NIH Implementation of Changes to Uniform Guidance – Impact to Emory University

Authors: Holly Sommers (OSP), Edwin Bemmel (RGC), & James Goff (Cost Studies)

In January 2025, NIH released its notice (NOT-OD-25-059) describing plans for implementation of the Uniform Administrative Requirements for Federal Financial Assistance (2 CFR 200), generally referred to as the Uniform Guidance or UG. A summary of NIH’s specific implementation plans and their impact on Emory are provided below. NIH’s implementation includes updates to Flexibilities, Terms and Conditions, and Cost Policies allowed and required by the UG.

Flexibilities
CFR	Specific NIH Implementation of current UG	Impact to Emory
2 CFR 200.1	Modified Total Direct Cost Definition – Calculating Indirect Costs: NIH recognizes the updated definition of MTDC to include up to the first $50,000 of each subaward. For applicants and recipients to apply the increased threshold, they must have a current NICRA, that cites the updated threshold amount (i.e., $50,000).	Emory’s NICRA is currently under negotiation. Until a change is made to our final, signed NICRA, Emory may only apply our indirect rate to the first $25,000 of each subaward and proposal budgets should reflect such until any future change is communicated.
2 CFR 200.313 (e)	Equipment: NIH recognizes the updated threshold value for equipment, increasing from $5,000 to $10,000. For applicants and recipients to apply the increased threshold, they must have a current negotiated indirect cost rate agreement that cites the updated threshold amount (i.e., $10,000).	Emory’s NICRA is currently under negotiation. Until a change is made to our final, signed NICRA the threshold value for equipment will remain $5,000 and proposal budgets should reflect such until any future change is communicated.
2 CFR 200.314 (a)	Unused Supplies: NIH recognizes the updated policy on handling of residual inventory of unused supplies. If there is a residual inventory exceeding $10,000 in aggregate fair market value upon termination or completion of the grant and if the supplies are not needed for other federally sponsored programs or projects, the recipient may either retain them for use on other than federally sponsored activities or sell them. NIH will maintain its current policy that in either case, the recipient must compensate the NIH awarding IC for its share as a credit to the grant.	Unused supplies totaling $10,000 or less may be retained or sold. The cost of the unused supplies must be credited back to the award per NIH’s policy. To minimize the administrative burden associated with calculating and repaying any owed amounts, the Emory research community should carefully manage supply purchases as grant end dates near.
2 CFR 200.333	Fixed Amount Awards Subawards: NIH recognizes the updated prior approval threshold of $500,000 for the use of fixed amount subawards, unless otherwise stated in the Notice of Funding Opportunity (NOGO) or the terms and conditions of award.	For awards (competing, non-competing and supplement) issued on/after 10/1/24, prior approval is only needed for fixed amount subawards if they amount exceeds $500,000. Fixed amount subawards of this size under NIH awards should be rare.
2 CFR 200.414(f)	De Minimis Indirect Rate: NIH recognizes the updated de minimis indirect cost rate of 15%. Any non-Federal entity, including for-profit organizations, that does not have a current negotiated indirect cost rate, may elect to charge a de minimis rate of 15% of MTDC which may be used indefinitely. This updated rate may be recovered for new and continuation awards issued on or after October 1, 2024. At the discretion of the funding Institutes and Centers (ICs), ICs may provide additional funding or allow recipients to rebudget to accommodate the increase. Recipients should contact the Grants Management Official named on the Notice of Award for more information. Note that currently, the de minimis rate does not apply to NIH training, career development or foreign awards.	For awards (competing and non-competing) issued on/after 10/1/24 and which include domestic subawardees which do not have a current negotiated indirect cost rate, they may apply the increased de minimis rate of 15% of MTDC. Emory PI’s should be aware that NIH may or may not provide additional funding to support this rate increase. If not, to increase the subawardee IDC rate, funds would have to be rebudgeted from other categories. OSP can assist in contacting the NIH GMS to discuss the possibility of requesting additional funds to support such a rate increase if desired. (F&A for subawards under NRSA or K awards remains limited to 8% of MTDC.)
