PART 2900—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS Authority: 5 U.S.C. 301; 2 CFR 200. Source: 79 FR 76081, Dec. 19, 2014, unless otherwise noted. Subpart A—Acronyms and Definitions § 2900.1 Budget. In the DOL, approval of the budget as awarded does not constitute prior approval of those items requiring prior approval, including those items the Federal Awarding agency specifies as requiring prior approval. See § 200.407 and § 2900.16 for more information about prior written approval (prior approval) (see 2 CFR 200.1). [80 FR 81440, Dec. 30, 2015, as amended at 86 FR 22108, Apr. 27, 2021] § 2900.2 Non-Federal entity. In the DOL, Non-Federal entity means a state, local government, Indian tribe, institution of higher education (IHE), for-profit entity, foreign public entity, foreign organization or nonprofit organization that carries out a Federal award as a recipient or subrecipient (see 2 CFR 200.1). [86 FR 22108, Apr. 27, 2021] § 2900.3 Questioned cost. In the DOL, in addition to the guidance contained in 2 CFR 200.1, a questioned cost means a cost that is questioned by an auditor, Federal Project Officer, Grant Officer, or other authorized Awarding agency representative because of an audit or monitoring finding: (a) Which resulted from a violation or possible violation of a statute, regulation, or the terms and conditions of a Federal award, including for funds used to match Federal funds; (b) Where the costs, at the time of the audit, are not supported by adequate documentation; or (c) Where the costs incurred appear unreasonable and do not reflect the actions a prudent person would take in the circumstances. (d) Questioned costs are not an improper payment until reviewed and confirmed to be improper as defined in OMB Circular A-123 Appendix C (see also the definition of improper payment in 2 CFR 200.1). [79 FR 76081, Dec. 19, 2014, as amended at 80 FR 81440, Dec. 30, 2015; 86 FR 22108, Apr. 27, 2021] Subpart B—General Provisions § 2900.4 Adoption of 2 CFR part 200. Under the authority listed above, the Department of Labor adopts the Office of Management and Budget (OMB) Guidance in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to Non-Federal Entities (subparts A through F of 2 CFR part 200), as supplemented by this part, as Department of Labor policies and procedures for financial assistance administration. This part gives regulatory effect to the OMB guidance as supplemented by this part. The DOL also has programmatic and administrative regulations located in titles 20 and 29 of the CFR. [86 FR 22108, Apr. 27, 2021] Subpart C—Pre-Federal Award Requirements and Contents of Federal Awards § 2900.5 Federal awarding agency review of risk posed by applicants. In addition to the guidance set forth in 2 CFR 200.206(b), in evaluating risks of applicants, DOL also considers audits and monitoring reports containing findings and issues of noncompliance or questioned costs, in addition to reports and findings from audits performed under Subpart F—Audit Requirements of 2 CFR 200 or the reports and findings of any other available audits (see 2 CFR 200.206(b)). [86 FR 22108, Apr. 27, 2021] Subpart D—Post Federal Award Requirements § 2900.6 Advance payment. In the DOL, except as authorized under 2 CFR 200.208, the non-Federal entity must be paid in advance (see 2 CFR 200.305(b)(1)). [86 FR 22108, Apr. 27, 2021] § 2900.7 Federal payment. In addition to the guidance set forth in 2 CFR 200.305(b), for Federal awards from the Department of Labor, the non-Federal entity should liquidate existing advances before it requests additional advances. [80 FR 81440, Dec. 30, 2015, as amended at 86 FR 22108, Apr. 27, 2021] § 2900.8 Cost sharing or matching. In addition to the guidance set forth in 2 CFR 200.306(b), for Federal awards from the Department of Labor, the non-Federal entity accounts for funds used for cost sharing or match within their accounting systems as the funds are expended. § 2900.9 Revision of budget and program plans. In the DOL, approval of the budget as awarded does not constitute prior approval of those items requiring prior approval, including those items the Federal awarding agency specifies as requiring prior approval (see 2 CFR 200.407 and 2 CFR 200.308(a)). [86 FR 22108, Apr. 27, 2021] § 2900.10 Prior approval requests. In addition to the guidance set forth in 2 CFR 200.308(c), for Federal awards from the Department of Labor, the non-Federal entity must request prior approval actions at least 30 days prior to the effective date of the requested action (see 2 CFR 200.407). [86 FR 22108, Apr. 27, 2021] § 2900.11 Revision of budget and program plans including extension of the period of performance. In addition to the guidance set forth in 2 CFR 200.308(b), for Federal awards from the Department of Labor, the non-Federal entity must request prior approval for an extension to the period of performance. [86 FR 22108, Apr. 27, 2021] § 2900.12 Revision of budget and program plans approval from Grant Officers. In the DOL, unless otherwise noted in the grant agreement or cooperative agreement, prior written approval for revision of budget and program plans must come from the Grant Officer (see 2 CFR 200.308(d)). [86 FR 22108, Apr. 27, 2021] § 2900.13 Intangible property. In addition to the guidance set forth in 2 CFR 200.315(d), the Department of Labor requires intellectual property developed under a discretionary Federal award process to be in a format readily accessible and available for open licensing to the public. An open license allows subsequent users to copy, distribute, transmit and adapt the copyrighted work and requires such users to attribute the work in the manner specified by the recipient. [86 FR 22108, Apr. 27, 2021] § 2900.14 Financial reporting. In addition to the guidance set forth in 2 CFR 200.328, for Federal awards from the Department of Labor, the DOL awarding agency will prescribe whether the report will be on a cash or an accrual basis.
