Cost Principles
The OMB published 2 CFR Part 200 (referred to as the “Supercircular”)
to streamline the Government-wide guidance on Administrative Requirements,
Cost Principles, and Audit Requirements for Federal awards.
The consolidation of the circulars is a key component of a
larger effort to more effectively focus Federal resources on improving
performance and outcomes, while ensuring the integrity of Federal
funds in partnership with State, local, and tribal stakeholders. The
Department of Transportation (DOT) adopted the Supercircular regulation
under 2 CFR Part 1201 effective December 26, 2014. The implementation
of the Supercircular cancelled 49 CFR Parts 18 and 19.
The adjustments set forth by the guidance include, but are
not limited to, the following:
- Increased internal control efforts;
- Standardization of terminology and definitions in the industry (including changes to the cost principles that reflect modern business practices and use of technology);
- Standardized business processes and cost treatment.