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e-CFR data is current as of October 27, 2020


2 CFR--PART 200

View Printed Federal Register page 85 FR 49562 in PDF format.

Amendment(s) published August 13, 2020, in 85 FR 49562

Effective Dates: Nov. 12, 2020

54. Amend §200.413 by revising paragraphs (a), (b), and (f) to read as follows:

§200.413   Direct costs.

(a) General. Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs. See also §200.405.

(b) Application to Federal awards. Identification with the Federal award rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect (F&A) costs of Federal awards. Typical costs charged directly to a Federal award are the compensation of employees who work on that award, their related fringe benefit costs, the costs of materials and other items of expense incurred for the Federal award. If directly related to a specific award, certain costs that otherwise would be treated as indirect costs may also be considered direct costs. Examples include extraordinary utility consumption, the cost of materials supplied from stock or services rendered by specialized facilities, program evaluation costs, or other institutional service operations.

*   *   *   *   *

(f) For nonprofit organizations, the costs of activities performed by the non-Federal entity primarily as a service to members, clients, or the general public when significant and necessary to the non-Federal entity's mission must be treated as direct costs whether or not allowable, and be allocated an equitable share of indirect (F&A) costs. Some examples of these types of activities include:

(1) Maintenance of membership rolls, subscriptions, publications, and related functions. See also §200.454.

(2) Providing services and information to members, legislative or administrative bodies, or the public. See also §§200.454 and 200.450.

(3) Promotion, lobbying, and other forms of public relations. See also §§200.421 and 200.450.

(4) Conferences except those held to conduct the general administration of the non-Federal entity. See also §200.432.

(5) Maintenance, protection, and investment of special funds not used in operation of the non-Federal entity. See also §200.442.

(6) Administration of group benefits on behalf of members or clients, including life and hospital insurance, annuity or retirement plans, and financial aid. See also §200.431.

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