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Final Rule: Regulatory Implementation of OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

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This rule amends FNS regulations to implement the Department of Agriculture final guidance of USDA-specific requirements at 2 CFR part 400 on Dec. 19, 2014 (79 FR 75871). Prior to that, on Dec. 26, 2013, the Office of Management and Budget (OMB) published “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” in 2 CFR part 200 (78 FR 78589). OMB's final guidance at 2 CFR part 200 ;followed a Notice of Proposed Guidance issued Feb. 1, 2013, and an Advanced Notice of Proposed Guidance issued Feb. 28, 2012. The OMB final guidance incorporated feedback received from the public in response to those earlier issuances.

Additional supporting resources are available from the Council on Financial Assistance Reform. In accordance with the good cause exception under the APA, it is unnecessary to engage in the Notice and Comment provisions of 5 USC 553 because the provisions set forth in this rulemaking are a non-discretionary implementation of USDA requirements codified at 2 CFR part 400. The APA exempts from the prior notice and opportunity for comment requirements rules “relating to Agency management or personnel or to public property, loans, grants, benefits, or contracts” (5 USC 553).

Currently, references appear throughout the FNS regulations to the OMB guidance consolidated under the “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” and the USDA implementing regulations in Title 2, of the CFR. There are over 100 references throughout 19 Parts of the FNS regulations that must be revised to accurately reference the revised OMB and USDA regulations. FNS is therefore proposing nomenclature revisions to the following Parts of Title 7: 210, 215, 220, 225, 226, 227, 235, 240, 246, 247, 248, 249, 253, 272, 273, 274, 276, and 277. The revisions will remove the following references, and other associated outdated references, and replace them as appropriate:

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Updated: 09/28/2016