[Code of Federal Regulations]
[Title 2, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 2CFR215.29]

[Page 23-24]
 
                     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 
 
                    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 all but the 
allocability of costs provisions of OMB Circulars A-87 (Attachment A, 
subsection C.3), ``Cost Principles for State, Local, and Indian Tribal 
Governments,'' A-21 (Section C, subpart 4), ``Cost Principles for 
Educational Institutions,'' and A-122 (Attachment A, subsection A.4), 
``Cost Principles for Non-Profit Organizations,)'' and from all of 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 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 
OMB Circular A-87, and extend such policies to all subrecipients.

[[Page 24]]

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.

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