1. FROM ONE NON-PROFIT TO ANOTHER: PLAYING BY THE RULES Lillie Ryans-Culclager – SRI International Ken Merritt – Stanford University

2. What are the Rules? Grantees must comply with Federal Principles OMB Circulars A-21 or A-122 OMB Circular A-21 - Principles for determining the cost applicable to R&D, Training, and other sponsored work performed at Colleges and Universities OMB Circular A-122 - Establishes principles for determining costs that are allowed to be charged to Federal grants, contracts, and other agreements with non-profit organizations (except educational institutions)

3. 3 More on A-122 FAR 31.2 – Principles applicable for determining costs of grants, contracts and other agreements with commercial concerns; and, Cost Accounting Standards 405, and Generally Accepted Accounting Principles, if appropriate to the particular circumstances. what the government will reimburse on cost contracts and what costs it will recognize in negotiating fixed ‐ prices Applies to some non profits because the size and nature of operations are similar to for profits

4. 4 Collaboration between institutions Carrying out activities in conformance with applicable federal requirements Partners must accept that there is no “free lunch” When organizations receive federal funds, It is essential to comply with laws and regulations.

5. 5 Applicability is dependent upon: Differences exist in the specific requirements Public or private status Governmental versus Nongovernmental subrecipients Non-profits vs for profits State and local governmental agencies

6. Summary of Applicable Regulations Grantee TypeAdmin Requirements Cost PrinciplesAudit Requirements State & Local Governments A-102 (45 CFR Part 92) A-87 (2 CFR Part 225) A-133 ______________ 45 CFR Part 74.26(d) Colleges & Universities A-110 2 CFR Part 215 (formerly at 45 CFR Part 74 or Part 92) A-21 (2 CFR Part 200) A-122 (2 CFR Part 230) Non-Profits 45 CFR Part 74, App E Hospitals For-ProfitsFAR 31.2(48 CFR) ForeignAs stated above for your grantee type NIH GPS uses 45 CFR Part 74.26(d)

7. Hierarchy of Regulations Hierarchy of Regulations Legislation (LAWS, Federal and State ) Program & Administrative Regulations (Codified regulation including A-21, A-122, A- 110, FAR 31.2, and Specific Policy Manuals) Terms and Conditions (incorporates the authorities above) Institutional Policy

8. Cost Principles Defines Allowability Costs that may be partially allowable, or require special consideration depending on particular conditions or circumstances Exclusion does not mean that it is either allowable or unallowable Look to treatment for other similar costs addressed in the cost principles 8

9. CASE STUDY 9