2 CFR Ch. XXXIV (1-1-26 Edition) — Part 3474 — Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
Summary
Part 3474 of 2 CFR Chapter XXXIV, the Department of Education chapter, in the 1-1-26 edition, sets uniform administrative requirements, cost principles and audit requirements for Federal awards. Section 3474.1 states that the Department adopts the Office of Management and Budget guidance in 2 CFR part 200, except for 2 CFR 200.102(a) and 2 CFR 200.207(a). Under section 3474.5 the Secretary of Education, after consultation with OMB, may allow exceptions for classes of Federal awards or non-Federal entities, except for the Subpart F audit requirements, and only in unusual circumstances. Section 3474.10 lets the Secretary or a pass-through entity designate conditions under 2 CFR 200.207 as high-risk conditions, and section 3474.15 lets faith-based organizations contract with grantees on the same basis as any other private organization.
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Full text
CHAPTER XXXIV—DEPARTMENT OF
EDUCATION
Part Page
3400–3473 [Reserved]
3474 Uniform administrative requirements, cost prin-
ciples, and audit requirements for Federal
awards .................................................................. 689
3485 Nonprocurement debarment and suspension ........... 692
3486–3499 [Reserved]
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PARTS 3400–3473 [RESERVED] (b) Exceptions for classes of Federal
awards or non-Federal entities will be
PART 3474—UNIFORM ADMINIS- published on the OMB Web site at
www.whitehouse.gov/omb.
TRATIVE REQUIREMENTS, COST
PRINCIPLES, AND AUDIT RE- (Authority: 20 U.S.C. 1221e–3, 3474, and 2 CFR
QUIREMENTS FOR FEDERAL part 200)
AWARDS § 3474.10 Clarification regarding 2
CFR 200.207. 2
Sec.
3474.1 Adoption of 2 CFR part 200. The Secretary or a pass-through enti-
3474.5 How exceptions are made to 2 CFR ty may, in appropriate circumstances,
part 200. designate the specific conditions estab-
3474.10 Clarification regarding 2 CFR lished under 2 CFR 200.207 as ‘‘high-risk
200.207. conditions’’ and designate a non-Fed-
3474.15 Contracting with faith-based organi- eral entity subject to specific condi-
zations and nondiscrimination.
tions established under § 200.207 as
3474.20 Open licensing requirement for com-
petitive grant programs. ‘‘high–risk’’.
3474.21 Severability. (Authority: 20 U.S.C. 1221e–3, 3474, and 2 CFR
AUTHORITY: 20 U.S.C. 1221e–3, 3474; 42 U.S.C. part 200)
2000bb et seq.; E.O. 13279, 67 FR 77141, 3 CFR,
2002 Comp., p. 258; E.O. 13559, 75 FR 71319, 3 § 3474.15 Contracting with faith-based
CFR, 2010 Comp., p. 273; E.O. 13831, 83 FR organizations and nondiscrimina-
20715, 3 CFR, 2018 Comp., p. 806; and 2 CFR tion.
part 200, unless otherwise noted. (a) This section establishes respon-
SOURCE: 79 FR 76091, Dec. 19, 2014, unless sibilities that grantees and subgrantees
otherwise noted. have in selecting contractors to pro-
vide direct Federal services under a
§ 3474.1 Adoption of 2 CFR part 200. program of the Department. Grantees
(a) The Department of Education and subgrantees must ensure compli-
adopts the Office of Management and ance by their subgrantees with the pro-
Budget (OMB) Guidance in 2 CFR part visions of this section and any imple-
200, except for 2 CFR 200.102(a) and 2 menting regulations or guidance.
CFR 200.207(a). Thus, this part gives (b)(1) A faith-based organization is
regulatory effect to the OMB guidance eligible to contract with grantees and
and supplements the guidance as need- subgrantees, including States, on the
ed for the Department. same basis as any other private organi-
(b) The authority for all of the provi- zation.
