U.S. Department of Housing and Urban Development

Community Planning and Development

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Special Attention of: Transmittal Handbook No.: 1300.20

CPD Staff

CDBG Grantees Issued: June 30, 1983

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1\. This Transmits

Handbook 1300.20, Cost Principles for Non-Profit Organizations,

OMB Circular A-122.

2\. Purpose:

The Office of Management and Budget (OMB) has established a

set of cost principles to enable a uniform approach to the

problem of determining costs for nonprofit organizations in

its Circular A-122, July 1980. This Handbook is a brief

introduction and a full reprinting of the Circular.

3\. Filing Instructions:

Insert Handbook 1300.20 dated June 30, 1983.

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Handbook 1300.20

U.S. Department of Housing and Urban Development

Office of Community Planning and Development

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Program Participants

and Departmental Staff

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Cost Principles for

Nonprofit Organizations

(A Reprint of Office of

Management and Budget

[Circular A-122](http://www.whitehouse.gov/omb/circulars/index.html))

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1300.20

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FOREWORD

Circular A-122 provides uniform rules for determining costs

applicable to grants, contracts, and other agreements (including

subawards) with nonprofit organizations other than institutions

of higher education and hospitals. It defines allowable costs

and sets forth the procedures to recover them. The principles

are designed to provide that Federally assisted programs bear

their fair share of costs. The Circular also provides that one

Federal agency shall negotiate grantees\' indirect costs on behalf

of all other Federal agencies.

Headquarters personnel may direct their questions on the material

in the Handbook to the Office of Procurement and Contracts.

Field personnel may direct their questions to the respective

Regional Contracting Officer.

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