Memorandum M-20-26: Extension of Administrative Relief for Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19) due to Loss of Operations
Summary
OMB memorandum M-20-26 from Michael Rigas, dated June 18, 2020, extends two COVID-19 relief flexibilities for recipients of Federal financial assistance. It extends the allowability of salaries and other project activities through September 30, 2020, gives more time for Single Audit submission, rescinds M-20-17 and M-20-20, and notes that M-20-11 expires on July 26, 2020. Under the salaries flexibility, payroll costs paid with Paycheck Protection Program (PPP) loans or other CARES Act programs must not also be charged to Federal awards, as the government would pay for the same expenditures twice, and recipients must exhaust other funding sources. Single audits with normal due dates from March 30, 2020 through June 30, 2020 may be delayed up to six (6) months, and those due July 31, 2020 through September 30, 2020 up to three (3) months.
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D. C. 20503
DEPUTY DIRECTOR
FOR MANAGEMENT
June 18, 2020
M 20-26
MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
FROM: Michael Rigas / fl AJ , /} · (} /l: ..
Acting Deputy Director of Management Vf v ~ v ~
SUBJECT: Extension of Administrative Relief for Recipients and Applicants of Federal
Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-19)
due to Loss of Operations
As part of the Administration's aggressive response to the COVID-19 crisis, 0MB issued
three memoranda 1 directing that all Federal departments and agencies marshal all legally
available federal resources to combat the crisis. In accordance with the authority in 2 CFR §
200.102(a), Exceptions, the 0MB memoranda provided class exceptions allowing Federal
awarding agencies to grant various administrative, financial and audit requirement flexibilities to
their recipients.
The flexibilities provided in the three memoranda are meant to provide short-term
administrative, financial and audit requirements under the 2 CFR 200, Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards, without
compromising Federal financial assistance accountability requirements. The flexibilities and
current expiration dates are June 16, 2020 (for M-20-17 and M-20-20) and July 26, 2020 (for M-
20-11).
As the Country is now recovering from the Coronavirus pandemic and some areas are
starting the re-opening process, the ramp-up effort is also starting for the performance of
Federally-funded projects. In addition, during the Coronavirus pandemic, many recipients
learned the capabilities and are now getting the experience to perform the objectives of the
Federal programs remotely with limited access to their physical office. However, due to the
uncertainty of the re-opening phase and the speed of the ramp-up effort, this memorandum
provides an extension of item 1, Allowability of salaries and other project activities (item 6 in
M-20-17) through September 30, 2020 and item 2, Extension ofSingle Audit submission (item 13
1(1) 0MB M-20- 11, Administrative Relieffor Recipients and Applicants of Federal Financial As;istance Directly
Impacted by the Novel Coronavirus (COVID-19) (March 09, 2020): (2) 0MB M-20-17, Administrative Relieffor
Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel Coronavirus (COVID-
19) due to Loss of Operations (March 19, 2020); and, (3) 0MB M-20-20, Repurposing Existing Federal Financial
Assistance Programs and Awards to Support the Emergency Response to the Novel Coronavirus (COVID-19) (April
9, 2020).
in M-20-17) through December 31 , 2020 to allow a responsible transition to normal operations.
In light of the limited funding resources provided for each Federal award to achieve its own
public performance goals, 0MB added restrictions to the flexibilities allowed in item 1,
Allowability of salaries and other project activities.
Appendix A describes the two flexibilities extended under this memorandum to recipients
affected by the loss of operational capacity due to the COVID-19 pandemic. All flexibilities
provided in this memorandum are time limited and will expire on September 30, 2020. M-20-17
and M-20-20 are rescinded. M-20-11 expires on July 26, 2020.
As program managers are considering the extension of the administrative and financial
relief, they should be prudent in their stewardship of Federal resources, which includes giving
consideration to potential offsets-e.g. , reduction in training and travel. In addition, agencies are
reminded of their existing flexibility to issue exceptions on a case-by-case basis in accordance
with 2 CFR § 200.102, Exceptions.
