What is the guideline for expenditures over the simplified acquisition threshold according to 2 CFR 200.320 B?

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The correct choice states that formal procurement is required unless a lower threshold is set by the non-federal entity. This aligns with the guidelines established under 2 CFR 200.320, which provides specific rules for the procurement process concerning federal grant expenditures.

According to these regulations, once expenditures exceed the simplified acquisition threshold, organizations receiving federal funds must adhere to a more rigorous procurement process to ensure that purchases are made fairly, transparently, and judiciously. However, it is also acknowledged that non-federal entities have the discretion to establish a lower threshold for when formal procurement procedures must begin. This flexibility allows entities to tailor their procurement processes to their specific needs and operational circumstances while still maintaining compliance with federal requirements.

This approach emphasizes accountability and ensures that funds are spent appropriately, thereby supporting the core principles of effective grants management. The guideline's structure helps prevent waste, fraud, and abuse, while encouraging responsible financial practices among recipients of federal awards.

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