sions in 2 CFR part 200 as adopted in (2)(i) In selecting providers of goods
this part is listed as follows. and services, grantees and subgrantees,
(Authority: 20 U.S.C. 1221e–3, 3474, and 2 CFR including States—
part 200.) (A) May not discriminate for or
against a private organization on the
§ 3474.5 How exceptions are made to 2 basis of the organization’s religious
CFR part 200. 1 character, motives, or affiliation, or
(a) With the exception of Subpart F— lack thereof, or on the basis of conduct
Audit Requirements of 2 CFR part 200, that would not be considered grounds
the Secretary of Education, after con- to favor or disfavor a similarly situ-
sultation with OMB, may allow excep- ated secular organization; and
tions for classes of Federal awards or (B) Must ensure that the award of
non-Federal entities subject to the re- contracts is free from political inter-
quirements of this part when excep- ference, or even the appearance of such
tions are not prohibited by statute. interference, and is done on the basis of
However, in the interest of maximum merit, not on the basis of religion or
uniformity, exceptions from the re- religious belief, or lack thereof.
quirements of this part will be per- (ii) Notices or announcements of
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mitted only in unusual circumstances. award opportunities and notices of
1 C. Ref. 2 CFR 200.102. 2 C. Ref. 2 CFR 200.205, 200.207.
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§ 3474.15 2 CFR Ch. XXXIV (1–1–26 Edition)
award or contracts must include lan- more program requirements, unless the
guage substantially similar to that in organization has made clear that the
appendices A and B, respectively, to 34 accommodation is necessary to its par-
CFR part 75. ticipation and the Department has de-
(3) No grant document, agreement, termined that it would deny the ac-
covenant, memorandum of under- commodation.
standing, policy, or regulation that is (c)(1) The provisions of 34 CFR 75.532
used by a grantee or subgrantee in ad- and 76.532 that apply to a faith-based
ministering Federal financial services organization that is a grantee or sub-
from the Department may require grantee also apply to a faith-based or-
faith-based organizations to provide as- ganization that contracts with a grant-
surances or notices if they are not re- ee or subgrantee, including a State.
quired of non-faith-based organiza- (2) The requirements referenced
tions. Any restrictions on the use of under paragraph (c)(1) of this section
grant funds must apply equally to do not apply to a faith-based organiza-
faith-based and non-faith-based organi- tion that provides goods or services to
zations. All organizations that partici- a beneficiary under a program sup-
pate in Department programs or serv- ported only by indirect Federal finan-
ices, including organizations with reli- cial assistance, as defined in 34 CFR
gious character, motives, or affiliation, 75.52(c)(3) and 76.52(c)(3).
must carry out eligible activities in ac-
(d)(1) A private organization that
cordance with all program require-
provides direct Federal services under
ments, including those prohibiting the
a program of the Department and en-
use of direct Federal financial assist-
gages in explicitly religious activities,
ance to engage in explicitly religious
such as worship, religious instruction,
activities, subject to any accommoda-
or proselytization, must offer those ac-
tions that are granted to organizations
tivities separately in time or location
on a case-by-case basis in accordance
from any programs or services funded
with the Constitution and laws of the
by the Department through a contract
United States, including Federal civil
with a grantee or subgrantee, including
rights laws.
(4) No grant document, agreement, a State. Attendance or participation in
covenant, memorandum of under- any such explicitly religious activities
standing, policy, or regulation that is by beneficiaries of the programs and
used by a grantee or subgrantee may services supported by the contract
disqualify faith-based organizations must be voluntary.
from participating in Department- (2) The limitations on explicitly reli-
funded programs or services on the gious activities under paragraph (d)(1)
basis of the organization’s religious of this section do not apply to a faith-
character, motives, or affiliation, or based organization that provides serv-
lack thereof, or on the basis of conduct ices to a beneficiary under a program
that would not be considered grounds supported only by indirect Federal fi-
to disqualify a similarly situated sec- nancial assistance, as defined in 34 CFR
ular organization. 75.52(c)(3) and 76.52(c)(3).
(5) Nothing in this section may be (e)(1) A faith-based organization that
construed to preclude the Department contracts with a grantee or subgrantee,
from making an accommodation with including a State, will retain its inde-
respect to one or more program re- pendence, autonomy, right of expres-
quirements on a case-by-case basis in sion, religious character, and authority
accordance with the Constitution and over its governance. A faith-based or-
laws of the United States, including ganization that receives Federal finan-
Federal civil rights laws. cial assistance from the Department
(6) Neither a State nor the Depart- does not lose the protections of law.
ment may disqualify an organization (2) A faith-based organization that
from participating in any Department contracts with a grantee or subgrantee,
program for which it is otherwise eligi- including a State, may, among other
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ble on the basis of the organization’s things—
indication that it may request an ac- (i) Retain religious terms in its
commodation with respect to one or name;
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