Allowable and Unallowable Costs under the Uniform Guidance
Under the Uniform Guidance, costs may be charged to Federal awards provided they are:
- Necessary for the performance or administration of the grant
- Given consistent treatment; for example, costs may not be considered direct costs if costs used for similar purposes and in similar circumstances were previously considered indirect costs
- Reasonable, meaning individuals act with prudence, ensuring costs are:
- comparable to market prices for similar goods and/or services for the geographic area
- necessary for the operation of the non-Federal entity
- in compliance with the terms and conditions of the Federal award
- in compliance with Federal, state and other laws and regulations
- Adequately documented
- In accordance with Generally Accepted Accounting Principles
Under the Uniform Guidance, the following expense categories
generally may not be charged to Federal awards:
generally may not be charged to Federal awards:
Advertising and Public Relations:
Prohibited expenses include:
- Advertising costs solely for the promotion of the non-Federal entity
- Expenses such as the costs of renting facilities, wages for employees running display booths, and display materials of advertising and public relations at meetings, conventions, or other events related to the entity.
- Costs of promotional materials such as gifts, souvenirs, etc.
Exceptions include:
- Expenses solely for the recruitment of personnel or the procurement of necessary goods and services required for the operation of the grant program
- Expenses for program outreach and other purposes necessary to meet the requirements of the award
- Expenses for communicating with the public and press on matters pertaining to the award or matters of public concern
Selling and Marketing:
Prohibited expenses include:
- Costs of selling or marketing any products or services of the non-Federal entity
- Selling and marketing expenses approved by the Federal awarding agency
- Selling and marketing expenses necessary for the performance of the Federal award
Lobbying:
Prohibited expenses include:
- Costs associated with persuasive activities for the purpose of obtaining grants, contracts, cooperative agreements or loans
- Costs resulting from attempts to improperly influence an employee or officer of the executive branch of the Federal Government regarding a Federal award or regulatory matter
Advisory Councils:
Prohibited expenses include:
- Costs incurred by advisory councils or committee
- Costs of advisory councils or committees that are authorized by statute, the Federal awarding agency, or as an indirect cost where allocable to Federal awards
Capital Expenditures:
Prohibited expenses include:
- Costs of general purpose equipment, buildings, and land
- Costs of improvements to land, buildings, or equipment which materially increase their value or useful life
- Capital Expenditures previously approved by the Federal awarding agency or pass-through entity
Fines, Penalties, Damages, and Other Settlements:
Prohibited expenses include:
- Expenses resulting from non-Federal entity violations of, alleged violations of, or failure to comply with, Federal, state, tribal, local, or foreign laws and regulations
- Expenses incurred as a result of compliance with specific provisions of the Federal award, or with prior approval of the Federal awarding agency
Bad Debts:
Prohibited expenses include:
- Debts determined to be uncollectable
- Losses from uncollectable accounts and other claims
- Expenses incurred from related legal costs
Contributions and Donations:
Prohibited expenses include:
Prohibited expenses include:
- Contributions and donations such as cash, property, and services from non-Federal entity to other entities
- Including the value of services and property donated to the non-Federal entity
- Including the value of services volunteered to the non-Federal entity, whether by professionals, technical personnel, consultants, and other skilled and unskilled labor
Memberships, Subscriptions, and Professional Activity
Prohibited expenses include:
- Costs of membership in any country, social, or dining club or organization
- Costs of memberships in organizations whose primary purpose is lobbying
Goods or Services for Personal Use:
Prohibited expenses include:
- Costs of goods or services for the personal use of the non-Federal entity’s employees, regardless of whether the cost is reported as taxable income to the employees. Examples include decorative objects and artwork for private office and personal computers that are not being used for the purpose of the Federal award
Alumni Activities:
Prohibited expenses include:
- Costs incurred by institutions of Higher Education for, or in support of, alumni activities
Student Activity:
Prohibited expenses include:
- Costs of intramural activities, student publications, student clubs, and other student activities
- Expenses of student activities specifically provided for in the Federal award
Travel:
Prohibited expenses include:
- Expenses for airfare which exceeds the least expensive unrestricted accommodations class offered by commercial airlines
- Expenses for airfare that exceeds the least expensive accommodations when such accommodations would:
- Require travel during unreasonable hours
- Require circuitous routing
- Prolong travel excessively
- Result in additional costs that would offset the transportation savings
- Offer unreasonable and inadequate accommodations for the traveler’s medical needs
Entertainment:
Prohibited expenses include:
- Tickets to shows or sports events, meals, lodging, rentals, transportation, gratuities, flowers, gifts, prizes and awards
- Expenses related to amusement, diversion, and social activities
- Expenses related to entertainment which have a programmatic purpose and prior approval of the Federal awarding agency
Alcoholic Beverages: