Source: http://www.rfsuny.org/media/RFSUNY/Procedures/excerpts-unallowable-costs_gui.htm
Timestamp: 2017-07-26 20:28:52
Document Index: 504141540

Matched Legal Cases: ['art 200', 'art 200', 'art 200', 'art 200', 'art 200', 'art 200', 'art 200']

Excerpts: Unallowable Costs Excerpts: Unallowable Costs
On or after December 26, 2014, 2 CFR Part 200 is effective and applies to all new awards issued. Funding awarded prior to this date and/or incremental funding may still be governed by OMB Circular A-110, A-21, or A-133, depending on the awarding agencies specific terms and conditions. Specifically for sub-awards issued on prime awards subject to A-21, the RF is responsible for determining whether its sub-recipients have met the audit requirement outlined in A-21. This guideline identifies costs that may not be directly or indirectly charged to a federal sponsored project. For complete unallowable cost descriptions please refer to 2 CFR Part 200.
The following is a listing of Costs that are Unallowable either as a Direct or Indirect Charge to Federal Grants and Contracts.
*Note: These excerpts are a high-level summary. CFR Part 200 section Subpart E Cost Principles should be referred to for specific questions and language.
2 CFR Part 200 Section Reference
Commencement and convocation costs are unallowable, except, except as provided for in OMB Appendix III to Part 200 section B.9. Student Administration and Services.
Housing costs, housing allowances and personal living expenses are only allowable as direct costs and must be approved in advance by the federal awarding agency. 447
Insurance costs when reasonable and necessary are generally allowable. See section 445 for specifics. Insurance to protect against defects in the institution's materials or workmanship are unallowable. Losses which could have been covered by insurance are unallowable unless expressly allowed by the sponsor. 448
Interest on borrowed capital, temporary use of endowment funds, or the use of an institutions own funds are unallowable except as an indirect cost provided for in OMB Appendix III to Part 200 section B.3. Interest. 450
Preaward costs are allowable only when deemed necessary for the performance for the scope of the federal award and only to the extent that they would have been allowable if incurred after the date of the federal award and only with written approval of the federal awarding agency. 463
Recruiting costs for help wanted advertising, special emoluments, fringe benefits and salary allowances incurred to attract professional personnel from other institutions that do not conform with the established practices of the institution are unallowable. 464
Rental costs under "sale and leaseback" arrangements and "less-than-arm’s length" leases are only allowable up to the amount that would be allowed had the entity continued to own the property.
A-21 Excerpts: Unallowable Costs
The following is a list of Costs that are Unallowable either as a Direct or Indirect Charge to Federal Grants and Contracts.
A-21 Section Reference
Contingency provision costs are unallowable.
Costs incurred by the institution for defense of suits brought by its employees or ex-employees are unallowable if the institution was found liable or settled.
Costs of legal, accounting, consultant services, and related costs incurred with defense against government claims or appeals, or the prosecution of claims or appeals against the government are unallowable.
Costs of legal, accounting, consultant, and related costs, incurred in connection with patient infringement litigation, are unallowable unless otherwise provided for in the sponsored agreements.
Depreciation reserves: Institutions shall expend currently, or reserve for expenditure within the next five years, the portion of indirect cost payments made for depreciation under sponsored research agreements, to acquire repair, renovate, or improve buildings or equipment directly used for organized research.
Donations or contributions made by the institution regardless of the recipient are unallowable.
Entertainment costs including amusement, diversion, and social activities and any costs directly associated with such costs are unallowable.
Executive lobbying cost incurred in attempting to improperly influence either directly or indirectly, an employee or officer of the federal government regarding a sponsored agreement are unallowable.
Fines and penalties costs resulting from failure of the institution to comply with federal, state, local or foreign laws and regulations are unallowable unless specifically approved by a federal agency.
Goods and services costs for personal use are unallowable.
Housing and personal living expenses are unallowable.
Insurance costs to protect against defects in the institution's materials or workmanship are unallowable.
Interest, fund raising and investment management costs are unallowable except for cost related to the physical custody and control of monies and securities and for interest cost paid to external parties for assets (buildings and equipment) used to support sponsored agreements.
Membership costs in any civic, community organization, country club or social or dining club or organization are unallowable.
Preagreement costs prior to the effective date of the sponsored agreement are unallowable unless approved by the sponsoring agency.
Selling and marketing costs of products or services of the institution are unallowable.
Specialized service facilities charges should be designed to recover not more than the aggregate cost of the services over a long-term period agreed to by the institution and the cognizant federal agency.
Airfare travel costs in excess of the lowest available commercial discount airfare or customary standard coach airfare are unallowable except in special circumstances.
Trustees travel and subsistence costs, regardless of the purpose of the trip, are unallowable.
The indirect cost proposal will not be accepted by the federal cognizant agency unless a certificate of indirect cost is signed by an individual no lower than vice president or chief financial officer.
Updated to the new format and changed Refernce #'s 431 and 449.
The document was changed based on the changes in 2 CFR Part 200 Subsection E.
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