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[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 54409, Sept. 10, 2015]

2 CFR 200 Compliance Supplement (Frequently Asked Questions—July 2017 update)

.331-2 Limits on layers of Subrecipients for Indirect Costs

Q: Is there a limit on the number of layers of subrecipients at which the requirement to pay indirect costs is no longer applicable? For example, a state may pass-through Federal grant funds to a local government. The local government may then pass all or some of the funds through to a local nonprofit, which then also utilizes the services of other nonprofit providers as subrecipients.

A: No, there is no limit under the Uniform Guidance, but the Federal award may have a limit.

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