[Code of Federal Regulations]
[Title 2, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 2CFR215.29]

[Page 53-54]
 
                     TITLE 2--GRANTS AND AGREEMENTS
 
   CHAPTER II--OFFICE OF MANAGEMENT AND BUDGET CIRCULARS AND GUIDANCE
 
PART 215_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS 
WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 
ORGANIZATIONS (OMB CIRCULAR A-110)--Table of Contents
 
                    Subpart C_Post Award Requirements
 
Sec. 215.29  Conditional exemptions.

    (a) OMB authorizes conditional exemption from OMB administrative 
requirements and cost principles circulars for certain Federal programs 
with statutorily-authorized consolidated planning and consolidated 
administrative funding, that are identified by a Federal agency and 
approved by the head of the Executive department or establishment. A 
Federal agency shall consult with OMB during its consideration of 
whether to grant such an exemption.
    (b) To promote efficiency in State and local program administration, 
when Federal non-entitlement programs with common purposes have specific 
statutorily-authorized consolidated planning and consolidated 
administrative funding and where most of the State agency's resources 
come from non-Federal sources, Federal agencies may exempt these covered 
State-administered, non-entitlement grant programs from certain OMB 
grants management requirements. The exemptions would be from:
    (1) The requirements in 2 CFR part 225, ``Cost Principles for State, 
Local, and Indian Tribal Governments (OMB Circular A-87)'' other than 
the allocability of costs provisions that are contained in subsection 
C.3 of Appendix A to that part;
    (2) The requirements in 2 CFR part 220, ``Cost Principles for 
Educational Institutions (OMB Circular A-21)'' other than the 
allocability of costs provisions that are contained in paragraph C.4 in 
section C of the Appendix to that part;
    (3) The requirements in 2 CFR part 230, ``Cost Principles for Non-
Profit Organizations (OMB Circular A-122)''

[[Page 54]]

other than the allocability of costs provisions that are in paragraph 
A.4 in section A of Appendix A to that part;
    (4) The administrative requirements provisions of part 215 (OMB 
Circular A-110, ``Uniform Administrative Requirements for Grants and 
Agreements with Institutions of Higher Education, Hospitals, and Other 
Non-Profit Organizations,''); and
    (5) The agencies' grants management common rule (see Sec. 215.5).
    (c) When a Federal agency provides this flexibility, as a 
prerequisite to a State's exercising this option, a State must adopt its 
own written fiscal and administrative requirements for expending and 
accounting for all funds, which are consistent with the provisions of 2 
CFR part 225, ``Cost Principles for State, Local, and Indian Tribal 
Governments (OMB Circular A-87)'' and extend such policies to all 
subrecipients. These fiscal and administrative requirements must be 
sufficiently specific to ensure that: funds are used in compliance with 
all applicable Federal statutory and regulatory provisions, costs are 
reasonable and necessary for operating these programs, and funds are not 
be used for general expenses required to carry out other 
responsibilities of a State or its subrecipients.

[69 FR 26281, May 11, 2004, as amended at 70 FR 51881, Aug. 31, 2005]

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