[Federal Register Volume 69, Number 91 (Tuesday, May 11, 2004)]
[Rules and Regulations]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10351]
Office of Management and Budget
2 CFR Subtitles A and B
Governmentwide Guidance for Grants and Agreements; Federal Agency
Regulations for Grants and Agreements; Final Rule
2 CFR Part 215 Uniform Administrative Requirements for Grants and
Agreements With Institutions of Higher Education, Hospitals, and Other
Non-Profit Organizations (OMB Circular A-110); Final Rule
Federal Register / Vol. 69, No. 91 / Tuesday, May 11, 2004 / Rules
OFFICE OF MANAGEMENT AND BUDGET
2 CFR Subtitles A and B
Governmentwide Guidance for Grants and Agreements; Federal Agency
Regulations for Grants and Agreements
AGENCY: Office of Management and Budget.
ACTION: Establishment of CFR title for policy guidance for grants and
SUMMARY: The Office of Management and Budget (OMB) is establishing
title 2 in the Code of Federal Regulations (CFR) for grants and other
financial assistance and nonprocurement agreements. Title 2 consists of
two subtitles, subtitles A and B. In subtitle A, OMB is publishing
government-wide guidance to Federal agencies for grants and
agreements--guidance that currently is in seven separate OMB Circulars
and other OMB policy documents. (The document in today's Federal
Register immediately following this document publishes one of those
circulars in subtitle A.) In subtitle B, Federal agencies that
implement the OMB guidance through regulation will publish their
agency-wide implementing regulations. Consolidating the OMB guidance
and co-locating the agency regulations provides a good foundation for
streamlining and simplifying the policy framework for grants and
agreements as part of the efforts to implement the Federal Financial
Assistance Management Improvement Act of 1999 (Pub. L. 106-107).
DATES: Effective May 11, 2004.
FOR FURTHER INFORMATION CONTACT: Elizabeth Phillips, Office of Federal
Financial Management, Office of Management and Budget, telephone 202-
395-3053 (direct) or 202-395-3993 (main office) and e-mail:
In a Federal Register document [68 FR 33883] published on June 6,
2003, OMB proposed to establish title 2 of the CFR as a central
location for Federal government policies on grants and other financial
assistance and nonprocurement agreements. The proposal included the
establishment of two subtitles within title 2--subtitle A for OMB's
government-wide guidance to Federal agencies on the award and
administration of grants and agreements and subtitle B for Federal
agency regulations implementing that OMB guidance.
In addition to the proposal to establish title 2 and its subtitles
A and B, the June 6 document proposed to establish two chapters in
subtitle A--chapters I and II--to enable OMB to publish its government-
wide guidance in title 2 in two phases. In the first phase, OMB
proposed to move circulars and other guidance, in their current form,
into chapter II and to reserve chapter I. In the second phase, as OMB
finalizes any changes to its guidance based on recommendations of
interagency work groups implementing Public Law 106-107, the June 6
document proposed that OMB would publish the new, changed guidance in
chapter I and remove the original guidance from chapter II. If OMB is
to make a substantive change in the guidance when publishing it in
either chapter I or II of subtitle A, the change will be proposed in
the Federal Register with an opportunity for public comment.
Finally, the June 6 document proposed that OMB would publish in
title 2, subtitle A, an introductory part 1 providing general
information about the title. Specifically, part 1 would address the
purpose and scope of the title, the applicability of the various
portions of the OMB guidance to different types of agreements, and the
responsibilities of OMB and the Federal agencies with respect to the
We received comments on these proposals from: Three State
governments; two non-profit organizations; an association representing
non-profit entities; one institution of higher education; an
association representing academic institutions; a group of universities
that participate with Federal agencies in a demonstration program on
research administration; and five Federal agencies. We considered all
comments in developing this final Federal Register document. The
following paragraphs summarize the major comments and our responses,
organized by the subjects the comments addressed.
II. Comments and Responses
Comments on Publication of OMB Guidance in Title 2 of the CFR
Comment: Commenters had different views on whether we should
establish title 2 as a single location for publishing OMB guidance on
grants and agreements. Comments from State governments, non-profit
organizations, and Federal agencies strongly supported the proposal as
a way to help recipients more easily find and use the policy documents.
