Allowable / Unallowable Costs
All grant/contract expenditures must be based on the cost principles outlined in the Office of Management Budget Circular A-21 guidelines. Allowable costs can be charged to the grant fund, however, unallowable costs must be charged to the department. Following is a list of unallowable costs listed in OMB Circular A-21:
- Advertising and Public Relations Costs
- Alcohol
- Alumni Activities
- Bad Debt
- Commencement and Convocation Costs
- Contingency Provisions
- Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringement
- Donations and Contributions
- Entertainment Costs
- Fines and Penalties
- Fund Raising and Investment Costs
- Goods or Services for Personal Use
- Housing and Personal Living Expenses
- Idle Facilities and Idle Capacity
- Interest
- Lobbying
- Losses on Other Sponsored Agreements or Contracts
- Pre-agreement Costs unless allowed by Sponsor
- Selling and Marketing
- Student Activity Costs
For further details, click on the White House - Office of Management and Budget link: CIRCULAR A-21: Cost Principles for Educational Institutions.
