Home / Resources / 2 CFR 200.302 explained
Plain-English guide · for nonprofits
2 CFR 200.302, explained in plain English
Updated October 2026
§200.302(b) lists seven things your books must do. The first, (b)(1), is to identify every federal award you received and spent, with its Assistance Listings title and number, its federal award identification number, the year it was issued, and the agency or pass-through entity that made it. The other six: accurate reports, receipts behind every record, control of your assets, budget-to-actual checks, and written steps for payments and for allowable costs.
Paragraph (b) at a glance
| Paragraph | What your system must do |
|---|---|
| (b)(1) | Identify every federal award received and expended, and its program: Assistance Listings title and number, federal award identification number, year issued, and the federal agency or pass-through entity |
| (b)(2) | Disclose each award's financial results accurately, currently and completely |
| (b)(3) | Keep records of the amount, source and spending of federal funds, backed by source documentation |
| (b)(4) | Keep effective control over funds, property and assets |
| (b)(5) | Compare spending with the budget for each award |
| (b)(6) | Written procedures for payment, under §200.305 |
| (b)(7) | Written procedures for deciding which costs are allowable, under subpart E |
Charging salaries to an award? (b)(3) wants records behind them. Our free time and effort certification template has a monthly and a semi-annual form ready to use. And for (b)(2), the grant reporting requirements checklist lists what each report asks for.
The seven requirements
§200.302 is the financial management section of the Uniform Guidance. Paragraph (b) is a list. Translated:
(b)(1) Identify every federal award you received and spent
By award and by program. Paragraph (b)(1) spells out what the identification must include, where it applies: the Assistance Listings title and number, the federal award identification number, the year the award was issued, and the name of the federal agency or pass-through entity. This is what makes the schedule of expenditures of federal awards possible later.
(b)(2) Disclose the financial results of each award accurately, currently and completely
Accurate, current and complete are the three words. "Current" is the one that bites: reports built from books three months behind do not satisfy it.
(b)(3) Keep records that identify the amount, source and expenditure of federal funds
With source documentation behind them. An entry with no receipt is not a record. For salaries, that means time and effort records under §200.430 on compensation, and a time and effort certification template is one way to keep them.
(b)(4) Keep effective control over funds, property and assets
And use them only for authorized purposes. This is where §200.302 hands off to §200.303.
(b)(5) Compare expenditures against the budget for each award
Not once at the end. This is a running comparison, and you need to be able to show you did it.
(b)(6) Written procedures for payment
Implementing the requirements at §200.305, which covers how you draw and hold federal cash.
(b)(7) Written procedures for determining allowable costs
Under subpart E and your award terms. See §200.403 for what allowable actually means, and §200.405 on allocable costs for splitting a cost across grants.
The two that are actually work
Written procedures (6 and 7). The regulation does not ask whether you follow a good process. It asks for the document. Two short policies, one on payment and one on allowability, close both items, and "what is your written procedure?" is a question an auditor will ask.
Budget-to-actual (5). Your accounting tool can likely produce this report. Run it monthly per award and file the result; that is the difference between having a control and being able to show one.
What it does not require
No particular tool. No fund accounting package, no separate bank account per grant, no specific chart of accounts. A spreadsheet-based system can satisfy §200.302 if it does the seven things and the records are real. What it cannot survive is being reconstructed at year end. If you do want a fund accounting package, our Aplos alternatives guide compares the options and their 2026 prices.
This is general information, not legal or accounting advice. Federal grant rules change and are applied differently by different agencies and auditors. Check with your auditor, your grant officer, or an attorney before relying on any of it.
The Ember tool for thisEmber Budget
Ember Budget tracks money in and out by program and keeps restricted funds apart from flexible funds. Unlimited users on every tier.
Sources: 2 CFR Part 200 (eCFR), read 1 September 2026 and re-checked 3 October 2026. Federal grant rules change; check the current text before relying on this.