Questions regarding the above administrative relief provisions should be directed to the
Office of Federal Financial Management at GrantsTeam@omb.eop.gov. 0MB will continue to
provide updates and additional information as the situation unfolds. For the latest information,
sign up for the Grants Community of Practice by clicking at:
https://www.performance.gov/CAP/grants/
Appendix A-Administrative Relief Exceptions for COVID-19 Crisis
Federal awarding agencies are authorized to take the following actions, as they deem
appropriate and to the extent permitted by law, with respect to the administrative provisions that
apply to recipients grantees affected by COVID-19 (for both recipients with COVID-19 related
grants and other types of Federal grants). Awarding agencies are required to maintain records on
the level of particular exceptions provided to recipients. Awarding agencies must require
recipients to maintain appropriate records and documentation to support the charges against the
Federal awards.
1. Allowability of Salaries and Other Project Activities. (2 CFR § 200.403, 2 CFR §
200.404, 2 CFR § 200.405)
Awarding agencies may allow recipients to continue to charge salaries and benefits to active
Federal awards consistent with the recipients' policy of paying salaries (under unexpected or
extraordinary circumstances) from all funding sources, Federal and non-Federal. Awarding
agencies may allow other costs to be charged to Federal awards necessary to resume activities
supported by the award, consistent with applicable Federal cost principles and the benefit to the
project. Awarding agencies may also evaluate the grantee's ability to resume the project activity
in the future and the appropriateness of future funding, as done under normal circumstances
based on subsequent progress reports and other communications with the grantee. Under this
flexibility, payroll costs paid with the Paycheck Protection Program (PPP) loans or any other
Federal CARES Act programs must not be also charged to current Federal awards as it would
result in the Federal government paying for the same expenditures twice. Awarding agencies
must require recipients to maintain appropriate records and cost documentation as required by 2
CFR § 200.302 -Financial management and 2 CFR § 200.333 - Retention requirement of
records to substantiate the charging of any salaries and other project activities costs related to
interruption of operations or services. Due to the limited funding resources under each federal
award to achieve its specific public program goals, awarding agencies must inform recipients to
exhaust other available funding sources to sustain its workforce and implement necessary steps
to save overall operational costs (such as rent renegotiations) during this pandemic period in
order to preserve Federal funds for the ramp-up effort. Recipients should retain documentation
of their efforts to exhaust other funding sources and reduce overall operational costs.
2. Extension of Single Audit Submission and COVID-19 Emergency Acts Fund
Reporting. (2 CFR § 200.512)
Awarding agencies, in their capacity as cognizant or oversight agencies for audit, may allow
recipients and subrecipients that have not yet filed their single audits with the Federal Audit
Clearinghouse as of March 19, 2020 that have normal due dates from March 30, 2020 through
June 30, 2020 to delay the completion and submission of the Single Audit reporting package, as
required under Subpart F of2 CFR § 200.501 -Audit Requirements, up to six (6) months beyond
the normal due date. Audits with normal due dates from July 31, 2020 through September 30,
2020 will have an extension up to three (3) months beyond the normal due date. No further
action by awarding agencies is required to enact this extension. This extension does not require
individual recipients and subrecipients to seek approval for the extension by the cognizant or
oversight agency for audit; however, recipients and subrecipients should maintain documentation
of the reason for the delayed filing. Recipients and subrecipients taking advantage of this
extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR § 200.520 (a)
Criteriafor a low-risk auditee .
Additionally, in order to provide adequate oversight of the COVID-19 Emergency Acts
funding and programs, recipients and subrecipients must separately identify the COVID-19
Emergency Acts expenditures on the Schedules of Expenditures of Federal Awards and audit
report findings.
To receive the latest information on grants, including COVID-19 update, sign up for the
Grants Community of Practice by clicking at: https://www.performance.gov/CAP/grants/
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