Comments from the academic community recommended that we not publish
the guidance in title 2 at this time because doing so: (1) Would serve
little purpose, since the OMB guidance can be found easily now at the
OMB Web site; (2) could blur the important distinction between guidance
and regulations; and (3) might be the first step toward merging OMB
circulars applicable to universities with circulars for other types of
recipients, a merger that the academic community historically has not
Response: After careful consideration of the two points of view
represented in the comments, we are proceeding with our proposal and
are establishing title 2 with a subtitle in which we will publish OMB
guidance. We understand that many recipients access OMB circulars at
the OMB Web site, and we plan to continue posting the documents at this
s). However, the fact that several commenters stated that publishing
the guidance in the CFR would make it easier to find and use confirms
that there is value in having it in the CFR.
With respect to the difference between guidance and regulation, we
note that the academic community comments made a further suggestion
that we preface any OMB guidance published in the CFR with statements
that clearly make that distinction. We agree. We have included language
to make the distinction in Sec. 1.105 of the introductory part 1 of
title 2 (see the text of part 1 in this Federal Register document,
following this preamble).
Finally, we note the academic community's concern about the
establishment of title 2 being a possible precursor to a merger of
guidance that currently is in separate OMB circulars. However, adoption
of the June 6 proposal alone will not cause the organization or
substance of the guidance to change. CFR publication does not require
the guidance to be organized in any particular way and, as indicated
above, our initial activity will be relocating the guidance to title 2
in its current form. Should a recommendation to reorganize the guidance
subsequently emerge from the interagency work groups' ongoing efforts
to implement Public Law 106-107, that recommendation would be entirely
independent of the publication of the guidance in title 2 and the
public would have an opportunity to comment on any such substantive
Comment: Four commenters raised questions related to combining OMB
circulars or applying their policies uniformly to different types of
recipients. Two of the commenters, as discussed in the previous
paragraph, recommended that we not establish title 2 at this time
because doing so was a possible first step toward a merger of
circulars. The other two commenters who addressed this issue supported
the publication of the OMB guidance in title 2; one of these, a
recipient organization, recommended that any future changes to the OMB
circulars continue to distinguish between types of recipients. In
another comment, a Federal agency suggested that we simplify the OMB
guidance, which is nearly the same for different types of recipients,
by consolidating OMB Circulars A-102 and A-110 into a single set of
administrative requirements and Circulars A-21, A-87, and A-122 into
one set of cost principles. The agency suggested that we maintain
separate requirements in each case only when necessary to respect
differences between types of recipients.
Response: The comments reflect a diversity of points of view on one
issue--the question of combining guidance that currently is located in
separate circulars--yet indicate agreement on a second issue--the need
to recognize important differences among types of recipients. We infer
that the concern about combining circulars stems primarily from a
desire to maintain distinctions between types of recipients and is
based on an assumption that combining guidance documents will lead to
applying the same set of requirements to all recipients. Although we
can not anticipate what recommendations the interagency work groups may
make for improving the OMB guidance, it should be noted that combining
guidance does not require that the guidance be identical for all types
of recipients. For example, OMB Circular A-102 currently includes
guidance for both awards to States and awards to other governmental
organizations; however, the guidance for awards to States differs in
some areas from the guidance for awards to other governmental
organizations. Both OMB and the interagency work groups work with all
types of recipients and appreciate their important distinctions.
Comment: One comment from a group of recipient organizations
suggested that an OMB review of the guidance in the current OMB
circulars affecting each type of recipient, to ensure internal
consistency across the circulars for that type of recipient, would do
more for recipients than publishing the OMB guidance in title 2.
Response: We strongly agree that consistency is important. However,
the issue of consistency, like the question of merging circulars, is
entirely separate from publication in title 2. As previously noted, the
interagency work groups involved in the implementation of Public Law
106-107 may recommend improvements to the OMB guidance--internal
consistency, which is an OMB objective, is one element of the work
Comment: One commenter recommended that the OMB guidance in title 2
include the compliance supplement to OMB Circular A-133 and the Federal
Register document [68 FR 38401] amending Circular A-133 to raise the
Federal expenditure threshold above which recipients are required to
have single audits performed. The commenter also suggested including
links to the Federal Acquisition Regulation (FAR) cost principles [48
CFR part 31] for for-profit organizations and to the Generally Accepted
Government Auditing Standards (GAGAS).