If the DOL awarding agency requires reporting on an accrual basis and the recipient's accounting system is not on the accrual basis, the recipient will not be required to convert its accounting system, but must develop and report such accrual information through best estimates based on an analysis of the documentation on hand. [79 FR 76081, Dec. 19, 2014, as amended at 86 FR 22108, Apr. 27, 2021] § 2900.15 Closeout. In addition to the guidance set forth in 2 CFR 200.344(b), for Federal awards from the Department of Labor, the non-Federal entity must liquidate all financial obligations and/or accrued expenditures incurred under the Federal award. For non-Federal entities reporting on an accrual basis and operating on an expenditure period, unless otherwise noted in the grant agreement or cooperative agreement, the only liquidation that can occur during closeout is the liquidation of accrued expenditures (NOT financial obligations) for goods and/or services received during the grant period. [86 FR 22108, Apr. 27, 2021] Subpart E—Cost Principles § 2900.16 Prior written approval (prior approval). In addition to the guidance set forth in 2 CFR 200.407, for Federal awards from the Department of Labor, the non-Federal entity must request prior written approval which should include the timeframe or scope of the agreement and be submitted not less than 30 days before the requested action is to occur. Unless otherwise noted in the grant agreement or cooperative agreement, the Grant Officer is the only official with the authority to provide prior written approval (prior approval). Items included in the statement of work or budget as awarded does not constitute prior approval. [80 FR 81441, Dec. 30, 2015, as amended at 86 FR 22109, Apr. 27, 2021] § 2900.17 Adjustment of negotiated IDC rates. In the DOL, in addition to the requirements under 2 CFR 200.411(a)(2), adjustments to indirect cost rates resulting from a determination of unallowable costs being included in the rate proposal may result in the reissuance of negotiated rate agreement. § 2900.18 Contingency provisions. In addition to the guidance set forth in 2 CFR 200.433(c), for Federal awards from the Department of Labor, excepted citations include 2 CFR 200.334 Retention requirements for records, and 2 CFR 200.335 Requests for transfers of records. [86 FR 22109, Apr. 27, 2021] § 2900.19 Student activity costs. In the Department of Labor, the provisions of 2 CFR 200.469 apply unless the activities meet a program requirement and have prior written approval from the Federal awarding agency. Subpart F—Audit Requirements § 2900.20 Federal Agency Audit Responsibilities. In the DOL, in addition to 2 CFR 200.513, the department employs a collaborative resolution process with non-federal entities. (a) Department of Labor Cooperative Audit Resolution Process. (1) Initial determination. (2) Informal resolution. (3) Final determination. (i) As appropriate, indicate that efforts to informally resolve matters contained in the initial determination have either been successful or unsuccessful; (ii) Lists those matters upon which the parties continue to disagree; (iii) Lists any modifications to the factual findings and conclusions set forth in the initial determination; (iv) Lists any sanctions and required corrective actions; and (v) Sets forth any appeal rights. (4) Time limit. [79 FR 76081, Dec. 19, 2014, as amended at 80 FR 81441, Dec. 30, 2015] § 2900.21 Management decision. In the DOL, ordinarily, a management decision is issued within six months of receipt of an audit from the audit liaison of the Office of the Inspector General and is extended an additional six months when the audit contains a finding involving a subrecipient of the pass-through entity being audited. The pass-through entity responsible for issuing a management decision must do so within twelve months of acceptance of the audit report by the FAC. The auditee must initiate and proceed with corrective action as rapidly as possible and should begin corrective action no later than upon receipt of the audit report. (See 2 CFR 200.521(d)). [80 FR 81441, Dec. 30, 2015] § 2900.22 Audit Requirements—Appeal Process for Department of Labor Recipients. In the DOL, the DOL grantor agencies shall determine which of the two appeal options set forth in paragraphs (a) and (b) of this section the recipient may use to appeal the final determination of the grant officer. All awards within the same Federal financial assistance program shall follow the same appeal procedure. (a) Appeal to the head of the grantor agency, or his/her designee, for which the audit was conducted. (1) Jurisdiction. (ii) Statement of issues. (iii) Failure to request review. (2) Conduct of hearings. (3) Decision of the head of the grantor agency, or his/her designee. (b) Appeal to the DOL Office of Administrative Law Judges. Jurisdiction. Request for hearing. (ii) Statement of issues. (iii) Failure to request review. (2) Conduct of hearings. (3) Decision of the administrative law judge. (4) Filing exceptions to decision. (5) Review by the Secretary of Labor.