The Office of Management and Budget (OMB) issues cost principles for all Federal agencies
that award grants and contracts to state and local governments. 2 CFR 200 establishes
cost principles for determining costs applicable to those grants and contracts. The
circular contains general principles for determining allowable costs, both direct
and indirect. It also contains information and guidance concerning the development
and submission of statewide cost allocation plans (SWCAP) and indirect cost rates.
In addition, the Department of Health and Human Services (HHS), in coordination with
OMB, has developed an implementation guide entitled, “A Guide for State, Local and
Indian Tribal Governments,” (ASMB C-10). The ASMB C-10 is intended to assist governmental
units in applying the principles and standards contained in 2 CFR 200. [The ASMB C-10
replaced and supersedes HHS Brochure OASC-10.] The guide is mandated by OMB and is
a government-wide document. The standards therein supersede any other conflicting
standards. These guidelines are available on the internet at the following addresses:
https://obamawhitehouse.archives.gov/omb/circulars_default/
https://www.hhs.gov/grants/index.html