Uniform Guidance

The Uniform Guidance (UG), found in the Code of Federal Regulations at 2 CFR 200, provides comprehensive guidelines for managing Federal awards and expenditures. This set of regulations offers both federal agencies and recipients of federal funds a standardized framework for determining the allowability of charges to federal funds. As recipients of federal funds, it is crucial for us to be well-versed in these principles.

Internal Controls

COSO Framework and Enterprise Risk Management at Purdue (ERM) - Purdue’s ERM model, based on the COSO framework, allows you to assess, quantify, mitigate, and monitor risks

• Enterprise Risk Management at Purdue
• Internal Controls Summary Grid

Navigating the Uniform Guidance

The Code of Federal Regulations at 2 CFR 200 is structured to provide clear and comprehensive guidance on managing Federal awards and expenditures.

• Preamble – Major Policy Reforms
• Subpart A – Acronyms and Definitions
• Subpart B – General Provisions
• Subpart C – Pre Award Requirements
• Subpart D – Post Award Requirements
• Subpart E – Cost Principles
• Subpart F – Audit Requirements

Basic Considerations of the UG

Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards (200.403 Factors affecting allowability of costs):

1. Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
2. Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
3. Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-Federal entity.
4. Be given consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
5. Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part.
6. Not included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period.  See 200.306(b).
7. Be adequately documented. See 200.300 through 200.309.
8. Administrative closeout costs may be incurred until the due date of the final report(s). If incurred, these costs must be liquidated prior to the due date of the final report(s) and charged to the final budget period of the award unless otherwise specified by the Federal agency. All other costs must be incurred during the approved budget period. At its discretion, the Federal agency is authorized to waive prior written approvals to carry forward unobligated balances to subsequent budget periods.  See 200.308(g)(3).

Discover the essential Course and Infographic titled "Cost Principles " on the SPS Training and Instructional Videos site.  These resources are designed to provide you with a comprehensive understanding of cost principles and their application through engaging infographics.