2 CFR 200.501	Single Audit: NIH recognizes the increase, from $750,000 to $1,000,000, to the level at which an NIH recipient of Federal funds is required to conduct a single audit or a program specific audit. This increased threshold applies to State governments, local governments, and non-profit organizations (including institutions of higher education). NIH will continue to require foreign recipients to conduct a single audit when they expend $750,000 or more per year in Federal awards. NIH will continue to require written prior approval from the funding IC before recipients may elect to use a program specific audit.	OSP will update our subaward template language to implement the new single audit threshold for all domestic subawardees. The template for foreign subawardees will remain at $750,000. No action from faculty or non-central research administration is required.
Administrative Requirements – Terms and Conditions
CFR	Specific NIH Implementation of current UG	Impact to Emory
2 CFR 200.415	Required Certifications. Effective October 1, 2025 (FY 26), NIH recipients that enter into written subaward agreements must include a provision requiring subrecipients to certify that all information submitted in applications, requests for payments, disbursements, and financial reports submitted to the pass-through entity must be aligned with the terms and conditions and is complete and accurate.	OSP will update all appropriate subaward templates to include the required certification language prior to the 10/1/25 effective date.
2 CFR 200.419	Cost Accounting Standards: NIH recognizes the removal of the requirement for Institutions of Higher Education that receive an aggregate total of $50 million or more in Federal awards and instruments subject to subpart E to submit a disclosure statement form (DS-2) containing information on cost accounting standards.	Emory no longer needs to maintain a Disclosure Statement (DS-2) with its cost accounting policies and practices. No action from faculty or non-central research administration is required. Emory continues to maintain appropriate accounting policies and procedures even though the requirement to disclose has been lifted.
2 CFR 200.431	Compensation – Fringe Benefits: NIH clarifies that recipients and subrecipients are not allowed to charge unfunded pension costs directly to an NIH award if those unfunded pension costs are not allocable to the NIH specific project.	Emory does not have a pension plan, so this is not applicable to Emory.
Cost Policies
CFR	Specific NIH Implementation of current UG	Impact to Emory
2 CFR 200.454	Memberships, Subscriptions, and Professional Activity Costs. The cost of membership in any civic or community organization is allowable, without NIH prior approval, if the costs are used to support research and development activities and do not support advocacy or lobbying.	Proposal budgets may include these costs if the parameters described are met.
2 CFR 200.456	Participant support costs. Participant support costs are allowable, without NIH prior approval if additional cost categories are not requested, i.e., souvenirs, t-shirts, memorabilia, or otherwise stated in the NOFO or terms and conditions of award. The classification of items as participant support costs must be documented in the recipient’s or subrecipient’s written policies and procedures and treated consistently across all Federal awards.	Prior approval for participant support cost is no longer needed unless this includes additional cost categories or otherwise stated in the NOFO. Expenditures including stipends or subsistence allowances, travel allowances and registration fees are allowable participant support costs and do not need prior approval.
2 CFR 200.461	Publication and printing costs. Publication costs for electronic and print media, including distribution, promotion, and general handling, are allowable. These costs should be allocated as indirect costs to all benefiting activities of the recipient or subrecipient if they cannot be directly identified with a particular cost objective. Page charges, article processing charges (APCs), or similar fees such as open access fees for professional journal publications and other peer-reviewed publications resulting from an NIH award are allowable where: · The publication report work was supported by an NIH funded project. · The charges are levied impartially on all items published by the journal, whether or not under an NIH funded project. · The recipient or subrecipient may charge the NIH award during the final period of performance as closeout costs for the cost of publications if the costs were not charged during the period of performance (prior to the final year of the award) unless the terms and conditions do not allow for such costs under a specific project.	Proposal budgets may include these costs if the parameters described are met.
2 CFR 200.461; 2 CFR 200.472	Termination and standard closeout costs. Charges for administrative costs specifically associated with the closeout of an NIH award are allowable, without NIH prior approval, or unless otherwise stated in the NOFO and/or terms and conditions of award. These costs may be incurred until the due date of the final reports (i.e., 120 days after the end of the period of performance.	To be allowable, termination cost be fully posted to Emory’s general ledger by the Emory internal closeout due date. Projections or expenses that would result in delayed closeout and timely reporting are not allowed.