The Office of Management and Budget issues Circulars regarding cost principles and administrative requirements for entities receiving federal money.
The circulars pertaining to educational and non-profit organizations may be found at the OMB Circulars site.
OMB circular A-21 provides principles for determining the costs applicable to research and development, training, and other sponsored work performed by colleges and universities under grants, contracts, and other agreements with the Federal Government. These agreements are referred to as sponsored agreements. More specifically, section "J" provides guidelines for unallowable costs.
Examples of allowable and unallowable costs:
|
Cost Type |
Allowable |
Comments |
|
Alcoholic Beverages |
NO |
Use Foundation Account |
|
Communications charges |
Some |
Line and unit charges are NOT allowed. Local, long distance are allowed |
|
Donations/Contributions |
NO |
The value of doanted goods and services qualify for cost sharing under A-110 |
|
Entertainment |
NO |
Use Foundation Account |
|
Equipment & other Capital Expenditures |
Yes |
Must be budgeted in the approved award. |
|
Maitenance & Repairs |
Yes |
Actual costs incurred on items used on research project |
|
Memberships/Subscriptions |
Yes |
Technical & Professional only. No civic etc. memberships |
|
Pre-Agreement Costs |
NO |
See OPAS under "Expanded Authority" |
|
Professional Services |
YES |
See also PSI, PSC. |
|
Alteration Costs |
YES |
Special alterations for specific project must be pre-approved. |
|
Recruitment Costs |
YES |
e.g. Reasonable relocation costs |
|
Equipment & Building Rentals |
YES |
|
|
Scholarships & Student Aid |
NO |
GRA Salaries allowed. Pay on Training Grants allowed |
