Module 3: Cost Principles & Budgeting

Module 3 Session Recording

Cost Principles & Budgeting:

This recording includes a discussion focusing on 2 CFR 200 Subpart E, along with cost principle comparison, a discussion on types of funding, budgeting basics, and budget justifications.

Note: Remember the 10/24 updates, including things like:

The capitalization threshold for equipment to $10,000 (from $5,000), although in some states, it is still $5,000

Mandatory Disclosures

Budget Revision Guidance/Prior Approval Updates

Fixed Amount Subawards increased from $250,000 to $500,000 (with prior written approval)

Threshold for unused supplies and requirements for retention/disposal raised from $5,000 to $10,000

Raising the de-minimus IDC rate from 10% to 15% of MTDC

Removing the requirement that administrative/clerical costs direct charged to a project needed to be in the budget or have prior written approval (note there are still other requirements that must be met)

Allowability of data and evaluation costs

Allowance of termination and close-out costs incurred until the due date of the final report (though these must be charged in the final budget period)

Single Audit threshold was increased from $750K to $1 million.

A new format was developed for Notices of Funding Opportunity (NOFOs)

The threshold for assessing IDC on subawards was increased from $25,000 to $50,000 (though this will not apply to your organization until new IDC rates are negotiated/established).