On Wednesday, August 7, 2024, USAID issued an Acquisition & Assistance Policy Directive (AAPD) to implement OMB’s revisions to 2 CFR 200 which, according to the announcement, “…clarify and simplify requirements for federal financial assistance, reduce burdens on USAID staff and partners, and provide new flexibilities that support the Agency’s localization initiative.”
One of the first questions the AAPD answered was when will USAID implement the revisions. Congratulations to USAID for rolling the changes out in time to include the interim, revised standard provisions in new awards and incremental funding mods before the end of the fiscal year. On October 1st, they will be incorporated into 2 CFR 700, ADS 303 (Grants and Cooperative Agreements to NGOs) and the standard provisions.
The revised standard provisions are not available on the ADS website until October 1st. They will be provided to recipients before then if their new award or modification incorporates the revised standard provisions. The AAPD clearly states that contractors with Grants Under Contracts (GUCs) are not to implement the revised standard provisions until the October 1st effective date.
Pub K is providing a review of the substantive provisions of each set of the standard provisions and pdf copies of the provisions. We have also included a pdf copy of the Interim Certifications, Assurances, and Representations. We have not included a substantive review of the Interim Certifications because USAID made only a few changes to the Certifications to align them with the standard provisions.
Here are a few points to note as you review the AAPD:
- There are minor revisions to the 2024 Interim Certifications, Assurances, Representations and other Statements of the Recipient to align the language with the Standard Provisions.
- No cherry-picking. AOs and Primes are not permitted to select only a few of the provisions. They’ve got to incorporate all mandatory standard provisions into the awards.
- On an interim basis, non-English NOFOs, applications, and routine post-award correspondence may be submitted. Awards may be made in a non-English language so long as there’s a controlling version in English. Financial reports must be in English. Submissions to the DEC or DDL must be in English or include an English translation.
- Prompt close-out through the use of current NICRAs that have not been finalized is encouraged. The AAPD provides reasonable parameters under which the recipient may readily agree to a quick closeout.
- The de minimis rate is now 15% and the base of application – Modified Total Direct Costs (MTDC) has been revised to increase the application of subaward from $25,000 to $50,000 per subaward. A lower de minimis rate can be used, but the AO and prime recipient should not pressure the recipient (subrecipient) into using a lower rate.
As a final note, OAA acknowledges that organizations may be straddling old and new requirements across their USAID awards. A number of the provisions entail changes to financial systems and procurement policies, for example. Recipients are encouraged to reach out to AOs to raise any disconnects that may represent compliance or audit risks.
- Click here for an analysis of the Revised Standards for U.S. Nongovernmental Organizations
- Click here for an analysis of the Revised Standards for Non-U.S. Nongovernmental Organizations
- Click here for an analysis of the Revised Standards for Fixed Amount Awards to Nongovernmental Organizations
- Click here to review the Interim Certifications, Assurances, and Representations
