A recipient, on the other hand, is involved in all of these things. Vendors are not subject to federal grant compliance requirements. Recipients and subrecipients ARE responsible. A primary recipient's efforts to assure that subrecipients have complied with federal laws and regulations. OMB Circular A-122 specifies certain costs that are not reimbursable by federal grant programs.
Some examples are alcohol and bad debts.
It also describes requirements for the reimbursement of allowable costs. Total Quality Management is one of the management mantras of the mid to late nineties in many organizations. There is also a site with on-line articles about TQM . Activity Based Costing is a method of costing products and services that attempts to assign total and complete costs. It is time consuming and requires specialized software to be automated.