Response: Agree in part. When we publish OMB Circular A-133 in
title 2, we will publish the current version (now available at the OMB
Web site), which includes the recent change to the audit threshold. We
do not currently anticipate publishing the OMB Circular A-133
compliance supplement in title 2 because the supplement is updated
annually and the CFR is more suited to issuances that change less
frequently. The suggested links to the FAR cost principles and GAGAS
are more appropriate for a Web site than the text of the CFR (no
portion of the CFR currently maintains electronic links to the many
publications it references and it would be impractical at this time to
do so). We will add those links at the OMB Web site, where the OMB
guidance in title 2 also will be posted.
Comment: Two commenters suggested that we publish in title 2 the
suspension and debarment and lobbying requirements in a way that
replaces the Federal agencies' current multiple codifications of common
rules implementing the requirements in their own titles of the CFR. The
first commenter, a recipient organization, stated that the same
requirements also would have to be published in title 48 of the CFR,
since they also apply to procurement contracts, but noted that there
could be a consolidated publication in title 2 for nonprocurement. The
second commenter, a Federal agency, also suggested that the same
approach could be used to replace Federal agencies' separate
codifications of common rules implementing drug-free workplace
requirements and the requirements of Executive Order (E.O.) 12372 on
Response: We agree with the suggested approach for nonprocurement
debarment and suspension and drug-free workplace requirements and will
also consider the same approach for other government-wide guidance,
such as the common rule implementing restrictions on lobbying and the
common rule implementing E.O. 12372 (although the Executive order
applies to more Federal activities than just those resulting in grants
and agreements). On November 26, 2003, the Federal agencies published
the final common rule on debarment and suspension and on drug-free
workplace requirements in the Federal Register [68 FR 66533]. We plan
to publish the corresponding OMB guidance in subtitle A, chapter I of
title 2 in the near future. Once the guidance is published in subtitle
A, each agency will publish in subtitle B of title 2 regulatory
language that adopts the guidance and will remove that common rule from
its own title of the CFR. Thus, the full text of the government-wide
policies will appear only once, in the OMB guidelines, and each
agency's regulations will adopt those guidance documents (identifying
any agency-specific additions, exceptions, or clarifications) without
repeating the full text. This approach parallels the way that agencies
currently implement the cost principles in OMB Circulars A-21, A-87,
and A-122 and the single audit requirements in OMB Circular A-133,
where it is the agency regulations that require recipients to comply
with these OMB documents.
This approach has at least three benefits for the public and
Federal agencies. One benefit is that an applicant or recipient could
quickly and easily identify any variations from the common language in
an agency's implementation because the agency's regulation would
consist of brief language adopting the OMB guidance, rather than the
full text of a common rule, followed by statements of any additions,
clarifications, or exceptions to the common language. Currently,
identifying any agency-to-agency variations from the government-wide
language requires locating the original Federal Register document in
which the Federal agencies adopted the common rule or carefully reading
and comparing agencies' separate codifications of the rule. A second
benefit of this approach is that it would reduce the volume of
regulations since each agency would not duplicate the full text of the
OMB guidance in its own regulations.
A third benefit of the approach is that Federal agencies could more
implement OMB guidance than is possible through common rules. Issuing a
common rule is a complex and lengthy process, with 30 or more Federal
agencies processing the same rulemaking document before it can be sent
to OMB and published. Under the new approach, OMB would update its
guidance through publication in the Federal Register with an
opportunity for public comment--the same process used to revise OMB
circulars. An agency regulation adopting the OMB guidance would be
automatically updated when OMB makes final revisions to its guidance,
without a need for further agency rulemaking, just as it works
currently with agency regulations adopting the OMB circulars containing
the cost principles and single audit requirements. Use of this approach
will promote more timely updates to the Federal policy framework.
In response to the first commenter, it also should be noted that
the agency adoption of OMB guidelines in title 2 would apply only to
assistance and other nonprocurement transactions. There currently is
separate coverage in the FAR (title 48 of the CFR) for debarment and
suspension, lobbying, and drug-free workplace requirements for
procurement contracts. That coverage would not be affected by
publication in title 2 of the OMB guidelines or agency regulations
Comment: One recipient organization recommended that OMB publish in
title 2 a listing of class deviations it granted to Federal agencies
from requirements in the OMB guidance. The commenter suggested that
doing so would make information about them more readily available on a
continuing basis than is the case currently, thereby giving the Federal
agency and recipients more opportunity to later revisit the conditions
that originally gave rise to the deviation.
