Cost principles for organizations that receive federal grants have traditionally existed in silos. Educational institutions, state and local governments and nonprofit organizations faced different cost principle requirements under their respective Office of Management and Budget (OMB) Circulars. The OMB’s latest guidelines do away with the separation among the three entity types and merge them into one combined set of cost principles.
Released in December 2013, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” consolidates several OMB Circulars and their cost principles. The new uniform grant guidance creates several new provisions and requirements designed to standardize the reporting requirements for federal grant recipients. Included in the changes are streamlined cost principle requirements.