Earnings Operations: Grant Compliance and MOU Agreements

Beginning with FY25, Memorandum of Understanding (MOU) agreements which lock internal fees for a set period must be adjusted for any annual changes in rates over the life of the MOU. To be compliant with federal Uniform Guidance regulations for specialized service facilities (2 CFR 200.468) which applies to all internal service providers, federal grants must be charged the lowest rate based on the FP&A approved internal rate that is published and in effect for that fiscal year. 

Earnings operations billing federal grants that have existing MOU agreements in place can honor them through the end of next fiscal year, ending June 30, 2025. MOU and Statement of Work (SOW) arrangements are still acceptable for industry sponsored research. The Grants Shared Service Center will still be executing MOUs with FDC to cover construction projects.