Response: We referred this suggestion for consideration by the
interagency work groups developing recommendations for future
improvements to the OMB guidance.
Comments on Publication of Federal Agency Regulations in Title 2 of the
Comment: Commenters views' on whether Federal agency regulations
should be published in title 2 largely paralleled their views on the
publication of OMB's guidance in title 2. Comments from State
governments and non-profit organizations were supportive of the
proposal, as were most comments from Federal agencies, as a way to make
the regulations easier to find and use. The academic community
recommended that we reconsider the proposal to publish in title 2,
deferring it until a more robust and uniform means of agency
implementation of the OMB guidance is developed.
Response: After considering the comments, we are proceeding with
our proposal and are establishing a second subtitle in title 2 in which
Federal agencies that issue regulations to implement OMB guidance will
publish those regulations. We agree that improving Federal agencies'
implementation of the OMB guidance is an important objective, as
discussed further in the response to the next comment. However, that
objective should not affect the decision on whether to publish agency
regulations in title 2 because the organization and content of agency
regulations is independent of where they are published--whether in
title 2 or in the agency's own title of the CFR.
Comment: Five commenters made recommendations for greater
uniformity in the format and content of agency regulations on grants
and agreements. Three of those commenters, including two Federal
agencies, suggested that OMB issue a standard format or organization
for agency implementing regulations. Two other commenters, a recipient
organization and an association representing recipients, suggested
developing uniform government-wide regulations to eliminate the need
for applicants and recipients to understand and comply with the
implementing regulations of more than two dozen different agencies.
Response: Agree in part. Although the organization of the OMB
guidance and agency regulations in subtitles A and B of title 2,
respectively, are beyond the scope of this Federal Register document,
we agree that a standard format would be helpful. Therefore, OMB is
working with an interagency work group to consider ways to improve the
OMB guidance and to develop an outline, to the extent possible, for
agency regulations implementing the guidance.
Regarding the development of uniform government-wide regulations,
there is great variety in Federal program purposes, in the needs and
preferences of the different types of recipients (e.g., State or local
government agencies, institutions of higher education, or other
nonprofit organizations) that receive awards under those programs, and
in Federal agencies' organizational approaches to carrying out
assistance award and administration functions. Developing uniform,
government-wide regulations for some parts of the OMB guidance (e.g.,
parts where differences in program purposes and recipients are most
important) could have an unintended effect of broadening to all
agencies, programs, and their recipients more requirements than needed.
While uniform government-wide regulations may not be the best way
to implement all aspects of the OMB guidance, a similar approach may
work for some of the guidance. As stated in response to an earlier
comment, more uniform government-wide implementation of the
nonprocurement debarment and suspension and drug-free workplace
requirements will be achieved by publishing OMB guidance that agencies
can adopt in their regulations (identifying any agency-specific
additions, exceptions, or clarifications), in lieu of agencies'
separately codifying a common rule. We will continue to look for other
opportunities, such as the government-wide guidance on lobbying
restrictions, where we can achieve greater uniformity without the
unintended effect of imposing unnecessary additional requirements.
Comment: Following on the previous comment, one commenter further
suggested that the standard format should organize agency regulations
in an order running from pre-award through post-award requirements,
much as we do in the current common rule implementing OMB Circular A-
102 and the attachment to OMB Circular A-110.
Response: An interagency work group already is considering that
order of presentation as it develops recommendations for improving the
OMB guidance and an outline for agency implementation of the guidance.
Comment: One recipient organization recommended that OMB require
Federal agencies to publish in title 2 listings of the deviations from
OMB's government-wide guidance that are required of them by virtue of
statutes. The commenter suggested that doing so would provide valuable
information to the affected public about the basis for the deviations.
Response: We referred this suggestion for consideration by the
interagency work group that will develop an outline for agency
implementation of the guidance.
Comment: One commenter said that the proposal in the June 6 Federal
Register document was correct in limiting agency regulations in title 2
to those for grants and agreements and excluding those for procurement
Response: We agree. For parts of the OMB guidance in title 2 that
apply to procurement contracts as well as to grants and agreements,
such as the single audit requirements in OMB
Circular A-133 and the cost principles in OMB Circulars A-21, A-87, and
A-122, the implementation of that guidance for procurement contracts
properly belongs in the FAR.
Comment: Two commenters suggested that OMB review Federal agencies'
regulations implementing the OMB guidance when the agencies publish
them in title 2. One of the commenters further recommended that OMB let
an agency include requirements that were not in the OMB guidance only
when OMB deemed the additional provisions as necessary to carry out the
Response: We agree. After we make final changes to the OMB guidance
based on recommendations from interagency work groups implementing
Public Law 106-107, we will review each Federal agency's regulations
for conformity with the guidance when they are published in title 2,
subtitle B. While we are not requiring Federal agencies to relocate
their regulations in title 2 until we finalize revisions to the OMB
guidance, we are not prohibiting agencies from electing to publish
their existing regulations in title 2 sooner. However, we think it is
likely that we will be able to develop an outline for regulations
implementing the guidance, as discussed in response to a previous
comment, and therefore agencies may wish to defer publication of their
regulations in subtitle B of title 2 until the outline is available. If
any agency relocates its current regulations before we finalize the OMB
guidance in chapter I of subtitle A, we would not do a complete review
of the substance of the regulations (which OMB reviewed when the agency
published the regulations in its own CFR title), unless the agency is
making substantive changes. We will review the substance of the
regulations when the agency subsequently revises them to reflect the
final OMB guidance.
With respect to the comment about limiting the content of agencies'
regulations, Federal programs that use grants and agreements have a
wide variety of purposes. As such, some agencies' regulations for
awarding and administering assistance instruments must vary in some
ways from those of other agencies. The OMB guidance provides
government-wide uniformity for requirements that broadly apply to most
Federal programs, but the diversity of programs makes it inappropriate
for the OMB guidance to prescribe all of the agency-specific and
program-specific requirements that may be needed. We believe that the
commenter's intent is served, however, because agencies are required to
justify alternative or additional provisions they include in their
regulations when submitted to OMB for review.
Comment: Some components of one Federal department expressed
concern that the June 6 Federal Register document did not state clearly
whether the intent was for agencies to publish in title 2 their program
regulations for programs that use grants and agreements, as well as
department-wide regulations that address award and administration of
grants and agreements in general.
Response: While we would not preclude an agency from moving program
regulations that might be appropriate for inclusion in title 2, the
intent is to require agencies to publish in title 2 only those
regulations that implement the requirements in the OMB guidance and
apply to the award and administration of grants and agreements in
general (as opposed to those of a specific program). That would include
agency-wide regulations and any regulations of agency subcomponents
that broadly apply to grants and agreements but would not include
Comment: One commenter suggested that OMB set a date ``by'' which
all Federal agencies must publish their regulations in title 2, while
another commenter recommended that OMB set a date ``on'' which they
should do so.
Response: It is important to note, as previously discussed, that we
plan to publish the OMB guidance in title 2 in two phases. In the first
phase, we will publish the circulars in their current form in chapter
II of subtitle A. Agencies may publish their regulations in subtitle B
during this first phase but they are not required to do so (and, as
noted previously, they may wish to wait until an outline for agency
implementing regulations is available). During the second phase, we
will publish the OMB guidance in chapter I of subtitle A after we: (1)
Propose, for public comment, any changes to streamline and simplify the
guidance based on recommendations from the interagency working groups
implementing Public Law 106-107; and (2) resolve the comments and
finalize the guidance with the help of the working groups.
Various parts of the guidance will become final and be published at
different times, so the publication in chapter I will take place over a
period of time rather than on a single date. As each part of the
guidance is published in final form in chapter I, we will set a
deadline for agency implementation of that part.
Comments on Internet Presentation of OMB Guidance and Agency
Comment: Two commenters expressed views on the advantages and
disadvantages of the CFR presentation on the Internet. One Federal
agency said that, with the publication of the OMB guidance in the CFR,
the Office of the Federal Register would update title 2 quickly each
time that OMB made a final change to the guidance and thereby make
available on the Internet a fully conformed version of the updated
guidance. One recipient organization suggested that OMB organize the
Internet presentation in a better way than it currently is organized at
the CFR site, where one can retrieve only one CFR section at a time,
rather than the entire document, and often retrieves duplicate pages
when the pages are common to more than one section.
