What is the main focus of UG 200.400 Subpart E?

The main focus of UG 200.400 Subpart E is cost principles. This subpart provides guidelines and requirements regarding the allowability of costs charged to federal awards. Cost principles define what costs are permissible, how they should be allocated, and the conditions under which they can be incurred. Understanding these principles is crucial for applicants and recipients of federal funds to ensure compliance and to maintain proper financial management throughout the life of the grant.

This subpart emphasizes the need for careful consideration in budgeting and spending, making it essential for effective grants management. By establishing clear standards, it helps organizations avoid potential pitfalls related to costs that could jeopardize their funding or lead to disallowed expenses. Such regulations ensure that federal funds are used effectively and transparently, benefiting both the grantee and the federal government.

The other areas mentioned, such as pre-award requirements, post-award management, and audit procedures, are critical components of the Uniform Guidance, but they are not the main focus of Subpart E, which specifically deals with cost principles.