§ 200.401 - Application.

§ 200.401 Application.

(a) General. These principles must be used The recipient and subrecipient must apply these principles in determining the allowable costs of work performed by the non-Federal entity under Federal awards. These principles also must be used by the non-Federal entity The recipient and subrecipient must also use these principles as a guide in the pricing of fixed-price contracts and subcontracts where when costs are used in determining the appropriate price. The These cost principles do not apply to:

(1) Arrangements under which Federal financing is in the form of loans, scholarships, fellowships, traineeships, or other fixed amounts based on items such items as education allowance or published tuition rates and fees.

(2) For IHEs, capitation awards, which are awards Capitation awards based on case counts or the number of beneficiaries according to the terms and conditions of the Federal award.

(3) Fixed amount awards, except as provided in § 200.101(b). See also § 200.1 Definitions and 200.201.

(4) Federal awards to hospitals (see appendix Appendix IX to of this part).

(5) Food commodities provided through grants and cooperative agreements.

(6) Other awards under which the

non-Federal entity

recipient or subrecipient is not required to account

to the Federal Government

for actual costs incurred.

(b) Federal contract. Where a A Federal contract awarded to a non-Federal entity recipient is subject to the Cost Accounting Standards (CAS), it incorporates . It must incorporate the applicable CAS clauses, Standards, and CAS administration requirements per the 48 CFR Chapter 99 and 48 CFR part 30 (FAR Part 30). CAS applies directly to the CAS-covered contract and With respect to the allocation of costs, the Cost Accounting Standards at 48 CFR parts 9904 or 9905 takes take precedence over the cost principles in this subpart E with respect to the allocation of costs. When a contract with a non-Federal entity recipient is subject to full CAS coverage, the allowability of certain costs under the cost principles will be affected by the allocation provisions of the Cost Accounting Standards (e.g.for example, CAS 414—48 CFR 9904.414, Cost —Cost of Money as an Element of the Cost of Facilities Capital, and CAS 417—48 CFR 9904.417, Cost —Cost of Money as an Element of the Cost of Capital Assets Under Construction), apply rather instead of the allowability provisions of § 200.449). For example, the allowability of costs in CAS-covered contracts is determined first by the allocation provisions of the Cost Accounting Standards rather than the allowability provisions in § 200.449 (unless the CAS does not address the specific costs). In complying with those requirements, the non-Federal entityrecipient's application of cost accounting practices for estimating, accumulating, and reporting costs for other Federal awards and other cost objectives under the CAS-covered contract still contracts must be consistent with its cost accounting practices for the CAS-covered contracts. In all cases, only 48 CFR. The recipient only needs to maintain one set of accounting records needs to be maintained for supporting the allocation of costs by the non-Federal entityif the recipient administers both Federal awards and CAS-covered contracts.

(c) Exemptions. Some nonprofit organizations, because of their size and nature of operations, can be considered to be similar to for-profit entities for purpose of organizations in terms of the applicability of cost principles. Such These nonprofit organizations must operate under Federal cost principles applicable that apply to for-profit entities organizations located at 48 CFR 31.2. A listing Appendix VIII contains a list of these organizations is contained in appendix VIII to this partnonprofit organizations. Other organizations , as may be added to this list if approved by the cognizant agency for indirect costs, may be added from time to time.

[78 FR 78608, Dec. 26, 2013, as amended at 85 FR 49562, Aug. 13, 2020]