Response: We appreciate that having the OMB guidance available at
the CFR Internet site will be of value to many applicants, recipients,
and Federal agencies. We also are committed to continuing to maintain
our updated guidance in a timely manner at the OMB Internet site
(http://www.whitehouse.gov/omb/grants/grants_circulars.html), where we
will maintain a fully conformed version of each document that can be
retrieved in its entirety as a single electronic file. Therefore, OMB
will not ask the Office of the Federal Register to deviate from its
current practice for the CFR when it provides documents for title 2 on
Comment: One subcomponent of a Federal agency suggested that
electronic links to program regulations should be provided from agency-
wide regulations implementing the OMB guidance as it applies to grants
and agreements generally.
Response: We encourage any Federal agency with multiple program
regulations to help the affected public find the pertinent provisions
of those regulations in any way possible, such as providing direct
electronic links from a central site at which it posts its agency-wide
regulations implementing our guidance.
III. Summary of Actions
In summary, OMB in this Federal Register document is establishing a
new title 2 of the CFR, ``Grants and Agreements,'' with subtitles A and
B. In subtitle A, ``Office of Management and Budget Guidance for Grants
and Agreements,'' OMB is publishing its guidance to Federal agencies on
the award and administration of grants and agreements. In subtitle B,
agency with regulations implementing the OMB guidance will have a
chapter in which those regulations eventually will be published.
To begin the process of moving OMB circulars to the new title 2,
the Federal Register document immediately following this one publishes
OMB Circular A-110, ``Uniform Administrative Requirements for Grants
and Agreements With Institutions of Higher Education, Hospitals, and
Other Non-Profit Organizations,'' in subtitle A of the new title. OMB
will move additional circulars and other policy documents to title 2,
subtitle A, in the near future. Meanwhile, the OMB circulars continue
to be available on the OMB Web site (http://www.whitehouse.gov/omb/circulars).
List of Subjects in 2 CFR Part 1
Cooperative agreements, Grant programs, Grants administration.
Dated: April 29, 2004.
Joshua B. Bolten,
Authority and Issuance
For the reasons set forth above, the Office of Management and Budget
establishes 2 CFR consisting of subtitle A--Government-wide Grants and
Agreements (part 1 and reserved chapters I and II), and subtitle B--
Federal Agency Regulations for Grants and Agreements, as set forth
TITLE 2--GRANTS AND AGREEMENTS
SUBTITLE A--OFFICE OF MANAGEMENT AND BUDGET GUIDANCE FOR GRANTS AND
PART 1--ABOUT TITLE 2 OF THE CODE OF FEDERAL REGULATIONS AND
Subpart A--Introduction to Title 2 of the CFR
1.100 Content of this title.
1.105 Organization and subtitle content.
1.110 Issuing authorities.
Subpart B--Introduction to Subtitle A
1.200 Purpose of chapters I and II.
1.205 Applicability to grants and other funding instruments.
1.210 Applicability to Federal agencies and others.
1.215 Relationship to previous issuances.
1.220 Federal agency implementation of this subtitle.
1.230 Maintenance of this subtitle.
Subpart C--Responsibilities of OMB and Federal Agencies
1.300 OMB responsibilities.
1.305 Federal agency responsibilities.
Authority: 31 U.S.C. 503; 31 U.S.C. 1111; 41 U.S.C. 405;
Reorganization Plan No. 2 of 1970; E.O. 11541, 35 FR 10737, 3 CFR,
1966-1970, p. 939.
Subpart A--Introduction to Title 2 of the CFR
Sec. 1.100 Content of this title.
This title contains--
(a) Office of Management and Budget (OMB) guidance to Federal
agencies on government-wide policies and procedures for the award and
administration of grants and agreements; and
(b) Federal agency regulations implementing that OMB guidance.
Sec. 1.105 Organization and subtitle content.
(a) This title is organized into two subtitles.
(b) The OMB guidance described in Sec. 1.100(a) is published in
subtitle A. Publication of the OMB guidance in the CFR does not change
its nature--it is guidance and not regulation.
