built to compensate for your timing of the fees for the Federal Governing administration and connected Federal reimbursements plus the non-Federal entity's contributions towards the PRHP fund.
(3) A revision is desired which includes certain expenses for which prior created approval prerequisites could be imposed consistent with applicable OMB Price tag ideas outlined in here subpart E of the component.
(b) Except the HHS awarding company or pass-through entity authorizes an extension, a non-Federal entity will have to liquidate all obligations incurred under the Federal award not later than ninety calendar times once the conclude day of the period of performance as specified in the terms and conditions in the Federal award.
The whole expense of a Federal award would be the sum of the allowable immediate and allocable oblique costs a lot less any applicable credits.
(ii) Measurement of charges of irregular or mass severance spend through an accrual won't reach equity to both of those get-togethers. Therefore, accruals for this intent are not allowable.
(e) In reviewing, negotiating and approving Charge allocation options or oblique Expense proposals, the cognizant company for indirect fees really should generally assure that the non-Federal entity is implementing these Price accounting concepts on a consistent basis throughout their evaluation and negotiation of oblique Expense proposals.