For more detailed information, refer to section J of Circular A-21. The recruitment of personnel required for the performance by the institution of obligations arising under the sponsored agreement, when considered in conjunction with all other recruitment cost, are allowable, as set forth in J37. Alcoholic beverage costs are unallowable. J3 Alumni activity costs are unallowable. If a department has expenditures directly related to Alumni activity, they must be coded as unallowable.
Bad debts are unallowable.
Commencement and convocation costs are unallowable. If a department has expenditures directly related to commencement or convocation, they must be coded as unallowable. Institution furnished automobile costs for personal use is unallowable. Contingency provisions are unallowable. Defense and prosecution of criminal and civil proceedings, claims appeals and patent infringement are generally unallowable.