(c) Each Federal agency that publishes regulations implementing the
OMB guidance has a chapter in subtitle B in which it issues those
regulations. The Federal agency regulations in subtitle B differ in
nature from the OMB guidance in subtitle A because the OMB guidance is
not regulatory (Federal agency regulations in subtitle B may give
regulatory effect to the OMB guidance, to the extent that the agency
regulations require compliance with all or portions of the guidance).
Sec. 1.110 Issuing authorities.
OMB issues this subtitle. Each Federal agency that has a chapter in
subtitle B of this title issues that chapter.
Subpart B--Introduction to Subtitle A
Sec. 1.200 Purpose of chapters I and II.
(a) Chapters I and II of subtitle A provide OMB guidance to Federal
agencies that helps ensure consistent and uniform government-wide
policies and procedures for management of the agencies' grants and
(b) There are two chapters for publication of the guidance because
portions of it may be revised as a result of ongoing efforts to
streamline and simplify requirements for the award and administration
of grants and other financial assistance (and thereby implement the
Federal Financial Assistance Management Improvement Act of 1999, Pub.
(c) The OMB guidance in its initial form--before completion of
revisions described in paragraph (b) of this section--is published in
chapter II of this subtitle. When revisions to a part of the guidance
are finalized, that part is published in chapter I and removed from
Sec. 1.205 Applicability to grants and other funding instruments.
The types of instruments that are subject to the guidance in this
subtitle vary from one part of the guidance to another (note that each
part identifies the types of instruments to which it applies).
Sec. 1.210 Applicability to Federal agencies and others.
(a) This subtitle contains guidance that directly applies only to
(b) The guidance in this subtitle may affect others through each
Federal agency's implementation of the guidance, portions of which may
(1) The agency's awarding or administering officials;
(2) Non-Federal entities that receive or apply for the agency's
grants or agreements or receive subawards under those grants or
(3) Any other entities involved in agency transactions subject to
the guidance in this chapter.
Sec. 1.215 Relationship to previous issuances.
Although some the guidance was organized differently within OMB
circulars or other documents, much of the guidance in this subtitle
existed prior to the establishment of title 2 of the CFR. Specifically:
Guidance in * * * On * * * Previously was in* * *
(b) Subchapter B of Chapter II, part Administrative OMB Circular A-110.
215. requirements for grants
Sec. 1.220 Federal agency implementation of this subtitle.
A Federal agency that awards grants and agreements subject to the
guidance in this subtitle implements the guidance in agency regulations
in subtitle B of this title and/or in policy and procedural issuances,
such as internal instructions to the agency's awarding and
administering officials. An applicant or recipient would see the effect
of that implementation in the organization and content of the agency's
announcements of funding opportunities and in its award terms and
Sec. 1.230 Maintenance of this subtitle.
OMB issues guidance in this subtitle after publication in the
Federal Register. Any portion of the guidance that has a potential
impact on the public is published with an opportunity for public
Subpart C--Responsibilities of OMB and Federal Agencies
Sec. 1.300 OMB responsibilities.
OMB is responsible for:
(a) Issuing and maintaining the guidance in this subtitle, as
described in Sec. 1.230.
(b) Interpreting the policy requirements in this subtitle.
(c) Reviewing Federal agency regulations implementing the
requirements of this subtitle, as required by Executive Order 12866.
(d) Conducting broad oversight of government-wide compliance with
the guidance in this subtitle.
(e) Performing other OMB functions specified in this subtitle.
Sec. 1.305 Federal agency responsibilities.
The head of each Federal agency that awards and administers grants
and agreements subject to the guidance in this subtitle is responsible
(a) Implementing the guidance in this subtitle.
(b) Ensuring that the agency's components and subcomponents comply
with the agency's implementation of the guidance.
(c) Performing other functions specified in this subtitle.
PARTS 100-199 [RESERVED]
Chapter II--Office of Management and Budget Circulars and Guidance
PARTS 200-299 [RESERVED]
SUBTITLE B--FEDERAL AGENCY REGULATIONS FOR GRANTS AND AGREEMENTS
[FR Doc. 04-10351 Filed 5-10-04; 8:45 am]
BILLING CODE 3110-01-P